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2 Fossil Fuels: 2.1 Coal Exploitation Technologies
2 Fossil Fuels: 2.1 Coal Exploitation Technologies
2 Fossil Fuels: 2.1 Coal Exploitation Technologies
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[Ref. p. 24
2 Fossil fuels
[H.-W. Schiffer, M. Kosinowski, R. Ghofrani, C. Marx, P. Freund]
2.1.3 Deposits
Unlike the situation in oil and natural gas, coal deposits are scattered more widely in geographic terms
with a concentration on the northern hemisphere. North America has a 37% share of total coal reserves,
Asia 31%, followed by Europe with 12%, Australia with 10%, Africa with 7% and South America with
3% (Fig. 2.1).
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Canada
1 6
17
5
24
USA
183
Central and
South America
42
CIS
29
EU
Peoples Republic
of China
7
India
1
Remaining
4
Africa
69
52
2
Remaining
6
Asia
18
South
Africa
34
Australia
14
44
Lignite
Hard coal
Total:
558 bn tce
incl.hard coal: 487 bn tce
lignite:
71 bn tce
Coal, which is a product of organic sedimentation, occurs in seam-shaped deposits and must be
extracted selectively from the surrounding strata. Of major commercial importance are flat deposits with
no faults, which account for 60% of the world's deposits. They have few seams that are often of an even
thickness and a wide horizontal spread. Flat, hardly disturbed deposits of little depth lend themselves to
extraction in opencast operations. These mainly concern lignites, but most hard coal deposits from the
Gondwana period on the southern continents are also of this type.
Sloping to steeply inclined or fault-containing coal deposits have a large number of irregularly shaped
seams in layer sequences that are often thousands of metres thick. The seams are encountered at varying
depths, with the deposits frequently marked by complicated faults and disturbed conditions, so that extraction is mostly in underground operations. They are generally of high rank; high-quality coking coals,
non-bituminous coals and anthracites can usually be found in this type of deposit.
A coal's rank is a measure of its energy content. Increasing pressure and temperature in the course of
geological periods displaces water and volatile components (e.g. nitrogen, oxygen, methane) from the
coal layers. Via the series: turf, lignite, hard coal, anthracite and graphite, an increasing amount of carbon
can be found in the coal.
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Hard coal extracted in underground operations is mined either from the surface via drifts or shafts,
depending on the depth of the deposit. In drift mining, the deposit is developed using slightly inclined
drifts equipped with conveyor belts. By contrast, coal deposits at greater depths require shafts, which are
also used for the extraction proper. The coal is mined either in room-and-pillar or in longwalling
operations, with the latter predominating.
In room-and-pillar mining, continuous miners drive extraction roads into the coal to cross at right
angles. Pillars are left standing in-between to support the overlying strata (Fig. 2.2). This method is
associated with high extraction losses, since a considerable quantity of coal remains underground.
Transportation to the conveyor belts is often by shuttle car. A variant of the room-and-pillar method is
extraction by conventional drilling and blasting, with the conveyor belts being fed by wheel loader.
In longwalling, continuous miners are used to drive two parallel roads into the seam at intervals of
200 to 400 m; the roads are then connected at right angles using longwall equipment (Fig. 2.3). For actual
extraction, continuous miners are drawn across the longwall face by chains, or coal ploughs are used. The
extracted coal falls automatically onto a chain conveyor and is transported further. The extraction face in
the seam advances some 2 to 20 m a day, leaving a worked-out space without pillars, which causes the
overlying rock to collapse behind the advancing operations (goaf). The longwall is protected against
falling rock by hydraulic shield and frame supports, although the latter are losing in importance. The
United States currently operates 65 longwall mines. Over 45% of US output in underground operations is
now accounted for by this mining method.
In underground mining, methane gas is released in the longwall roads. Thanks to suitable mine ventilation, this gas is so diluted that no firedamp explosions occur. Where the coal is under high pressure
from methane gas, gas relaxations are produced by horizontal drilling.
