British Coal Industry Should Not Be Shut Down

The UK's coal industry is facing a critical decision, with some advocating for its closure due to alleged uncompetitiveness. However, a closer examination of the global coal market reveals that British coal is actually the cheapest in Europe, making a "simplistic" argument for closure. The industry's woes can be attributed to heavily subsidized European Union production, which distorts the market and undermines British coal's competitiveness. The situation calls for temporary support to UK producers until the subsidies are removed.

Key Takeaways:

• Only 300m of the 4bn tonnes of coal mined globally are traded internationally, with about half coming to Europe.
• Half of the 300m tonnes of internationally traded coal arriving in Europe comes from European Union production.
• The current softness of coal prices in Europe is distorted by 70m tonnes of heavily subsidized European Union production.
• British coal is the cheapest in Europe, making up for the market distortion caused by EU subsidies.
• Poland and Columbia are also benefitting from subsidies, making a strong case for supporting their coal industries.
• The UK coal industry needs short-term transitional support to survive until the EU subsidies are removed.

Statistics:

• 4bn tonnes: the total amount of coal mined globally.
• 300m tonnes: the amount of coal traded internationally.
• 70m tonnes: the amount of heavily subsidized EU coal production that distorts the European market.
• 50%: the proportion of internationally traded coal arriving in Europe.
• 17 South Parade, Doncaster, South Yorks DN1 2DR: the address of the British Association of Colliery Management - Technical, Energy and Administrative Management.

Sources:

• P. M. Carragher, General Secretary, British Association of Colliery Management - Technical, Energy and Administrative Management, 17 South Parade, Doncaster, South Yorks DN1 2DR, February 17.