EN    EN EN 
 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 13.11.2008 
SEC(2008) 2870 
COMMISSION STAFF WORKING DOCUMENT 
 
accompanying the 
COMMUNICATION FROM THE CO MMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMI TTEE OF THE REGIONS 
 
Second Strategic Energy Review 
 
AN EU ENERGY SECURITY AN D SOLIDARITY ACTION PLAN 
  
The Market for Solid Fuels in the EU in 2004-2006 and Trends in 2007  
{COM(2008) 781 final} 
{SEC(2008) 2871} {SEC(2008) 2872} 
 
EN 2   EN FOREWORD  
Article 7 paragraph (c) of the Council Regulation (EC) No 405/2003 of  27 February 2003 concerning 
Community monitoring of imports of hard coal originating in third countries, requires the Commission 
to publish regularly a report on the market for solid fuels in the Community together with a market 
outlook. 
This report highlights the most relevant developmen ts on the international and European coal markets 
during the years 2004, 2005 and 2006 and gives, as appropriate, trends and estimates for 2007. 
Following the enlargement of the EU on 1st January 2007, data has been included for the two new 
Member States for the preceding two years (2005 and 2006). Figures in this report refer to EU-25 for 
2004 and to EU-27 for 2005 and 2006 unless otherwise stated. 
 
EN 3   EN TABLE OF CONTENTS 
Foreword ....................................................................................................................... ............. 2 
1. Introduction................................................................................................................ .. 6 
1.1. World Supply and Demand.......................................................................................... 6 1.2. World Prices.............................................................................................................. ... 7 
1.3. European Overview...................................................................................................... 7 2. Coal - General Considerations ..................................................................................... 7 2.1. Reserves .................................................................................................................. ..... 7 
2.2. Demand Drivers ......................................................................................................... 10 2.3. Coal and Gas Prices ................................................................................................... 10 2.4. Emissions Trading...................................................................................................... 11 
2.5. Exchange rates ........................................................................................................... 1 1 
2.6. New Pricing Methodologies for Steam Coal ............................................................. 12 2.7. Infrastructure............................................................................................................ .. 13 
2.8. Market Concentration................................................................................................. 14 2.9. Steel Industry Developments ..................................................................................... 14 3. Hard Coal – Production and Consumption in the EU................................................ 16 
3.1. Hard Coal Production................................................................................................. 16 3.2. Hard Coal Consumption............................................................................................. 17 4. Coke – Production and Consumption in the EU ........................................................ 18 4.1. Coke Production......................................................................................................... 18  
5. Hard Coal and Coke - International Market............................................................... 18 
5.1. Major Hard Coal Producers ....................................................................................... 18 5.2. Hard Coal Trade......................................................................................................... 20  
5.3. Steam Coal Trade....................................................................................................... 22 5.4. Coking Coal Trade ..................................................................................................... 23 5.5. Coke Trade................................................................................................................ . 23 
5.6. Imports to the EU....................................................................................................... 23  
5.7. Steam Coal Prices ...................................................................................................... 26 5.8. Coking Coal Prices..................................................................................................... 28 
 
EN 4   EN 5.9. Coke Prices............................................................................................................... .. 30 
5.10. Freight Considerations ............................................................................................... 30 6. Lignite and Peat – Production and Consumption in the EU ...................................... 31 
6.1. World Context............................................................................................................ 3 1 
6.2. Lignite Production...................................................................................................... 32  
6.3. Lignite Prices ............................................................................................................ . 33 
6.4. Lignite Consumption.................................................................................................. 33 6.5. Peat Production .......................................................................................................... 3 4 
6.6. Oil Shale................................................................................................................. .... 34 
7. State Aid to the Indigenous Ha rd Coal Industry in the EU........................................ 34 
7.1. Framework for Coal State Aid ................................................................................... 34 7.2. Amounts of Coal State Aid Granted/Authorised ....................................................... 35 8. Conclusions................................................................................................................ 3 7 
 
Tables and Figures 
Figure 1 - World Energy Consumption...................................................................................... 6 
Figure 2 - World Reserves of Coal............................................................................................. 8  
Table 1-European Coal Reserves (Mt)....................................................................................... 9 Figure 3-Coal and Gas Prices  to UK Power Producers............................................................ 11 
Figure 5-Annual Exchange Rates for Key Cu rrencies (Annual Basis April to March) 
Figure 6-Historic Spot an d Forward Swap Prices.................................................................... 13 
Figure 7 - Chinese Coal Flow .................................................................................................. 1 4 
Figure 8–Growth in World Crude Steel Production................................................................. 15 Figure 9 - Crude Steel Production 2005 (Mt) .......................................................................... 15 Figure 10 - EU Hard Co al Production Trends.......................................................................... 16 
Figure 11 – EU Consumption Tren ds for Hard Coal (Mt)....................................................... 17 
Figure 12 – EU Coke Production Trends................................................................................. 18 Table 2 – Major World Hard Coal Producers (Mt).................................................................. 19 Figure 13 – Hard Coal Seaborne Trade 2005........................................................................... 21 
 
EN 5   EN Figure 14 - World Seaborne Hard Coal Trade ......................................................................... 22 
Figure 15 – EU Hard Co al Import Breakdown ........................................................................ 24 
Figure 16 – EU Hard Coal Import Volumes by Member State (Mt) ....................................... 25 
Figure 17 – North West Eur ope Steam Coal Prices ................................................................. 26 
Figure 18 – Price of Steam Coal Imported From 3rd Countries ............................................... 27 
Table 3 - Price Trends in Coking Co al (US $/Tonne FOB Australia) ..................................... 28 
Figure 20 – Price of Coking Coal Imported From 3rd Countries ............................................. 29 
Figure 21 - Spot Chinese Coke Prices...................................................................................... 30 Figure 22 - Spot Sea Freight Rates........................................................................................... 31  
Table 4 – Major World Lignite Producers (Mt)....................................................................... 32 Figure 23 – EU Lignite  Production Trends.............................................................................. 33 
Table 5 - Types of Coal State Aid and Conditions .................................................................. 35 Table 6 - State Aid 2003-2007 - amounts actually granted by Member States (only for the 
main coal aid granters in the EU-27)  or authorised by the Commission for the 
relevant year............................................................................................................... 37 
ANNEXES ........................................................................................................................ ....... 40 
Supplies and Deliveries in th e EU of Hard Coal, Coke and Lignite in 2004/06...................... 40 
This report has been produced using data pr ovided by the Member States and observations 
from market participants up to August 2007. Where data has not  been available, clearly 
indicated estimations have been made by the Commission services. Note that the data may 
differ from that of Eurostat. 
Graphs and tables used in this  report have been produced by  the Commission services on the 
basis of data provided by the Member States unless a different source is identified under 
individual graph or table. 
 
EN 6   EN 1. INTRODUCTION  
1.1. World Supply and Demand 
From 2004 to 2006 total world coal productio n increased by 16% to 5,370 million tonnes 
(Mt). While European coal producers slightly decreased their coal production in 2004, the 
“B.R.I.C.” countries (Brazil, Russia, India and China) where the main f actors in the increase 
in worldwide production. In 2006 production incr eased by 8.8%, following an increase of 
6.5% in 2005 and 9% in 2004. This remains well a bove the 10-year average growth trend of 
3.0%. 
Updated analysis of proven coal reserves indi cates that, at current world production levels, 
there is close to 150 years of coal available. 
The following graph illustrates the long term growth in coal  demand compared to other 
energy sources. It can be seen that coal is th e fastest growing energy source in the world since 
2002. Indeed, coal is fuelling the rapid developm ent of countries such as China and coal 
consumption also increased in the United States. 
 Figure 1 - World Energy Consumption 
0.0500.01000.01500.02000.02500.03000.03500.04000.04500.0
19651967 19691971
19731975 19771979
1981198319851987
19891991 19931995
19971999 20012003
2005Million Tonnes Oil Equivalen t
Oil Coal Gas Nuclear Hydro 
Source : BP Statistical Review 2007 
2004 will be remembered as the year when traditional purchasing patterns on the coal and 
coke markets were really turned upside down. For the sake of securing short and medium 
term supplies, excessive quantities of coal and coke were ordered, giving rise to price 
increases, the saturation of production, freight ra te inflation, impressive waiting times at the 
ports and the risk of brown outs at genera ting plants or production disruption at coke 
manufacturing plants.  
In 2005, when the overall situation calmed down, an overstocking situat ion clearly appeared 
both for steam and coking coal; de-stocking an d the postponement of deliveries became the 
 
EN 7   EN major concern for coal consuming industries. This de-stocking polic y applied not only to 
metallurgical coke, but also to coki ng coal, iron ore and steel products.  
In 2006, total coal demand increased by 7.8% , or 322 million tonnes coal equivalent1 (Mtce), 
following a three year period where annual increases averaged 6.8%.  
Global trade in hard coal also experienced  significant growth over the period 2004 to 2006, 
although coking coal trade fell back slightly in 2006, causing overall grow th to be lower than 
previous years.  
1.2. World Prices 
As a result of the unexpected and profound changes in the inte rnational coal market which 
occurred in 2003, the prices of both steam and coking oil climbed to unp recedented levels in 
2004 (from 35 to 80 $/tonne for steam coal  deliveries to North West Europe). 
World prices decreased in 2005 (till cl ose to 50 $/tonne for steam coal). 
However, world prices recovered in 2006 and went on climbing to new highs reaching 130 
$/tonne for steam coal by end 2007 and going ev en higher in the firs t semester of 2008. 
1.3. European Overview 
Europe is the third largest region worldwide in terms of coal consumption, after China and the 
USA. Around two thirds of consumption is derived from indigenous production, with 164 
million tonnes of hard coal and 454 m illion tonnes of lignite produced in 2006. 2 
Today coal covers around one sixth of the primary energy de mand in the EU-27. About one 
third of power generation in the EU-27 is based on coal.  
The importance of coal is increasingly recognised in terms of security of energy supplies, and 
as an important part of a balanced European energy mix in the coming decades provided that the issue of carbon emissions can be addresse d by further technology developments in line 
with the climate change priorities. 
2. C
OAL - GENERAL CONSIDERATIONS  
2.1. Reserves 
Europe possesses substantial reserv es of coal and lignite There are a number of different ways 
of assessing these deposits, but whichever way the assessment is carried out, the figures are 
substantial. The German Federal Institute for Geosciences and Natural Resources (BGR) 
gives reserves3 of 19 Bt and resources4 of 479 Bt hard coal and reserves of 75 Bt and 
                                                 
1 IEA definition of 1 million tonne coal equivalent equals 0.7 tonnes oil equivalent, or 7 million kilocalories 
2 Except otherwise provided, the data used in th is report are data transmitted by Member  States under Counc il regulation (EC)405/ 2003 
3 According to BGR (Feder al Agency for Geoscience and mineral resources) reserves are defined as the quantity that can be recovered economically 
from a mineral deposit at current prices with current technology 
4 According to BGR resources are defined as demonstrated quantities that cannot be recovered at current prices with current tec hnology but might be recoverable 
in the future, as well as quantities that are geologically possible but have not been demonstrated.  
 
EN 8   EN resources of 95 Bt of brown coal and lignite in Europe. The following maps illustrate the 
world distribution of reserves of hard coal and lignite in cluding brown coal. 
Figure 2 - World Reserves of Coal 
 
 
Source : BGR Reserves, Resources and Ava ilability of Energy Resources, 2007 
The World Energy Council published its triennial survey of energy resources in September 
2007. The following table gives their assessment of significant reserves in European states at 
the end of 20055. This includes some significant re-a ssessments in Europe, with parts of 
reserves/resources being redu ced or removed based on update d perceptions of what is 
economically recoverable. 
                                                 
5 As reported by sources such as WEC and BGR the coal proved rese rves for EU are diversely estimat ed due to different resources a nd coal 
classification. 
 