The mining technique used in the extraction of hard coal in opencast operations depends on the
number and thickness of the seams and their inclination. In this respect, minimum thicknesses of
0.51.0 m are considered workable. Where only one or two seams are worked and these are thick and
flat, the overburden is crushed or loosened by drilling and blasting and removed by dragline/shovel and
truck. The seam exposed in dragline operations is likewise drilled and blasted and then loaded by shovel
or wheel loader onto heavy trucks for transportation. In this work, small draglines and, to a growing
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extent, hydraulic excavators, too, are used. By contrast, the extraction of several, and more inclined
(upward of 15) seams is by truck and shovel, with the entire group of seams and interburden layers
being worked in horizontal slices (benches).
The group of seams is first drilled and blasted and then worked from top to bottom, separately for
overburden and seams, and loaded onto heavy trucks. Draglines and hydraulic excavators as well as
wheel loaders are deployed, occasionally supported by bulldozers.
The extraction of lignite worldwide is mainly by continuous opencast operations, i.e. bucket wheel
excavator, conveyor belt and spreader. This is also true of the Rhenish lignite mining area to the west of
Cologne. The large-scale equipment deployed in this German mining area since the end of the 1970s
yields a daily output of 240 000 m3, or 12 500 m3/h (Fig. 2.4). In the Lusatian mining area near Dresden,
the equipment of choice for the removal of overburden owing to the even formation of the lignite seams
is the conveyor bridge. The coal is extracted by bucket wheel excavator and bucket chain dredger. The
capacity of the conveyor bridges assuming three upstream bucket chain dredgers is up to 450 000 m3
per day. In the Central German mining area near Leipzig, the same extraction technique has made
headway as in the Rhenish area, though with limited use of mobile conveyor methods as well (surface
miner and truck).
Most other European and non-European large-scale opencast mines, too, prefer continuous opencast
techniques. In Victoria (Australia), for example, the opencast lignite mines employ bucket wheel excavators, and the Mae Moh (Thailand) mine, too, has been using BWEs for some years now in contractor
operations for the removal of overburden. By contrast, the opencast lignite mines in Texas (USA) mostly
use draglines and shovel and truck combinations. But there, too, some companies have been deploying
bucket wheel excavator systems with conveyor belts or cross mine dumpers for years now (Fig. 2.5).
The general trend in extraction technology involves further development of the continuous mining
technique that originated in lignite mining for use in harder materials like phosphate or hard coal, incl.
the associated overburden removal, the object being direct extraction and selective mining with no need
for blasting. A case in point is the deployment of a Krupp Surface Miner KSM 2000 in the Russian
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Taldinski hard coal mine, but sulphate extraction in Senegal, too, is by bucket wheel excavator. So
continuous mining techniques have been making inroads in the extraction of harder materials as well.
27
24
24
23
20
15
35
33
51
50
68
63
63
59
84
79
168
2.1.5 Beneficiation
Owing to a relatively high water content (40 to 60%) and a correspondingly lower calorific value
compared with hard coal, lignite is mostly used close to the mines. The focus of lignite use, accounting
for nearly 90% worldwide, is on power generation. In Germany, raw lignite is transported by conveyor
belt or train to power plants located near the deposits. These plants are equipped with highly effective
flue gas cleaning systems. No special treatment of the raw coal is necessary prior to its use in the power
plants.
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Of the hard coal quantities mined, a worldwide average of 83% is used in the country of origin itself.
Unlike lignite, a functioning international trade exists in hard coal which reached a respectable 565 million t (mt) in 2000, with 39 mt being accounted for by cross-border continental trade and 526 mt by
maritime trade. Wherever use can be made of lower-cost sea routes, hard coal is a competitive energy
source in many parts of the world even when long distances are involved (Fig. 2.6).
