From electricity generation and industrial production, to job creation, thermal coal impacts economies and lives.
Power Generation
Almost 40% of all electricity generated in the world comes from coal power plants. The reason being that thermal coal is not only relatively inexpensive but it is also available abundantly. Thus providing cost-efficient energy security, which is essential for economic and infrastructure growth, particularly in developing countries.
Thermal coal is responsible for powering homes and factories, businesses and stores, thereby enabling industrial production, commercial activities and making our everyday lives more comfortable. With reliable electricity supply, businesses and industries can run smoothly and contribute towards GDP growth.
Industrial Production
Thermal coal is used as feedstock for several industrial processes. Thermal coal is used to produce coke, which is a crucial ingredient in the smelting process required for the production iron and steel. In the cement manufacturing process, thermal coal is used to heat limestone and clay at very high temperatures in a process called calcination in order to convert them into lime and cement clinker which are essential for cement production. Ae we all know, manufacturing, infrastructure development and the construction industry depend on iron, steel and cement, making them vital for economic growth.
Job Creation
The coal mining industry itself creates millions of direct jobs across the world. But the indirect jobs created are manifold that of the direct jobs. Think of all the jobs created in the transportation industry because coal from the mines is moved by trucks, trains and ships. The transportation industry in turn is supported by ancillary industries like logistics, equipment manufacturing and maintenance and so on. Power plants too employ everyone from skilled to semi-skilled and skilled workers.
Quite often thermal coal mines are located in remote areas where, without mining operations, job opportunities are scarce. So thermal coal is also responsible for the economic growth of rural populations.
In summary, it is quite evident that thermal coal is a big economic driver, contributing to economic prosperity in myriad direct and indirect ways.
