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)
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 The output will be affected by the country’s continued plans to reduce outdated coal production capacity.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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