Modern Mining November 2022

COAL

Much maligned, coal proves its resilience By Vuslat Bayoglu, Menar MD

For centuries coal has been a vital cog in the world’s energy mix. It lit the flames of the Industrial Revolution and these flames have grown brighter with every passing generation. And, while the ‘imminent demise’ of coal has been the sub ject of speculation and forecasts for decades, this versatile and cost-effective commodity continues to attract demand from developed and developing countries as they seek reli able and cost-effective energy to propel their economies.

The IEA notes that coal consumption in the EU is expected to rise by 7% in 2022.

Vuslat Bayoglu, Menar MD.

C oalbrookdale, a small village in the UK, has been dubbed the cradle of the Industrial Revolution. This is because it was there, in 1709, that Abraham Darby discovered how to smelt iron ore using coking coal. Philip Riden in his journal article The Output of the British Iron Industry before 1870 , notes that this discovery transformed the making of iron, with annual production in Britain increasing substantially from about 2 500 tons per annum in the early 1700s to 28 000 tons per annum by the 1750s to 180 000 in 1800 and 2.5 million by 1850. The growth in British iron production was a cata lyst for major industrial projects across Europe, such as the construction of bridges, extensive railway net works and the manufacture of machines. Coal-fired engines were crucial to the running of agricultural complexes, the establishment of factories, and the production of steamships and locomotives. In addition to its metallurgical uses, coal was cen tral to the Industrial Revolution as a power source. The steam engine harnessed the power of heat energy from coal which it transformed into mechani cal energy. Ever since, coal has remained crucial to the industrialisation of economies the world over.

Coal mining also played a fundamental role in bringing about peace and stability to post-World War 2 Europe by providing stable power and being the key ingredient for the European Coal and Steel Community, a precursor to the European Union (EU). Peaks and Troughs In 2020, global coal demand experienced its larg est drop since the Second World War, declining 5% from 2019 levels. Coal’s decline was only marginally down in power generation compared to industrial applications, such as steel manufacturing. Industrial sectors were severely subdued by global Covid-19 lockdowns. Measures to slow the transmission of Covid-19, notably in the first half of 2020, resulted in a sub stantial drop in electricity demand. This in turn significantly affected the use of coal for power gen eration, which was made all the worse owing to low natural gas prices. In the second half of 2020, when countries relaxed their lockdowns and their econo mies rallied, coal consumption rose substantially, particularly in the emerging global industrial hubs of China and India. At the same time, gas prices started rising leading to a greater uptake of coal in Europe. By the third quarter of 2020, global coal consumption had almost returned to 2019 levels. And then, during the final quarter of 2020, global coal demand increased by around 3.5% year-on-year. This was largely a result of the robust performance of the Chinese economy and the economic rebound in India. Another fac tor that aided the increase in demand for coal was extreme cold in parts of Asia, which meant that homes needed additional power for heating. In 2021, with countries determined to recover losses incurred during 2020, industrial output and energy demands rose rapidly. Electricity demand greatly outpaced what renewable energy sources could supply, and natural gas prices were start ing to rise sharply. Global coal power generation increased by around 9% in 2021, to 10 350 ter awatt-hours (TWh), which was an all-time high for

Coal remains crucial to the industrialisation of economies the world over.

10  MODERN MINING  November 2022