BAKU, Azerbaijan, June 7. Global investment in coal production is projected to reach a record high in 2025, according to the International Energy Agency (IEA), marking a 4% increase from 2024, Trend reports.
However, the pace of growth is showing signs of slowing, with this year’s rate of increase only half the average annual rise seen over the past five years.
The IEA notes that China and India continue to dominate the global coal investment landscape, accounting for nearly all of the growth in 2024 and likely to do so again in 2025. South Africa and parts of Southeast Asia, including Vietnam, are also expected to boost domestic coal production.
Despite the increase in spending, the IEA says the outlook for coal demand remains bearish in the long term, with a slowdown in new coal mine developments already visible in the global project pipeline. Most of the new export-oriented coal projects under consideration are located in Australia (62%), Russia (11%), and South Africa (10%).
Infrastructure developments are continuing in several countries, with Indonesia and Mozambique building new rail and port facilities to expand export capacity. Russia is upgrading coal terminals in its eastern regions, aiming to deepen trade ties with Asia. Meanwhile, both Russia and Mongolia have announced new rail links to China to facilitate coal exports.
Coking coal, used in steelmaking, is attracting more investor interest than steam coal, which is increasingly being replaced by alternative energy sources in power generation. The IEA also highlights rising investment in existing coal assets rather than new projects, driven by economic uncertainty, falling prices, and growing resistance from insurers, financial institutions, and the public.