EN 9   EN Table 1-European Coal Reserves (Mt) 
 Hard Coal 
Reserves  Hard Coal 
Resources Lignite 
Reserves* Lignite 
Resources* 
Albania   794  
Austria  1  333 
Bulgaria  428 1928 3988 
Croatia  4  41 
Czech Republic 1673 5880 2828 2928 
Germany 152 319 6556 7136 
Greece   3900  
Hungary 199 1597 2933 9006 
Italy   10 10 
Poland 6012 15291 1490 1878 
Portugal   33  
Romania 12 22 410 3886 
Serbia  27 13879 21149 
Slovakia  2 260 519 
Slovenia   232 644 
Spain 200 812 330 584 
United Kingdom 155    
EU Total 8403 24352 20910 30953 
Europe Total 8403 24383 35583 52102 
*including sub-bituminous coal; resources  not including “estimated additional” 
Source : WEC Survey of Energy Resources 2007 
The largest hard coal reserve is in Poland, with significant reserves also in the Czech 
Republic, and lesser reserves in Spain, Hungary, the United Kingdom and Germany. In the 
case of lignite, reserves are pr esent in a swathe from Germany through Central Europe and the 
Balkans, to Greece. Within the EU, Germany has the largest deposit, with major reserves also 
in Poland, the Czech Republic, Hungary, and Gre ece, as well as Bulgaria and Romania. 
 
EN 10   EN 2.2. Demand Drivers 
Coal demand in Europe is dominated by th e power sector, accounting for 69% of overall 
consumption in the case of hard coal and 94% for lignite.  
Demand is driven by a complex set of factors a nd constraints. The star ting point is demand for 
electricity, which is mainly impacted by the energy intensity of th e economy, the level of 
industrial activity, the changing behaviour of consumers, and the weather. The prime determinant as to how demand for electricity can be met is the available capacity of different 
forms of generation and their costs. Demand varies significantly across hours, days and 
seasons, which means that some generation capacity will be more used than other.  
Whilst lignite-fired generation is as a general rule running whenever available (‘baseload’), 
hard coal-fired generation is of ten, especially in some parts of  the EU, used rather for ‘mid-
merit’ operation ( i.e. not running all the time but  a large number of hours compared to peak 
operation which corresponds to a limited number of hours ). Hard coal can be competing with 
modern gas-fired generation for mid-merit operation. 
The market choice between gene ration from coal or gas depends on the relationship between 
the coal price and the gas price,  together with the impact on each of the CO2 emission price. 
Another potentially import ant driver could be th e development of CCS technologies. In case 
this promising technology becomes commercially viable in a fully functioning carbon market, 
coal based power generation could assume an ev en larger share in the power generation mix.  
The following paragraphs deal with some of these demand drivers in more detail. 
2.3. Coal and Gas Prices 
The dramatic increases in gas prices in re cent years have made co al-fired generation 
significantly more attractive where there is a ch oice of capacity, for example in the UK. This 
led to high coal demand in the period 2004 to 2006, but as gas prices have reduced during 
2007, coal demand has fallen back.  
Coal and gas prices to major power producers in  the UK are illustrated by the following chart. 
 
EN 11   EN Figure 3-Coal and Gas Prices to UK Power Producers 
0.000.200.400.600.801.001.201.401.601.80
2000
2001
2002
200320042005
2006
2007Pence per kWh
Coal Gas 
Source : DBERR (UK) –Government Website 
2.4. Emissions Trading 
The EU Emissions trading scheme came into e ffect from 2005. Initially, certificate prices 
increased rapidly, largely as a consequenc e of high demand from the UK where free 
allocations to power stations were well belo w what was required for business-as-usual 
operation. Once all Member States  were fully integrated in to the trading mechanisms, 
however, and following the release of the first year’s supply/de mand data for allowances, the 
price fell sharply from the 2nd quarter of 2006, and has been clos e to zero up to the end of the 
first phase (till December 2007). 
The new phase of the EUETS fr om 2008 will significantly change  the market fundamentals, 
and carbon prices are likely to b ecome a major driver of genera tion levels once more, in cases 
where there is a choice between coal a nd gas (or other lower carbon generation).  
EU ETS prices recovered in Ja nuary 2008 and since then have re mained fairly stable in the 
range of 22-25 €/tonne of CO2. 
2.5. Exchange rates 
Currency movements against the Euro affect ed coal demand and production around the world. 
In the period 2004-2006, the US dollar, the main currency in the intern ational coal market, 
remained relatively stable in comparison with the Euro. Nor were there any major changes in value in comparison with the Australia n dollar and the S outh African rand.  
This followed two years in which the rand st rengthened significantly against the US dollar 
and the dollar weakened slightly against the Euro , contributing to the increase in coal prices. 
During 2006/7, both the US dollar and the rand have  weakened significantly against the Euro. 
 
EN 12   EN 2.6. New Pricing Methodologies for Steam Coal 
Over the last few years the trading of coal  has undergone a major transition in terms of 
commodity pricing mechanisms, attitudes to counterparty risk, and the nature of the 
participants in the market.  
Coal used to be considered to be unlike othe r commodities: the physical characteristics were 
such that it was not possible to devise standa rdised contracts; quality differences between 
different sources of supply and differing quality requirements in the market meant that coal 
was not thought to be fungible like oil or gas.  
However, with the growth in international co al trading, new ownershi p structures for power 
plants, and the emergence of powerful cross-co mmodity traders, the traditional ways of doing 
business have been increasingly challenged.  
We have seen the emergence and rapid growth of  trading in coal swaps – ‘paper trading’ – 
such as API 2 (the North West Europe in dex and API 4 (the South African index). 
GlobalCOAL’s internet trading platform was la unched based on a standard ised coal contract, 
and the first coal futures contract was launched by EEX6 in May 2006.  
The liquidity of the market in coal derivatives  has been helped by the increased number of 
participants. Banks and finance houses began to  trade coal swaps in addition to the major 
buyers, sellers and traders.  
The most important development has been the coal swap, enabling the physical and financial 
risks of buying coal to be de-coupled. The first API swap was traded in 1998. By 2006, 
brokers estimate that 1,300 million tonnes were traded on API 2 and API 4, around seven times the volume of the physical imported coal market in the Atlantic – up from 650 million 
tonnes in 2005. 
The following chart, reflecting the situation as of end 2007, shows the fo rward values of coal 
swaps for North West Europe, compared to historic prices. 
                                                
 
6 EEX – European Energy Exchange 
 
EN 13   EN Figure 4-Historic Spot and Forward Swap Prices 
020406080100120140
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011$/Tonne
MCIS Marker Price API#2 (As at December 07) 
Source : McCloskey Coal Information Services (MCIS)/Argus 
2.7. Infrastructure 
Both supply and demand dynamics, and associated  pricing impacts in th e international coal 
market, have been affected by infrastructure bo ttlenecks. Often the same ports and vessels are 
involved in the trade of other bulk commod ities thus exacerbating the problem. Expansion 
projects at different stages of the supply ch ain are under way in many of the countries active 
in the trade, with the intention of allowing for continued growth. 
Australia is planning 60 Mt pe r annum more capacity in the short term (around 2010) and a 
further 130 Mt per annum in the medium term; Richards Bay (South Africa) is expanding its 
capacity by more than 20 Mtpa to 92 Mtpa by 2010. Further developments are also planned in 
South America (Colombia and Venezuela). Russia  should have additi onal capacity of 20Mtpa 
by 2010. China is also planning mo re capacity, but the situation here is complicated by the 
volume of coastal shipping, illustrated below.  
 
EN 14   EN Figure 5 - Chinese Coal Flow 
 
Source : Barlow Jonker 
In summary, supply constraints are expected  to ease over the medium term as new 
infrastructure comes on line. Nevertheless, the expansion of the infrastructure still lags behind the requirements of the market, and it will pres umably be several years until it has achieved 
adequate dimensions. This is reflected in freight rates, covered in section 5. 
2.8. Market Concentration 
Over the period 2004-2006 the tendency toward ma rket concentration continued in all of the 
producing countries. The Chinese, for example,  are striving to create large hard coal 
companies with over 100 million tonnes output fo r the long term. A handful of companies are 
also handling the lion’s share of production and export in Indonesia. 
However, the improvement in world market prices  is also luring new companies into the coal 
export business, thereby expanding the pool of s uppliers. In the case of  coking coal – above 
all, hard coking coal – Australia has created  a strongly dominant position with almost 66% 
market share, which in turn is in the hands of  just a few producers. Ho wever, another player – 
CVRD – has stepped onto the coking coal scene. CVRD is developing into another market participant through projects in Mozambique a nd Venezuela as well as the entry into 
Australian coal mining. 
The competition in the area of steam coal continues to be broader, and in recent years Russia 
and Indonesia have strengthened their positions  on markets alongside the traditional suppliers 
Australia, South Africa and Colombia. As a consequence of high oil and gas prices, known 
deposits in many countries are be ing reassessed and the possibility of mining the reserves is 
being examined (e.g., in Eastern Canada, Chile, Zi mbabwe). This could lead to some increase 
in supplies in the long term. 
2.9. Steel Industry Developments 
Steel demand is driven by population, economic growth and development. Half of the world’s 
population lives in high growth, developing co untries. Costs of iron and steelmaking vary 
widely by region, with important implica tions for the locatio n of new capacity. 
 
EN 15   EN Crude steel production around the world rose by 88 million tonnes from 1.129 billion tonnes 
to 1.217 billion tonnes in 2006 (+7 .8%), illustrated by the tabl e below. China alone had a 
share of 60% of the growth in this sect or. Pig iron production which determines the 
consumption of coking coal, PCI coal and coke , increased by 78 Mt from 790 Mt to 868 Mt. 
The share of crude steel production based on pi g iron melted in the blast furnace process 
continued to rise because the gr owth in crude steel production, a bove all in China, was largely 
based on this process, due to the lack of adequate supplies of scrap. 
Figure 6–Growth in World Crude Steel Production 
 2004 2005 2006 2007 (Est.) 
 Mt % Mt % Mt % Mt % 
China 280 +26% 356 +24 425 +19 490 +15 
Rest of World 785 +5% 773 -1 792 +3 806 +2 
Total 1,065 +10% 1,129 +6 1,217 +8 1,296 +6 
Source : Verein der Kohlenimporteure, Jahresbericht 2006/2007 
The most noteworthy recent development in th e steel industry over recent years was the 
creation of Arcelor Mittal Steel. The €27bn merger was finally agreed on June 25th 2006 after 
a takeover battle lasting severa l months during which an attempt was made to pursue a merger 
with Severstal, Russia’s largest steelmaker. M ittal finally took contro l of Arcelor in August 
2006. This created the world’s largest steel conglomerate by a significant margin. The 
following chart shows how Arcelor Mittal (AM) produced almost as much steel as the four 
next-largest companies combined during 2005.  
Figure 7 - Crude Steel Production 2005 (Mt) 
 
Source : Arcelor Mital 
Consolidation in the sector continued with Tata Steel’s £6.2bn acquisi tion of Corus Group on 
2nd April 2007, creating the world’ s fifth largest steel producer. 
Steel demand seems set for substantial growth over the next decade. Continuing pressure to 
improve productivity of blast furnac es is likely to lead to larger  quantities of high quality hard 
coking coal in blends as well as increasing rates of pulverised coal injection. 
 
EN 16   EN With major steel demand in developing countries, and the economics of blast furnace 
operation favouring production close to wher e raw materials are situated, further 
rationalisation of European steel production a nd associated coke making could be envisaged. 
3. HARD COAL – PRODUCTION AND CONSUMPTION IN THE EU 
3.1. Hard Coal Production 
Indigenous production has contin ued its decline over the peri od 2004/06, and is forecast to 
decline further in 2007. The following chart show s trends for the major producing countries: 
Figure 8 - EU Hard Coal Production Trends 
99 97 942928
2425
20
1813
13
1312
12
1223
020406080100120140160180200
2004 (EU25) 2005 2006Million TonnesRomania
Spain
Czech Republic
United Kingdom
Germany
Poland
 
Hard coal production reduced by 4.7% in  2005 (EU-25) and by 5.4% in 2006 (EU-27). 
Detailed figures are given in the Annexes and ar e summarised in tables 7 and 8 at the end of 
this report. 
The largest reduction in production from 2004 to 2005, in both absolute and percentage terms, 
was in the UK following the closure of the Selby mining complex. Production continues to 
decline with further mine closur es and a lack of planning cons ents for surface mining. In 2006 
both Germany and Poland showed significant reducti ons mainly as a result of mine closures 
in Germany and some poor outputs in Poland. 
 
