Coal a ‘fundamental part’ of fighting third-world poverty, Bravus COO Mick Crowe says
The man behind one of North Qld’s biggest mines says it’s a misconception coal is on its way out, because “billions of poor people” are demanding cheap power to help them defeat poverty.
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Bravus chief operating officer Mick Crowe says it’s a broad misconception that coal is on its way out.
Speaking at the Townsville Bulletin’s Future Townsville event at the Ville Resort-Casino on Wednesday, Mr Crowe said when you stepped outside the ‘‘amazing Queensland and Australian bubble” it became apparent the real drivers of coal consumption were people striving to beat poverty.
“Do the maths, as if you were living in a low-socio-economic environment, where you lived in poverty and wanted the best for your kids, and you wanted to get away from subsistence farming or a poverty-driven lifestyle, you need manufacturing,” he said. “And to do that, you need baseload power.”
Mr Crowe said these people – who were “in the billions” – were supporting leaders who could give them power, which fuelled manufacturing jobs, which created money.
“And if their political leaders aren’t doing that, they’ll turf them out,” he said.
“That’s going to create an industry that demands baseload power, and coal is a fundamental part of that, and there is a lot of it.”
Mr Crowe said last year eight billion tonnes of coal was mined.
“It’s a monstrous thing, and lots of those countries have heavily invested in coal-fired power stations with money they don’t actually have,” he said.
“If you’re a poor country, you don’t turn that (power station) off while it still works.”
It is a positive message for those employed in the coal industry, which is currently struggling to make ends meet under a low coal price, high production costs, and a hefty coal royalties tax.
Queensland Resources Council CEO Janette Hewson said every 10 years coal prices spike, and that’s when good companies stockpile cash for the ‘hard times’.
“We’re in the hard times,” Ms Hewson said.
“We estimate 20 to 25 per cent of the coal industry in Queensland right now is not breaking even. That’s because we have a depressed coal price, and really high production costs.”
Ms Hewson said the industry understood the need for the coal royalties tax, but in return they needed a return to industry to help miners “ride out the bad times”.
“We’re proud of the royalties we provide to communities,” she said.
“But we’re seeing a reduction in the pipeline (of coal) and that should be something that worries everyone in Queensland.”
Future Townsville is a series by the Townsville Bulletin, which was supported by Hancock Agriculture and S. Kidman & Co., Bravus Mining and Resources, Port of Townsville, Aurizon, Bank of Queensland, Queensland Resources Council, Sun Metals, Ark Energy and Urbis.
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Originally published as Coal a ‘fundamental part’ of fighting third-world poverty, Bravus COO Mick Crowe says
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