Global coal production ‘to grow marginally’ in 2020

With the Covid-19 outbreak in China, coal production dropped by 6% in the first two months of 2020

The Big Zero report

Global coal production this year is expected to note a ‘marginal’ increase of 0.5%, owing to disruptions in production caused by the Covid-19 outbreak.

Analytics firm GlobalData said global production is expected to increase to 8.17 billion tonnes in 2020, up slightly from 8.13 billion tonnes in 2019.

In the first two months of the year, China registered a 6% dip in production due to the extended Lunar New Year holidays and the lockdown put in place in response to Covid-19.

The nation plans to reduce the overall fall to 1.2% by end of 2020.

Vinneth Bajaj, Senior Mining Analyst at GlobalData, said: “Across the globe, compared with other commodities coal production is only expected to be marginally affected by the impact of the coronavirus as thermal coal mines are permitted to operate during lockdowns as they are deemed essential to maintain power supplies.”

Over the next four years, thermal coal production is expected to grow at a 1.9% rate, as China and India note an increase in demand.

In 2020, India is expected to produce 845 million tonnes of coal, marking an increase of 8.3% compared with 2019.

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