coal reserves, coal exploration - World Coal Institute Page 1 of 1

WHERE IS COAL FOUND?

It has been estimated that there are over 847 billion tonnes of proven coal reserves worldwide. This means that
there is enough coal to last us around 119 years at current rates of production. In contrast, proven oil and gas
reserves are equivalent to around 46 and 63 years at current production levels.

Coal reserves are available in almost every country worldwide, with recoverable reserves in around 70
countries. The biggest reserves are in the USA, Russia, China and India. After centuries of mineral exploration,
the location, size and characteristics of most countries' coal resources are quite well known. What tends to vary
much more than the assessed level of the resource - i.e. the potentially accessible coal in the ground - is the
level classified as proved recoverable reserves. Proved recoverable reserves is the tonnage of coal that has
been proved by drilling etc. and is economically and technically extractable.

Definitions

Resource The amount of coal that may be present in a deposit or coalfield. This does not take into
account the feasibility of mining the coal economically. Not all resources are recoverable
using current technology.

Reserves Reserves can be defined in terms of proved (or measured) reserves and probable (or
indicated) reserves. Probable results have been estimated with a lower degree of confidence
than proved reserves.

Proved Reserves that are not only considered to be recoverable but can also be recovered
Reserves economically. This means they take into account what current mining technology can achieve
and the economics of recovery. Proved reserves will therefore change according to the price
of coal; if the price of coal is low proved reserves will decrease.

Over recent years there has been a fall in the reserves to production (RP) ratio, which has prompted questions
over whether we have reached 'peak coal'. Peak coal is the point in time at which the maximum global coal
production rate is reached after which the rate of production will enter irreversible decline. However, recent falls
in the RP ratio can be attributed to the lack of incentives to prove up reserves, rather than a lack of coal
resources. Exploration activity is typically carried out by mining companies with short planning horizons rather
than state-funded geological surveys. There is no economic need for companies to prove long-term reserves.

http://www.worldcoal.org/coal/where-is-coal-found/ 10/20/2010