Coal is a form of combustible sedimentary rock comprised mainly of carbon that is formed from deposits of ancient plants and animals. It is the most widely available form of fossil fuel.

Coal is extracted from the ground by mining which can often be a dangerous occupation. In addition, the burning of coal is believed to have environmental and health effects.

There is however hundreds of underground coal fires around the world some of which are man-made accidents, while some are caused by natural circumstances such as lightning, volcanic eruptions and forest fires, and have been burning for thousands of years.

Coal is primarily used as a fuel to generate electricity. As such, it is an important hedging tool for the electricity industry. Coal futures contracts are being traded in NYMEX (QL), ICE and in South Africa.

The largest coal producing countries in the world are China, United States, India, Australia, Russia, Indonesia, South Africa, Germany, Poland and Kazakhstan. Collectively, the European Union as a block would rank as the fourth largest producer of coal in the world.