Anthracite Overview
Anthracite is a hard, lustrous form of coal with very high carbon content and low percentages of volatile matter, sulphur and ash. Once washed and sized into eight products it is sold into the domestic heating and industrial markets, where grading of anthracite into specific sizes is necessary for the various stoves and furnaces.
It is said that in the US, anthracite coal history began in 1790 in Pottsville, Pennsylvania, with the discovery of coal made by the hunter, Necho Allen, in what is now known as the Coal Region. Legend has it that Allen fell asleep at the base of Broad Mountain and woke to the sight of a large fire because his campfire had ignited an outcropping of anthracite coal.
By the first half of the 20th century, anthracite was the most popular heating fuel in the US, before being supplanted by the growth of the oil and gas systems. In the face of rising bills from natural gas and oil, it is anticipated that demand for anthracite will once again increase since it offers a realistic cheaper heating alternative.
The principal use of anthracite today is for a domestic fuel in either hand-fired stoves or automatic stoker furnaces. It delivers high energy per its weight and burns cleanly with little soot or ash, making it ideal for this purpose. Its high value makes it prohibitively expensive for power plant use. Today its market is somewhat niche, but it is still used in some heating systems, as well as in the steel industry.
Anthracite is one of the highest ranked coals, noted for its:
- low volatile content (>10% on an air dry basis);
- high fixed carbon content (>80% on an air dry basis); and
- hardness, (HGI is usually <40).
In general, coals are classified as anthracite if they have a volatile matter of less than 10% on an air dry basis. Once washed and sized into eight products, anthracite is sold into one of three markets. Its commercial applications are determined by its high carbon content, low ash content, low volatile content and high vitrinite content. These qualities result in three distinct applications:
- Graphitising material for electrode paste
- Reductants for reducing metal oxide ores
- Efficient and clean fuel for heating
Supply & Demand
Anthracite coal has an approximate ‘heat’ value of over 30 MJ/Kg; over three times that of lesser quality lignite or subbituminous coal. The average heat value in the US in 1976 was 30.2 MJ/Kg, which has declined steadily to today’s average heat value of only 20.5 MJ/Kg. This decline is set to continue and can be explained by dilution caused from the increase in production of lesser quality coal. The decline in heat values shows that the best US coals have been mined and poorer quality coals are increasingly exploited each year.
Despite the US holding more coal resources than any other country, the Energy Information Administration expects coal imports to more than triple by 2030, while exports will decrease. Low quality ‘soft’ coal is uneconomic to export so unless a major new anthracite deposit is discovered the US may never be a major exporter again.
The main producers of anthracite globally are Russia, Ukraine, Vietnam and China. 98% of all seaborne trade is conducted by these four countries plus North Korea. 85% of all seaborne trade is supplied to China, Japan, Brazil, France and Germany. The major uses for this seaborne anthracite are 48% used in Chinese power generation, 42% used in steel making with the balance of 10% being used in cement, soda ash, sugar, and home heating.
However, there are certain changes taking place that will alter the pattern of seaborne trade. It is expected that Chinese domestic demand will continue to grow, leading to lower exports, whilst Vietnam is expected to use an increasing amount of its anthracite for domestic power generation, again resulting in less for exports. Russia and Ukraine are in the process of using anthracite fired power stations in order to make more gas available for export. This is because gas has a higher income return on the export market. Set against these negatives is the fact that higher prices are enabling the South African miners to revamp exports.
The result of these machinations is that it is anticipated there will be higher demand for anthracite going forward.