Top Five Coal Producing Countries (Million Tonnes, 2021)

  • China, India, Indonesia, United States of America, and Australia were the top five Coal producing countries (by volume) in 2021

  • China was the leading Coal producing country (by volume) in 2021, with a Coal production of 3,942.2 million tonnes, up 2.5% YoY

  • India ranked second (by volume in 2021) with a Coal production of 766.9 million tonnes (up 1.0% YoY), with the other three countries (Indonesia, United States of America, and Australia) cumulatively produced 1,638.0 million tonnes of Coal in 2021

Top Five Coal Producing Countries (Million Tonnes, 2021)

Published: Dec 2021
Source: GlobalData

Increasing Energy Demands Worldwide pose a greater threat towards Climate & Paris agreement goal of reaching climate neutral world by 2050. Combatting climate change forces, the world to switch to low-carbon sources of energy. To achieve the carbon-neutral target, companies are reducing operating emissions, reducing coal output, increasing investment in low-carbon metals like copper, cobalt, nickel, and zinc, and assisting in the implementation of low-emission technology, as, BHP Group Ltd pledged to reduce operational emissions by 2030.

Global coal production was impacted by stringent COVID-19 preventative measures in key coal mining countries such as China, the US, India, and South Africa, among others, coupled with the mine-specific reductions, which led to lower coal production. 

China is the largest coal-producing country in the world, with production reaching 3,942 million tonnes, a 2.5% growth. The country’s coal mine production is expected to remain flat, at a CAGR of just 1.1% between 2021 and 2025, to reach 4.1 billion tonnes in 2025. The output will be affected by the country’s continued plans to reduce outdated coal production capacity. India, the second-largest coal-producing country, with the production of 767 million tonnes in 2021. Similarly, India approved a new production-linked incentive (PLI) scheme, which is expected to encourage EV production and hydrogen fuel vehicles, which will lead to a reduction in coal production in the coming years. Other top coal-producing countries like Indonesia, the United States of America, and Australia have also taken measures to reduce coal production. 

Production is expected to grow at a compound annual growth rate (CAGR) of 2.3% between 2021 and 2025, to reach 8.8 billion tonnes in 2025. While thermal coal production is expected to have a relatively marginal growth, 2.0% CAGR to reach 7,549.6Mt in 2025, metallurgical coal production is expected to register strong growth, 4.2% CAGR to reach 1,216.9Mt in 2025.

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