Australia Coal Industry
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The final output of the Australian coal industry is sought after by Japan, Korea and the European Union. These countries rely primarily on high-quality Australian coal for meeting their metallurgical and energy needs. In 2007-2008, almost three-fourths of the country’s black coal production was exported, fetching impressive export revenues of $24 billion. Coal also plays a key role in the fulfillment of domestic electricity needs. Around 84% of the country’s electricity production relies on coal-based power plants.
Table of Contents
Australia Coal Industry: Main Players
According to the BP Statistical Energy Survey, Australia’s total coal reserves are estimated at 76,600 million tons. In terms of production, the Australian coal industry accounts for 6% of the world’s black coal production. Since 2003-2004, Australia’s black coal production has been growing at a consistent rate of 3.2%. The country has acquired the status of the world’s fourth largest coal producer.
Black and brown coal production:
Type2006-2007 (Million Tons)2007-2008 (Million Tons)Brown Coal69.276.2Black Coal320.32323
Sources: Coal Services Pty Ltd; Queensland Department of Mines and Energy; Victorian Department of Primary Industries; ABARE, Australian commodities
In 2007, Australia’s total coal production stood at 393.92 million tons, dominated by:
- Loy Yang: This company’s open cut mine, producing brown coal, is the largest in the southern hemisphere. On an average, the company produces an annual output of over 30 million tons.
- Rio Tinto: This firm produces coal having low sulphur content, used primarily by electricity producing entities and iron and steel mills.
- Xstrata: This is the world’s leading exporter of thermal coal and exports 80% of its annual production to utility companies of the Pacific region.
- Anglo Coal: It is one of the leading coal producers, operating through a five-mine network spread across Queensland and New South Wales.
- BHP Billiton-Mitsubishi Alliance: It is the world’s biggest producer and marketer of thermal coal.
Australia Coal Industry: Issues
The Australian coal industry is struggling with:
Infrastructure issues: Australia’s coal export volumes are restricted by infrastructural hurdles. Owing to this, the government has taken serious steps towards the planned expansion of the country’s infrastructure capacity.
Environmental issues: Reducing the emission of pollutants and greenhouse gases has been a major concern for Australia’s coal industry. Environmental protagonists, such as Greenpeace, have identified the coal industry as the reason for the surge in carbon dioxide emissions. Australia’s coal industry also faced global ire when the government refused to ratify the Kyoto protocol for securing the interest of the domestic coal industry.
Given the government’s decommission proposal for thermal power plants, the market for the coal industry is expected to be hit in the future.
