While demand for coal is expected to fall long-term amid concerns over climate change and a shift to other fuels, the sector still remains pretty hot. Here are some basics for those considering an investment in coal.
Coal is a rock that’s predominantly made of carbon. Its combustible properties make it useful to burn for fuel and accounts for almost 40% of the world’s electricity generation.
Ten countries produce 90% of the world’s coal, with China, India and the United States leading the pack. Despite a growing climate change movement and calls for green energy, the coal demand is forecast to remain stable into 2024.
Coal stocks include companies that mine and process coal for electricity plants and steel production.
Many coal stocks trade on the New York Stock Exchange. But certain stocks, including China Shenhua Energy, are only available over-the-counter or from an international exchange.
| Coal stock | Icon | 1-year performance (to Nov. '26) | 5-year performance (to Nov. '26) | Link |
|---|---|---|---|---|
| Alpha Metallurgical Resources (AMR) |  |
33.18% | 537.96% | Invest Capital at risk |
| Ramaco Resources (METC) |  |
-40.79% | 128.70% | Invest Capital at risk |
| Peabody Energy Corp (BTU) |  |
61.56% | 176.00% | Invest Capital at risk |
| Warrior Met Coal (HCC) |  |
65.24% | 386.17% | Invest Capital at risk |
| BHP Group Limited (BHP) |  |
67.46% | 27.13% | Invest Capital at risk |
Best for 0% commission stocks
Capital at risk. Fees apply. T&Cs apply
Best for active investing
Capital at risk. T&Cs apply
Best for trading tools
Capital at risk. T&Cs apply
China consumed over 50% of the world’s coal production in 2018, according to the BP Statistical Review of World Energy. While the global coal demand should remain stable for a while, China’s coal demand could peak in 2025.
High demand for this fossil fuel is likely to bump coal stock prices in the foreseeable future. So although coal won’t be the dominant energy source that it once was during the Industrial Revolution, it’s not going anywhere yet.
Coal stocks face three primary obstacles:
The only ETF tracking the coal industry shut down recently. So ETF investors can’t find a clean-cut coal play.
Coal stocks could be a solid short-term investing opportunity. Demand should steadily increase in the coming years, but keep your eye on renewable energy and natural gas that’s slowly inching toward a bigger piece of the energy pie.
To invest in coal, compare trading platforms to open a brokerage account.
To make comparing even easier we came up with the Finder Score. Costs, features, ease and range of investments across 30+ platforms are all weighted and scaled to produce a score out of 10. The higher the score the better the platform – simple.
Read the full methodologyAll investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
We’ve partnered with the award-winning Charles Stanley Direct to show how multi-asset funds take the friction out of investing. (Paid content)
Looking for the best defence companies to invest in? Discover key players plus risks and rewards of this sector.
Find out how to invest in aluminium stocks, plus some popular stock options.
Consider these benefits and drawbacks before you invest in uranium stocks.
Our guide shows you the biggest AIM stocks and how to buy them.
IPOs could be an opportunity for investors. Check out our calendar of upcoming IPOs and keep tabs on rumoured, recent and filed for IPOs.
This guide discusses the ways that you can invest in platinum, either in physical form or on the stock market.
What are dividend stocks, and how do you invest in them in the UK? We explain how to find stocks with high dividend yields and details about safe dividends.
All the steps you need to follow to buy shares in some of football’s biggest teams.
Learn where to buy gold, how to invest in gold and about gold’s historical performance as an investment. Find out all the need-to-knows with our extensive guide.
