15 June 2015
Demand for NSW coal strong as new markets emerge
From NSW Minerals Council – Monday 15 June, 2015
Demand for NSW coal remains strong and exports to key Asian markets have increased over the current financial year, strengthened by emerging international markets for our state’s coal.
“Exports of NSW coal to Korea are up 8%, while exports to Taiwan have risen by 21% and across the rest of Asia outside of Japan and China, exports have more than doubled to 15.6 million tonnes over the last nine months,” NSW Minerals Council CEO, Stephen Galilee said today.
“We are also seeing the rise of India as a new growth market for the quality NSW thermal coal, with exports to the country doubling so far over this financial year,” Mr Galilee said.
Figures released by Coal Services show that in the last nine months to 31 March 2015 exports of NSW coal to India have doubled from 3.2 million tonnes to 7.7 million tonnes, highlighting the market opportunities for our state’s largest commodity export on the subcontinent.
A report prepared by the Federal Office of the Chief Economist highlights that from 2017, all new coal-fired projects are required to use supercritical technology or better, thereby producing fewer
emissions. Plants employing these technologies run using high-energy, low ash coal. India’s coal resources are typically low-energy and high ash.
“Currently, around 80% of coal imported by India is sourced from Indonesia and is predominantly lowgrade, high ash coal. The move to cleaner coal imports puts NSW in a prime position to benefit from this growing demand for the type of clean thermal coal our state produces,” Mr Galilee said.
“This was reflected in a recent speech by India’s head of the Department of Industrial Policy and Promotion, who said that India wanted international miners to send their coal to India, including Australian players, who would bring and receive huge benefits ’,” he said.
Indian Prime Minister, Narendra Modi also alluded to this in his speech to Federal Parliament in November 2014, stating that, ‘I see Australia as a major partner in every area of our national priority,’ including ‘ clean coal ’.
“The most up-to-date forecast from the International Energy Agency predicts global electricity demand could double between 2009 and 2035 as more people gain access to electricity and household energy consumption grows in the developing world. On this assessment the IEA says coal will meet more of the increase in global energy demand than oil or gas over the next five years, and will still provide around a quarter of world energy by 2040. ” he said.
“Ongoing export demand and the emergence of new markets indicates solid long term prospects for our state’s coal sector; on-ground that means jobs and investment. That’s why it’s so important we get the policy settings right here in NSW,” Mr Galilee said.