NORTH AMERICAN COAL PRODUCERS PLAN $4.8 BILLION USD ON 15 NEW MINES FOR STEEL EXPORT MARKETS

Coal producers in the US and Canada plan to invest $4.8 billion USD in 15 new metallurgical coal mines to produce 38 million tonnes annually for export, primarily to Asia Pacific markets. However, Global Energy Monitor argues these projects face high risks of economic and regulatory stranding. The global steel industry is under pressure to shift from coal-based blast furnace-basic oxygen furnace (BF-BOF) processes to lower-emissions alternatives like electric arc furnaces (EAF) and direct reduced iron (DRI) to meet net-zero targets. Major importers such as China, Japan, South Korea, and India have committed to carbon reduction, while domestic steel production in the US and Canada is already declining or transitioning away from coal. Furthermore, existing reserves in North America are sufficient to sustain current production levels until at least 2032, making new capacity largely unnecessary.

• Coal producers in the United States and Canada are planning 15 new metallurgical coal mine projects with a total estimated capital expenditure of $4.8 billion USD. These projects aim to add 38 million tonnes of annual capacity, with 11 projects in Canada (28 mtpa) and 4 in the United States (10 mtpa), all expected to be operational by 2027.
• The proposed capacity increase is unlikely to be absorbed by the primary target markets in the Asia Pacific region. In 2020, the US and Canada exported only 34 million tonnes to China, South Korea, Japan, and India; for these markets to absorb the new 38 million tonnes of capacity, demand would need to increase by 112%.
• New mine construction is deemed unnecessary because existing metallurgical coal reserves in the US and Canada can maintain current production levels until at least 2032, with an additional 4.5 billion tonnes of resources available for upgrade.
• Global decarbonization targets and the shift toward 'green steel' threaten the long-term demand for metallurgical coal. The IEA's net zero by 2050 scenario suggests nearly phasing out metallurgical coal use by 2050, requiring a transition from BF-BOF processes to electric steelmaking and direct reduced iron (DRI) production.
• Major international importers of North American metallurgical coal have established carbon reduction commitments. China aims for carbon neutrality by 2060 and is planning to switch to electric steelmaking; Japan and South Korea have mid-century net-zero targets; and India has committed to reducing emissions intensities by 33-35% by 2030.
• Domestic demand for metallurgical coal in the US and Canada is shrinking. In the US, EAF crude steel capacity is expected to grow from 69.4 mtpa to nearly 80 mtpa by 2023. In Canada, the federal government is providing funding to replace coal-based operations, including $400 million CAD for ArcelorMittal Dofasco to transition to a DRI plant and EAF capacity.

APA

Global Energy Monitor (2021). NORTH AMERICAN COAL PRODUCERS PLAN $4.8 BILLION USD ON 15 NEW MINES FOR STEEL EXPORT MARKETS. https://globalenergymonitor.org/sites/default/files/migration/reports/Final_USCanada-met-mines-and-steel-Briefing-Oct-2021_11.pdf

Chicago

Global Energy Monitor. NORTH AMERICAN COAL PRODUCERS PLAN $4.8 BILLION USD ON 15 NEW MINES FOR STEEL EXPORT MARKETS. 2021. https://globalenergymonitor.org/sites/default/files/migration/reports/Final_USCanada-met-mines-and-steel-Briefing-Oct-2021_11.pdf.

Wikipedia

{{cite report |author=Global Energy Monitor |title=NORTH AMERICAN COAL PRODUCERS PLAN $4.8 BILLION USD ON 15 NEW MINES FOR STEEL EXPORT MARKETS |date=October 2021 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/Final_USCanada-met-mines-and-steel-Briefing-Oct-2021_11.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalenergymonitor2021north, author = {{Global Energy Monitor}}, title = {{NORTH AMERICAN COAL PRODUCERS PLAN \$4.8 BILLION USD ON 15 NEW MINES FOR STEEL EXPORT MARKETS}}, institution = {Global Energy Monitor}, year = {2021}, month = oct, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/Final_USCanada-met-mines-and-steel-Briefing-Oct-2021_11.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }