India and China are largely dependent on Coal for fueling a majority of their energy needs despite the evident disadvantages of coal.China derives almost 80% of its electricity from coal while India uses Coal for 50% of its Energy Needs.Most of the new power plants being built in India have plans to use thermal power which means that the coal demand is going to skyrocket even as these 2 Asian giants are already suffering from coal shortages.India’s Coal Production is falling short as the Environment Ministry makes it tough for the coal miners to dig up virgin forest areas even as private Indian power companies keep on building gargantuan thermal power plants of more than 4,000 MW capacity.Most Indian companies are now racing to acquire coal mines abroad joining the Chinese companies.Seeing the massive potential in coal,international resource giants such as Rio Tinto and others are trying to access coal assets as well.
Coal has become the hottest energy topic in the world’s fastest growing economies India and China which depend on Coal for a majority of their Energy Needs.Despite Coal having many dangerous disadvantages,its Advantages of cheapness and abundance have made it the Fossil Fuel of choice..China consumes almost 45% of the global coal production while Indian […]
Mining Industry in India is an important economic sector which contributes significantly to the economy of India. India’s minerals range from both metallic and non-metallic types.The total working mines were 2,854 in 2007-08 with 569 mines belonged to coal and lignite, 676 mines to metallic minerals and 1,609 mines to non-metallic minerals.There were 755 mines in public sector and the remaining 2,099 mines in private sector.India is an important exporter of iron ore, titanium, manganese, bauxite, granite, and imports cobalt, mercury, graphite etc. India mineral resources of the country are surveyed by the Indian Ministry of Mines, which also regulates the manner in which these resources are used. The ministry oversees the various aspects of industrial mining in the country.Note Mining in India comes under both the ferderal and state supervision.
Coal is the largest source of electricity supply in the world with 41% of the global power coming from the burning of coal.The Pros of Coal have made the growth of Thermal Power Plants accelerate in developing countries like China and India.This has made Coal Stocks run up by more than 150% in 2010 and another 30% in 2010.However Coal is also the greatest contributor to Greenhouse Gas Emissions.Coal is also responsible for thousands of deaths directly and indirectly due to Coal Mining and Coal Combustion which leads to waste products like Mercury,Arsenic etc which are extremely toxic to human health.To solve the twin problems of cheap energy and global warming, a number of technologies have been been proposed which would reduce the harmful effects of Coal Combustion.
Despite a number of Clean Coal Technologies being developed and employed,carbon emissions from Coal Ming and Use can only be partly reduced and will not make a major impact on the problem of Climate Change.Clean Coal Technology is not a Green Solution to the Disadvantages of Coal.Saying that implementing Clean Coal Technology will result in Climate Change Mitigation is Greenwashing.That said these technologies need to be implemented till the world is ready to move away from its addiction to cheap energy provided by Coal even though it has a deleterious long term affect.
South Africa the most economically developed country in the African continent is also is one of the most dependent countries on Coal Energy.Almost 90% of the country’s requirements of Electrcity comes from GHG emitting dirty Thermal Power Plants.Sasol which is a leading energy provider in South Africa is the global leader in Coal to Liquid and Coal to Gas Technologies.In fact most of the Fuel Production in South Africa comes from Sasol plants built long time ago to take advantage of the country’s mineral rices and avoid the oil embargo placed on the country during apartheid.The country’s electricity situation is massively mismanaged with Eskom a monopoly producer and supplier of electricity hardly adding any capacity.This is due to low prices of electricity which now is being added suddenly at 25% each year.This comes after huge shortages slowing down the economy. South Africa has also come up with new Energy Plan which will largely replace Coal Energy by Nuclear and Renewable Sources of Energy.Note South Africa had been in talks to establish a massive solar plants with funding from China which would have used Suntech Solar Panels.There were also rumors of Yingli suppling solar equipment to the country.
Market Vectors KOL ETF provides a good well diversified way to invest in Coal which is seeing a massive upsurge in demand driven by India and China.For investors looking for individual stocks here is a list of US Solar Companies and Stocks and Indian Coal Stocks.China with around 3 Billion Tons of Coal Consumption and India with another 500 million Tons depend on King Coal for majority of their Energy Needs.While China generates 80% of its Electricity from Coal,India generates around 65%.While both countries have Huge Reserves and Production of Coal,their voracious demand is leading to surging imports.These Imports are being sourced from countries like Australia,Canada and USA which are going through Coal Mining Booms.Ports are getting congested as Infrastructure failed to meet the growing coal needs of India and China..The Biggest Advantages of Coal its Abundance and Cheapness of Coal has made it the Fossil Fuel of Choice for Electricity Companies building power plants in developing countries despite its Drawbacks.This has led to a fight to secure Coal Supplies through vertical integration into buying up of coal mines,building ports and railways to transport Coal.Though India too faces some environmental opposition,massive ultra mega power plants with capacity of 4000 MW are getting built by new Indian private utilities.