Labor flayed over coal policy as shares in coal miners get post-election lift
Industry accuses Labor of treating miners like ‘second class citizens’ as coal shares get post-election lift.
The coal industry and its investors have been quick to welcome the Morrison government back into power.
Coal Council of Australia chief executive Greg Evans described the government as a “consistent supporter of the sector”.
“Resources Minister Matt Canavan has been an active and very effective supporter of the coal sector and his advocacy has engendered trust throughout the coal regions,” he said.
Investors also appeared to welcome the government’s return, with the ASX hitting 10-year highs, powered by a big lift in bank stocks.
On Monday Prime Minister Scott Morrison said there would be “no change” to the Coalition’s policies in the energy space, which includes a shortlist of a dozen projects in the underwriting new generation power plan.
Shares in coal-focused miners also were performing strongly midway through the Monday trading session. Shares in New Hope lifted 4.4 per cent to a three-week high of $2.86, putting the stock on track for its fourth-biggest single-day rise this year. Metallurgical and thermal coal miner, Whitehaven Coal, was up 0.6 per cent after rising 2.7 per cent to a 4-week of $4.36.
Mr Evans said Labor’s anti-coal stance had cost it seats.
“While elections are about an array of issues, it is important to note in coal-related electorates in both NSW and Queensland, Labor members and candidates recorded strong swings against them. In the two heartland coal seats of both states those swings were over 13 per cent, he said in a statement issued on Monday. .
“Suggestions that coal workers are second class citizens has rightly been viewed as insulting,” he said.
The development of new mines and high efficiency, low emission (HELE) coal plants must now be expedited, Mr Evans said.
Mr Evans also used the election result to attack Queensland’s state Labor government over its handling of Adani’s Carmichael coal mine.
“In the immediate period ahead, the Queensland Labor government must now cease its reckless obstruction and let the Adani coal development proceed as Australians have indicated at the ballot box,” Mr Evans said.
Gas, hydro and a coal station upgrade are among the shortlisted projects, Mr Morrison said on Monday. “We set out all our energy policies at the election and that’s what I’m going to do,” he told 2GB radio .
The plan also features a $10 million feasibility study into ways to meet the energy needs of heavy industry in north and central Queensland, including a coal-fired power plant at Collinsville.
Deputy Prime Minister Michael McCormack says the power plant would supply Gladstone, which is a “very big user of power”.
“If we want the cement factories to close and all those sorts of high-end industrial needs not met then we can go down the path of ignoring the situation,” he told Triple M radio Riverina.
Adani also used the result to mount a new attack on Queensland Labor. Chief executive Lucas Dow said the message given at the polling booths had been overwhelming.
“If the Queensland Labor Premier and Deputy Premier take nothing else from this weekend, let’s hope they realise it is time to start listening to the people of Queensland,” Mr Dow said.
“Even after the weekend’s election, where Queenslanders had their say, the Premier and Deputy Premier still have a tin ear to their own voters.”