36%

global production of oil concentrated in the Middle East

2.4GW

Energy produced via the coal energy plant Hassyan (UAE)

12%

Coal usage in the UAE’s energy sector by the 2050 according to the ‘Vision 2050’

Prognosis of the coal usage in the Middle East

High statistics of coal usage in the energy sector

The biggest market for the hard coal is the Asia and Pacific region, which amounts to 54% of the global statistics. Middle East is more and more interested in the coal energy. Among the factors that influence those tendencies is the fact, that the Gulf countries are trying to avoid the supplementation costs. The coal is much cheaper than gas. More importantly, countries who heavily rely on oil are working towards diversification of their economies. China is the biggest and most present business partner for the Middle East in terms of coal usage.

Iran


Iran, who is listed among the most promising markets for export, is open for cooperation in the mining industry. In the 70’s the new steel combinate was established in the Isfahan region south from Teheran. Now it oversees two steel plants.
In the Tabas region in the Great Salt Desert there is roughly 1 billion tons of coking coal. The extraction is challenging due to the shallow deposits. Another issue is the presence of methane gas and the location of the mines in the mountains, some as high as 2,000 meters above the sea level. Tabas has more deposits located on the lower angles (0,8-085m).

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UAE


Coal mining industry in UAE is known for Al Nasr Coal located in the Dubai Airport Free Zone and Nizam Coal which oversees the Hi-NRG as well as Farlin-Dubai Group that unites the mining companies in the South Asian markets that export to China and India. Annual Mining Show in Dubai International Convention&Exhibition Centre is gathering new producents every year.

Dubai Electricity and Water Authority (DEWA) is planning 2 major projects for the so called clean coal and aims for 3,600 MW till 2030. As a part of the diversification program, UAE is aiming for 7% of the energy needs produced by the renewable sources and clean coal. Other 7% will be tied to the Barakah Nuclear Power Plant in Abu Dhabi and 15% – solar energy.

Opportunities on the market

UAE is cooperating with Australian Orica , one of the biggest supplier of the explosives and initial systems for the mining industry and the global leader in the explosive services. Other major players present in UAE are Terex, Mintek, Shandong Xinhai Mining Technology & Equipment Inc., Quarry Mining and Al Fajar Al Alamia Co. from Oman. Most of those companies deal with the strip mines and underground work, which allows the producents of the mining machinery on the market.

Turkey


Since 2004 Turkey is registering the drop in the extraction of the coal. In 2012 it amounted to 136 thousand tons. At the same time the country is using more and more of it, which leads to the situation, when it imports it and is not using the existing deposits. Turkey’s yearly coal usage is estimated at 25 million tons, and the budget for it – roughly 5 billion USD.

Turkish Hard Coal Enterprises (TTK) points out, that in 2012 it registered the lowest extraction of coal since 13 years. TTK has a monopoly on the extraction, reuse and distribution of bituminous coal, but Turkish legislation allows private sector to be present in the mining industry. It is estimated, that the Zonguldak region is rich with black coal deposits, which creates an opening for the foreign investors willing to apply for the TTK license. Since 2009 Turkish government approved further incentives for the investors , such as tax benefits. In 2013 in Karapinar 1,8 billion tons of lignite was discovered, which can be an opportunity for the foreigners as well.

Mining technology

Turkey reports the growing need for the modernized tools and mining technology. Moreover, official statistics cite frequent errors and systematic failures as the reason for the drop in the coal extraction. Karadon coal mine reports, that the capacity of the machinery needed for rinsing the extracted coal is too small. Turkey imports specialised mining gear. Basic needs of the sector are taken care of by TTK.

Other coal mines present in Turkey are Kozlu, Amasra, Armutçuk, Üzülmez. According to the Ministry of Energy and Natural Resources , ‘Combined coal deposits in Turkey are estimated at 1,310 million tons’. The mining institutions that are under Ministry’s governance are Turkish Coal Enterprises (TKI_ and Turkish Hard Coal Enterprises (TTK).

Saudi Arabia


Saudi’s ‘Vision 2030’ and National Transformation Program of 2020 highlights the need to diversify the economy and become less reliant of oil. In 2017 International Mining Services IMS was established. Those factors prove that Saudi Arabia is open for foreign investment and further cooperation.

Other countries


Israel (77%) and Morocco (66%) are among other leaders in coal usage. Polluted air fuels the conflicts with its neighbours, i.e. with Jordan. Israel is planning to expand the usage of the renewable energy sources in its economy.
Countries such as Jordan, which have a high rate of usage of risky of gas ovens, can be seen as a potential outlet for the eco-pea coal. In 2017 Jordan started building a small coal power plant, which means it’s also going to need to import more of this resource.

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