Sibanthracite Group is ranked first in the production and export of UHG anthracite throughout the world, and is the largest producer of metallurgical coal at the domestic level. Sibanthracite Group is one of the most dynamically developing coal companies in Russia. The coal production amounted to 6 million tonnes in 2014, and 24.1 million tonnes in 2018.
While the media continues to focus on the development of solar and wind energy, coal continues to surge in popularity in Southeast Asia. According to a recent Bloomberg article, the demand for coal is expected to double to more than 400 million tonnes in the region by 2040. A prediction that is even higher than anticipated, despite a shift in focus on renewable power sources.
Why is coal the fuel of choice in Southeast Asia? The answer is, above all else, affordability. Economic growth in Southeast Asia has exploded in the last few decades, inciting an immediate and urgent demand for energy and materials. The population continues to increase, prompting new construction for housing and businesses. While the financial situation continues to improve for people in this region, it isn’t a process that occurs overnight. It will be a long time before Southeast Asian countries can move away from the financial efficiency of coal. Renewable energy simply cannot be built fast enough, or cheaply enough, to keep up with energy demands. Fossil fuels are expected to make up more than 75% of the energy produced in 2040, despite the building of renewable energy infrastructure at twice the rate of coal production.
One of the region’s current largest exporters of coal, Indonesia, will soon have difficulty meeting the ever-increasing demand. In Southeast Asia, more than 100 gigawatts of coal-fire capacity have been constructed with 30 additional gigawatts to be completed very soon. These nations need someone with a large mining and exporting capacity to help meet their ever-rising needs.
While Indonesia’s coke coal is incredibly affordable, it is not nearly as efficient as other coal varieties. As the infrastructure in Malaysia and Vietnam continues to develop and improve, nations will require higher grade coal sources, like ultra-high-grade (UHG) anthracite. Russia is the top exporter of high grade (HG) and UHG anthracite and a dominating force when it comes to the mining and exportation of metallurgical coal. Russia is forecasted to overtake coal export volumes in Southeast Asia by 2040. Russia has already ramped up production and export capacity, anticipating the needs of the region in the near future.
Despite the media’s focus on moving towards investment in renewable energy, coal will still be the dominant fuel source in Southeast Asia for some time. It is up to mineral-rich countries, like Russia, to rise to the occasion and assist in the booming progress of the region.
Dmitry Bosov Sibanthracite Group is ranked first in the production and export of UHG anthracite throughout the world, and is the largest producer of metallurgical coal at the domestic level. Sibanthracite Group is one of the most dynamically developing coal companies in Russia. In 2018, it produced 24.1 million tonnes of coal and anthracite.