Coking Coal
Distinct from thermal coal used for energy, this industry produces metallurgical coal that is converted into coke, a vital fuel and carbon source for smelting iron ore.
Why it exists
Coking (metallurgical) coal is used to make coke, a key input in traditional blast furnace steelmaking.
Why it’s necessary
Until alternative steelmaking technologies fully scale, coking coal is essential for producing most of the world’s steel, which underpins buildings, autos, and infrastructure.
Key components
Met coal mines
Washing and preparation plants
Logistics to steel mills (rail, port, shipping)
How to evaluate businesses
Assess coal quality, proximity to steel producers, cost position, and contract structure (spot vs long-term). Jurisdiction and ESG pressures are significant. It’s highly cyclical, tied to steel demand and global growth.
How the industry could be improved
Improved mine safety and environmental performance, better methane and emissions control, and planning for transition as low-carbon steel processes grow. Long-term, many players will need credible strategies for shrinking or pivoting their asset base.