Coal is mined in every state of Australia. The largest black coal resources occur in Queensland and New South Wales. About 70% of coal mined in Australia is exported, mostly to eastern Asia, and of the balance most is used in electricity generation. In 2019-20 Australia exported 390 Mt of coal (177 Mt metallurgical coal and 213 Mt thermal coal) and was the world's largest exporter of metallurgical coal and second largest exporter of thermal coal.
Coal mining in Australia has been criticized, due to carbon dioxide emissions during combustion. This criticism is primarily directed at thermal coal, for its connection to coal-fired power stations as a major source of carbon dioxide emissions, and the link to climate change in Australia and worldwide. Coal was responsible for 30% (164 million tonnes) of Australia's greenhouse gas (GHG) emissions, not counting methane and export coal, in 2019. Coal as a fuel was responsible for 41% (160 million tonnes) of carbon dioxide emissions in Australia in 2020.
The Carbon Pollution Reduction Scheme, which followed the draft report in the Garnaut Climate Change Review, placed a price on carbon emissions through a reducing cap and trade emissions trading scheme and incentivised against carbon pollution temporarily, before it was revoked in 2014. Despite a target to reduce GHG emissions Australia continues to open new coal mines.
Australian coal is either high-quality bituminous coal (black coal) or lower-quality lignite (brown coal).
Bituminous coal is mined in Queensland and New South Wales. It is used for both domestic power generation and is exported. Mining is underground or open-cut. The coal is transported by rail to power stations or export shipping terminals.
Lignite is mined in Victoria and South Australia, and is of lower quality due to a lower thermal value largely caused by a high water content. Ash content varies significantly but some Australian lignites have relatively low ash content. In 2013 coal from three open cut lignite coal mines in Victoria was used for power generation.
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Bituminous coal, or black coal, is a type of coal containing a tar-like substance called bitumen or asphalt. Its coloration can be black or sometimes dark brown; often there are well-defined bands of bright and dull material within the seams. It is typically hard but friable. Its quality is ranked higher than lignite and sub-bituminous coal, but lesser than anthracite. It is the most abundant rank of coal, with deposits found around the world, often in rocks of Carboniferous age.
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