EN 17   EN 3.2. Hard Coal Consumption 
Trends in total consumption of hard co al are illustrated by the following chart. 
Figure 9 – EU Consumption Trends for Hard Coal (Mt)  
255 25126061 646713 1313 13 1011131111111114
050100150200250300350400
2004 (EU25) 2005 2006Million TonnesMiscellaneous
Domestic Heating
Other Industries
Iron and Steel Industry
Coking Plants (coal input)
Power Stations
 
Consumption continues to be dominated by the power sector at 69% followed by coke 
production at 18%.Power station consump tion for EU-25 was down by 3.1% in 2005 
compared to 2004, whilst use for coke production was down by 1.6%. 
In 2006, EU-27 power station consumption incr eased by 3.5% with increases in the UK, 
Denmark, Finland and Poland partly offset by re ductions in Spain and France. Use for coke 
production was up by 4.3% with the major increases in Poland, Italy, Hungary, UK and Sweden. 
 
EN 18   EN 4. COKE – PRODUCTION AND CONSUMPTION IN THE EU 
4.1. Coke Production 
Production trends for coke are illu strated by the following chart: 
Figure 10 – EU Coke Production Trends 
10.18.49.68.5
8.48.44.1
4.64.74.5
4.44.74.3
4.44.73.5
3.43.53.0
2.92.92.6
2.42.2
2.32.1
2.62.21.9 1.81.91.8 1.41.41.41.4 1.41.21.62.22.5
0.05.010.015.020.025.030.035.040.045.050.055.0
2004 (EU25) 2005 2006Million TonnesOthers
Sweden
Austria
Slovakia
Romania
Netherlands
Spain
Belgium
Czech Republic
United Kingdom
France
Italy
Germany
Poland
 
Coke production reduced by 4% from 2004 to 2 005 (EU-25) where there was a reduction of 
1.7 Mt of Polish production. In 2006 EU-27 coke production incr eased by 4% with Polish 
production recovering by 1.2 Mt and a number of sm aller increases elsewhere. At 5 Mt, coke 
imports supply around 9% of the market. 
5. HARD COAL AND COKE - INTERNATIONAL MARKET  
5.1. Major Hard Coal Producers 
World hard coal production s howed a record grow th in the period 2004-2006, driven by 
growth in production from non-OECD countries , with an 8.8% growth in 2006, following 
three years of annual growth averaging 12%. Pr oduction increased in China, Russia, India, 
Indonesia, Kazakhstan and Colombia, but de clined marginally in South Africa. 
 
EN 19   EN The following table shows figures  for the largest producers: 
Table 2 – Major World Hard Coal Producers (Mt) 
 2003 2004 2005 2006 
PR of China 1670.2 1956.0 2158.9 2481.5 
United States 893.9 943.3 962.4 989.5 
India 358.4 382.0 403.0 427.1 
Australia 274.9 285.9 304.9 309.4 
South Africa 238.8 242.8 245.0 244.4 
Russia 177.4 189.8 202.9 233.2 
Indonesia 115.3 132.4 152.2 169.0 
Poland 102.9 101.2 97.9 95.2 
Kazakhstan 84.9 83.1 82.8 91.5 
Colombia 50.5 54.2 59.1 63.7 
Ukraine 63.8 59.1 60.0 61.4 
Others 256.8 204.0 204.9 203.9 
Total 4287.8 4633.8 4934.0 5369.8 
Source: IEA Coal Information 2007 
China accounts for around 46% of world co al production. Output grew by 14.9% in 2006, 
following 10.4% growth in 2005 and 17.1% in 2004. China’s production has more than 
doubled since 2000 which allows the country to meet fast growing demand for coal-fired 
generation and steel making. However, as a majo r coal exporter, China gradually moved from 
the second largest coal expor ter in 2001 to fifth in 2006.  
Coal production in North America has shown slow growth for three consecutive years, 
increasing by 2.8% in 2006 after 2.0 % growth in 2005 and 5.5% in 2004. 
India showed growth in output of 6.0% in 2006, similar to the 5.5% growth in 2005, and 
slightly less than the 6.6% in 2004, but is increasingly depe ndent on imports because of its 
more rapidly growing power requirements. 
Australia remains the largest hard coal e xporter and increased pr oduction slightly by 1.5% 
after 6.6% growth in 2005 and 4% growth in 2004. 
South Africa accounts for 98% of Africa’s hard coal production and is the world’s fourth 
largest coal exporter. Production fell back slig htly by 0.2% compared to  0.9% growth in 2005 
and 1.7% growth in 2004. 
 
EN 20   EN Russia expanded its output by 14.9% in 2006, a steep increase fr om the 6.9% growth in both 
2005 and 2004, and further increased its importance as a supplier to Eur ope, particularly the 
UK. From 2005 it has overtaken South Africa as  the world’s third largest coal exporter. 
Indonesia is the seventh largest producer but second largest exporter in the world. Coal 
production was up 11.0% in 2006 after strong er growth of 15.0% in both 2005 and 2004. 
Colombian production increased by 7.8% in 2006 following an increase of 9.0% in 2005 and 
7.3% in 2004. Colombia should continue to e xpand but Venezuela’s potential for expansion 
will be limited unless the efficiency of port an d rail connections is improved. Exports from 
South America are expected to be increasing ly directed towards the USA as indigenous 
production fails to keep pace with demand. 
5.2. Hard Coal Trade 
A high proportion of world coal production is c onsumed within the country of origin – around 
85%, and this is especia lly true of the two largest producers, China and the USA. Relatively 
small proportional changes in supply and demand in  these countries can have a major impact 
on international market dynamics. 
The major steam coal exporting nations are Au stralia, Indonesia, Russia, South Africa, 
Colombia and China, whereas for coking coal the major exporters are Australia, the United 
States and Canada. 
 
EN 21   EN Major world coal trade flows are illustrated by the following diagram: 
Figure 11 – Hard Coal Seaborne Trade 2005 
USA
27.6CANADA
14.0
BRAZIL
13.7MEXICO
4.1JAPAN
177.7KOREA
76.8
AUNZ
1.0OECDEUR
/EU27
243.9
ETnonEU
+ATE8.7
ME
10.2CHINA
37.0RUSSIA
22.4
ATLANTIC
MARKET INDIA
38.6
ODA
83.9OLAM
9.7NAFR
7.5
SAFR
3.7HARD COAL TRADE, 2005 (million tonnes)
KEY:
EXPORTS
(e.g.100 Mt total, of which 75% is steaming coal)
IMPORTS into REGION or COUNTRY
(e.g.75 Mt steam coal + 25 Mt coking coal = 100 Mt)
REGI ON
100.0100.0 / 75%TO ASIA
PACIFIC
MARKET
Coal Information 2006, IEA plus revisions
Imports shown total 780 Mt.Exports shown total 727 Mt.  Additional reported trade between countries within the regions shown totalled 46.4 Mt in 2005, prin cipally 27.8 Mt exported, 
mainly to other countries within the EU, from Poland, the Czech Republic and Norway, plus transfers through Netherlands totalli ng 7.4 Mt.
Approximately 9.5% of the world coal trade shown was overland, principally USA to Canada, and Russia to Europe, but also within  the regions shown.22.4(96%)8.3 (31%)54.6 (96%)
15.4 (74%)
14.6 (3%)
4.6 (25%)12.9 (7%)
40.0 (45%)
59.6 (99%)
67.3 (98%)
4.4 (99%)
17.4 (93%)
43.8 (22%)185.2 (52%)67.5  (91%)
14.9  (86%)
90.7 (81%)
INDONESIA
3.3 (95%)3 May 07
UK
44.0
ASIA PACIFIC
MARKET
Source:
Notes:
© OECD/IEA 2007
FOR UK DTI COAL FORUM USE ONLY 
Source : IEA/UK Coal Forum , Governmental Website 
 
EN 22   EN Trends in seaborne hard coal trad e are illustrated by the following chart:  
Figure 12 - World Seaborne Hard Coal Trade 
448.9473.6501.1524.8190.8191.6209.2203.9
0.0100.0200.0300.0400.0500.0600.0700.0800.0
2003 2004 2005 2006Million TonnesCoking Coal
Steam Coal
 
Source : Coal Information 2006/2007 
5.3. Steam Coal Trade 
Total world steam coal exports rose by 27.6 Mt or 4.9% in 2006 to reach 592.6 Mt. This 
follows a 31.3 Mt or 5.9% increase in 2005, up from 533.7 in 2004.  
Exports from Indonesia, Russia, South Africa, Colombia, Poland an d the United States rose in 
2004/05 whereas China, Kazakhstan, Canada and Australia saw declining exports. 
In 2006, exports were up from Australia, Ind onesia, Russia and Colombia Kazakhstan, 
Vietnam and the USA and down from South Africa, China and Poland. 
In 2005, Australia was the largest steam co al exporter with 19.4% of world exports. 
Indonesia, South Africa and Russia followe d with shares of 16.3%, 13.1% and 12.1% 
respectively. In 2006, Australi a retained its lead ing position at 18.7% of world exports. 
Russia, however, overtook South Af rica for third place. The shar es for Indonesia, Russia, and 
South Africa were 17.5%, 13.8% and 11.4% respectively. 
2007 is predicted to show further grow th of around 5% in steam coal trade.7 China became a 
net coal importer at the beginning of the year  and South Africa is showing some stagnation, 
but Colombia and Russia are expected to increa se their exports. Indonesia will probably also 
increase its share of the Atlantic market. USA exports are also showing signs of increasing as 
a result of the high prices. 
                                                 
7 Source: Verein der Kohlenimporteure, Jahresbericht 2006/2007 
 
EN 23   EN 5.4. Coking Coal Trade 
World trade in coking coal has decreased by 2.6% to 221.8 Mt in 2006.8 This followed growth 
of 8.6% in 2005 and 4.4% in 2004 ; Australia remained, by far, the largest expo rter at 120.5 
Mt, but with exports down by 4.4 Mt compared to the previous year.  
Further growth in crude steel production is expected once again for 2007. As in previous 
years, China is the driving force, but production  is also rising in India, South America and 
Eastern Europe. As coking coal stock surpluse s were reduced in 2006, the demand for all 
qualities is expected to rise again. 
5.5. Coke Trade 
The OECD9 countries’ imports of coke decreased by 2.7% in 2006.10 The USA, Germany, 
France, Japan and Austria were the five majo r OECD coke importers in 2006, accounting for 
63.5% of coke imports. Coke trade statistics for non-OECD countries are only available up to 
2005, showing that China and Russia  were the main exporters wh ile India and Brazil were the 
main importers. On its own, China accounted for 45.3% of world coke exports. 
The demand for coke on the world market fell su bstantially in 2005 - after a 16.9% increase in 
2004 - partly as a result of consumers ente ring 2005 with excess inventories. There is 
currently an overcapacity in coke production, especially in China.  
5.6. Imports to the EU 
In 2005, imports of hard coal  to the EU-25 in 2005 of 192 Mt reduced by 1.0% compared 
with the previous year and represented 53% of total hard coal suppl y. The major hard coal 
exporting countries to the EU-25 were South A frica, Russia, Australia, Colombia, Indonesia 
the USA and Canada.  
In 2006, imports of hard coal to the EU-27 we re 210 Mt, an increase of 6.1%, representing 
56% of total hard coal supply. 
                                                 
8 IEA includes coal used in coking blends and for pulverised coal injection in coking coal statistics which are not strictly coki ng coals 
9 Organisation of Economic Cooperation and Development 
10 Source– IEA Coal Information 2007 
 
EN 24   EN The breakdown of these hard coal imports is illustrated by the following chart. 
Figure 13 – EU Hard Coal Import Breakdown 
36.747.453.354.951.752.330.226.926.723.524.223.914.014.719.6 13.717.116.8
7.24.96.3
13.611.210.8
0.050.0100.0150.0200.0
2004 (EU25) 2005 2006Million TonnesOthers
Canada
USA
Indonesia
Colombia
Australia
South Africa
Russian Federation
 
The most significant change in  hard coal import sourcing from 2004 to 2005 and again from 
2005 to 2006 is the major growth in imports from  Russia, offset to some degree in 2005 by a 
reduction in South African supply. This growth  of imports from Russia has been driven 
mainly by the UK, where lower sulphur supplie s from Russia are needed at power station 
plants not fitted with flue gas desulphurisat ion. Additional benefits accrue from flexible 
shipment options, including smaller vessels mo re suited to a numbe r of UK ports. In 2006 
Russia became the largest hard  coal supplier to the EU. 
 
EN 25   EN Major European importing countries are illustrated by the following chart: 
Figure 14 – EU Hard Coal Import  Volumes by Member State (Mt) 
3543493128322524242424231817182220177 589 88746556 12 2018
050100150200
2004 (EU25) 2005 2006Million TonnesOthers
Portugal
Finland
Belgium
Denmark
Netherlands
France
Spain
Italy
Germany
United Kingdom
 
The most striking trend in hard coal imports is in the UK, where imports have grown by 23.6 
from 2004 to 2005 and by a further 14.1% in 2006. This is the result of increased demand 
from power stations coupled with  reduced indigenous production.  
 
