CIAB Market & Policy developments 2005/06 - IEA

however, were also 17% lower.
144. Turkey has approximately 1.3 billion tonnes of hard coal reserves (41% proved),
managed by Turkish Hard Coal Enterprises (TTK). Existing production capacity is 5
million tonnes/year. Actual production in 2006 was 3.3 million tonnes, 50% higher than in
2005.
3.3.2 Brown Coal
Chart 3 - Brown Coal Production
(million tonnes)
Source: IEA Statistics
1400
1200
1000
800
600
400
200
0
1973 1980 1985 1990 1995 2000 2002 2003 2004 2005 2006e
EU(19) 537 592 682 605 407 373 390 387 388 381 374
OECD 590 699 849 807 626 614 622 616 613 621 620
World 836 986 1182 1178 914 894 894 903 894 906 914
© OECD/IEA, 2007
145. World production of brown coal has remained broadly stable at about 900 million tonnes
a year over the last ten years, with little variation in the regions from which it is produced.
146. Germany remains by far the world’s largest producer of brown coal, accounting for
almost 20% of world production. Lignite production in Germany was 176.3 million tonnes
in 2006 (54.2 MTCE) and is expected be about 180 million tonnes (55 MTCE) in 2007.
147. Spain’s two lignite mines will be closed by the end of 2007 because of their high sulphur
content.
148. Turkey produces both hard coal and lignite, but lignite is by far the more important of
these, with production spread through almost all regions of the country. The key lignite
producers are state owned; namely Turkish Coal Enterprises (TKI) and Electricity
Generation A.S. (EUAS). The private sector produces about 10% of total annual
production and has rights to some TKI and EUAS production through mechanisms
including leasing, transfer of operating rights, and contractor mining methods.
149. In 1989 a process began of transferring some key lignite mines from TKI, previously the
monopoly supplier of lignite to power plants, to the power generating company EUAS.
Three large mines, Sivas-Kangal, Afsin-Elbistan and Cayirhan, were transferred to EUAS
in 1989, 1995 and 2000 respectively, giving it control over the largest share of lignite
reserves (4.7 billion tonnes). Subsequently, EUAS transferred to the private sector two of
its lignite mines (Sivas-Kangal and Cayirhan). Reserves at private mines are now 2
billion tonnes and TKI, still regarded as the leading lignite producer, has reserves of
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