Reference Materials Overview of Coal Industry 1
Table of Contents Global Energy Resource Reserves ---------------------------------------- 3 Status of Global Energy Resources Supply ---------------------------------------- 4 World Total Primary Energy Supply Shares World Total Fuel Shares of Electricity Generation Outlook for Global Coal Consumption ---------------------------------------- 5 Global Coal Consumption Outlook Coal Shares of Power Generation in Major Countries Global Coal Reserves ---------------------------------------- 6 World Coal Trade ---------------------------------------- 7 World Coal Exporters and Importers ---------------------------------------- 8 Coal Consumption in Japan ---------------------------------------- 9 Coal Consumption by Industry in Japan Total Electric Generation and Shares of Generating Sources in Japan Trends of Domestic and Imported Coal and Exporters to Japan ------------------ 10 Volumes of Domestic and Imported Coal Supply Coal Exporters to Japan Australian Coal Price Chart -------------------------- 11 2
Global Energy Resource Reserves Crude Oil Natural gas Coal Uranium Reserves End of 2008 End of 2008 End of 2008 End of 2008 (R) 159.9 billion tons 188 trillion m 3 997.195 billion tons 1.766 million tons worldwide worldwide worldwide worldwide North America 4.1 % 4.7 % 27.2 % 15.3 % Latin America 6.0 % 4.0 % 1.4 % 8.2 % Reserve condition by region Europe 1.4 % 2.9 % 8.7 % 0.1 % Middle East 63.5 % 39.1 % 0.04 % 2.5 % Australia/Asia 7.0 % 8.1 % 37.6 % 42.4 % Africa 10.6 % 7.7 % 3.3 % 10.9 % CIS 11.0 % 33.4 % 21.8 % 20.7 % Annual production 2008 2008 2008 2008 (P) 3.89 billion tons 3.17 trillion m 3 6.8 billion tons 43,900 tons Life of Reserves 2008 2008 2008 2008 (R/P) 41.1 years worldwide 59.3 years worldwide 146.6 years worldwide 40.2 years worldwide Source: BGR ANNUAL REPORT 2009 Reserves, Resources and Availability of Energy Resources 3
Status of Global Energy Resources Supply World total primary energy supply (2007) World total fuel shares of electricity generation (2007) Hydro 2.2% Nuclear 5.9% Combustible renewables & waste Others 0.7% 9.8% Coal 26.5% Nuclear 13.8% Hydro 15.6% Other 2.6% Coal 41.5% LNG 20.9% Oil 34.0% LNG 20.9% Oil 5.6% Source: IEA Key World Energy Statistics 2009 Source: IEA Key World Energy Statistics 2009 4
Outlook for Global Coal Consumption Coal demand is projected to remain globally robust, primarily in Asia (China and India). Global coal consumption outlook Coal shares of power generation in major countries (2007) Million tons 12,000 10,000 8,000 6,000 4,000 6,744 557 237 551 2,584 7,407 585 257 600 3,114 7,930 598 283 657 3,491 8,478 590 315 706 3,950 9,162 583 379 753 4,474 9,917 594 483 827 4,882 Central and South America Africa Middle East Russia/Eastern Europe Other Asian Countries India China Australia/New Zealand 90% 80% 70% 60% 50% 40% 30% 81% 68% 49% 49% 2,000 0 902 891 873 848 831 824 1,199 1,229 1,282 1,311 1,351 1,468 2006 2010 2015 2020 2025 2030 South Korea Japan Europe North America 20% 10% 0% China India US Germany Japan Russia 28% 17% Source: EIA International Energy Outlook2009 Source: IEA Key World Energy Statistics 2009 5
Global Coal Reserves Russia (161.6 billion tons) Sub-bituminous & brown coal (million tons) Data in 2008 Anthracite & bituminous coal (million tons) 91,607 69,946 67,162 Europe (86.8 billion tons) 19,614 11,000 China (191.6 billion tons) Canada (6.6 billion tons) 2,236 4,342 India (80.7 billion tons) 4,342 180,600 31,049 US (263 billion tons) Other African countries (1.7 billion tons) 9 1,682 76,372 Indonesia 13,732 (4.5 billion tons) 2,862 1,590 7,208 Other Asian/Oceania countries (20.9 billion tons) 231,922 Colombia (5.3 billion tons) 31,022 37,300 39,600 5,124 4,894 South Africa (31 billion tons) Australia (76.9 billion tons) Other Latin American countries (10 billion tons) Source: BGR Annual Report 2009 Reserves, Resources and Availability of Energy Resources 6
