Coal
Overview
Global thermal coal prices surged to record levels in 2022, experiencing unprecedented volatility. Prices have since come off as risks associated with Europe’s supply recede. At a global level, coal demand remains robust with security of supply shifting higher up the agenda of many governments in light of geopolitical upheaval.
In Europe, sanctions have shifted the region’s coal import mix away from Russia and towards other suppliers. The pace of coal plant phase-outs in the region is set to increase in the years ahead, with the role of coal in the electricity mix shifting further towards peak-load usage, making forward planning more challenging.
In Asia-Pacific, thermal coal remains a pillar of the power and industrial sectors. Global coal trade flows and price spreads are shifting, with flows from key suppliers Russia, Indonesia, Australia, South Africa, Colombia, and the US penetrating new markets, in response to price dynamics and trade barriers.
Keeping on top of prices and flows, and how coal markets intersect with other energy and commodity benchmarks, will be critical in the coming years.
Latest coal news
Browse the latest market moving news on the global coal industry.
Indonesian coal bottlenecks squeeze seaborne supply
Indonesian coal bottlenecks squeeze seaborne supply
Singapore, 17 September (Argus) — Tighter regulatory oversight of Indonesian coal production has begun to constrain seaborne supplies, with a major low-calorific value (CV) coal producer declaring force majeure earlier this week against the backdrop of ongoing quota restrictions. Dry weather has compounded the pressure, disrupting logistics across key producing regions. The disruptions come at a critical time for northeast Asian utilities preparing for winter and for other coal-consuming markets grappling with energy supply concerns. Most buyers have deferred August-October cargoes to November-December to ensure availability for winter demand, according to an Indonesian trader. Some have instead brought forward Australian cargoes while postponing Indonesian shipments. "Buyers are definitely more cautious now. The biggest concern is not really price. It's whether the cargo can be delivered on time," a Singapore-based trader said. Producer Bayan Resources declared force majeure on 14 September, suspending term and spot shipments because of insufficient coal availability after some mines reached their approved production limits. The company is awaiting approval for additional mining quotas, known as RKABs, from Indonesia's energy ministry. Quota delays have prompted buyers to scrutinise cargo origins and assess whether suppliers have sufficient approved production volumes to meet loading schedules, traders said. Some market participants are also seeking earlier shipments and building additional buffers into supply chains to mitigate potential delays. The tight availability of Indonesian low-CV coal leaves buyers with few alternatives. Comparable grades are not widely available from other exporting countries, while Indonesian coal remains attractive because of its low sulphur content and relatively low freight costs compared with Australian supplies. Buyers of mid- to high-CV coal have greater flexibility and can switch to Australian or Russian cargoes, depending on freight economics and end-user specifications, market participants said. "Overseas customers are starting to see Indonesia as less reliable right now, with RKAB delays and the river disruptions combined," an Indonesian mining company said. "Some have already started looking at other countries as backup supply, which could matter especially heading into winter procurement schedules." Domestic consumers, including captive power plants and smelters, are also facing tighter coal availability. These buyers are less able to switch to imports because of their smaller volume requirements and potential permitting constraints, the mining company added. Higher output, mounting logistics constraints Favourable dry-season mining conditions in Kalimantan have boosted coal yields for some producers, but moving those volumes to market has become increasingly difficult. Persistently dry conditions have left several rivers too shallow for normal barge operations, forcing producers to seek alternative loading points. Logistics options remain limited because hauling roads are poorly connected and many jetties are privately controlled. Operational jetties have reduced barge loadings to around 5,000t from the typical 7,500-8,000t. Producers in central Kalimantan are also struggling to receive diesel supplies as parts of the northern Barito River have become too shallow or inaccessible. Elevated diesel prices, linked partly to Middle East supply disruptions, have added further pressure to production costs. Forest fires across Kalimantan have created additional operational challenges. One trading company with mining assets in Indonesia temporarily halted operations several times because of poor visibility caused by haze. "Most RKAB approvals for additional volume only came through late August or early September, so producers only have three