Coal ‘king’ again as world demand causes prices to surge

COAL will be declared “king” again by Resources Minister Matt Canavan amid eye-watering price surges that will resuscitate the fortunes of Adani’s Queensland mega mine.

COAL will be declared “king” again by Resources Minister Matt Canavan amid eye-watering price surges that will resuscitate the fortunes of Adani’s mega mine and entrench battle lines for Turnbull Government agitators fighting for another coal-fired power station.

World demand and high prices drove Australia’s thermal coal exports to a record high of $23 billion last financial year, with coal this financial year set to overtake iron ore as our biggest export.

Senator Canavan will point to today’s release of the Chief Economist’s Resources and Energy Quarterly June report to vindicate his assurances that coal is not dead, and to underscore that billions of dollars flowing to federal and state coffers come from the black rock.

Financial analysts Wood Mackenzie estimates the coal from the Adani mine will raise about $US40 per tonne – but with coal prices now more than $US100 per tonne, the project in central Queensland has become more profitable.

The chief economist’s projections come at a critical time for Malcolm Turnbull, who is fending off calls from Tony Abbott and the Nationals to create a multibillion-dollar fund to build a new coal-fired generator, potentially in Queensland, at the same time he tries to limit carbon emissions from the national electricity market.

Norwich Park Mine, owned by BMA, still operating for a few weeks until the coal mine ceases production, south of Dysart, Queensland.

It is also likely to give Energy Minister Josh Frydenberg political heartburn ahead of next month’s meeting with states where he aims to sign-off on a new national energy plan. Mr Turnbull does not want to give coal any subsidies.

And this week, the LNP’s state convention will put to vote resolutions calling on the Federal Coalition to invest in new coal-fired stations and fund a rail line between Abbot Point and the Galilee Basin.

“Prices are back at near record levels, and the future demand looks bright. It’s time for Labor to end its war on coal,” Senator Canavan said. “Coal produces thousands of jobs, billions in tax revenues and record exports. A strong coal industry means a strong economy.

“The strong demand for coal also gives us the chance to get projects like Adani and the Galilee Basin going. Opening up the Galilee would generate 16,000 direct mining jobs and tens of billions in taxes.”