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 08 August 2007
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The UK Coal Forum: World Markets Sub-Group - the implications for the UK of dependence on future world markets for coal

Remit

  • To assess the current and likely future development of the world market for coal with particular reference to North West Europe.
    • How stable are world markets expected to be?
    • Are there political risks to coal supply?
    • Are prices liable to increase or decrease? How volatile will they be?
    • Are there non-price issues that could affect the UK’s demand for imports – e.g. shipping/quality?
  • To assess the implications of the above for UK security of supply.
    • Are the risks to supply so great that they should be factored into Government thinking?
    • Is it possible or likely that the relative costs of imported and UK mined coal will change significantly in the next few years, which could alter the business case for further investment in UK mining?
  • To report to the Forum on these issues.

In carrying out its work, the group will rely as much as possible on publicly available material.

This work must be put in the context of reasonable assumptions about future demand for coal and there are thus linkages with the Future Generation sub-group. The group will review and feed back to the Future Generation sub-group on demand scenarios as appropriate and will also provide relevant input to the Infrastructure sub-group.

Membership

Members of the Coal Forum are invited to attend or be represented.

Secretary

The Coal Authority will provide a secretary.

© Crown copyright 2007