Damon Mcknight
Australia has vast coal reserves that vary in quality and type. The two main types of coal found in Australia are black coal and brown coal. Black coal, also known as anthracite or bituminous coal, is mined in Queensland and New South Wales and exported to Asian countries for industrial and manufacturing processes. Smaller deposits of black coal are also found in Western Australia, South Australia, and Tasmania. Brown coal, or lignite, is found in Victoria, South Australia, Western Australia, Queensland, and New South Wales. It is used for energy production and electricity generation.
| Characteristics | Values |
|---|---|
| Types of Coal | Black coal (anthracite, bituminous, sub-bituminous), brown coal (lignite) |
| Black Coal Locations | Queensland, New South Wales, Western Australia, Tasmania, Collie, South Australia, Fingal, Kimbolton |
| Brown Coal Locations | Victoria, South Australia, Western Australia, Queensland, New South Wales |
| Uses | Energy production, steelmaking, industrial chemicals, plastics, fertilizers, cosmetics, toothpaste, shampoo, conditioner, ornaments |
| Environmental Impact | High CO2 emissions, other pollutants |
| Global Ranking | 4th for economically demonstrated black coal resources, 2nd for economically demonstrated brown coal resources, 5th largest producer, 2nd largest exporter, 3rd largest reserves |
| Production and Export Figures | 2021: 75,428 million tonnes of black coal, 73,865 million tonnes of brown coal; 2019: 89,707 million tonnes of black coal, 85,634 million tonnes of brown coal |
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What You'll Learn
Black coal
Australia has a robust and world-leading mining industry, and coal has been integral to the country's economy. In 2021, Australia ranked second among International Energy Agency (IEA) member countries for the highest utilisation of coal in both energy generation and electricity production. Australia exports the largest share of coal of any nation, and coal exports have reached $100 billion, second only to iron ore.
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Brown coal
In 2016, Australia was the fourth-largest producer of brown coal in the world, after Germany, the Russian Federation, and the United States. Brown coal is largely used for energy production, including in Australia, where more than half of the nation's electricity is sourced from coal power. In 2017, coal was used to produce about 60% of the nation's electricity requirements. However, using brown coal for power generation is challenging due to its high water content. It crumbles easily when exposed to air, reducing its value as fuel and requiring specialised storage. It has also been known to spontaneously combust.
The Loy Yang Complex and Yallourn W power stations are located in the Latrobe Valley within the Gippsland Region of Victoria, and the coal is mined from near-surface deposits in the Yallourn-Morwell and Loy Yang coalfields. The Loy Yang open-cut mine provides fuel for about 50% of the state’s electricity needs. Owned and operated by AGL, the brown coal mine covers about 6,000 hectares in the Latrobe Valley, about 165 kilometres southeast of Melbourne.
Knowledge of the existence of brown coal in Victoria dates back to 1857, and the Yallourn North open-cut began production in 1889. Brown coal is produced and utilised almost exclusively in Victorian mines and power stations. Although Victorian brown coals are low in ash and sulfur, they have high moisture content and are not exported from Australia to overseas destinations.
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Bituminous coal
In Australia, bituminous coal is mined in Queensland and New South Wales, and it is used for both domestic power generation and export. The mining method can be either underground or open-cut, and the coal is transported by rail to power stations or export shipping terminals. Queensland and New South Wales hold the largest black coal resources in Australia, and about 70% of the coal mined in the country is exported, primarily to Asian nations.
The combustion of bituminous coal releases a significant amount of carbon dioxide, contributing to Australia's greenhouse gas emissions. In 2019, coal was responsible for 30% of Australia's greenhouse gas emissions, excluding methane and export coal. Additionally, the extraction of bituminous coal requires stringent safety procedures due to the release of firedamp, a dangerous mixture of gases that can cause underground explosions.
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Coking coal
In terms of geography, coking coal is predominantly found in Queensland and New South Wales, with about 60% of the known economic reserves located in the former and around a quarter in the latter. The Bowen Basin in Queensland, in particular, is known for its extensive coking coal deposits, which have been a major source of exports. The Sydney Basin in New South Wales is another important region for coking coal extraction.
The history of coking coal in Australia is quite interesting. It began exporting coking coal to Japan after World War II, aiding in their steel production. This marked the beginning of Australia's dominance in the coking coal market, and by 1984, it had become the number one coal exporter in the world. The high-grade coking coal extracted from the Illawarra region has been especially valuable, supporting a steel and steel products market with exports leaving via Port Kembla harbour.
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Metallurgical coal
Met coal is an essential part of the steel-making process. It is used to make iron and steel, as well as alumina, manufacturing chemicals, and other building materials. It takes around 770 kilograms of met coal to make one ton of steel. Met coal is also used in the production of everyday household appliances like ovens, fridges, and cutlery. In addition, it is used in transportation, including planes, trains, ships, trucks, and cars.
Met coal is the dominant type of coal in Australia, with about 60% of the known economic reserves located in Queensland and about a quarter found in New South Wales. It is mined through a combination of underground and open-cut methods and transported by rail to power stations or export shipping terminals. Australia is the world's largest exporter of met coal, with exports expected to rise from 156 million metric tonnes in 2024-25 to 163 million in 2025-26. The majority of Australian met coal is exported to Asian nations, particularly China, Japan, and South Korea, as well as to Europe and Latin America.
Despite its current dominance, the long-term outlook for metallurgical coal is uncertain. The Australian government's Resources and Energy Quarterly (REQ) report forecasts a decline in world trade for met coal, with Australian exports expected to peak in two years and then gradually decrease. This is due to the increasing shift in steel technology away from coal, as well as the negative profit margins at Chinese steel mills, a key buyer on the Australian spot market.
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Frequently asked questions
Australia has large reserves of both black coal and brown coal. Black coal, also known as anthracite or bituminous coal, is found in Queensland, New South Wales, Western Australia, and Tasmania. Brown coal or lignite is found in Victoria, South Australia, Western Australia, Queensland, New South Wales, and Tasmania.
Black coal is used for steelmaking, industrial processes, and electricity production.
Brown coal is primarily used for energy production and electricity generation.