World Coal Trade Japan is the largest coal importer in the world, importing approximately 180 million tons annually (about 21% of the world coal trade of approx. 880 million tons). 3.2 (From North America) Other European countries 49.4 OECD Europe 248.0 9.8 Poland 9.9 12.8 Kazakhstan 27.1 60.2 1.9 16.4 32.0 10.8 Japan 185.6 4.1 Africa/Middle East (From US) 24.9 Asia 5.5 (From Latin 298.8 28.5 3.2 America) 38.4 15.6 148.6 3.9 120.1 7.1 (Including China) 85.4 10.1 (Including 2.5 Indonesia China) South Africa 200.8 28.2 59.6 (To Latin America) Australia 243.1 2.8 10.2 Russia 99.6 China 49.2 14.3 (To Asia/China) 8.1 1.4 3.0 7.8 North America 46.2 5.4 Canada 27.4 2.0 10.5 26.1 Latin America 27.3 2008; million tons (To Western Europe) Colombia 72.5 8.2 6.9 2.0 (To other European countries) 4.5 US (To Western 30.8 60.9 Europe) 3.6 (To Africa/Middle East) 7.1 30.2 Source: IEA Coal Information 2009 7
World Coal Exporters and Importers Coal exporters Coal importers Others 6.2% Poland 0.8% Kazakhstan 2.9% Canada 3.4% US 7.9% China 5.1% South Africa 6.6% Colombia 7.9% World coal export (2008) 937.75 million tons Russia 10.8% Australia 26.9% Indonesia 21.6% Belgium 0.8% Canada 1.2% Spain 2.3% France 2.3% Russia 2.8% US 3.4% Others 28.1% Japan 20.1% World coal import (2008) 922.61 million tons India UK Germany 6.5% 4.7% China 5.0% 4.9% South Korea 10.8% Taiwan 7.2% Source: IEA Coal Information 2009 8
Coal Consumption in Japan Increase in consumption for thermal power generation. Continuous consumption for raw materials for steel. Coal consumption by industry in Japan Total electric generation and shares of generating sources in Japan (Million tons) 200 180 160 140 120 100 80 60 40 20 Total sales (left axis) Electricity industry (right axis) Ceramic, stones & clay (right axis) Steel (right axis) Cokes (right axis) (Million tons) 0 0 1965 1980 1995 2007 (Year) Source: Agency for Natural Resources and Energy FY 2008 Annual Energy Report (The Institute of Energy Economics, Handbook of Energy and Economic Database in Japan, 2009 Edition ) 100 90 80 70 60 50 40 30 20 10 Coal Oil Gas Nuclear power Hydro Others Total electric generation (right axis) 100% 90% 80% 30.5% 29.7% 70% 40.6% 43.1% 60% 50% 19.0% 23.3% 40% 22.1% 13.4% 22.1% 30% 29.3% 3.7% 20% 3.8% 10% 27.6% 25.4% 14.4% 21.8% 0% 1990 2007 2020 2030 Source: IEA World Energy Outlook 2009 (TWh) 1400 1200 1000 800 600 400 200 0 (Year) 9
Trends of Domestic and Imported Coal and Exporters to Japan Most of the coal supplied in Japan is imported. 62% of total imports (116 million tons) is from Australia. Volumes of domestic and imported coal supply Coal exporters to Japan (Million tons) 200 180 160 Domestic coal Imported coal 140 120 100 80 60 40 20 0 65 70 75 80 85 90 95 00 05 07 (Year) China 7% Vietnam 1.2% Russia 6% Indonesia 18% Canada 6% Others 0.5% Total imports (2007) 187.61 million tons Australia 62% Source: Agency for Natural Resources and Energy FY 2008 Annual Energy Report" (METI, Energy Supply and Demand Report ; MOF Trade Statistics of Japan ; JCOAL, Monthly Report on Coal Production by Coal Mine /CoalNote ) Source: Agency for Natural Resources and Energy FY 2008 Annual Energy Report" (MOF, Trade Statistics of Japan ) 10
Australian Coal Price Chart Price (US$/Mt) 325.00 300.00 275.00 250.00 225.00 200.00 175.00 150.00 125.00 100.00 75.00 50.00 25.00 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Hard coking coal (steel material) 39.80 42.79 46.00 44.00 57.00 125.00 115.00 98.00 300.00 129.00 200.00 * Semi soft coking coal(steel material) 29.50 35.40 31.92 29.92 42.00 79.50 58.00 63.90 240.00 81.00 167.00 * Thermal coal(electricity and general industry) 28.75 34.50 31.85 26.75 45.00 52.50 52.50 55.50 125.00 70.50 98.00 (Mitsui Matsushima original research) * The price of coking coal for FY2010 is as of April June. 11