Mastering the Commodities Markets

WORLD PRODUCTION AND RESERVES

It was estimated in 2011 by the World Coal Association (WCA) that there are over 847bn tonnes of proven coal reserves worldwide, sufficient for around 118 years at current rates of production. In contrast, proven oil and gas reserves are equivalent to around 46 and 59 years respectively at current production levels. According to the WCA, consumption of coal is projected to grow by approximately 1.5 per cent per annum until 2030, with Asia being the biggest market (around 60 per cent of global production – the bulk of which is for China) (see Figure 5.3). Most countries in the region supplement their existing reserves with additional seaborne coal supplies from Japan, Taiwan and South Korea.

Figure 5.3 Where is coal ...