Output
Exports by sea
China 950
USA
59
35
892
India
Australia
South Africa
Russia
Poland
300
187
236
70
214
168
23
102
14
Ukraine
80
Indonesia
76
Kazakhstan
75
57
Colombia
37
Germany
37
Canada
35
Great Britain
30
35
31
mt
Since hard coal is seriously contaminated owing to the high degree of mechanization in mining operations, so that, in a raw state, its quality often fails to meet customers' requirements, it must be subjected to
a cleaning process. In this so-called beneficiation, the raw coal is first crushed and then classified by
grain size, i.e. as coarse, fine and ultrafine. In the subsequent sorting of coal and rock particles, the
crucial features are specific weight in the case of coarse and fine grain, and surface properties in the case
of ultrafine grain. The separating medium in the former case is either water or a heavy liquid (sink/float
process), with the separation being in sink/float drums (coarse grain) or washers (jigs), or in water cyclones or heavy media cyclones (medium grain). The ultrafine grain, by contrast, is cleaned by flotation.
The crucial economic factor in beneficiation is product output, i.e. the share of washed coal to raw coal.
This is some 80% for steam coal and 65 to 70% for coking coal.
20
[Ref. p. 24
power plant boilers is not subject to narrow technical restrictions, although existing environmental regulations may be a bar to the use of qualities with a higher sulphur content if the power plants are not
equipped with flue gas desulphurization systems. Steam coals in the named quality are also used in
industrial furnaces, and in the cement industry in particular. One special case in this respect is anthracite,
which was once mainly used in households, but is now deployed in industrial boilers fitted with travelling
grates. The quality features for this fuel are a low < 10% share of volatile elements, with 23% ash and
< 0.5% sulphur content. In view of its poor ignitability, anthracite can only be used in lumpy form, i.e. as
nuts (or briquettes).
rail transport
port handling
marine transportation
discharge at the port of destination
inland transportation
= handysize,
= panamax and
= capesize.
Handysize ships are mainly used for small quantities, short distances, coastal shipping and ports of
shipment/destination with only little draught. However, most coal transportation is ocean-wide or between oceans, using panamax and capesize freighters. The first can pass through the Panama Canal, while
the second have to round Cape Horn or the Cape of Good Hope. (In the latter case, this is not entirely
true, since the Suez Canal can now be used by smaller capesize ships as well.)
In the receiving countries, there are some 185 ports of discharge available with a handling capacity
totalling an annual 820 mt, although this does have to be shared with other bulk dry goods. Some of these
have dedicated coal terminals, however, e.g. in the ARA ports (Amsterdam-Rotterdam-Antwerp). Coal
discharge is usually by grab crane onto belt conveyors, which take the coal to intermediate stockpiles,
though the discharge process, with some 15 00020 000 t/d, takes much longer than loading.
Subsequent inland transportation is from the intermediate stockpiles, where the coal is loaded onto
trains and shipped to consumers. The train sizes deployed are much smaller, however, and rarely reach
2000 t. In some places, e.g. in the ARA ports, the coal can be loaded directly or via intermediate
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to Far East 6
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from Canada
20
Canada
31
24
USA
35
Russia
23
7
Poland
14
10
China
59
4
7
4
Venezuela 25
9
Colombia
35
6 from USA
36
10
52
South Africa
70
Indonesia
57
15
33
126
Australia
187
6
Maritime trade:526 mt
incl.351 mt of steam coal
175 mt of coking coal
Fig. 2.7. Major trade flows in hard coal traffic by sea in 2000 (in mt) [00Gci].
stockpiles onto inland waterway ships. The standard barge size takes 20002500 t and is able, depending on water levels, to travel the Central Rhine in push tows of four barges and on parts of the German
waterway network in single barges.
ex US East Coast
ex South Africa
ex Australia
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Capesize
Panamax
6.60 US$/t
8.30 US$/t
12.85 US$/t
7.80 US$/t
10.20 US$/t
14.85 US$/t
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50
45
40
35
45
43
43
7
12
17
30
25
16
43
11
7
40
9
3
20
15
10
21
22
20
Australia
South Africa
USA
25
28
5
0
Mining costs
1)
Inland transportation 2)
Indonesia
Colombia
Marine transportation 3)
Fig. 2.8. Representative costs for steam coal free northwestern European seaports in 2000 (in US$/tce) [00Gci].
