Coal reserves are estimated to reach 729 billion tons (2009) globally, which should last for another 120-125 years at current coal production levels. Reserves are part of total coal resources¹, which can be economically produced at the current state of technology. In comparison, estimation of oil and gas reserves are 40-45 and 60-65 years respectively. Both highly industrialized and developing countries have very large coal deposits.
Cumulative Coal Production, Reserves and Resources
Source: BGR (2009); Dr. Lars Schernikau “Economics of the International Coal Trade. The Renaissance of Steam Coal”, Springer, 2010.
In 2009 6.1 billion tons of coal were produced. This translates to a 90% increase compared to 25 years ago. The five biggest coal-producing nations are China, USA, India, Australia and South Africa. The largest share of global coal production is used locally for electricity generation and only 15%, some 916 million tons (2009), are traded internationally.
The five most important applications for coal are:
- Electricity generation (74% of coal consumption)
- Steel production (13% of coal production)
- Cement production (10% of coal production)
- Coal liquefaction
- Other industrial applications, such as aluminum refineries, paper works, chemical and pharmaceutical industries.
¹Resources are estimated at. 8.800 billion tons, which would allow for another 1.800 years at the current level of production