Still Burning Bright: Why Coal Remains a Cornerstone of Global Energy and Industry

Globe and Mail

16-04-2025

Despite increasing momentum toward decarbonization and the adoption of renewable energy, coal continues to hold a central position in the global energy mix. According to data from FutureCoal.org, coal currently generates approximately 37% of the world's electricity and is responsible for more than 70% of global steel production. These figures underscore coal's critical role in both energy security and industrial development, especially in rapidly growing economies.
The International Energy Agency projects coal will provide around 22% of global electricity by 2040, with some regions—particularly in Southeast Asia—relying on it for up to 39% of their electricity needs. This sustained demand is reflected in market forecasts: the global coal market is expected to grow from $669.84 billion in 2025 to $726.06 billion by 2029, at a compound annual growth rate (CAGR) of 2.0%, according to a recent market report.
Investment Opportunities in the Coal Sector
For investors, coal presents a complex but potentially rewarding opportunity. One broad-based investment vehicle is the Range Global Coal Index ETF (NYSE ARCA: COAL). This exchange-traded fund provides diversified exposure to both thermal and metallurgical coal companies globally, making it an efficient way for investors to capture industry-wide trends.
Micro-Cap Coal Companies Worth Watching
For investors looking to explore individual opportunities within the coal sector, several micro-cap companies offer compelling value propositions and unique positioning.
Colonial Coal International Corp. (TSX-Venture: CAD) is a pure-play metallurgical coal development company with a focus on British Columbia, Canada. The company holds a 100% interest in two resource-stage properties located in the Peace River Coalfield in northeastern B.C.: the Huguenot and Flatbed projects. With strong exposure to steelmaking coal, Colonial Coal offers long-term upside tied to global infrastructure demand.
Another micro-cap name deserving attention is Morien Resources Corp. (TSX-Venture: MOX). Morien operates with a royalty-based business model, giving it exposure to coal and aggregate production without the operational risks of mining. Its primary assets include a royalty on coal sales from the Donkin Mine in Cape Breton, Nova Scotia, and a royalty on aggregate sales from the permitted Black Point Project in Guysborough County, Nova Scotia. This model allows Morien to generate revenue while maintaining a lean operational footprint.
One micro-cap that has been turning heads is Forge Resources Corp. (CSE: FRG) (OTCQB: FRGGF) — and for good reason. Since early 2023, the company's stock has surged from $0.07 to $0.89, representing a remarkable gain of over 1,171% in just over two years. But the story goes beyond share price appreciation. Forge's rally is underpinned by strong fundamentals and significant project developments.
The company holds a 60% interest in Aion Mining Corp., which is advancing the La Estrella coal project in Santander, Colombia. La Estrella is a fully permitted and licensed operation, hosting eight known seams of both metallurgical and thermal coal. With long-term mining rights, an environmental license in place, and signed LOIs from top-tier buyers for bulk sample and production, Forge Resources stands out as a rare, high-upside opportunity in the junior mining space.
Production Capacity and Growth Potential
The La Estrella project has received regulatory approval for the production of 180,000 metric tonnes (Mt) per year, allowing for an immediate entry into commercial-scale operations. However, this production threshold is not a cap—it's a starting point. The site holds the potential for scalable expansion, subject to future regulatory approval and market conditions. This flexibility ensures that La Estrella can adapt to increasing demand, making it suitable for both steady-state operations and aggressive growth strategies.
Environmental License and Long-Term Mining Concession
One of the project's most valuable attributes is its granted Environmental License, a crucial and often time-consuming requirement in the mining sector. The license not only validates the project's adherence to Colombia's rigorous environmental standards but also signals strong governmental support and community engagement—a major de-risking factor for stakeholders.
In addition, La Estrella boasts a mining concession valid for more than 43 years, providing the long-term legal and operational certainty that institutional investors and major offtake partners seek. This extended horizon allows for strategic planning across multiple phases of production, infrastructure development, and even potential downstream processing.
Offtake Agreements: Letters of Intent from Top-Tier Buyers
