Coal-Era: Drivers and Approaches to the Valuation of Coal Properties
Coal remains one of the most widely used sources of energy in the world, particularly for electricity generation. So in August 2014, when the Supreme Court of India ruled that the process followed by the Government of India (and/or its various agencies) for allocating coal block licences in the country since 1993 was “arbitrary and illegal,” it certainly did not go unnoticed. The judgment and imminent re-auction of certain recently cancelled blocks have revived interest in coal and its importance as a commodity.
In this article we touch on the importance of coal globally and in India, highlight the principal value drivers of coal properties and very briefly introduce the various approaches that may be adopted to value such properties.