The 2 Largest Coal Producing Countries In the World Are Now Emerging Markets 3

The two largest coal producing countries

Emerging markets, especially those in Asia, have been steadily increasing their shares of global coal production. For 2016, China (FXI) continued to lead the world in coal production with 3,411 MT (million tonnes); accounting for 45.7% of world coal production (which stood at 7,460 MT for 2016). India (EPI), another emerging market (EEM) (VWO), is the second largest nation by output with 692.4 MT of coal production during 2016. This placed them just ahead of the US, which mined 660.6 MT of coal.

 

Looking at the top five, which include Australia (EWA) and Indonesia (EIDO), emerging markets occupy three of the five top slots in coal production. In all emerging markets now account for about 32% of world coal production.

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When it comes to coal production, the Asia Pacific region specifically, has grown exponentially over the past decade (chart below).

 

The VanEck Vectors Coal ETF (KOL) provides exposure to some of the largest coal mining companies

The NYSE Arca-traded VanEck Vectors Coal ETF (KOL) provides global equity exposure to coal companies. The ETF isn’t a pure play on coal mining. However, 10/26 stocks in the KOL portfolio (as of August 23) were emerging market-based coal miners. These are:

TickerStockCountryPortfolio weight
CUAEF, CSUAY, 1088.HKChina Shenhua Energy Company LimitedChina6.73%
ADOOY, ADRO.JKAdaro Energy Tbk PTIndonesia5.77%
BANPU.BKBanpu PCLThailand5.13%
J2S.SGJastrzebska Spolka Weglowa SAPoland5.01%
EXXAY, EXXAFExxaro ResourcesSouth Africa4.76%
YZCAY, YZCHF, 1171.HKYanzhou Coal Mining Co LtdChina3.75%
CCOZF, CCOZY, 601898.SSChina Coal Energy Co LtdChina3.58%
PBMRF, PBMRY, BUMI.JKBumi Resources Tbk PTIndonesia3.25%
PTBA.JKBukit Asam (Persero) Tbk PTIndonesia2.15%
ITAYY, ITMG.JKIndo Tambangraya Megah Tbk PTIndonesia2.09%
DOID.JKDelta Dunia Makmur Tbk PTIndonesia1.22%

 

We’ve taken a snapshot of the largest coal mining countries and developing market coal miners. Emerging markets are now the fastest growing markets in terms of coal production. Part two of this series sheds light on these markets and the key stocks from these regions.

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