One of the major challenges facing the coal industry is the fluctuations in global market prices, which are often unfavorable. Downstream processing of coal offers a solution by converting raw coal into higher-value derivative products. This process not only increases company revenues but also opens up broader market opportunities. By diversifying products, coal companies are less reliant on the volatile prices of raw coal in the global market. Coal derivatives such as coke, briquettes, or even synthetic fuels like dimethyl ether (DME) have more stable markets and higher value.

Downstream processing of coal can also contribute to environmental preservation efforts. The processing of coal into derivative products often involves cleaner and more efficient technologies, which can reduce greenhouse gas emissions and hazardous waste. Furthermore, downstream processing can reduce dependence on the direct combustion of coal, which is a major source of air pollution. Thus, downstream processing can help the coal industry become more sustainable and meet increasingly stringent environmental standards.

Additionally, downstream processing of coal can stimulate domestic industrial growth. By establishing coal processing plants within the country, new job opportunities will be created in both production and supporting sectors. Furthermore, downstream processing can enhance the competitiveness of domestic manufacturing industries that require processed coal as raw material. Thus, downstream processing not only provides economic benefits for companies but also contributes to national economic growth.