India nearly doubles planned coal mining capacity
What's the story
India has almost doubled its proposed coal mining capacity from 329 million metric tons per annum (mtpa) in 2024 to a whopping 638 mtpa in 2025. The sharp rise of nearly 94% comes despite a global slowdown in coal demand growth and the expansion of renewable energy sources. The data was revealed by Global Energy Monitor (GEM) in its latest report on coal mines worldwide.
Global impact
Global pipeline of proposed coal mining capacity rises by 11%
The global pipeline of proposed coal mining capacity has also seen a major jump, rising by some 11% year-on-year to reach 2,521 mtpa.
GEM's research identifies a total of 837 coal mine proposals across the world, marking an almost 12% increase from last year.
This data comes from GEM's Global Coal Mine Tracker, which tracks all stages of coal projects including proposed, permitted, under construction, and operational mines.
National contribution
India leads global increase in proposed coal mining capacity
India has contributed the most to the global increase in proposed coal mining capacity.
The country is working hard to boost domestic coal production to meet rising electricity demand, support industrial growth, and reduce import dependence.
Most of this proposed capacity is concentrated in Jharkhand and Odisha, two states that host a large share of India's coal reserves and mining infrastructure.
Energy reliance
India's energy mix and the role of coal
Despite the rapid growth of renewable energy, coal continues to play a key role in India's electricity system.
The country still relies heavily on coal-fired generation to meet baseload demand and ensure grid stability.
This reliance is evident in the proposed coal mining capacity increase as India seeks to balance its energy needs with sustainability goals.
Market dynamics
Record high production amid geopolitical tensions
While global coal demand growth is slowing year on year, production remains at record highs.
The continued expansion of existing and planned coal projects poses challenges for global climate targets.
The coal mining sector is also lagging behind the power sector in phaseout planning due to an expanding metallurgical coal market, sustained demand in emerging economies, and elevated energy prices following geopolitical disruptions linked to wars in Ukraine and Iran.
Future concerns
Concerns over potential stranded assets
Despite a more than 50% decline in new mine capacity openings since 2024, the global pipeline remains large.
About 700 mtpa of coal mining capacity is already under construction, ensuring decades of future production.
This raises concerns about potential stranded assets as global energy systems shift toward lower-carbon sources.
China, India, Australia, Russia, and South Africa account for over 90% of all proposed coal capacity, with China alone accounting for 1,329 mtpa, more than the rest of the world combined.
Industry focus
Future of thermal and metallurgical coal
Thermal coal for power generation still dominates expansion plans, accounting for some 70% of proposed capacity.
However, metallurgical coal used in steelmaking is gaining importance as deeper underground mining operations raise methane intensity and environmental impacts.
The International Energy Agency (IEA) expects India to remain a key driver of global coal demand growth through 2030, with an average annual growth rate of around 3%.