to four months left to sell extra volumes this year," an Indonesian producer said. "That's causing everyone with new approvals to compete for jetty slots at the same time, right when jetty capacity itself is disrupted. The concern isn't just limited jetty space. It's the limited time that's forcing everyone to compete at once." Significant volumes of coal are accumulating at jetties awaiting transportation as a result. The build-up is creating cash-flow pressures for producers unable to monetise inventories, market participants said. "Once heavy rain returns and rivers normalise around October-November, there's likely going to be a flood of supply released all at once, which could push prices down," the producer added. By Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Pa. study finds PJM short on generation
Pa. study finds PJM short on generation
Houston, 16 September (Argus) — Grid operator PJM Interconnection is projected to miss its reliability planning standard through 2030 even with the new power generation it expects to add, because data-center driven electricity demand is growing faster than supply, according to a Pennsylvania study. The study's base-case outlook, which uses PJM's 2026 load forecast and assumes resource supply gradually improves through 2040, found the grid operator fails to meet its reliability standard from 2027-30 in the absence of new policies. The Pennsylvania Public Utility Commission (PUC) said it commissioned the study to understand how rapid load growth, generator retirements and delays in new resource development could affect reliability across Pennsylvania and the broader PJM region, which covers 13 states the District of Columbia, making it the biggest grid operator in the US. "Across all scenarios, new in-state generation additions do not keep pace with the growth of in-state load," the report said. The system remains "tightly constrained" even as new resources are added, with the model selecting most generation technologies up to their assumed build limits, the report said. Under the study's base-case scenario, PJM's gas combined-cycle fleet increases to 71.8GW in 2030 from 61.4GW in 2025, while solar capacity rises to 56.1GW from 14.7GW. Onshore wind capacity grows to 21GW from 11GW and battery storage expands to 7.9GW from 0.5GW. Pennsylvania policymakers are increasingly focused on how data center growth effects electricity prices and reliability. Governor Josh Shapiro (D) has lobbied his counterparts to take a more active role in shaping PJM's policies as it grapples with unprecedented load-growth projections. Shapiro recently imposed new requirements on data center development to ensure new large-load customers pay for the infrastructure needed to serve them and do not shift costs to existing ratepayers. The report projects Pennsylvania will remain PJM's largest generation state, but its share of regional generating capacity shrinks over time as more resources are added in states such as Virginia and Ohio. Pennsylvania's share was 23pc in 2025 and is projected to fall to 20-21pc by 2030 and 14-17pc by 2040. Through 2030, most new generation added in Pennsylvania consists of solar and battery storage. By 2040, the state's gas combined-cycle fleet rises to 32GW from 20GW in 2025, while coal capacity falls to about 1GW from 4.6GW. Across all modeled scenarios, the study projects 14-29GW of coal retirements across PJM by 2040 as plants reach the end of their useful lives and face competition from more economic resources. The study did not evaluate specific solutions to the projected reliability shortfall, including whether extending the lives of existing coal plants or adding capacity beyond the modeled resource mix would improve reliability outcomes. Thermal generators were assumed to retire on or before their scheduled retirement dates, with additional retirements based on modeled economics, PUC officials said in response to questions from Argus . By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Dutch fossil exit roadmap highlights difficulties
Dutch fossil exit roadmap highlights difficulties
London, 16 September (Argus) — The Netherlands has published a roadmap on transitioning away from fossil fuels, outlining the difficulties the country will face in the transition and setting no date for an ultimate halt to fossil fuel use. The plan aims at the "minimisation" of fossil fuel use by 2050, with its "ultimate" phase-out date left undefined. It identifies challenges in moving away from each of natural gas, oil and coal. The country committed to producing a roadmap to end fossil fuel use at the UN Cop 30 climate summit in Brazil last year, and recommitted to it at the Transitioning away from Fossil Fuels conference in Santa Marta in May. The latter conference was organised outside of formal UN channels and attended only by countries keen to advance on cutting fossil fuel use. The Netherlands co-hosted the meeting with Colombia. But the Latin American country's new administration has since said it plans to pursue a different approach to transitioning to cleaner energy, reopening the door to expanding oil and natural