Minews - Coal exports to China defy doomsayers

(Minews) - NEW export data shows China's demand for coal has increased significantly over the last financial year, defying predictions that exports will fall as China undertakes an energy switch driven by environmental concerns.

New figures supplies by Coal Services show exports from NSW to China continuing to rapidly increase.

Last financial year NSW exports to China jumped by more than 30 per cent to 31 million tonnes. In 2007-08, only 1.1 per cent of NSW coal exports were going to China, while last year it accounted for 20 per cent.

This is part of a long-term boom in which China has become the second most important customer of NSW coal producers after Japan, leapfrogging South Korea and Taiwan.

Driven by an improving world economy, and a switch away from nuclear energy following the Fukushima disaster, exports of coal from NSW was up across the board. Exports to Japan rose by 12 per cent in 2012-13, demand from Korea rose 19.6 per cent, while Taiwanese demand rose by 6.5 per cent.

Coal Services Pty Ltd, a joint venture between the NSW Minerals Council and the CFMEU, runs industry's occupational health and safety services, rescue service and its workers compensation insurance scheme, as well as collecting industry statistics.

NSW Minerals Council CEO Stephen Galilee said NSW coal mining has had a tough 18 months with a high Australian dollar, a fall in the coal price and uncertainty with regard to NSW planning laws.

"Finally, there is some good news, with demand for NSW coal rising significantly in China, contrary to some of the rhetoric we have been hearing that demand for coal is diminishing," he said.

"Steady growth in exports to our long-term markets of Japan, Korea and Taiwan, combined with a strong increase in exports to the emerging market of China, signal good news for the industry, provided we get the policy settings right here in NSW," Mr Galilee said.
He used the figures to send a message to the NSW government.

"Global economic factors have a big influence on the NSW economy. There's not much that state governments can do about global economic conditions, however they can determine their own policy settings on taxation, regulation and planning. And they can decide to chase economic opportunities and maximise our natural economic advantages."

Labor and the Shooters party combined last year to defeat a proposed new planning bill in NSW. The government withdrew the bill after Labor, Greens and the Shooters amended it to make it substantially harder to obtain approvals for extensions of existing mines, introduced merit appeals against decisions of independent Planning Assessment Commissions, and increased biodiversity requirements.

A report just before Christmas by Oxford University's Smith School of Enterprise and the Environment warned that many Australian greenfield coal projects risked being left stranded because Chinese demand for coal would fall because of concerns over pollution, carbon pricing, investments in renewable energy and energy efficiency.

China accounts for about half the world's demand for coal.