EN 26   EN 5.7. Steam Coal Prices 
SPOT PRICES 
The following graph illustrates the development of  spot steam coal prices delivered to North 
West Europe: 
Figure 15 – North West Europe Steam Coal Prices 
020406080100120140
2000
20012002
2003
2004
2005
20062007$/tonne
 
Source : McCloskey Coal Information Services (MCIS) 
It can be seen that after th e major growth in 2003 and 2004, pr ices fell back somewhat in 
2005 before recovering in 2006. This has been fo llowed by a dramatic in crease in prices in 
late 2007 to around $130/tonne, driven both by high freight rates (see below) and also free-
on-board (fob) prices. 
Strong demand from India has coincided with a series of supply disruptions on the rail line 
supplying Richards Bay (South Africa). Pacific markets have also tightened driven by 
continued strong demand from all major buyers  at a time of worsening infrastructure 
constraints at the Newcastle terminal, and a growing awareness that additional shipments of Indonesian coal will be insufficient to meet the needs of Asian buyers. 
These high spot prices have continued to grow  in the first semester 2008, pulled by strong 
demand in the Pacific Basin and by capacity lim itations (notably a pr oduction slow-down in 
South Africa due to insufficient electricity supply to the mines and insufficient port capacity in Australia. Consequently, it is not foreseen that the prices falling back towards $ 80/ tonne 
over the next year. However, load ing capacity is foreseen to incr ease in Australian ports in 
2009. 
 
EN 27   EN AVERAGE EU IMPORT PRICES 
Since 2003, based on declarations by the undertaki ngs importing coal and on data aggregated 
by the Member States, the European Commission  publishes every semester the average price 
of steam coal imported from third countries.  
The average EU prices of imported steam coal are shown on the following graph and table.  
Figure 16 – Price of Steam Coal Imported From 3rd Countries 
01020304050607080
2° semester 2002
1° semester 2003
2° semester 2003
1° semester 2004
2° semester 2004
1° semester 2005
2° semester 2005
1° semester 2006
2° semester 2006
1° semester 2007
2° semester 2007Average price €/tec
 
2° semester 2002 € 39,8 
1° semester 2003 € 38,8 
2° semester 2003 € 40,8 
1° semester 2004 € 51,5 
2° semester 2004 € 66,7 
1° semester 2005 € 62,9 
2° semester 2005 € 60,9 
1° semester 2006 € 59,6 
2° semester 2006 € 61,3 
1° semester 2007 € 63,1 
2° semester 2007 €72,5 
For the 2nd semester of 2007, the average pric e of imported steam coal was € 72.5 per tce 
(equivalent to $ 102 per tec). 
 
EN 28   EN 5.8. Coking Coal Prices 
SPOT PRICES 
Coking coal prices rose signifi cantly from April 2005. Fob prices  for hard coking coal rose 
from $55-60/tonne to around $125. Prices for semi-soft coking coal and PCI11 coal also 
increased. 
Table 3 - Price Trends in Coking Coal (US $/Tonne FOB Australia) 
Contract Prices* 2004/5 2005/6 2006/7 2007/8 
Hard Coking Coal 58 125 116 98 
Semi-soft Coking Coal 43 85 58 64 
PCI 48 100 65 68 
*April to March basis 
Source : Goldman Sachs Commodities 
In 2006/7 and 2007/8 the prices have eased back somewhat, but still remain high by historic 
standards because coke strength is so important in modern blast furnaces and the steel requirements of rapidly growi ng economies – such as China and India – remain intense. 
AVERAGE EU IMPORT PRICES 
Since 2003, based on declarations by the undertaki ngs importing coal and on data aggregated 
by the Member States, the European Commission  publishes every semester the average price 
of coking coal imported from third countries.  
                                                
 
11 Coal for pulverised injection 
 
EN 29   EN The average EU prices of imported coking coal are shown on the following graph and table.  
Figure 20 – Price of Coking Coal  Imported From 3rd Countries 
020406080100120
2° semester 2002
1° semester 2003
2° semester 2003
1° semester 2004
2° semester 2004
1° semester 2005
2° semester 2005
1° semester 2006
2° semester 2006
1° semester 2007
2° semester 2007Average price €/t
 
2° semester 2002 € 58,3 
1° semester 2003 € 54,0 
2° semester 2003 € 53,0 
1° semester 2004 € 55,4 
2° semester 2004 € 60,3 
1° semester 2005 € 77,4 
2° semester 2005 € 104,2 
1° semester 2006 € 105,3 
2° semester 2006 € 103,3 
1° semester 2007 € 94,6 
2° semester 2007 € 93,0 
For the 2nd semester of 2007, the average price of imported coking coal  was € 93.0 per tonne 
(equivalent to $ 128 per tonne). 
 
EN 30   EN 5.9. Coke Prices 
Developments in coke prices (fob 12-12.5% as h), are illustrated by the following chart. 
Figure 21 - Spot Chinese Coke Prices 
050100150200250300350400450500
2003
2004
2005
2006
2007$/Tonne
 
Source : Euracoal Market report 
The world market coke prices fell back significantly during 2005, compared to the 
unprecedented levels in 2004, in view of lowe r demand and over capacities in China.  
However, prices have increased again in 2007 a nd towards the end of the year prices have 
approached $400/tonne fob, the highest level si nce May 2004. This is largely the result of 
chronic shortages of Chinese export permits. Rising demand had, by the end of October, led 
to the near exhaustion of all the licenses issued by the Chinese authorities. 
5.10. Freight Considerations 
Delivered prices to Europe comprise both fr ee on board (fob) prices from the country of 
loading and sea freight rates. 
The major increase in prices in 2003 was initially driven by high freight rates as well as 
higher underlying coal prices. Th ese high freight rates resulted mainly from China’s surge in 
demand for raw materials, and also the associ ated congestion at various bottlenecks such as 
Australian loading ports, blocki ng in these ports a significant vessel capacity that would be 
available to the market otherwise. 
These logistics bottlenecks re duced in 2005, and the bulk carri er fleet conti nued its rapid 
expansion, leading to a fa ll in freight rates.  
Rates, however, started to increase once more  during 2006 and towards the end of 2007 rose 
to unprecedented new levels. The continued bo om in demand for dry bulk commodities is 
 
EN 31   EN outpacing the expansion of the fleet . Structural shifts in sea transport are leading to longer sea 
routes.  
The following chart shows the development of ra tes from the beginning of 2004 to the end of 
2007. 
Figure 22 - Spot Sea Freight Rates 
Richards Bay (South Africa) to Rotterdam 
0.010.020.030.040.050.060.0
20042005 2006 2007$/Tonne
 
Source : Euracoal Market Report 
6. LIGNITE AND PEAT – PRODUCTION AND CONSUMPTION IN THE EU 
6.1. World Context 
The world supply of lignite/brown coal went up by 0.9% in 2006 and reached 913.8 Mt, 
following an increase of 1.3% in 2005 and 1.5%  in 2004. Increases in Turkey, Russia and 
Romania more than offset the decreases in  Germany, Greece, Poland and Serbia-Montenegro. 
 
EN 32   EN The following table shows figures  for the largest producers: 
Table 4 – Major World Lignite Producers (Mt) 
 2004 2005 2006 
Germany 181.9 177.9 176.3 
United States 75.8 76.2 76.4 
Russia 69.2 73.7 75.8 
Australia 68.6 70.7 71.2 
Greece 70.0 69.4 65.7 
Turkey 44.4 56.2 61.6 
Poland 61.2 61.6 60.8 
Czech Republic 48.5 48.8 49.1 
Serbia-Montenegro 41.1 40.4 38.9 
Canada 36.7 36.8 36.6 
Romania 31.8 31.1 35.0 
India 30.3 30.1 29.8 
Bulgaria 26.5 24.7 25.5 
Others* 108.3 108.4 111.1 
Total 894.3 906.0 913.8 
*IEA figures also include oil shale production in Estonia 
Source : IEA Coal Information 2007 
Unlike the situation for hard coal, many Europe an nations feature am ongst the top producing 
countries. Europe is responsible for around 50%  of world lignite production. In Europe, 
lignite represents an energy resource of key importance.  
6.2. Lignite Production 
In the EU, the production of ligni te has been fairly stable from 2004 into 2005, and the figures 
for 2006 were broadly similar, although inclus ion of production from Romania and Bulgaria 
lifted the EU total for 2006 from 396 Mt to 45 4 Mt. Production trends are illustrated by the 
following chart12: 
                                                 
12 For the purposes of the EU statistics in this report and the attached tables, lignite, brown coal and peat are grouped together  and included in a single EU total. 
(Production of oil shale is not included in the solid fuel totals but figures are reported in section 6.) 
 
EN 33   EN Figure 23 – EU Lignite Production Trends 
182 178 1807069 666162 614849 4910 101621 2428 322526
11 7 88
050100150200250300350400450500
2004 (EU25) 2005 2006Million TonnesBulgaria
Romania
Others/Peat
Spain
Hungary
Czech Republic
Poland
Greece
Germany
 
6.3. Lignite Prices 
Prices of lignite are not quoted  as it is not a generally tr aded commodity. In many cases 
lignite production is ver tically integrated with power generation, and mine s are treated as cost 
centres.  
6.4. Lignite Consumption 
In EU-25, consumption of lignite in 2005 wa s 397 Mt, a decrease of 1.7% compared to 2004. 
Over 90% of lignite is used in power stati ons with the remainder being largely used for 
domestic heating, mainly in the form of briquettes. 
For EU-27, consumption in 2006 was 452 Mt, an increase of 0.5%. There is little trade in lignite because of  its low heat value and resulting high unit 
transportation costs. Trade between Member States was around 2 Mt and net trade with third countries was around 1 Mt. 
 
EN 34   EN 6.5. Peat Production 
Production and consumption of peat is included within the overall lignite figures. 
In 2005, 14.3 Mt of peat was produced, incr easing to 16.7 Mt in 2006. Production comes 
mainly from Finland, Ireland, Sw eden, Estonia and Lithuania. 
6.6. Oil Shale 
Oil shale statistics are not included in any of the tables or figures in this report and its 
annexes.  
In 2005 14.590 Mt of oil shale was produced in Estonia.  Total availability was 15.761 Mt  including recoveries of 1. 008 Mt and imports of 0.163 Mt 
from the Russian Federation.  
Oil shale was used entirely in the power genera tion sector in Estonia where consumption was 
14.803 Mt. (2006 data is unavailable.) 
7. S
TATE AID TO THE INDIGENOUS HARD COAL INDUSTRY IN THE EU 
7.1. Framework for Coal State Aid 
Due to unfavourable geological conditions, a part  of EU indigenous hard coal production is 
not competitive with imported coal. After the expiry  of the ECSC Treaty on 23 July 2002, the 
Council adopted a Regulation on St ate aid to the coal industry13 to provide a framework 
within which State aid to the coal industry could be considered from 24 July 2002 until 
31.December 2010. 
This framework is based on a minimal production of coal, which will help to maintain a 
proportion of indigenous primary energy sources , in order to strengthen the EU energy 
security of supply. State aid to the coal indus try will also support the restructuring of this 
sector, taking into account the social and regi onal repercussions resu lting from the reduction 
in activity.  
Different kinds of coal state aid may be consid ered compatible with the common market (see 
the following table). Member states must notify the state aid that they wish to grant to the coal 
industry for consideration and eventual approval by the European Commission. 
                                                 
13 Council Regulation N° 1407/2002 of 23 July 2002, OJ L 205 of 02.082002, p.1 
 
EN 35   EN Table 5 - Types of Coal State Aid and Conditions 
Aid Conditions 
Aid for initial investment (Article 5.2) - be part of a plan for accessing coal reserves; 
- operating plan to ensure economic viability; - not more than 30% of the total initial investment costs. 
Current production aid (Article 4 and 
Article 5.3): 
Article 4 = current production aid targeted 
at mines covered by restructuring and 
closure plans. Such aid could be granted only till end-2007. 
Article 5.3 = current production aid 
targeted at mines covered by plans for accessing coal reserves - be part of a plan for accessing coal reserves (Article 
5.3)/ be part of a closure plan (Article 4); 
- aid granted to production units which afford the best 
economic prospects (Article 5.3); 
- aid may not exceed diff erence between production 
costs and revenue; 
- aid may not cause lower prices than those for coal 
from third countries; 
- aid may not cause distortion of competition in user-
sectors. 
 