gas. The Dutch government said that the transition away from gas is made more difficult by the fuel's role in the Netherlands' energy system. "As long as full-fledged, sustainable alternatives are insufficiently available, natural gas remains essential for our society," the roadmap reads. Gas plays a large role in balancing the Netherlands' renewable-heavy power system, filling in during periods of low intermittent renewable output. Replacement of gas in domestic heating is underway, with increased electrification and insulation reducing consumption in recent years. But "uncertainties are considerably greater" on the use of gas in industry, the government said. Allocating fixed costs of the gas network to a shrinking number of users during the transition represents another difficulty. Some changes have been made which frontload costs to the coming years, when they can be spread across more users. Gas consumption would fall to around 110TWh by 2040, from around 250TWh in 2025, under the government's plan. But alternative government projections suggest consumption could fall to 140-190TWh. The government plans to prioritise domestic production of gas, citing its lower climate impact compared to imported LNG, and lower dependence on other countries. The country produces around 20 mn m³/d of natural gas, or the equivalent of 100TWh/yr. On oil, the government considers the transition to be relatively sure in mobility. But it said that phasing out of fossil fuel use in the chemical sector is more uncertain as demand for sustainable raw materials remains slow as a result of a lack of policy support. Coal use in the Netherlands is limited to the power and steel sectors. In the former, a ban will come into force in 2030, although this will negatively affect security of supply, according to the roadmap. In the steel sector the replacement of the country's two coal-consuming blast furnaces could take place in the 2030s, although this will depend on "technological and market developments," the government said. Environmental non-governmental organisation (NGO) welcomed the publication of the roadmap, but criticised the absence of phase out dates for oil and gas and ongoing gas production. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Australia’s Queensland moves to curb mining objections
Australia’s Queensland moves to curb mining objections
Sydney, 16 September (Argus) — Australia's Queensland state government has introduced a bill to restrict objections to mining lease approvals, aiming to accelerate project approvals and limit legal challenges to mine expansions from climate activists. The centre-right Liberal National party (LNP) government introduced the Mineral Resources Objections Reform and Other Legislation Amendment Bill 2026 to parliament on 16 September. The proposed bill would prevent individuals outside of directly affected communities from objecting to mining lease approvals. The change would allow objections from individuals situated within 125km of a mining lease boundary, enabling local communities to oppose mining approvals while limiting "environmental lawfare driven by activists," Queensland minister for natural resources and mines Dale Last said today. The bill would also replace the automatic referrals to Queensland's land court with a process giving government ministers discretion to refer objections they consider warranted for a hearing or independent review. The change could be especially important for coal mine expansions, which are often subject to strong community scrutiny on climate grounds. Conservation group the Queensland Conservation Council said the bill would severely limit the ability of Queenslanders to object to mining projects and allow ministers to "pick and choose" which community objections would get heard in court. The bill would widen the gap between mining approval processes in Queensland and New South Wales (NSW) state. NSW has stopped issuing greenfield permits for thermal coal mines, while Queensland has said coal will remain an integral part of its energy system until at least the 2040s. Coal mining approvals in NSW have been marked by significant community opposition. The NSW court of appeal blocked Mach Energy's proposed extension of its 10mn t/yr Mount Pleasant thermal coal mine in July 2025 following opposition from an environmental group. Mach Energy sought to overturn this decision with an appeal in May, and the case remains before the High Court of Australia. The Hunter Valley Operations (HVO) coal mining complex, a joint venture between Chinese-Australian producer Yancoal and Switzerland-headquartered Glencore, is awaiting approval for an extension from NSW's independent planning commission (IPC). The proposed extension has been met with opposition from the NSW Net Zero Commission and environmental activists and received over 4,200 public objections, according to the IPC's website. Public scrutiny prompted the IPC to delay its approval decision, which was due on 4 September, by an additional month. By Emma Partis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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