There are two major types of coal – coking coal and thermal or steaming coal. Coking coal is used to make coke, which is an essential ingredient in iron and steel production whereas thermal coal is used to provide heat energy. It is mainly used in power stations where coal heats water to produce steam. This steam then powers the turbines which produce electricity.

Uses of Coal

Ø It is used to make electricity.
Ø It is used in Steel production.
Ø It is used in Cement manufacturing
Ø It is used as a liquid fuel.

Producing Countries: China, United States, India, Australia, South Africa, Russia, Indonesia, Poland, Germany and Canada.

Consuming Countries: China, United States, India, Russia, Japan, South Africa, Germany, Australia, Poland and South Africa.

Exporting Countries: Indonesia, Australia, South Africa, Netherland, Venezuela, Canada, Poland, USA and China.

Importing Countries: Japan, South, Taiwan, Germany, United Kingdom, Russia, Canada, Spain, Italy and France.

Major Producing State in India: Jharkhand, Madhya Pradesh, Orissa, Andhra Pradesh, Maharashtra, West Bengal and Uttar Pradesh.

Indian Scenario:

The Indian coal industry is the fourth largest in terms of coal reserves and third largest in terms of coal production in the world. Coal India Ltd. (CIL), the country’s largest coal producer, produced 379.69 million tonnes of coal in the year 2007-08, against 360.61 million tonnes in the previous year. It is aiming for a total production of 425 million tonnes during the current year.

Global Scenario:

Coal is found across the world and is mined in 50 countries. In Australia, the two main locations are in the Sydney Basin in New South Wales and the Bowen Basin in Queensland. Most of the coal mined in the United States is produced about one billion tonnes per year. South African coal exports are projected to decline to 61 million tonnes in 2008 from 66 million tonnes last year.

National Commodity and Derivatives Exchange (NCDEX) has launched futures trading in thermal coal on 10th Sep 2008.