India, southeast Asia could save Australia from coal export crisis

With China continuing its trade freeze and demand for our coal falling in key markets like Japan and Korea, Australian miners are looking to other markets to save production.

Rising demand from India and southeast Asia could save Aussie coal production, as some of our biggest customers in Japan and Korean are expected to ease off their purchases and China continues its trade freeze.

But there are fears of growing competition from Russia and Mongolian mines.

It is part of forecasts in a new report from Mineral Council Australia released at the Mineral Week forum in Canberra on Wednesday.

The report, dubbed Commodity Demand Outlook 2030, found that demand for Australian metallurgical coal, used for making steel, will be largely driven by India and southeast Asia as the countries rapid population growth drives construction of infrastructure, cars and other consumer goods.

But it said lower steel demand in Japan and South Korea would see exports to two of Australia’s current biggest buyers fall, while it warned there was risk from growing competition out of Russia and Mongolian.

Minerals Council Chief Tania Constable in Canberra. Picture Gary Ramage

Thermal coal, used for power generation, is expected to suffer from “declining demand in North America and Europe as they transition into natural gas and renewables”.

Minerals Council CEO Tania Constable said the forecast showed there was a positive outlook for the Australian resources industry.

“There are multiple development prospects for Australia as our Asia Pacific neighbours and other countries continue to industrialise, modernise and stimulate growth to boost recovery from the COVID-19 pandemic,” she said.

Mr Albanese told the Minerals Week conference that both metallurgical and thermal coal will continue to be exported in Australia under a Labor Government, but warned that markets change and demand for some resources will fall.

“These industries provide jobs for Australians. They provide economic activity in regional Australia. And billions of dollars of revenue for governments,” he said.

Groom MP Garth Hamilton said if Labor supported mining it should back the New Acland stage three coal mine.

“I don’t have faith in generalised support that never translates into anything real,” he said.