Thermal coal has an important role to play as the world transitions to renewable energy, particularly in emerging economies such as India and China.
India and China alone account for more than 50 per cent of global coal use, with the energy source a key driver of these expanding economies.
Given the scalability of renewable energy technologies is still in its infancy, flicking off the coal switch is complex for countries that rely on it not only as an economic driver but also as a poverty alleviator.
Energy poverty continues to impact countries across the world. According to the International Energy Agency (IEA), 43 per cent of Africa lacks access to electricity, with most of the affected countries in sub-Saharan Africa.
The IEA’s Sustainable Africa Scenario (SAS) is aiming to achieve universal access to affordable electricity in the continent by 2030.
To do this, coal will become an increasingly important resource. More of the world’s electricity is fuelled by coal than any other source and the mineral is accessible because it’s abundant and affordable.
One of Australia’s key producers of thermal coal is Bravus Mining and Resources, which operates its Carmichael mine in central Queensland.
Bravus Mining and Resources chief operating officer Mick Crowe recently spoke of thermal coal’s importance at the 2023 Mining and Resources Forum in Townsville, suggesting the commodity will remain an important resource for people in developing nations.
He said as energy poverty continues to affect nations such as India, Vietnam and the Philippines, thermal coal will enable people to improve their standard of living by being an affordable energy source for consumer goods, fridges and televisions.
“It’s a reality that global energy demand is increasing, not decreasing, as nations in Asia lift their people out of poverty by providing affordable, reliable energy to partner with renewables,” Crowe said.
“India, for example, has more people than Europe, America and Oceania put together – all up around a sixth of the world’s population – and they all want the same standard of living we enjoy in Australia.
“What that means is our export coal sector will be a vital part of the global energy mix for decades to come, and for the people of Townsville, that means a secure job for you, for your kids and your grandkids as an operator or a tradie or a chef or any of the dozens of roles you find on a mine site.”
Bravus sponsored the 2023 Mining and Resources Forum, which also saw the likes of Rio Tinto, Glencore, Orica and Vecco present.
The CopperString 2032 project – a 1100km-long high-voltage electricity transmission line from Townsville to Mount Isa – was a hot topic at the event given its importance to the Queensland mining sector.
The project is looking to connect Queensland’s North West Minerals Province (NWMP) – which includes mining regions such as Mount Isa, Cloncurry and Julia Creek – to the national electricity grid.
“All eyes are on Townsville, North Queensland thanks to CopperString 2032,” Townsville Enterprise chief executive officer Claudia Brumme-Smith said.
“This enabling transmission line will unlock $740 billion of untapped known minerals and unleash 33 gigawatts of renewable energy along the north west corridor.
“Townsville, North Queensland will be the only city in the world home to the first green zinc refinery and the global processing hub of all green battery materials the world desperately wants – zinc, copper, Queensland Pacific Metal’s nickel and cobalt, vanadium and lithium.”
Subscribe to Australian Resources & Investment and receive the latest news on commodity prices, resource developments, executive movements and more.