Annual Report 2010 - Verein der Kohlenimporteure eV

64 Market Consolidation Continues
The tendency towards market consolidation continues in
all of the producing countries. The plan of the Chinese
government to create several large hard coal companies,
each with over 100 million tonnes of annual output, is
also handling the major share of production and exports
in Indonesia.
However, the long term world market prospects are also
luring new companies into the coal export business,
thereby expanding the pool of suppliers.
In the case of coking coal – especially “hard coking
coal” – Australia has created a dominant position with
65-68% market share, which in turn is in the hands of
just a few producers. However, another player – Vale
(CVRD) – has stepped onto the coking coal scene. Vale
(CVRD) is developing its market participation through
projects in Mozambique as well as through its entry
into Australian coal mining. A number of international
companies are currently interested in opening new
mines in Mongolia, in partnership with or by acquiring
majority stakes in exiting mining companies.
Competition in the area of steam coal continues to be
broader, and in recent years Russia and Indonesia have
strengthened their positions on the market alongside
the traditional suppliers Australia, South Africa and
Colombia. The USA has also returned to the ranks of
international suppliers.
Damper on the Development of Coal
Gasification and Liquefaction Projects
Due to high oil and gas prices, coal-to-liquids (CTL)
projects were being considered in Australia, China and
the USA on the basis of low-cost coal deposits. With
the economic crisis and the emergence of inexpensive
shale gas and surplus LNG capacity, these projects were
not intensively pursued. The projects could however be
picked up again as oil prices are now increasing again.
If oil supplies worldwide should become tighter, natural
gas could push its way more strongly into the transport
fuel sector. South Africa is currently the only country
where coal is liquefied in large quantities – to produce
transport fuels. Approximately 45 million tonnes of
coal are processed each year.