The traditional role of coal washing has been to produce a saleable product from and add economic value to run-of-mine (ROM), or raw coal. More recently, coal preparation has begun to incorporate environmental benefits, including reduced emissions of sulphur dioxide (SO2) and particulates, by supplying clean coal of consistent quality to the coking coal producers and steel production companies further down the value chain. With increasing demands for tighter product specifications and better environmental performance from coal utilization, coal washing has gained considerable importance within the coal mining industry and has become a critical segment in the whole coal industry's value chain. The overall washing rate of raw coal in China has increased gradually from 21.7% in 1995 to 28.9% in 1999; and the 11th Five-Year Plan (from 2006 to 2010) has a washing rate target of 60%.
Demand for washed coal is driven mainly by demand for steel, as the primary customers for cleaned coal are coking companies and steel manfacturers. Driven by China's Western Development Plan, a key component of National 11th Five-year Plan, the demand of steel and coking coal products is expected to grow at a rapid pace over the next few decades. Total steel production in China totaled 400 million MT in 2006 (National Development and Reform Commission), up 18% from 2005, and is expected to reach 550 million MT by 2010 (Macquarie Bank), accounting for 40% of global consumption. In the near term, several huge infrastructure projects including the Olympic Games in Beijing in 2008, the Shanghai World Expo and the Three Gorges Dam will drive demand for high grade metallurgical coking coal. |
