Coal2022Analysis and forecast to2025 INTERNATIONALENERGYAGENCYThe IEA examines the full spectrum of energyIEA member countries:Spainpue Addns [eoa pue seb 'jo Bupnpul sanss!demand, renewable energy technologies,AustraliaSwedenelectricity markets, energy efficlency, acoess toAustriaSwitzerlandenergy, demand side management and muchBelgiumRepublic of Turkiyemore. Through its work, the IEA advocatespolicies that will enhance the reliabilty.CanadaUnited Kingdom fuaua jo iqeuesns pue ieproeCzech RepublicUnited Statesmember countries, 11 sssociation countries andDenmarkbeyond.EstoniaThe European CommissionFinlandalso participates in the workFranceof the IEAThis publication and any map included herein areGermanywithout prejudice to the status of or sovereigntyGreeceIEA association countries:over any territory, to the delimitation ofHungaryArgentinaintermaltional frontiers and boundaries and to theIrelandname of any territory, city or area.ItalyChinaJapanKoreaIndonesiaIndiaLithuaniaLuxembourgMoroccoMexicoSingaporeNetherlandsSouth AfricaNew ZealandThailandNorwayUkraineSource: IEA.PolandIntemational Energy AgencyPortugalWebsile: wwwjed.otgSlovak Republiclea AbstractCosl 2022AbstractCoal sits in the centre of climate and energy discussions because itis the largest energy source globally for electricity generation andfor the production of iron and steel and of cement, as well as thelargest single source of carbon dioxide (COz) emissions. Thecurrent energy crisis has forced some countries to increase theirreliance on coal in spite of climate and energy targets.Coal 2022 offers a thorough analysis of recent trends in coaldemand, supply, trade, costs and prices against a backdrop ofrising concern about energy security and geopolitical tensions. Italso provides forecasts to 2025 for demand, supply and trade byregion and by coal grade. The report contains a deep analysis ofChina, whose influence on the coal market is unparalleled by anyother country and in any other fuel.The IEA's Coal Market Report has been published every Decembersince 2011, becoming the global benchmark for coal demand,interest in climate and energy.PAOE|3lea Table of contentsCosl 2022Table of contentsExecutive summaryDemand.10Aiddns35Trade53Thermal Coal.LS"Metallurgical Coal..66Prices and costs.-72Prices.73Costs86Coal mining projects.95General annex..PA0E [4lea ExecutivesummaryExecutivesummaryPA0E |5lea ExecutivesummaryCosl 2022ExecutiveSummaryGlobal coal demandissettorise in2022amidtheupheavaloftheenergycrisisCoal markets have been shaken severely in 2022, with traditionalCoal used in electricity generation, the largest consuming sector, istrade flows disrupted, prices soaring and demand set to grow byexpected to grow by just over 2% in 2022. By contrast, coal1.2%, reaching an all-time high and surpassing 8 billion tonnes forthe first time. In last year's annual market report, Coai 2021, wesaid that global coal demand might well reach a new peak in 2022or 2023 before plateauing thereafter. Despite the global energyGlobal coal power generation rises to record levelscrisis, our overall outlook remains unchanged this year, as variousIn 2022, high natural gas prices led to significant fuel switching tofactors are offsetting each other. Russia's invasion of Ukraine hascoal in electricity generation in Europe, although both gas and coalsharply altered the dynamics of coal trade, price levels, and supplygeneration increased as the growth of wind and solar wasand demand patterns in 2022.insufficient to fully offset lower hydro and nuclear power output, InFossil fuel prices have risen substantially in 2022, with natural gasChina, low hydropower output in the summer amid a big heat waveshowing the sharpest increase. This has prompted a wave of fuelpushed coal power generation significanty higher. In August, coalswitching away from gas, pushing up demand for more price-competitive options, including coal in some regions. Nonetheless,to over 500 terawatt-hours (TWh). This monthly level of generationis higher than the total annual coal power generation of any othercountry. except India and the United States. In India and China,the increase in overall coal demand this year. In China, whichwhere coal is the backbone of electricity systems and gas accountsaccounts for 53% of global coal consumption, prolonged andfor just a fraction of power generation, the impact of steeper gasstringent Covid-19 lockdowns have weighed heavily on economicprices on coal dermand has been limited. Nevertheless, increasedactivity, undermining coal demand. At the same time, droughts andcoal use in these countries has replaced some gas, which has beenheat waves in China this summer accelerated coal buming to meetpurchased by other regions willing to pay more for it, Coal powera surge in power demand for air conditioning.generation will rise to a new record in 2022, surpassing its 2021PAOE|6lea ExecutivesummanyCosl 2022levels. This is driven by robust coal power growth in India and theGloba