BAKU, Azerbaijan, December 19. Global coal production saw a 3.4% year-on-year increase in 2023, reaching a total of 8,993 Mt, according to the International Energy Agency (IEA), Trend reports.
China, once again, led the charge in boosting production to avoid the shortages experienced in 2022. However, the growth rate slowed compared to the previous year.
Indonesia and India were also key contributors to the rise in output, with each country increasing production by more than 85 Mt. Indonesia’s growth was driven by higher international demand for thermal coal and stronger domestic consumption. Meanwhile, India’s focus was on securing coal supplies for its power plants and reducing dependency on imports.
Looking ahead, the IEA expects global coal production to hit a new all-time high in 2024, surpassing 9 billion tons for the first time. India is set to remain the largest contributor to this growth, although declines in the US, EU, and Russia are expected to temper the overall increase. 2024 may be the first year since the COVID-19 pandemic without substantial growth in global coal production.
Over the longer term, the agency forecasts a slight decline in global coal output, driven by weak demand growth and high coal inventories. The biggest declines are expected in the US, EU, and Russia, while Indonesian output is projected to shrink due to a drop in Chinese demand for seaborne thermal coal. Despite this, India's power sector's increasing demand will continue to support its production, although overall global output is expected to decline to 8,984 Mt by 2027.