Qld coal could finally be headed back to China after ban: reports

Beijing’s coal shoulder for Aussie exports could be at an end, with encouraging signs for Queensland’s mineral trade.

Australian coal could arrive in Chinese ports within days, according to commodity market experts.

If the ships arrive as anticipated, it will be the first significant new coal trade between the two countries since Beijing implemented an unofficial ban on Australian coal in November 2020.

Commodity market data agency Argus Media has reported there was coking coal, used for steel making, on its way from the Moranbah North coalmine, as well as several shipments of thermal coal cargo on the water.

“We are also seeing more market activity in terms of bids and offers involving Australian and Chinese market participants,” an Argus Media spokeswoman said.

“Thermal coal participants are closely monitoring how smoothly these first shipments will clear Chinese customs.

“If the first cargoes are cleared by customs in a smooth and orderly manner it could pave the way for a significant increase in coal trade between the two countries.”

It follows reports early last month that four Chinese companies – China Baowu Steel Group, China Datang, China Huaneng Group, and China Energy Investment – were considering purchasing Australian coal, according to Bloomberg.

There were similar reports last July that never came to fruition.

Coal at the Port of Brisbane

Moranbah North is owned by resource company Anglo American, but it is understood they were not directly behind the sale but that a third party may have onsold the coal.

A Department of Foreign Affairs and Trade spokesman said they were aware of reports that Chinese importers may purchase Australian coal this year.

“This would be a welcome step but we are yet to receive confirmation that exports have resumed,” he said.

“The Australian Government’s clear and consistent position is that the resumption of normal trade across the board would be in Australia’s and China’s interests.”

Trade Minister Don Farrell will be meeting with his Chinese counterpart in a virtual discussion this coming week.

Queensland Resources Council boss Ian Macfarlane has said the industry welcomed any easing of import restrictions and that Queensland companies would look to rebuild export opportunities with Chinese customers.

But he noted companies had also formed long-term relationships in the past two years, particularly in India and other parts of Asia.

Before the ban, Queensland’s exports of coal to China were worth about $10 billion a year.

No coal moved between the state and China in 2021-22 and just $1.6 billion the previous financial year as the ban came into effect.

There has been a thaw in relations between Australia and China since the change in government, while Beijing has started to ease back from its “wolf warrior” approach to diplomacy globally.