FX.co ★ Top 5 key coal-producing countries in the world

China

China is the leader in coal production in the world. It has 13% of the world's reserves (141,595 billion tons), and the share of production of this raw material reaches an impressive 50%. In these terms, China has overtaken other countries. For example, in Indonesia, the share of coal production is 9%, and in India, it is even lower, 8%. In China, coal is produced in the north and northwest of the country, in the Inner Mongolia Autonomous Region, as well as in the provinces of Shanxi and Shaanxi. From January to November 2023, China's coal production increased by 2.9%. This is much more compared to the same period in 2022. At the same time, China remains the leading consumer of this raw material. Coal here accounts for 61% of the country's electricity production. In addition to the largest volume of production, China is also the largest buyer of this fuel from other countries, namely Russia, Indonesia, Mongolia, the United States, and Australia. The high consumption of coal could be explained by the huge number of factories, primarily those that produce steel. Most of all, coal is needed to generate electricity.

Indonesia

Indonesia took second place among the leading coal-producing countries. The economic structure of this Asian country is 44% services, 38% industry, and 13% agriculture. In the mining sector, iron ore mining takes the lion's share, followed by coal. Indonesia has 39.8 billion tons of reserves of this fuel. The state's mining capacity is concentrated in Sumatra, Kalimantan, North Java, and Sulawesi. According to estimates, Indonesia is one of the largest exporters of thermal coal. The country's authorities sell it to India, China, Japan, Malaysia, the Philippines, South Korea, Thailand, Vietnam, and Hong Kong. However, since January 2022, the Indonesian government has imposed a ban on coal exports to stabilize its own energy market and minimize the risk of possible resource shortages.

India

The third position among the leading coal-producing countries is occupied by India, an agrarian and industrial country that overtook France in terms of GDP. According to analysts, in the near future, India's growing economy, like that of China, will boost demand for coal. This could hardly be prevented by the Indian authorities' ambitious intention to develop and launch renewable energy innovations. During the fiscal year ending March 2023, India's coal production increased to 893 million tons. This is almost 15% more than what was recorded in 2022. According to experts, India has one of the highest levels of energy consumption, using oil and coal for power generation. To cover its energy needs, India has to import a lot of coal, as its own fuel is not enough. However, Indian coal is not of the highest quality, so the raw material has to be purchased from other countries and used for steel mills. The largest reserves of this fossil fuel are found in the Indian states of Jharkhand, Odisha, and Chhattisgarh. The largest deposit of lignite is in the state of Tamil Nadu.

Australia

The fourth place in this ranking is occupied by Australia. Note that the country has a developed economy, with most people employed in the services sector. In addition, Australia has a strong timber industry, one of the priorities of which is the harvesting of eucalyptus. Pine plantations occupy the lion's share of the territory. However, the country's wealth is largely provided by the mining industry. The green continent abounds in minerals such as diamonds, lead, iron ore, zinc, oil, gas, and coal. Most of the coal mined is exported to Asian countries like Japan, China, India, South Korea, and Vietnam. The rest of the fuel is used for domestic needs. There are large deposits in the states of Queensland and New South Wales. Australia has 149 billion tons of proven coal deposits.

US

The United States closes the list of the top five major coal-producing countries in the world. It has the largest coal reserves, which total 249.5 billion tons (this is 23% of the world's reserves). At the same time, the United States ranks first in the world in terms of hard coal production (219.5 billion tons). Lignite reserves in the country amount to 30 billion tons. The main deposits are located in the states of Wyoming, West Virginia, Pennsylvania, Illinois, and Kentucky. The largest coal deposits in the USA are found in the Powder River Basin, the Appalachian Basin, and in the state of Illinois. Currently, the United States is trying to use renewable energy sources to minimize harm to the environment. The country's authorities are trying to reduce the amount of energy produced by coal. Their success in this area has been quite impressive. For example, in 2003, coal produced 50% of all electricity, and in 2022, this value dropped to 20%.