He takes the reins from Preston Chiaro.
WCI chief executive Milton Catelin welcomed the appointment of Elder and also paid tribute to the contribution of the outgoing chairman.
“Preston has been a great ambassador for the World Coal Institute and for the coal industry more widely," he said.
“He has shown vision and leadership in his two years as chairman of WCI, shaping our work program to ensure that we are effectively engaging with the core challenges facing the industry.
“Specifically, this has included focusing on the role of CCS [carbon capture and storage] and working to ensure governments worldwide strongly support the deployment of this essential technology as part of a comprehensive approach to tackling climate change.
“We look forward to working with Don in continuing to progress the work of WCI and meeting the evolving challenges faced by the coal industry worldwide."
Elder has been a director of the World Coal Institute since 2003. He is also deputy chairman of the Coal Industry Advisory Board to the International Energy Agency.
“It is a great honour to be asked to chair the WCI at one of the most exciting times in the history of the industry," Elder said.
The London-based institute considers itself to be the voice of the international coal industry.