Aid to cover exceptional costs (Article 7) : - on ly social and environmen tal costs arising from 
rationalisation and restructuring. 
As a general condition, the overall amount of curre nt production aid and initial investment aid 
to the coal sector has to follow a downward tr end so as to result in  a significant reduction. 
7.2. Amounts of Coal State Aid Granted/Authorised 
The table below provides an overview of aid actua lly granted by the biggest  coal granters in 
EU-27 or authorised by the Commission to the coal industry for the years 2003 to 2007.  
Current production aid continued to decrease in  line with the agreements on the reduction of 
volumes of aid to the coal industry.  Nevertheless, as at end-2007, it still accounted for more 
than 55% of aid going to the coal mining sector. 
There are 4 Member States with which currently grant production aid14 for their hard coal 
industry: Germany, Spain, Romania and Hungary. In  Slovenia, the relevant payments to the 
coal mining industry of Slovenia take the fo rm of a compensation for a public service 
obligation.15.  
                                                 
14 The recent relevant State aid decisions by the Commission are as follows: N726/2006 (Germany), 
NN81/2006 Spain, N239/2007 (Romania), N92/2005 (Hungary).  
15 In the case of Slovenia, the indirect operating aid is provided which takes the form of a compensation 
for a public service obligation imposed upon the power plant using the locally produced coal: see 
Commission decision in case C7/2005 – Slovenian electricity tariffs. 
 
EN 36   EN As to exceptional costs related to rationalisation and restructuring16, most of coal–producing 
Member States, have taken over, to a certain ex tent, financing of such costs both for closed 
mines and for mines whic h are still in operation17. The exceptions are Czech Republic, 
Hungary and Bulgaria where  the mining undertakings still in  operation do not benefit from 
these payments 
Finally, small amounts of aid are being targeted at  promoting initial inve stment in coal mining 
sector. There are 3 Member States which got the Commission's authorisation to grant investment aid: the United  Kingdom, Poland and Slovakia
18. These are Member States where 
remaining coal mining industry is largely comp etitive and where operating subsidies are not 
needed. Poland  had not provided so far investment aid but rese rved this possibility. 
                                                 
16 E.g. costs of environmental clean-up following (partial) closure of mining activities, costs related to early retirement sch emes. 
17 These have been approved in Commission decisions N 571/2004, N84/2007 and N575/2007 (Poland), N 27 and 53/2005, N 419/2005, N 168/2005, NN 9/2006 
and N 387/2006 (Slovakia), N 421/2003 and N 321/2004 (France), N 746 and N 474/2002, N 493/2003, N 320/2004, N 497/2004, N 552/ 2005, N726/2006 
(Germany), N 20/2003 (United Kingdom) C 14/2004, N 352/2006 (Spain). 
18 See e.g. Commission decisions N814/2002 (UK), N324/2005 (Slovakia), N571/2004 (Poland). 
 
EN 37   EN Table 6 - State Aid 2003-2007 - amounts actua lly granted by Member States (only for 
the main coal aid granters in the EU-27)  or authorised by the Commission for the 
relevant year 
(Millions €) 
Country 2003 2004 2005 2006 2007 
Germany 
- current production aid 
- aid for related to exceptional 
costs  2639 
780  
2483 
556  
2114 
602  
1472 
882  
1357 
994 
Spain 
- current production aid 
- aid related to exceptional costs  569 
550  
340 
573  
502 
582  
467 
345  
450 
363 
Poland 
- current production aid 
- aid related to exceptional costs   
 
903  
 
913  
369  
 
60  
 
87 
Romania 
- current production aid 
- aid related to exceptional costs   
n/a  
n/a 
  
n/a  
n/a  
11219 
Hungary 
- current production aid 
- aid related to exceptional costs   
n/a 
n/a  
44 
48  
39 
6  
38 
4  
36 
4 
8. CONCLUSIONS  
Coal in the World  
From 2004 to 2006 total world coal productio n increased by 16% to 5,370 million tonnes 
(Mt).  
Updated analysis of proven coal reserves indi cates that, at current world production levels, 
there is close to 150 years of coal available. 
                                                 
19 In line with the accession conditions, for MS which joined EU on 1.01.2007, the overall amount of aid to the coal industry s hall not exceed fro any subsequent 
year the amount of aid authorised by the Commission for 2007.  
 
EN 38   EN A high proportion of world coal production is c onsumed within the country of origin – around 
85%, and this is especia lly true of the two largest producers, China and the USA. Relatively 
small proportional changes in supply and demand in  these countries can have a major impact 
on international market dynamics. 
From 2004 to 2006 world hard coal exports incr eased by 12 % to 815 Mt. For steam coal, the 
major exporting nations are Australia, Indonesia, Russia, South Africa, Colombia and China. 
For coking coal the major exporters are Au stralia, the United States and Canada.  
World steam coal exports rose  by 11 % in from 2004 to 2006 to reach 593 Mt. Australia has 
retained its leading position in world exports  with Indonesia second. In 2006, however, Russia 
overtook South Africa for third place. In 2007, world steam coal trade showed a further 
growth of around 4%. China becam e a net coal importe r at the beginnin g of 2007 and South 
Africa showed some stagnation, but othe r producers increased their exports. 
World trade in coking coal decreased by 2.6%  to 222 Mt in 2006. This followed growth of 
8.6% in 2005 and 4.4% in 2004. Australia remaine d, by far, the largest exporter at 121 Mt. 
Further growth in crude steel production is expected for 2007 and demand for all coking coal 
qualities is expected to rise again.  
Coal in Europe 
Europe is the third largest region worldwide in terms of coal consumption, after China and the 
USA. Around two thirds of EU coal consumption is derived fr om indigenous production, with 
164 million tonnes of hard co al and 454 million tonnes of lignite produced in 2006. 
Europe possesses substantial reserves of coal  and lignite. World Ener gy Council figures show 
EU reserves of hard coal at 8.4 billion tonne s and lignite at 20.9 billion tonnes. Additionally, 
resource figures are assessed at 24.4 billion tonnes and 31.0 billion tonnes respectively by IEA. The largest hard coal reserve is in Pola nd, with significant reserves also in the Czech 
Republic, and lesser reserves in Spain, Hungary, the United Kingdom and Germany. In the 
case of lignite, reserves are pr esent in a swathe from Germany through Central Europe and the 
Balkans, to Greece. 
Production of hard coal has continued its de cline in the EU. Produc tion reduced by 4.7% in 
2005 (EU-25) and by 5.4% in 2006 (EU-27) and is expected to continue to decline in 2007.  
Hard coal consumption in the EU continues to be dominated  by the power sector at 69% 
followed by coke production at 18%. 
In 2005, imports of hard coal to the EU-25 reached  192 Mt and represented 53% of total 
supply. The major exporting count ries to the EU-25 were Sout h Africa, Russia, Australia, 
Colombia, Indonesia the USA and Canada. In 2006, imports of ha rd coal to the EU-27 were 
210 Mt, representing 56% of total supply. The mo st significant change in import sourcing 
from 2004 to 2006 is the major growth in imports from Russia. 
 
EN 39   EN Coal prices 
Steam coal prices strongly fluctuated in  the period 2003-2007. They strongly increased in 
2003/04 and again in the second half of 2007. Spot  steam coal prices reached the level of 
$130 per metric tonne in December 2007 and thei r increasing trend continued in the first 
semester of 2008.  
Average import prices for steam coal in the EU  rose less, from € 39 per tce in the first 
semester 2003 till € 73 per tce in  the second semester 2007. It is  expected that this average 
price will further increase in the 1st semester of 2008. 
Coking coal prices also remain high by historic standards. Chinese coke prices have increased 
dramatically in 2007 and towards the end of the year have appro ached $400/tonne fob, the 
highest level since May 2004. 
Coal State Aid 
Due to unfavourable geological conditions, a part  of EU indigenous hard coal production is 
not competitive with imported coal. After the expiry  of the ECSC Treaty on 23 July 2002, the 
Council adopted a Regulation on State aid to the coal industry to provid e a framework within 
which different kinds of state aid to the coal industry could be considered compatible with the 
EC Treaty from 24 July 2002 onwards.  
Over the period 2003/07 current produc tion aid continued to decline. 
Lignite 
The world supply of lignite/brown coal went up by 0.9 % in 2006 and reached 913.8 Mt, 
following an increase of 1.3 % in 2005. Unlike th e situation for hard coal, many European 
nations feature amongst the top pr oducing countries. Europe is responsible for around 50% of 
world production, where it represents an energy resource of key importance. EU production of 
lignite has been fairly stable in the pe riod from 2004 to 2006. With the inclusion of 
production from Romania and Bulgaria, the EU  total lignite producti on was 454 Mt in 2006. 
Over 90% of lignite is used in power stati ons with the remainder being largely used for 
domestic heating, mainly in the form of briquettes.  
The increase in the import prices  of hard coal is strengthening the competitive position of coal 
production especially in the lignite  sector. This results in a mo re stable contribution to the 
security of energy supply. 
 
EN 40   EN ANNEXES  
Supplies and Deliveries in the EU of Ha rd Coal, Coke and Lignite in 2004/06  
Member State Austria Belgium Bulgaria Cyprus Czech Denmark Estonia Finland France Germany Greece Hungary Ireland Italy
Republic
1. Production (t=t) 13.303 160 29.151 200
of which :
A - Underground 13.303 160 29.151 200
B - Opencast
2. Recoveries 181 26 712 552
3. Receipts from other EU Countries (EU-25) 4.278 784 1.504 1.093 1.679 1.334 8.566 655 348 126
4. Total imports from Third Countries 102 9.171 43 64 6.501 44 6.607 18.127 30.970 814 681 2.538 24.541
of which :
A - USA 1.659 188 430 2.211 3 2.329
B - Canada 404 239 365 2.847 910
C - Australia 8 2.623 442 336 6.015 3.996 88 1.151 3.077
D - South Africa 4 3.094 1.845 3.945 9.304 172 5.902
E - Russian Federation 86 1.263 43 54 1.960 44 5.493 764 5.831 546 552 3 1.895
F - China 36 275 274 136 4 483
G - Colombia 64 1.462 2.852 3.718 1.170 2.923
H - Indonesia 610 63 5.867
I - Venezuela 3 450 788
J - Others 4 25 10 329 109 641 5.274 69 38 38 367
5. Total Availabilities (1+2+3+4) 4.380 10.136 43 14.871 7.594 70 8.286 20.333 68.687 814 1.336 2.886 25.419
6. Gross Inland Consumption* 4.450 8.205 60 9.521 7.442 58 7.993 19.584 69.273 776 1.299 2.812 25.208
A - Power Stations (public & mine) 2.227 3.348 3.635 7.059 6.427 8.676 51.890 772 208 2.234 18.033
B - Coking Plants (coal input) 1.860 3.647 4.641 1.275 5.868 10.288 827 5.124
C - Iron and Steel Industry** 643 644 2.534 2.642 1.350
D - Other Industries 296 60 496 224 12 285 1.927 3.472 120 228 664
of which  Power Stations 164 457 3.429 5 156
E - Domestic Heating 46 204 105 159 33 6 539 769 4 129 269 37
F - Miscellaneous (Total (i)+(ii)+(iii)) 22 363 13 40 212 15 81
(i) Issue to Workers 107
(ii) Patent Fuel Plants 7 39 101 14 43
(iii) Others 356 216 13 1 4 1 38
7. Deliveries to Other EU Countries (EU-25) 23 1.305 5.567 63 94 106 6 5
8. Exports to Third Countries 99 9 3 3 2 2 5 5
9. Total Deliveries (6+7+8) 4.473 9.519 60 15.097 7.598 58 7.993 19.678 69.382 798 1.305 2.817 25.263
* Including transformation for coke
** PCI Coal(in thousands of metric tonnes)Table 1
Supplies and Deliveries of Hard Coal in 2004 (Part 1)
 
