‘Coal Is Here To Stay For The Foreseeable Future’

The International Energy Agency forecasts that coal will remain among the largest single sources of electricity generation for another 30 years, with it currently accountable for 41% of global generation and 29% of all primary energy demand.

Outside of gold, coal is arguably one of the first mineral resources that springs to mind when the conversation turns to mining. Coal has been mined as a resource for energy for decades, and as with any commodity, there has and will always be a suggestion that it’s on the decline and mine operators and explorers should be seeking alternative opportunities.

This conversation is largely stimulated by the majors of the world, such as Rio Tinto selling all of its coal assets as it seeks to “streamline its portfolio”.

While this is very much the case, Rio Tinto believes that its other metals-based assets are much more viable and profitable than coal – a major mining operator exiting one of the most profitable mineral sectors speaks volumes as to its position in the current mineral market. Couple this with the news that China is continuously seeking more alternative renewable energy sources, being one of the largest consumers and producers of coal, what does the future hold for coal mining?

To Rio Tinto, coal may very well have lost some of (if not most of) its sparkle, but some of the biggest players are still very much alive and kicking in the coal market. Glencore remains the largest exporter of coal globally and has invested billions of dollars in purchasing those Rio Tinto coal assets, but it’s not only the larger players that are defining the industry of today and, more importantly, the industry of tomorrow.

One company in particular is embarking on an ambitious growth journey in Southern Africa.

“Coal is here to stay for the foreseeable future,” says Andre Boje, CEO of Minergy Limited. “There is high demand for coal in Southern Africa, and it is likely to remain the most affordable fuel for power generation in many developing and industrialized countries for decades.”

The International Energy Agency forecasts that coal will remain among the largest single sources of electricity generation for another 30 years, with it currently accountable for 41% of global generation and 29% of all primary energy demand.

Full post

via The Global Warming Policy Forum (GWPF)

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April 7, 2018 at 04:31AM

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