Question

give two reasons why coal mining is declining in india​

Answer 1

Answer:

1)

Coal mines continue to pump out thermal and metallurgical coal despite prices (for thermal) trading at a dismal USD$43 a tonne, but most countries, with the notable exception of India, are cutting back on coal use.

While coal still accounts for some 35 percent of global energy generation, its market share has dropped nine points since 2009 and by 2018 coal's market allocation will be down to 33 percent, according to Goldman Sachs. The demand drop is accounted for by tighter regulations on coal-fired plants, increasing use of renewables and competition from cheaper natural gas, especially in the United States.

2)Coal is uneconomic

Market wisdom says the cure for low prices is low prices, but in the case of coal, there are un-natural economic forces at play, namely, the global imperative to limit or even eliminate use of the power and steel-making commodity.

Another new report this week states that over 65 percent of global coal production - both coking coal and thermal coal - is unprofitable at current prices. Wood Mackenzie estimates around a third of Australian coal is cash-negative, while in Indonesia, it's even worse: 60 to 70 percent of coal miners are operating at a loss.