World Energy Resources | 2016

WORLD ENERGY COUNCIL | WORLD ENERGY RESO URCES 2016
coal is an essential element in blast furnace steel production, making up 70% of total steel
production (the remainder is produced from electric arc furnaces using scrap steel).
Steel is an essential material for modern life. Manufacturing steel delivers the goods and
services that our societies need – healthcare, telecommunications, improved agricultural
practices, better transport networks and access to reliable and affordable energy. Steel is a
critical component in the construction of transport infrastructure and high energy efficiency
residential housing and commercial buildings.
China is by far the world’s largest steel producer followed by Japan, the United States,
India and Russia. There has been a significant shift towards China in global steel markets
over the past decade. China’s share of global production increased from just over 15% in
2000 to more than 49% in 2014 48 .
However, other developing economies in Latin America, Asia, Africa and the Indian subcontinent,
where steel will be vital in improving economic and social conditions, are also
expected to see significant increases in steel production. In these regions, according to the
World Steel Association, more than 60% of steel consumption will be used to create new
infrastructure. With world steel production expected to continue to grow, the outlook for the
coking coal sector will also be strong.
There are socio-economic benefits and concerns with regards to managing coal resource.
Firstly, one can look at the benefit of coal mining in rural and remote areas where transport
infrastructural development becomes the norm since roads or rail needs to be present for
the transfer of coal. The impact of coal on infrastructure development is more noticeable in
developing nations due to the absence of pre-existing infrastructure. The rail line used to
transport coal can also be utilised by a variety of industries. The investment in infrastructure
caused by the energy industry helps to foster economic development. Also, the local
population will benefit since employment is provided and hence, other businesses will begin
to prosper owing to the increase in market transactions and needs.
On the other hand, concerns can also be seen in that the natural topography of land close
to the mining area is disrupted and disfigured. In addition, air quality significantly
deteriorates as coal dust particles linger in the atmosphere; however, this is mainly due to
poor emissions control. Another effect of poor management practices is the change that
mining brings to ground water, as the water course is diverted in order for extraction
process to occur 49 . This often would have an impact on communities that depend on
underground water to sustain their source of income or for survival.
2015/document/World%20Steel%20in%20Figures%202015.pdf p.7
48
https://www.worldsteel.org/dms/internetDocumentList/bookshop/2015/World-Steel-in-Figures-
2015/document/World%20Steel%20in%20Figures%202015.pdf p.9
49
Mutemi, A. (2013). MUI Coal mines: A blessing or a curse? Socioeconomic and environmental intricacies.
University of Nairobi.
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