Highlighting strong commercial interest, the La Estrella project has already secured Letters of Intent (LOIs) from major coal buyers to purchase 100% of the bulk sample as well as future production. These preliminary agreements are a strong indicator of market confidence in both the quality of La Estrella's coal and the reliability of its supply chain. By securing offtake interest at such an early stage, the project reduces marketing risk and positions itself for near-term revenue generation immediately following the completion of its bulk sampling phase.
Forge Resources Corp. has made significant progress on its La Estrella coal project in Colombia as per a press release from April 10th, 2025, with the completion of main portal construction and ongoing underground development for a bulk sampling program.
The company is also planning to build on-site housing facilities to support its workforce, emphasizing local labor and sustainable materials. Additionally, Forge Resources is exploring new coal project acquisitions in Colombia.
Insider Confidence and Strategic Diversification
Forge Resources' executive team is demonstrating serious conviction in the company's future—putting their money where their mouth is through substantial insider buying. CEO P.J. Murphy participated in the most recent private placement with a $500,000 investment and has since purchased an additional $150,000 worth of shares on the open market. Insider buying is often considered one of the strongest bullish indicators for any stock, reflecting management's confidence that their strategic direction will generate value not just for themselves, but for all shareholders.
In addition to its flagship coal project, Forge Resources has diversified its asset base with an option on the Alotta Project, a porphyry copper-gold-molybdenum prospect. Located approximately 50 km southeast of the world-class Casino deposit—one of the largest undeveloped gold-copper projects globally—Alotta sits within the unglaciated section of Yukon's Dawson Range porphyry/epithermal belt, a region known for its mineral-rich geology.
To date, Forge Resources has completed six widely spaced diamond drill holes at Alotta, totaling 2,659 metres. All holes encountered significant gold, copper, and molybdenum mineralization.
Having more comprehensive and refined data in hand because of promising results from previous seasons exploration programs, the company just announced this morning a proposed diamond drill program comprised of up to 4,000 metres across approximately 12 drill holes with ranging from 300 to 350 metres. This initiative aims to test step-outs on previously identified mineralization in the Payoff Zone and explore untested coincident geophysical and geochemical anomalies across targeted areas.
Beyond Micro-Caps: Large-Cap Coal Plays
For investors who prefer more established names over high-growth micro-cap plays, several large-cap coal producers offer stability, scale, and global reach.
Glencore (OTCPK: GLNCY) is a leading, diversified natural resource company and one of the world's largest producers and marketers of coal. The company operates across both the thermal coal segment, used primarily in power generation, and metallurgical coal, essential for steel production. Glencore is also the sole owner of Cerrejón, one of Colombia's most significant coal producers.
Another noteworthy player is Alliance Resource Partners, L.P. (NASDAQ: ARLP). Headquartered in Tulsa, Oklahoma, ARLP is a major U.S. coal producer with seven underground mining complexes across the Illinois Basin and Appalachia. The company supplies both thermal and metallurgical coal to domestic and international markets, underpinned by long-term contracts and a consistent track record of profitability.
Coal and Environmental Technology: A Balanced Perspective
While coal continues to be a key part of the global energy mix, its environmental impact remains a central concern—particularly in light of international decarbonization efforts. However, the narrative around coal is evolving thanks to significant advancements in emissions control technologies.
Modern systems such as coal cleaning, electrostatic precipitators (ESP), fabric filters, wet scrubbers, and hot gas filtration systems have dramatically improved environmental performance. These technologies are capable of reducing particulate emissions by more than 99.5% and are commonly used in both developed and developing countries. In addition to capturing particulates, many of these systems also contribute to removing sulfur dioxide (SO₂) and other harmful pollutants, supporting cleaner and more responsible coal use.
Despite the global push toward renewable energy, coal remains deeply embedded in the fabric of modern industry and energy generation. As demand persists—particularly in emerging economies—investment opportunities within the coal sector continue to evolve, spanning both large-cap stalwarts and high-upside micro-cap players. Companies like Forge Resources, with fully permitted projects, insider confidence, and early offtake commitments, highlight the potential for value creation even in a transitioning energy landscape. When paired with advancing environmental technologies that mitigate coal's ecological impact, the sector presents a nuanced but compelling case for strategic, long-term investment.
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