The Economics of Coking Coal Mining: A Fossil Fuel Still Needed for Steel Production

Adam Duda,Gregorio Fidalgo Valverde

doi:10.3390/en14227682

Adam Duda, Gregorio Fidalgo Valverde

Open Access

https://doi.org/10.3390/en14227682

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Journal: Energies	Publication Date: Nov 17, 2021
Citations: 9	License type: CC BY 4.0

Affiliation: Silesian University of Technology, University of Oviedo

Abstract

Coking coal has been on the European list of critical raw materials since 2014 due to its high economic importance and high supply risk. In 2017, coking coal narrowly missed passing the threshold of economic importance. However, out of caution, it remained on the list of critical raw materials, as the steel industry still needs it. It is likely to be phased out of the list below when it does not fully meet the required criteria. As there are no significant alternatives for this energy intensive industry and neither electrification nor material or energy efficiency improvements are yet available at a sufficient level of technological readiness, the European Union remains dependent on coking coal imports. Therefore, any coking coal mining project in Europe is of great importance and an important alternative to solving the problems of providing this raw material. In this study, the Dębieńsko coking coal project in Poland is analyzed using a scientifically proven methodology based on world-class analysis of coking coal projects submitted for financing to financial institutions.

Highlights

IntroductionCoking Coal as a Critical Raw Material for EU
The Capital expenses (CAPEX) estimation model for an opencast coking coal project was developed by Matyjaszek et al [20], and calculated using Equation (1)
This relationship was established for opencast coking coal mines, underground mines, capital expenses (CAPEX) was always below this regression line to be applicable for a conservative analysis

Summary

Introduction

Coking Coal as a Critical Raw Material for EU. Raw materials are essential to the economy of the European Union. Uninterrupted and reliable access to these critical raw materials for European industry is a constant concern for the EU. To address this important challenge, the EU created a list of 14 critical raw materials in 2011 [1]. It was established as one of the priority actions of the 2008 Raw Materials Initiative [2] and addressed raw materials of high economic importance and high supply risk. The critical raw materials list (CRM) was to be updated regularly, at least every three years

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Results

Conclusion