 
EN 41   EN Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Total
(Estimate) (Estimate) (Estimate) Kingdom EU-25
99.270 12.342 24.535 178.960
99.270 7.569 12.542 162.195
4.772 11.993 16.765
713 561 2.745
67 381 512 165 3.118 347 701 1.673 27.331
93 264 62 21.925 1.792 5.180 2.065 523 24.474 2.485 34.624 193.690
1.815 460 60 2.007 428 2.061 13.651
1.500 230 715 7.210
1.400 130 3.263 1.472 6.175 30.176
60 8.316 1.935 10.194 10.144 54.916
93 254 1.124 1.536 1.468 3.286 458 9.932 36.685
107 1 143 258 1.717
2 4.515 31 2.075 972 3.670 23.454
1.784 160 523 3.521 1.458 13.986
943 16 127 2.327
10 421 224 420 537 842 211 9.569
93 264 129 22.306 102.287 5.345 5.183 523 37.163 3.186 61.393 402.727
93 259 129 13.505 83.368 5.345 5.150 503 37.099 3.414 60.652 366.198
8.876 43.173 5.330 1.600 473 30.611 602 48.968 244.1423.148 9.887 2.440 3.900 1.790 6.382 61.076
40 1.468 2.511 390 715 549 13.486
128 89 13 8.975 13 690 30 1.493 473 3.540 23.228
4.477 262 1.514 10.464
93 50 8.969 320 1.359 13.091
81 9.853 2 30 60 403 11.175
1.025 1.132
327 531
81 8.827 30 76 9.643
8.805 18.695 20 54 7 19 34.769
227 1.202 10 1 601 2.232
93 259 129 22.537 103.265 5.345 5.150 523 37.163 3.422 61.272 403.199(in thousands of metric tonnes)Table 1
Supplies and Deliveries of Ha rd Coal in 2004 (Part 2)
 
 
EN 42   EN Member State Austria Belgium Bulgaria Cyprus Czech Denmark Estonia Finland France Germany Greece Hungary Ireland Italy
Republic
1. Production (t=t) 26 13.243 28.018 200
of which :
A - Underground 26 13.214 28.018 200
B - Opencast 29
2. Recoveries 109 346 2 617
3. Receipts from other EU Countries (EU-25) 3.716 681 1.184 890 599 2.804 8.833 730 295 466
4. Total imports from Third Countries 478 8.120 2.269 63 35 5.141 54 4.124 17.046 28.272 646 717 2.628 23.685
of which :A - USA
468 1.714 356 66 382 1.928 2.924 52 2.635
B - Canada 269 267 519 491 1.143
C - Australia 2.950 267 129 487 5.309 4.171 115 299 2.791
D - South Africa 10 2.081 1.852 4.225 8.305 132 627 4.600
E - Russian Federation 944 569 63 32 1.531 54 2.736 905 7.546 380 550 3 1.096
F - China 58 15 4
G - Colombia 5 1.254 2.516 3.069 1.014 2.997
H - Indonesia 245 63 602 6.800
I - Venezuela 3 542 550
J - Others 96 810 3 309 871 2.257 71 79 1.073
5. Total Availabilities (1+2+3+4) 4.194 8.910 2.295 63 14.808 6.031 56 4.723 20.468 65.123 646 1.447 2.923 24.351
6. Gross Inland Consumption* 4.225 7.380 2.295 52 9.307 6.288 56 4.476 21.441 65.168 563 1.341 2.852 23.713
A - Power Stations (public & mine) 1.949 3.045 1.238 3.510 5.938 2.900 9.951 48.489 214 2.277 16.184
B - Coking Plants (coal input) 2.010 3.374 1.057 4.342 1.276 5.847 10.177 808 5.281
C - Iron and Steel Industry** 522 750 2.936 2.770 1.814
D - Other Industries 227 244 52 565 235 13 294 2.193 2.801 560 192 211 430
of which  Power Stations 330 166 362 2.741 5
E - Domestic Heating 38 188 140 115 29 6 480 737 3 108 283 4
F - Miscellaneous (Total (i)+(ii)+(iii)) 0 7 14 34 194 19 81
(i) Issue to Workers 101
(ii) Patent Fuel Plants 7 34 90 10 43
(iii) Others 190 14 3 9 38
7. Deliveries to Other EU Countries (EU-25) 3 1.222 5.254 1 295 114 1 11 60
8. Exports to Third Countries 89 5 3 1 3
9. Total Deliveries (6+7+8) 4.228 8.610 2.295 52 14.561 6.384 56 4.476 21.736 65.285 576 1.342 2.863 23.773
* Including transformation for coke
** PCI Coal(in thousands of metric tonnes)Supplies and Deliveries of Hard Coal in 2005 (Part 1)
 
 
EN 43   EN Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Roman ia Slovakia Slovenia Spain Sweden United Total Total Member State
(Estimate) (Estimate) Kingdom EU-25 EU-27
97.109 2.706 11.895 20.008 170.473 173.205 1. Production (t=t) 
of which :
97.109 2.706 7.219 9.563 155.323 158.055 A - Underground
4.676 10.445 15.150 15.150 B - Opencast
794 616 2.484 2.484 2. Recoveries
1 62 244 606 451 2.467 313 442 974 25.758 25.758 3. Receipts from other EU Countries (EU-25)
115 294 49 19.993 2.762 4.821 3.681 2.580 406 24.443 2.761 42.810 192.042 197.992 4. Total imports from Third Countries
of which :
1.643 378 978 1.500 492 1.538 15.720 17.054 A - USA
902 285 1.072 4.681 4.948 B - Canada
1.517 3.115 1.370 4.368 26.621 26.888 C - Australia
49 6.084 1.985 8.736 12.970 51.657 51.657 D - South Africa
115 290 1.592 2.380 1.824 2.327 4.234 847 17.356 44.980 47.373 E - Russian Federation
5 226 153 462 462 F - China
5.703 69 2.314 1.938 3.314 24.192 24.192 G - Colombia
992 144 406 3.783 1.691 14.726 14.726 H - Indonesia
713 146 53 348 2.355 2.355 I - Venezuela
4 847 307 879 254 480 6.651 8.340 J - Others
116 294 111 20.237 101.271 5.272 6.387 5.048 406 36.651 3.203 64.408 390.760 399.442 5. Total Availabilities (1+2+3+4)
120 285 111 12.963 79.132 5.272 6.387 5.048 386 36.602 3.070 62.223 352.074 360.756 6. Gross Inland Consumption*
10 8.267 42.394 5.256 3.294 2.853 366 31.138 930 50.568 236.239 240.771 A - Power Stations (public & mine)
3.157 9.349 3.062 2.095 3.571 1.847 6.603 59.737 63.856 B - Coking Plants (coal input)
34 1.526 1.879 20 728 20 12.999 12.999 C - Iron and Steel Industry**
34 137 77 13 7.937 16 599 459 3.593 20.883 20.883 D - Other Industries
4.885 599 1.640 10.728 10.728 of which  Power Stations
36 55 7.537 31 100 330 1.106 11.295 11.326 E - Domestic Heating
40 92 10.035 236 -186 353 10.920 10.920 F - Miscellaneous (Total (i)+(ii)+(iii))
981 60 1.142 1.142 (i) Issue to Workers
266 450 450 (ii) Patent Fuel Plants
40 92 9.054 176 -186 87 9.517 9.517 (iii) Others
7.056 17.968 20 4 1 438 32.448 32.448 7. Deliveries to Other EU Countries (EU-25)
210 1.557 45 2 111 2.044 2.044 8. Exports to Third Countries
120 285 111 20.229 98.657 5.272 6.387 5.048 406 36.651 3.073 62.772 386.566 395.248 9. Total Deliveries (6+7+8)
* Including transformation for coke
** PCI Coal(in thousands of metric tonnes)Supplies and Deliveries of Hard Coal in 2005 (Part 2)
 
EN 44   EN Member State Austria Belgium Bulgaria Cyprus Czech Denmark Estonia Finland France Germany Greece Hungary Ireland Italy
Republic (Estimate) (Estimate)
1. Production (t=t) 19 13.385 23.762 200
of which :
A - Underground 19 13.374 23.762 200
B - Opencast 11
2. Recoveries 29 360 2 452
3. Receipts from other EU Countries (EU-25) 3.707 493 1.909 725 540 2.160 8.882 888 104 345
4. Total imports from Third Countries 254 7.565 2.221 63 54 7.832 54 6.143 18.230 32.444 498 871 2.263 24.289
of which :A - USA
254 1.835 561 274 791 2.010 2.059 105 2.672
B - Canada 352 88 434 474 1.666 1.071
C - Australia 2.137 157 190 249 5.727 4.748 31 3.097
D - South Africa 2.261 3.062 379 4.236 8.570 22 192 4.779
E - Russian Federation 786 814 63 50 2.009 54 3.622 1.124 8.259 243 435 834
F - China 27 17
G - Colombia 4 1.537 323 2.234 4.174 71 1.090 2.034
H - Indonesia 631 274 584 779 8.734
I - Venezuela 144 460 335
J - Others 19 601 4 129 70 1.365 2.968 161 300 202 733
5. Total Availabilities (1+2+3+4) 3.961 8.087 2.240 63 15.708 8.557 56 6.683 20.843 65.088 498 1.759 2.367 24.834
6. Gross Inland Consumption* 3.873 6.844 2.240 54 9.306 9.432 56 7.810 19.970 65.658 498 1.842 3.077 24.549
A - Power Stations (public & mine) 1.804 2.539 1.260 3.538 9.045 6.270 8.266 48.914 227 2.526 16.596
B - Coking Plants (coal input) 1.768 3.364 980 4.326 1.240 5.847 10.175 1.301 6.092
C - Iron and Steel Industry** 258 514 754 3.193 2.977 1.708
D - Other Industries 239 54 568 244 13 294 2.161 2.738 498 157 205 143
of which  Power Stations 328 166 354 2.679 10
E - Domestic Heating 42 183 120 143 29 6 480 659 137 265 1
F - Miscellaneous (Total (i)+(ii)+(iii)) 5 14 23 195 20 81 9
(i) Issue to Workers 99
(ii) Patent Fuel Plants 5 23 94 20 43
(iii) Others 14 2 38 9
7. Deliveries to Other EU Countries (EU-25) 1.072 6.045 31 140 118 3 3
8. Exports to Third Countries 15 303 79 2 1
9. Total Deliveries (6+7+8) 3.873 7.931 2.240 54 15.654 9.542 56 7.810 20.110 65.778 498 1.846 3.080 24.549
* Including transformation for coke
** PCI Coal(in thousands of metric tonnes)Table 3
Supplies and Deliveries of Hard Coal in 2006 (Part 1)
 
 
EN 45   EN Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Roman ia Slovakia Slovenia Spain Sweden United Total Total Member State
(Estimate) Kingdom EU-25 EU-27
94.404 2.355 11.566 18.079 161.396 163.770 1. Production (t=t) 
of which :
94.404 2.355 7.183 9.444 148.367 150.741 A - Underground
4.383 8.635 13.029 13.029 B - Opencast
816 449 2.108 2.108 2. Recoveries
101 372 1.498 2.795 340 575 1.596 27.030 27.030 3. Receipts from other EU Countries (EU-25)
74 326 52 17.413 3.720 5.782 3.396 1.439 23.371 2.477 48.860 204.074 209.691 4. Total imports from Third Countries
of which :
1.035 202 1.079 1.423 357 2.108 15.125 16.765 A - USA
707 234 1.274 6.212 6.300 B - Canada
1.512 73 3.550 1.357 3.909 26.507 26.737 C - Australia
52 5.234 2.310 166 8.213 1 12.858 52.169 52.335 D - South Africa
74 315 1.261 3.345 22 1.362 1.356 3.610 762 22.897 51.121 53.297 E - Russian Federation
215 10 294 52 615 615 F - China
4.392 80 2.610 1.535 3.798 23.882 23.882 G - Colombia
2.176 473 4.022 1.895 19.568 19.568 H - Indonesia
596 154 1.689 1.689 I - Venezuela
11 285 285 165 716 83 335 67 7.182 8.499 J - Others
74 326 153 17.785 100.439 5.782 5.751 4.233 35.277 3.052 68.984 394.609 402.600 5. Total Availabilities (1+2+3+4)
81 324 153 12.623 86.980 5.782 5.743 4.233 35.061 3.239 67.387 368.832 376.815 6. Gross Inland Consumption*
4 8.229 44.597 5.782 2.996 1.910 29.734 1.057 55.805 246.843 251.099 A - Power Stations (public & mine)
3.048 10.604 2.727 2.223 3.622 2.217 7.049 62.876 66.583 B - Coking Plants (coal input)
49 1.326 2.136 511 21 13.447 13.447 C - Iron and Steel Industry**
26 152 104 20 7.714 784 472 3.685 20.271 20.271 D - Other Industries
4.161 1.518 9.216 9.216 of which  Power Stations
24 62 7.992 20 100 350 547 11.140 11.160 E - Domestic Heating
27 110 13.937 60 -528 301 14.254 14.254 F - Miscellaneous (Total (i)+(ii)+(iii))
936 60 1.095 1.095 (i) Issue to Workers
276 461 461 (ii) Patent Fuel Plants
27 110 13.001 -528 25 12.698 12.698 (iii) Others
16.158 3 198 1 409 24.178 24.181 7. Deliveries to Other EU Countries (EU-25)
725 5 12 1 34 1.172 1.177 8. Exports to Third Countries
81 324 153 12.623 103.863 5.782 5.751 4.233 35.271 3.241 67.830 394.182 402.173 9. Total Deliveries (6+7+8)
* Including transformation for coke
** PCI Coal(in thousands of metric tonnes)Table 3
Supplies and Deliveries of Hard Coal in 2006 (Part 2)
 
