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.
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:
|CUAEF, CSUAY, 1088.HK||China Shenhua Energy Company Limited||China||6.73%|
|ADOOY, ADRO.JK||Adaro Energy Tbk PT||Indonesia||5.77%|
|J2S.SG||Jastrzebska Spolka Weglowa SA||Poland||5.01%|
|EXXAY, EXXAF||Exxaro Resources||South Africa||4.76%|
|YZCAY, YZCHF, 1171.HK||Yanzhou Coal Mining Co Ltd||China||3.75%|
|CCOZF, CCOZY, 601898.SS||China Coal Energy Co Ltd||China||3.58%|
|PBMRF, PBMRY, BUMI.JK||Bumi Resources Tbk PT||Indonesia||3.25%|
|PTBA.JK||Bukit Asam (Persero) Tbk PT||Indonesia||2.15%|
|ITAYY, ITMG.JK||Indo Tambangraya Megah Tbk PT||Indonesia||2.09%|
|DOID.JK||Delta Dunia Makmur Tbk PT||Indonesia||1.22%|
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.