COAL:the future fuel

Milton Catelin

Chief Executive WCA

Eurasia-MENA Mining, Industrial

Minerals, Mineable Energy Trade

& Investment Summit

ISTANBUL 17 May 2012

World Coal Association

WCA providesthe global voice for coal

COAL provides

25% of world primary energy

40% of world electricity

66% of world steel

• Assocarboni (Italy)• Associacao Brasileira do Carvao Mineral• Association of UK Coal Importers• Australian Coal Association• Camara Asomineros• CEMBUREAU• Coal Association of Canada• Coal Association of New Zealand• Confederation of UK Coal Producers• CO2 CRC (Australia)• German Hard Coal association• Indonesian Coal Mining Association• Iranian Mines and Mining Industries• Japan Coal Energy Center• National Mining Association (USA)• Shaanxi Coal Industry Bureau• Svenska Kolinstituten• UK Association of British Mining

Companies• World Energy Council (UK)

• EURACOAL• Global CCS Institute• UCG Association• VGB PowerTech

• PT Adaro Indonesia• Anglo Coal• Arch Coal• BHP Billiton Energy Coal• BHP Billiton Mitsubishi

Alliance• Carbones del Cerrejon

Colombia• Caterpillar Global Mining• ChinaCoal• Coal India Limited• Consol Energy• Glencore International• Joy Global• Katowice Holdings• Mitsubishi Development• Peabody Energy• Rio Tinto Limited• SHENHUA GROUP• Solid Energy NZ• TOTAL SA• VALE• XSTRATA Coal

Globally, coal has a competitive advantage

COAL LASTS 118 YEARS

~ 2x as long as gas (58years)

~ almost 3x as long as oil (46 years)

• Abundant

• Globally distributed

• Affordable & stable in price

• Safe & reliable

The 21st century world has been built on coal

Skepticism of coal’s future

Global Coal Demand according to the IEA

World Energy Outlook Reference Scenario

Coal Demand in 2010 (Mtoe)

Average Annual Growth Rates

Growth period

WEO 2000 2820 1.70% 2000-2010

WEO 2002 2702 1.40% 2000-2010

WEO 2004 2763 1.80% 2002-2010

Actual Global Coal Consumption

Actual 2010 coal consumption 3664 Size of underestimation 23% - 26%

Actual Average Annual Growth Rate

4.60% 2000-2010

The more things change, the more they stay the same

Good policy provides balanced solutions

Balanced Solutions

The energy security difference between oil, gas and coal

9

The Energy Security Difference Between Oil, Gas and Coal

Oil 2% of the People

Control52%

Gas

Coal

3% of the PeopleControl

54%

Control50%

42% of the People

Coal has a major role in meeting energy poverty

Source: International Energy Agency

Real solutions to climate change

Effective climate actions: efficiency

Global investments necessary to effectively combat climate change

Coal fuels wind power

Coal is the future

cor . ner . stone noun .. among other things

“something that is essential, indispensible, or basic: the cornerstone of democratic government is a free press

“the chief foundation on which something is constructed or developed: the cornerstone of his argument was that all people are created equal”