‘Australia’s coal resources are world class in magnitude and quality.’ 1 Coal quality has a major influence on the design of power, cement and steel plants, as well as their operation, performance and emissions. In assessing coal quality, energy, sulphur and ash content are considered together. Other factors include moisture and trace element content. For thermal coals, high quality implies coals with a high energy-value (Specific Energy) and low impurities (ash and sulphur). Fortunately, ‘Australia has large deposits of high-energy, low ash coal 2 that is suitable for use in advanced coal-generation technologies.’ As illustrated by Figure 1, Australia is a significant exporter of high energy-content, thermal coals. 3 4 These thermal coals contain low levels of sulphur and moisture. They also have low levels of arsenic (Ar), boron (B), mercury (Hg), selenium (Se) and other trace elements when compared with 5 other internationally traded coals (Figure 2). These high quality coals produce fewer emissions per unit of electricity produced and command a higher price in export markets. Figure 1: Comparison of the energy value (Specific Energy) of various coal exporting country coals, 2014-15 Figure 2: Indicative relative levels of trace elements in Australian and international export coals Mtpa (Seaborne) 120 100 80 Australia 60 Canada 40 Indonesia 20 Russia 0 South Africa Specific Energy (Net as received kcal/kg) Source: MCA member company analysis Source: CSIRO and ACARP The most commonly used measure of metallurgical coal quality globally is ‘Coke Strength after 6 Reaction’ (CSR). Australia’s metallurgical coals typically produce strong CSR cokes (see Figure 3) 7 with low reactivity and have low sulphur and phosphorus content. This makes them highly sought after as they are among the best coal for steel making in the world. Australian coals that produce high CSR coke are the most efficient in the blast furnace, reducing total coke requirements and CO2 emissions per tonne of hot metal made. 1 Department of Industry, Geoscience Australia and Bureau of Resources and Energy Economics, Australian Energy Resource Assessment, Second Edition, 2014, page 19. 2 Department of Industry and Science, Coal in India, June 2015, page 13. 3 4 5 Department of Industry and Science, Coal in India, June 2015, page 88. ACARP, Quality of Australian black coals – physical and chemical properties, January 2010. Les Dale, Trace elements in coal, ACARP Coal Matters No 2, based on research carried out by CSIRO Energy Technology, October 2006. This study is considered relevant today as most of the mines covered are still operating and their trace element characteristics have not changed significantly. 6 CSR is a measure of the mechanical strength of coke after it has been reacted in a reducing atmosphere (similar to that in a blast furnace). 7 ACARP, Quality of Australian black coals – physical and chemical properties, January 2010, pages 5 and 35. Each steel making region values different characteristics of Australian coals depending on regional economics, the availability and quality of domestic/other imported coals, and the specific requirements of individual iron and steel plants. As illustrated in Figure 3, Australia is the largest seaborne exporter of metallurgical coals and is particularly important in supplying high (>65 per cent) CSR coals. These coals achieve the most efficient performance in a blast furnace, are usually the highest priced coals and form the basis for most metallurgical coal blends. Australia also supplies semi-soft coking coals for customers to reduce the cost of their coking blend. Mtpa (Seaborne) Figure 3: Break down of the quantity of metallurgical coal exports by quality for major exporting countries, 2013-14 45 40 35 30 25 20 15 10 5 0 Australia Canada Indonesia Mozambique New Zealand Russia USA 50-55 55-60 60-65 65-70 70-75 Quality (Coke Strength after Reaction, %) Source: MCA member company analysis Importantly, where high quality Australian bituminous coals are used, this results in a lower emissions footprint, both in terms of carbon dioxide produced per unit of energy and impurities such as sulphur and metals. Consequently, there is less ash by product produced, requiring less to be stored and managed.