Sustainable Change of Coal Mining Regions

According to the model of product life cycles, the global coal mining industry is in the stagnation phase. The coal demand of the main consumer, China, has peaked in 2013 and is slowly declining. The Norwegian sovereign wealth fund, the world´s largest, has excluded coal-related companies for ethical reasons. Important players like the UN or the EU have already begun to describe pathways towards de-carbonization. Increasing competition between coal mining companies and the mining regions can be expected worldwide if companies want to keep their positions on the global and national coal markets. Companies will focus on the best deposits. European countries like France, Spain or Germany are only forerunners of this development - their centuries of coal production have been finished. The concept of Sustainable Development (SD) is fundamentally based on a model of progress where ecological, economic and social dimensions should be developed equally and positively. But without the idea of competition, the concept of SD is incomplete. Questions arise, such as: How can SD be realized on stagnating or declining markets without guarantees for companies “to live forever”? How can SD be a corporate goal in a phase of decline? How can declining mining regions sustainably progress into a better future? The German hard coal mining industry´s lifecycle has ended in 2018 after 60 years of stagnation and decline. As of 2019, all hard coal consumed in Germany will be imported, especially from Colombia, Russia and South Africa. What has been done in Germany to handle the coal decline in a sustainable way and the lessons learned from this process is described in this paper. It may be useful for mining regions who will face a similar future sooner or later. INTRODUCTION Principally, mining natural resources is a finite business that reaches its limits once the deposits mined are depleted, the resources can no longer be mined in an economically profitable way, or substitutes are pushing the mined products out of the market. An example for the latter is the increasing replacement of coal with natural gas and renewables in power generation in the USA. (Kok 2017) According to the model of the product lifecycle, the global mining hard coal mining industry has reached the stagnation phase. (Kretschmann 2000) Although the coal mining business is more a multi-regional than a global business the trend is obvious. The peak of coal use is behind us, especially because the coal demand of China is slowly decreasing since 2013. (Shell 2018) China´s government has announced investing $360 billion in renewable energy by 2020 and scrap plans to build 85 coal-fired power plants. In March 2018, Chinese authorities reported that the country was already exceeding official targets for energy efficiency, carbon intensity, and the share of clean energy sources. China’s energy regulator, the National Energy Administration, rolled out new measures to reduce the country’s dependence on coal. (Kejun and Woetzel 2017) Coal consumption in the US is facing a 16 % decline in five years from 800 to 670 million short tons between 2015 and 2019 and - according to the EIA – will not rise again. (EIA 2018) The decline is attributed to complex market dynamics from low gas prices because of the “shale gas revolution” (Kok 2017, p. 3) to federal environmental regulation like the Clean Power Plan. The United Nations´ UNEP Finance Initiative is cooperating with the Portfolio Decarbonization Coalition of institutional investors to implement decarbonization strategies across their portfolio. Amongst these investors is the New York State Common Retirement Fund, the third largest public pension plan in the USA. (UNEP 2017) The European Union has already begun to de-scribe pathways to decarbonization. (European Union 2018) The Norwegian sovereign wealth fund, the world´s largest, excluded coal-related companies for ethical reasons. The oil giants Total S.A. and Royal Dutch Shell, tradi