Hence, in 2000, representative total costs for world market steam coal, free northwestern European
seaports, were between 40 US$/tce and 45 US$/tce, depending on the country of origin.
Ref. p. 24]
2 Fossil fuels
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Nonetheless, the two market segments are interconnected, i.e. some coal quantities certainly move from
one to the other wherever the obtainable cif prices are still competitive there. The extra costs of transport
involved (e.g. Australian coal to ARA) are borne in such cases by the supplier. Such deliveries are often
contracted on a cif basis (Fig. 2.9).
Pacific market
Asia
Atlantic market
Europe
Market structure
Supply
Demand
EU and
Mediterranean region
South Africa
Colombia
Australia
Poland
Russia
Demand
Supply
Hong Kong
Japan
Korea
Taiwan
India
Australia
Indonesia
Canada
China
Price formation
Spot pricing at a level
that offers South African
suppliers a reasonable
yield
Longer-term transactions
0 to 2 US S
I /t
above the spot price
Longer-term transactions
0 to 5 US SI / t
above the spot price
With supply and demand possibly developing at different rates in the two markets, price formation,
too, is as a rule on a separate basis, even if overlapping does ensure a largely identical and synchronous
trend in prices, as is also reflected in the MCIS (McCloskey Coal Industry Services) price indices for
northwestern Europe and East Asia (see Table 2.2).
Table 2.2. MCIS index (cif prices in US$/t for 6000 kcal/kg (as received)).
Month/Year
Northwestern Europe
East Asia
1/98
1/99
1/00
1/01
35.74
29.97
30.15
42.21
34.54
27.79
28.08
37.26
In view of their high market share, the price leaders are generally South Africa on the Atlantic market
and Australia on the Pacific market. However, since considerable and growing quantities are already
traded on a spot basis, the market leaders are compelled to include in their deliberations the terms offered
by their next-largest competitors (e.g. Colombia and Poland or Indonesia and China) if they are not to
lose market shares. The crucial factor in this respect is the specific cif price at the port of destination. The
specific spot price level formed in this way is the yardstick for upcoming negotiations on contract prices
within the scope of long-term supply contracts.
On the Atlantic market, these are arranged on an individual basis between supplier and consumer,
while Japanese consumers, i.e. the steel industry or power generators, form purchasing cartels and
authorize one of their members to negotiate prices for the others. Negotiating partners are the producers
who mainly act singly, but also in groups of an alternating composition. At one time, buyers honoured
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producers' provision of adequate supply capacity with a mark-up on the specific spot price of up to
10 US$/t applying at the time of contracting, above all in the case of coking coal. In view of ongoing
excess supply and the growing importance of the spot market with its high price transparency, the
willingness of consumers to pay such mark-ups has now perceptibly declined, with a discernible fall to
up to 2 US$/t fob on the Atlantic market and up to 5 US$/t fob on the Pacific market.
2.1.10 Prospects
In spite of the economic conclusiveness of the available forecasts, a judgement on the long-term role to
be played by coal in securing the world energy supply is still marked by uncertainty. Among the reasons
for this are the constantly changing economic and political conditions.
Current forecasts extend to the year 2020 at most and include the growth of worldwide coal
requirements and the world coal trade, associated rises in costs and prices, as well as the future
competitiveness of coal compared with other primary energies. Also of interest is an assessment of the
options for satisfying the future coal requirements of the world economy in quantity and competitive
terms.
The available forecasts are unanimous in predicting a rise in worldwide energy requirements. To
cover the additional needs, coal, too, will have to do its bit. Coal is the stable pillar on the world energy
market, ensuring that sufficient supplies, in particular for power generation, will continue to be available
at low cost. In coming decades, it will perform an important bridge function in the transition to renewable
energies, which is the long-term goal.
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