Despite negative media coverage about coal, renewable energy has been proven to be unreliable for base load electricity supply, leaving only alternatives such as nuclear, hydro and coal. Nuclear is prohibitively capital intensive, hydro is limited by the global water shortage which leaves coal-fired power generation.
It is predicted that by 2030 the world will be short of an excess of 300 million tonnes of seaborne thermal coal due primarily to increased and steady consumption, coupled with decreased production due to mines reaching end of life, lack of investment and production cut backs in Asia.
Coal will continue to play a major role in delivering energy access and security long into the future, making up over 40% of global electricity generation and over 25% of primary energy demand. Red Star’s coal mining operations in Kogi, Nigeria are targeted at Nigeria & Sub-Saharan Africa’s rapidly growing power plant industry and demand for alternative power generation by off-takers such as cement and lime producers, brickworks, breweries, paper and sugar mills and the chemical industry.
The crushing and production capacity of the Red Star’s mine is 900Tons per month.