 
EN 46   EN Member State Austria Belgium Bulgaria Cyprus Czech Denmark Estonia Finland France Germany Greece Hungary Ireland Italy
Republic
1. Production (t=t) 1.400 2.965 3.548 904 4.542 8.479 664 4.062
2. Recoveries -84
3. Receipts from other EU Countries (EU-25) 869 114 730 18 407 486 2.467 4 94
4. Total imports from Third Countries 5 191 135 26 17 104 794 1.944 95 1.087
of which :
A - USA 51 25 149
B - Canada
C - Australia 43
D - South Africa 28
E - Russian Federation 17 5 2 45 60 15 6
F - China 93 15 104 564 661
G - Colombia 165
H - IndonesiaI - Venezuela
J - Others
5 2 135 21 160 1.719 80 228
5. Total Availabilities (1+2+3+4) 2.274 3.270 135 4.304 35 1.415 5.822 12.890 4 853 5.065
6. Gross Inland Consumption 2.582 3.401 135 3.282 32 1.412 5.226 13.088 4 783 4.819
A - Power Stations (public & mine)
B - Coking Plants (coal input) 104 5
C - Iron and Steel Industry 2.412 3.324 1.937 1.372 4.503 12.194 740 4.501
D - Other Industries 78 68 135 1.105 31 40 624 809 4 30 280
of which  Power Stations
E - Domestic Heating 91 9 1 21 80 2 38
F - Miscellaneous (Total (i)+(ii)+(iii)) 135 1 78 5 6
(i) Issue to Workers 5
(ii) Patent Fuel Plants
(iii) Others 135 1 78 6
7. Deliveries to Other EU Countries (EU-25) 17 82 923 1 850 68 194
8. Exports to Third Countries 35 2 12 52
9. Total Deliveries (6+7+8) 2.599 3.483 135 4.240 33 1.414 6.076 13.088 4 863 5.065(in thousands of metric tonnes)Table 4
Supplies and Deliveries of Coke in 2004 (Part 1)
 
 
EN 47   EN Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Total Member State
(Estimate) (Estimate) Kingdom EU-25
2.216 10.077 1.882 2.614 1.372 4.336 49.061 1. Production (t=t) 
-84 2. Recoveries
110 13 296 7 18 159 193 5.985 3. Receipts from other EU Countries (EU-25)
15 224 24 152 341 852 6.006 4. Total imports from Third Countries
of which :
34 259 A - USA
18 18 B - Canada
82 57 6 C - Australia
28 D - South Africa
36 8 58 15 294 588 E - Russian Federation
5 143 4 30 318 431 2.368 F - China
5 53 223 G - Colombia
H - IndonesiaI - Venezuela
8 8 20 30 31 2.447 J - Others
15 2.550 10.101 13 2.178 7 2.784 1.872 5.381 60.968 5. Total Availabilities (1+2+3+4)
14 2.161 5.293 13 2.100 7 1.799 1.778 5.147 53.076 6. Gross Inland Consumption
A - Power Stations (public & mine)
109 B - Coking Plants (coal input)
1.953 3.843 2.100 7 1.375 1.715 4.171 46.147 C - Iron and Steel Industry
12 197 712 13 424 63 925 5.550 D - Other Industries
of which  Power Stations
738 51 1.031 E - Domestic Heating
21 1 238 F - Miscellaneous (Total (i)+(ii)+(iii))
5 (i) Issue to Workers
(ii) Patent Fuel Plants
21 1 233 (iii) Others
327 4.600 78 712 35 80 7.967 7. Deliveries to Other EU Countries (EU-25)
19 185 273 62 640 8. Exports to Third Countries
14 2.507 10.078 13 2.178 7 2.784 1.813 5.289 61.683 9. Total Deliveries (6+7+8)(in thousands of metric tonnes)Table 4
Supplies and Deliveries of Coke in 2004 (Part 2)
 
 
EN 48   EN Member State Austria Belgium Bulgaria Cyprus Czech Denmark Estonia Finland France Germany Greece Hungary Ireland Italy
Republic
1. Production (t=t) 1.388 2.856 690 3.412 37 894 4.445 8.397 614 4.574
2. Recoveries
3. Receipts from other EU Countries (EU-25) 1.136 61 10 508 957 2.101 4 134
4. Total imports from Third Countries 5 91 105 143 2 36 503 568 1.692 71 848
of which :A - USA
24 82
B - Canada
C - Australia 29
D - South AfricaE - Russian Federation
42 2 6
F - China 67 32 503 458 44 442
G - Colombia 23
H - IndonesiaI - Venezuela
J - Others
5 105 143 2 88 1.663 27 295
5. Total Availabilities (1+2+3+4) 2.529 3.008 805 143 3.922 36 37 1.397 5.970 12.190 4 819 5.422
6. Gross Inland Consumption 2.555 3.013 805 143 3.030 33 1.415 4.923 12.284 4 751 5.258
A - Power Stations (public & mine)
B - Coking Plants (coal input) 100 4
C - Iron and Steel Industry 2.471 2.928 805 1.850 1.376 4.270 11.619 719 5.023
D - Other Industries 35 77 143 1.080 33 39 607 602 4 25 224
of which  Power Stations
E - Domestic Heating 49 8 14 60 2 11
F - Miscellaneous (Total (i)+(ii)+(iii)) 32 3 1
(i) Issue to Workers 3
(ii) Patent Fuel Plants
(iii) Others 32 1
7. Deliveries to Other EU Countries (EU-25) 20 896 643 48 181
8. Exports to Third Countries 17 37 2 5 49
9. Total Deliveries (6+7+8) 2.555 3.033 805 143 3.943 33 37 1.417 5.566 12.284 4 804 5.488(in thousands of metric tonnes)Table 5
Supplies and Deliveries of Coke in 2005 (Part 1)
 
 
EN 49   EN Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania * Slovakia Slovenia Spain Sweden United Total Total Member State
(Estimate) Kingdom EU-25 EU-27
2.250 8.404 2.100 1.846 2.437 1.402 4.364 47.320 50.110 1. Production (t=t) 
2. Recoveries
46 6 549 193 7 21 140 203 5.517 6.076 3. Receipts from other EU Countries (EU-25)
8 15 295 27 127 66 115 253 718 5.456 5.688 4. Total imports from Third Countries
of which :
29 135 135 A - USA
10 10 10 B - Canada
24 53 53 C - Australia
333 D - South Africa
7 1 49 44 25 125 283 283 E - Russian Federation
11 155 1 140 368 2.221 2.221 F - China
44 16 3 86 86 G - Colombia
23 23 23 H - Indonesia
I - Venezuela
1 3 26 127 23 35 110 222 2.643 2.875 J - Others
8 15 2.591 8.431 6 2.776 2.106 7 2.573 1.795 5.285 58.294 61.875 5. Total Availabilities (1+2+3+4)
7 18 2.095 3.809 6 2.741 2.028 7 1.963 1.692 5.015 50.049 53.595 6. Gross Inland Consumption
A - Power Stations (public & mine)
104 104 B - Coking Plants (coal input)
7 1.891 2.665 6 2.741 2.028 7 1.451 1.478 4.067 43.856 47.402 C - Iron and Steel Industry
18 192 691 512 134 913 5.329 5.329 D - Other Industries
of which  Power Stations
453 65 35 697 697 E - Domestic Heating
12 15 63 63 F - Miscellaneous (Total (i)+(ii)+(iii))
33 (i) Issue to Workers
(ii) Patent Fuel Plants
12 15 60 60 (iii) Others
350 3.214 76 428 26 55 5.937 5.937 7. Deliveries to Other EU Countries (EU-25)
5 970 35 1 182 9 64 1.341 1.376 8. Exports to Third Countries
7 18 2.450 7.993 6 2.776 2.106 7 2.573 1.727 5.134 57.328 60.909 9. Total Deliveries (6+7+8)(in thousands of metric tonnes)Table 5
Supplies and Deliveries of Coke in 2005 (Part 2)
 
 
EN 50   EN  Member State Austria Belgium Bulgaria Cyprus Czech Denmark Estonia Finland France Germany Greece Hungary Ireland Italy
Republic (Estimate)
1. Production (t=t) 1.398 2.894 669 3.463 37 870 4.689 8.372 921 4.689
2. Recoveries
3. Receipts from other EU Countries (EU-25) 1.261 29 16 768 3 944 1.903 48
4. Total imports from Third Countries 38 156 153 35 520 517 1.701 716
of which :A - USA
14 70 267
B - Canada 63
C - Australia 95
D - South Africa
E - Russian Federation 24 56
F - China 24 35 520 491 313
G - Colombia 13 0
H - IndonesiaI - Venezuela
J - Others
156 153 2 1.387 136
5. Total Availabilities (1+2+3+4) 2.659 2.961 841 153 4.231 38 37 1.390 6.150 11.976 969 5.405
6. Gross Inland Consumption 2.845 3.012 841 153 3.423 34 1.400 5.139 12.067 728 5.148
A - Power Stations (public & mine)
B - Coking Plants (coal input) 128 3
C - Iron and Steel Industry 2.793 2.912 841 3.041 1.360 4.439 11.416 696 4.959
D - Other Industries 90 153 214 34 40 627 591 25 182
of which  Power Stations
E - Domestic Heating 52 10 40 4 58 2 5
F - Miscellaneous (Total (i)+(ii)+(iii)) 6 9 212
(i) Issue to Workers 2
(ii) Patent Fuel Plants
(iii) Others 69 1 2
7. Deliveries to Other EU Countries (EU-25) 179 924 668 83 189
8. Exports to Third Countries 47 37 33 128 31
9. Total Deliveries (6+7+8) 2.845 3.191 841 153 4.394 34 37 1.400 5.840 12.067 939 5.368(in thousands of metric tonnes)Table 6
Supplies and Deliveries of Coke in 2006 (Part 1)
 
EN 51   EN Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania * Slovakia Slovenia Spain Sweden United Total Total Member State
Kingdom EU-25 EU-27
2.162 9.613 1.900 1.840 2.555 1.188 4.682 49.373 51.942 1. Production (t=t) 
2. Recoveries
145 483 434 54 124 245 5.958 6.457 3. Receipts from other EU Countries (EU-25)
4 24 49 20 60 35 8 101 93 748 4.762 4.978 4. Total imports from Third Countries
of which :
30 381 381 A - USA
63 63 B - Canada
95 95 C - AustraliaD - South Africa
4 6 28 5 53 310 486 486 E - Russian Federation
18 1 1 4 416 1.822 1.823 F - China
12 44 87 87 G - Colombia
H - IndonesiaI - Venezuela
21 20 59 30 8 5 45 23 1.830 2.045 J - Others
4 24 2.356 9.634 2.443 2.309 8 2.710 1.405 5.675 60.094 63.378 5. Total Availabilities (1+2+3+4)
3 24 1.879 4.058 2.425 2.302 8 1.660 1.433 5.303 50.619 53.885 6. Gross Inland Consumption
A - Power Stations (public & mine)
131 131 B - Coking Plants (coal input)
3 1.709 3.045 2.425 2.302 8 1.393 1.344 5.201 46.621 49.887 C - Iron and Steel Industry
24 170 521 267 67 70 3.075 3.075 D - Other Industries
of which  Power Stations
493 32 696 696 E - Domestic Heating
22 96 96 F - Miscellaneous (Total (i)+(ii)+(iii))
22 (i) Issue to Workers
(ii) Patent Fuel Plants
22 94 94 (iii) Others
4.087 7 871 26 130 7.164 7.164 7. Deliveries to Other EU Countries (EU-25)
1.911 17 179 38 2.404 2.421 8. Exports to Third Countries
3 24 1.879 10.055 2.442 2.309 8 2.710 1.459 5.471 60.186 63.469 9. Total Deliveries (6+7+8)(in thousands of metric tonnes)Table 6
Supplies and Deliveries of Coke in 2006 (Part 2)
 
