Figure 4 - uploaded by Paul Baruya
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Indicative metallurgical coal FOB cost curves 2013-2015 by country (IEA, 2016a; IHS, 2017c; Author's estimates)
Source publication
Review of the FOB cost of production of steam coal exports. The report examines price trends and the supplier response to the world decline in prices in 2011-16. The cost structure of the major exporters is such that they operate with greater productivity and operational efficiency and are able to withstand softer market conditions than before.
Context in source publication
Context 1
... higher price for coking coal justifies the extra costs associated with selective mining, coal cleaning and processing that are often needed to achieve the higher qualities required. Figure 4 shows the cash cost curve for coking coal for 2015 by country. Three countries supply more than 90% of the world's metallurgical coal exports. ...
Citations
... Por ello es clave "desenmascarar" las situaciones en las que se presenta información de forma sesgada o selectiva. En el caso de la relación entre empleo y producción de carbón, llama la atención que la minería es uno de los sectores más intensivos en el uso de capital (máquinas, vehículos, etc.) (Baruya 2018 Una arista adicional del problema de las carboneras en Colombia, más allá de los mercados en retiro, es la de un cada vez más difícil acceso a capital de inversión y crédito. De acuerdo con diversas fuentes, numerosas entidades financieras han empezado a deshacerse de los activos relacionados con la extracción y la comercialización del carbón, en aras de reducir su exposición al riesgo de que sus activos pierdan todo el valor cuando los mercados internacionales de carbón sufran un colapso aún mayor y el carbón no pueda ser exportado (Ansar, Caldecott, y Tilbury 2013). ...
... Por ello es clave "desenmascarar" las situaciones en las que se presenta información de forma sesgada o selectiva. En el caso de la relación entre empleo y producción de carbón, llama la atención que la minería es uno de los sectores más intensivos en el uso de capital (máquinas, vehículos, etc.) (Baruya 2018 Una arista adicional del problema de las carboneras en Colombia, más allá de los mercados en retiro, es la de un cada vez más difícil acceso a capital de inversión y crédito. De acuerdo con diversas fuentes, numerosas entidades financieras han empezado a deshacerse de los activos relacionados con la extracción y la comercialización del carbón, en aras de reducir su exposición al riesgo de que sus activos pierdan todo el valor cuando los mercados internacionales de carbón sufran un colapso aún mayor y el carbón no pueda ser exportado (Ansar, Caldecott, y Tilbury 2013). ...
En esta revisión documental, tejemos mucho del conocimiento existente sobre la situación actual del sector carbonífero a gran escala en Colombia para responder las interrogantes que con mayor frecuencia hemos recibido por parte de comunidades afectadas por la minería de carbón, sindicatos, academia, entre otros.
Desde la situación actual del sector carbonífero, hasta las realidades de la lucha contra el cambio climático, pasando por el aporte laboral de la minería de carbón o algunos de sus múltiples impactos ambientales o sociales, tratamos de ofrecer una mirada crítica que complemente el retrato que se tiene de esta actividad extractiva.
The last period (starting with the pandemic) cataclysms determined the importance for the macro- and microeconomies resilience as the ability of ecosystems, business, society to cope with shocks and continue to function in approximately the same way. The topic of resilience is extremely important for mining companies, because they cannot afford any relocation and industrial repurposing. The goal of this work is to clarify the essence of resilience and identify the factors that determine it for subjects of the market system. Research methods: general scientific – abstraction, analysis, synthesis, observation, generalization; the microcosm-system approach, which is an extension of the world-system approach to microeconomics; cumulative cost curves; single-factor production functions; methods of mathematical and statistical analysis; Zipf-Pareto law. The base of observations is the global coking coal market, production and economic indicators of the Ukrainian iron ore mining company. It is shown that the unprofitability of industrial and commercial activity is a necessary but not sufficient condition for the microcosm-economy to lose resilience. The loss of resilience is a process whose active actors, along with the direct subjects of the market, are their owners, the state and other subjects and authorities. The final stage of resilience loss occurs after the market subject crosses a certain point of no return. A model of a certain market is a cumulative cost curve. The final part of the cumulative cost curve`s graph, where the elements with the worst economic characteristics (high-risk group) are located, is significantly non-linear. The rank of the element position on the curve mathematically determines with the Zipf-Pareto law the cost value and identify the zone of market entities profitable functioning according with the market price of products. The application of the logit-regression model makes it possible to estimate the probability of a market subject's profitability loss at its inherent cost and the confidence interval of prices observed during a certain period. The risk degree of resilience loss is determined not only by the factors of the market itself, but also by the production function characteristic of the subject of market activity. The article provides an example of a one-factor logarithmic production function of a Ukrainian iron ore mining company.
With the Glasgow Climate Pact 2021, the global community has committed explicitly to phasing down coal consumption. Yet the coal supply sector continues to develop new capacities, despite the risk of asset stranding. This article presents the first assessment of the implications of 1.5°C mitigation pathways for the coal mining industry. Based on open coal mine data and a new version of the open coal sector model COALMOD-World, the prospects for individual coal mining regions and their risk of early mine closures and asset stranding are analyzed. Results show that global cumulative production capacity from operating thermal coal mines exceed the remaining consumption values for 2020 through 2050 by more than 50 %. This supply-consumption discrepancy would hit Russia and the USA especially hard, causing the stranding of around 80 % of operating capacities in each case. But the early closure of operating coal mines would affect all of the world's major thermal coal producing regions, with most regions seeing more than three-fourths of their mine capacity closing early by 2030. Stranded assets from operating coal mines would total some USD 2015 120 to 150 billion until 2050, with an additional USD 2015 100 billion should currently proposed new coal mining projects be realized. If demand declines in accordance with 1.5°C pathways, new coal mines or mine extensions would be redundant in all coal regions. Although the stranded asset value of mines is relatively small compared to that of the coal power plant sector, early closures would especially affect workers and local communities. Thus, efforts are urgently needed to ensure a just transition in coal mining regions and to address excess operating and proposed coal supply capacities that continue to fuel global warming.
