SACE | Southern Alliance for Clean Energy

The Economist: Coal Mining – In the Depths


As more countries turn against coal, producers face prolonged weaknesses in prices

“…growing energy efficiency, rising pollution worries and stiffer competition from other fuels mean that in most countries the tide is turning against coal. Prices have been sliding, political opposition growing and demand dropping. The Dow Jones Total Coal Market index has fallen by 76% in the past five years.”

“Overall, coal kills around 800,000 people a year, most of them poor.”

“The biggest danger for the coal miners is that capital ceases to flow their way. Investors can cope with a cyclical business, but the fear now is of a structural shift, in which China follows the rich world in beginning to phase out coal, India increasingly produces its own, and a plentiful supply of cheap gas keeps prices low everywhere. ”

Originally Published on March 28, 2015