 
EN 52   EN  
Member State Austria Belgium Bulgaria Cyprus Czech Denmark Estonia Finland France Germany Greece Hungary Ireland Italy
Republic (peat) (peat) (peat)
1. Production (t=t) 235 48.497 279 3.200 181.926 70.041 11.242 4.656
of which :
A - Underground 914 2.107
B - Opencast 235 47.583 279 3.200 181.926 70.041 9.135 4.656
2. Recoveries 134
3. Receipts from other EU Countries (EU-25) 82 190 1 40 294 41 9
4. Total imports from Third Countries 17 91
of which :
A - USAB - Canada
C - Australia
D - South AfricaE - Russian Federation
91
F - ChinaG - ColombiaH - Indonesia
I - Venezuela
J - Others
17
5. Total Availabilities (1+2+3+4) 317 190 48.498 413 3.200 40 181.943 70.041 11.627 4.697 9
6. Gross Inland Consumption 1.188 189 47.417 299 8.724 40 181.933 70.855 12.173 3.059 9
A - Power Stations (public & mine) 1.007 35.666 17 7.299 169.126 70.233 11.788 1.555
B - Coking Plants (coal input)
C - Iron and Steel Industry
D - Other Industries 117 189 8.866 281 1.318 40 602 196 29 36
of which  Power Stations 3.649 1.318 36
E - Domestic Heating 64 559 1 107 323 847 9
F - Miscellaneous (Total (i)+(ii)+(iii)) 2.326 12.205 426 33 621
(i) Issue to Workers
(ii) Patent Fuel Plants 12.205 422 15 618
(iii) Others 2.326 41 8 3
7. Deliveries to Other EU Countries (EU-25) 4 1.024 106 29 1 1 30
8. Exports to Third Countries 48 65
9. Total Deliveries (6+7+8) 1.193 189 48.489 405 8.753 40 181.934 70.855 12.239 3.089 9(in thousands of metric tonnes)Table 7
Supplies and Deliveries of Brown Coal and Lignite in 2004 (Part 1)
 
EN 53   EN  Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Total Member State
(mainly peat) (Estimate) Kingdom EU-25
50 61.196 2.950 4.809 8.162 397.243 1. Production (t=t) 
of which :
2.950 4.809 10.780 A - Underground
50 61.196 8.162 386.463 B - Opencast
3 137 2. Recoveries
8 46 870 1.581 3. Receipts from other EU Countries (EU-25)
9 117 4. Total imports from Third Countries
of which :
A - USA
B - Canada
C - Australia
D - South Africa
1 92 E - Russian Federation
F - China
G - Colombia
H - IndonesiaI - Venezuela
8 25 J - Others
59 8 46 61.198 3.820 4.809 8.162 399.077 5. Total Availabilities (1+2+3+4)
48 8 44 61.172 3.590 4.809 8.162 403.719 6. Gross Inland Consumption
47 60.279 2.780 4.809 8.162 372.768 A - Power Stations (public & mine)
B - Coking Plants (coal input)C - Iron and Steel Industry
6 23 210 11.913 D - Other Industries
5.003 of which  Power Stations
1 2 893 600 3.405 E - Domestic Heating
12 1 15.633 F - Miscellaneous (Total (i)+(ii)+(iii))
(i) Issue to Workers
13.260 (ii) Patent Fuel Plants
12 1 2.373 (iii) Others
27 1.222 7. Deliveries to Other EU Countries (EU-25)
5 118 8. Exports to Third Countries
53 8 44 61.198 3.590 4.809 8.162 405.059 9. Total Deliveries (6+7+8)(in thousands of metric tonnes)Table 7
Supplies and Deliveries of Brown Coal and Lignite in 2004 (Part 2)
 
EN 54   EN  Member State Austria Belgium Bulgaria Cyprus Czech Denmark Estonia Finland France Germany Greece Hungary Ireland Italy
Republic (peat) (peat) (peat)
1. Production (t=t) 24.598 48.772 378 8.574 177.907 69.398 9.571 4.226
of which :
A - Underground 945 936 1.249
B - Opencast 23.653 47.836 378 8.574 177.907 69.398 8.322 4.226
2. Recoveries -80
3. Receipts from other EU Countries (EU-25) 108 206 1 22 34 389 41 8
4. Total imports from Third Countries 429 3 1 6
of which :
A - USA
B - CanadaC - Australia
D - South Africa
E - Russian Federation
316
F - ChinaG - Colombia
H - Indonesia
I - Venezuela
J - Others
429
5. Total Availabilities (1+2+3+4) 108 206 24.598 48.773 298 8.600 36 177.916 69.398 10.276 4.267 8
6. Gross Inland Consumption 1.287 206 24.598 47.617 252 6.560 36 177.861 70.096 10.247 4.230 8
A - Power Stations (public & mine) 1.112 23.585 39.094 61 6.560 164.884 69.429 9.813 2.709
B - Coking Plants (coal input)
C - Iron and Steel Industry
D - Other Industries 123 206 4.500 191 36 715 224 3 36
of which  Power Stations 3.500 36
E - Domestic Heating 53 216 2.000 32 358 871 8
F - Miscellaneous (Total (i)+(ii)+(iii)) 797 2.023 12.262 411 73 614
(i) Issue to Workers
(ii) Patent Fuel Plants 797 536 12.262 411 17 610
(iii) Others 1.487 56 4
7. Deliveries to Other EU Countries (EU-25) 3 1.303 46 124 1 2 30
8. Exports to Third Countries 51 6 3 7 2
9. Total Deliveries (6+7+8) 1.290 206 24.598 48.925 298 6.700 36 177.862 70.096 10.621 4.260 8(in thousands of metric tonnes)Table 8
Supplies and Deliveries of Brown Coal and Lignite in 2005 (Part 1)
 
EN 55   EN  
Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Roman ia Slovakia Slovenia Spain Sweden United Total Total Member State
(peat) (mainly peat) (peat) Kingdom EU-25 EU-27
12 70 61.590 28.432 2.511 4.540 7.587 1.012 396.149 449.179 1. Production (t=t) 
of which :
2.427 2.511 4.540 9.236 12.608 A - Underground
12 70 61.590 26.005 7.587 1.012 386.912 436.570 B - Opencast
3 -78 -78 2. Recoveries
8 51 368 646 1.514 1.882 3. Receipts from other EU Countries (EU-25)
26 406 8 771 771 4. Total imports from Third Countries
of which :
A - USA
B - Canada
88 8 C - AustraliaD - South Africa
3 319 319 E - Russian Federation
F - China
G - ColombiaH - IndonesiaI - Venezuela
23 406 444 444 J - Others
12 96 8 51 61.593 28.800 3.158 4.946 7.587 1.020 398.357 451.755 5. Total Availabilities (1+2+3+4)
8 53 8 51 61.573 28.800 3.158 4.971 7.587 1.017 396.826 450.224 6. Gross Inland Consumption
8 50 61.173 28.710 2.858 4.971 7.587 731 371.039 423.334 A - Power Stations (public & mine)
B - Coking Plants (coal input)C - Iron and Steel Industry
72 9 28 6.098 6.098 D - Other Industries
3.536 3.536 of which  Power Stations
1 1 400 90 300 258 4.283 4.589 E - Domestic Heating
22 2 15.407 16.204 F - Miscellaneous (Total (i)+(ii)+(iii))
(i) Issue to Workers
13.836 14.633 (ii) Patent Fuel Plants
22 2 1.570 1.570 (iii) Others
4 20 20 1.553 1.553 7. Deliveries to Other EU Countries (EU-25)
0 3 396 396 8. Exports to Third Countries
12 53 8 51 61.593 28.800 3.158 4.991 7.587 1.020 398.775 452.173 9. Total Deliveries (6+7+8)(in thousands of metric tonnes)Table 8
Supplies and Deliveries of Brown Coal and Lignite in 2005 (Part 2)
 
EN 56   EN  Member State Austria Belgium Bulgaria Cyprus Czech Denmark Estonia Finland France Germany Greece Hungary Ireland Italy
Republic (Estimate) (peat) (Estimate) (peat)
1. Production (t=t) 8 25.631 49.059 378 11.689 179.950 65.650 9.952 3.972
of which :
A - Underground 1.662 914 1.351
B - Opencast 8 23.969 48.145 378 11.689 179.950 65.650 8.601 3.972
2. Recoveries -80
3. Receipts from other EU Countries (EU-25) 120 289 24 7 37 344 13 9
4. Total imports from Third Countries 48 3 3 3
of which :
A - USA
B - CanadaC - Australia
D - South Africa
E - Russian Federation
333
F - ChinaG - Colombia
H - Indonesia
I - Venezuela
J - Others
48
5. Total Availabilities (1+2+3+4) 128 289 25.631 49.083 298 11.700 37 179.958 65.650 10.629 3.985 9
6. Gross Inland Consumption 781 290 25.631 47.609 252 8.689 37 179.950 65.650 10.176 3.748 9
A - Power Stations (public & mine) 662 24.628 39.170 61 8.689 166.400 65.050 9.731 2.347
B - Coking Plants (coal input)
C - Iron and Steel Industry
D - Other Industries 60 290 4.340 191 37 750 200 37 36
of which  Power Stations 3.140 36
E - Domestic Heating 59 238 1.900 391 725 2
F - Miscellaneous (Total (i)+(ii)+(iii)) 765 2.199 12.800 400 17 640 7
(i) Issue to Workers
(ii) Patent Fuel Plants 765 580 12.800 400 1 637
(iii) Others 1.619 1 637
7. Deliveries to Other EU Countries (EU-25) 1.296 46 98 1 1 5
8. Exports to Third Countries 41 3 4 9 0
9. Total Deliveries (6+7+8) 781 290 25.631 48.909 298 8.800 37 179.951 65.650 10.667 3.753 9(in thousands of metric tonnes)Table 9
Supplies and Deliveries of Brown Coal and Lignite in 2006 (Part 1)
 
EN 57   EN Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Roman ia Slovakia Slovenia Spain Sweden United Total Total Member State
(peat) (mainly peat) (peat) Kingdom EU-25 EU-27
14 66 60.762 32.458 2.207 4.522 6.872 979 396.080 454.169 1. Production (t=t) 
of which :
2.064 2.207 4.522 8.994 12.720 A - Underground
14 66 60.762 30.394 6.872 979 387.086 441.449 B - Opencast
-80 -80 2. Recoveries
7 34 496 731 1.615 2.111 3. Receipts from other EU Countries (EU-25)
28 125 5 549 9 936 1.061 4. Total imports from Third Countries
of which :
A - USA
B - Canada
99 9 C - AustraliaD - South Africa
3 119 4 340 459 E - Russian Federation
F - China
G - Colombia
H - IndonesiaI - Venezuela
25 6 1 549 587 593 J - Others
14 94 7 34 60.762 33.079 2.943 5.071 6.872 988 398.551 457.261 5. Total Availabilities (1+2+3+4)
4 58 7 34 60.762 33.079 2.943 5.087 6.872 890 393.848 452.558 6. Gross Inland Consumption
4 55 60.065 32.986 2.643 5.087 6.872 651 367.487 425.101 A - Power Stations (public & mine)
B - Coking Plants (coal input)C - Iron and Steel Industry
69 32 5.988 5.988 D - Other Industries
3.176 3.176 of which  Power Stations
1 1 697 93 300 207 4.283 4.614 E - Domestic Heating
22 5 16.090 16.855 F - Miscellaneous (Total (i)+(ii)+(iii))
(i) Issue to Workers
14.418 15.183 (ii) Patent Fuel Plants
22 5 1.672 1.672 (iii) Others
34 1.481 1.481 7. Deliveries to Other EU Countries (EU-25)
38 6 551 551 8. Exports to Third Countries
4 96 7 34 60.762 33.079 2.943 5.121 6.872 896 395.880 454.590 9. Total Deliveries (6+7+8)(in thousands of metric tonnes)Table 9
Supplies and Deliveries of Brown Coal and Lignite in 2006 (Part 2)