Mining Engineering’s Weekly Rundown: Episode 33

First, global coal demand is set to reach a record high in 2025, according to the International Energy Agency’s latest Coal 2025 report. The IEA projects global coal use will rise by half a percent next year, hitting 8.85 billion tons before gradually declining toward the end of the decade. With demand up by as much as 3 to 4 percent annually, India and Southeast Asia continue to drive growth, while other regions are pulling back. In the U.S., higher gas prices and delayed coal plant retirements briefly lifted consumption, while Europe’s declines slowed. China’s demand has held steady, but its aggressive buildout of renewable power is expected to push coal use lower by 2030. Despite short-term fluctuations, the IEA says the long-term trend shows the global coal demand will plateau soon before edging down due to the pace of renewable energy expansion and industrial transitions.

Next, South Korea’s Korea Zinc has announced a massive $7.4 billion investment to build a critical minerals refinery. This would be the first major U.S. zinc refining facility in nearly half a century. Backed by significant U.S. government funding and loans, the project aims to reduce America’s dependence on Chinese minerals vital to electronics, defense and clean energy supply chains. The facility, slated to open in 2029, will process 540,000 tons of materials annually, including zinc, copper, lead and rare earth elements. Korea Zinc’s investment marks a bold expansion into the U.S. market, coinciding with the Trump administration’s push to boost domestic mineral security. The project is expected to bring 420 new jobs to Clarksville, Tennessee, with strong local and federal support. The deal has drawn attention both for its scale and for the U.S. government’s rare decision to take a direct equity stake in a foreign company.

Finally, copper prices are surging toward their highest level in history: the $12,000-per-ton mark. The growth is driven by the twin forces of booming demand from artificial intelligence data centers and tightening global supply. Copper’s unique conductivity makes it indispensable for powering AI infrastructure, electric vehicles and renewable energy systems. Prices have climbed more than 35 percent this year, buoyed by investor interest and physical shortages. Disruptions at major mines, including Freeport McMoRan’s Grasberg operation in Indonesia, have squeezed output, while strong U.S. prices have drawn global shipments to American warehouses. Analysts say the copper market faces a deficit of more than 100,000 tons this year, showing supply will remain tight even as demand accelerates. 

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