China and India Face Potential Massive Layoffs by 2050 Due to Mine Closures

October 12, 2023

The transition away from coal in the global energy system is projected to result in the loss of approximately 400,000 coal mining jobs by 2035, according to a report published by Global Energy Monitor. This is equivalent to about 100 job cuts per day through 2035, with the largest impact felt in China and India. By 2050, the total job loss may rise to nearly 1 million as the world increasingly turns to more affordable wind and solar power generation.

Social Challenges of Transitioning from Fossil Fuels

The report underscores the social challenges that both companies and governments face as they navigate the shift away from fossil fuels in an effort to mitigate the most severe impacts of climate change. Job losses in mining, driven by factors such as automation, efficiency improvements, and commodity market cycles, have become contentious political issues in various regions, including the United States, Europe, and Australia.

One approach to alleviate the hardships of layoffs is to prioritize ex-miners for job opportunities created by mine closures, particularly work related to land rehabilitation and mitigating environmental impacts following the cessation of operations.

China’s Dominance in Coal Production and Jobs

China, which produces over half of the world’s coal and is home to more than 1.5 million mining jobs, is set to experience significant reductions in its mining workforce. For instance, Shanxi province in China alone is expected to shed more than 240,000 mining jobs by 2050. In response to the social challenges associated with mine closures, China’s government has encouraged companies to gradually replace underground workers with automated machines.

Impact on Coal India Ltd.

Coal India Ltd., a state-owned mining company that outproduces all others, faces substantial workforce reductions. The report estimates potential layoffs of nearly 74,000 workers by 2050. The firm has already witnessed a decrease in its headcount, dropping from 310,000 employees in 2017 to 240,000 in the present year. The pace of workforce decline is expected to accelerate, driven by retirements and the outsourcing of work that limits new hiring.

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