China coal exports fuel record coalmining jobs

Chinese thermal coal demand has helped deliver a record 25,505 coal mining jobs in NSW, with almost 32 million tonnes of coal shipped to the Asian nation in the year to March.

Coal carrier BBG Honor Hong Kong is loaded with coal in the Port of Newcastle. Picture: Liam Driver

Chinese thermal coal demand to keep its growing coal-fired power station fleet operating has fuelled a record 25,505 coalmining jobs in NSW, with almost 32 million tonnes of coal shipped to the Asian nation in the year to March.

With coal currently trading around $US140 a tonne, exports of NSW thermal and metallurgical coal to China lifted from 3.57 million to 31.9 million tonnes in one year after Beijing lifted trade bans on Australian coal.

Thermal coal exports from NSW increased by 19 per cent to levels exceeding volumes recorded before Xi Jinping ordered sweeping trade crackdowns on Australian products. Japan remains the top destination for NSW coal, followed by China, Taiwan, Korea and Malaysia.

New figures show coalmining jobs in the state reached record levels in March, lifting above the 25,000 barrier for only the second time since coal job numbers were first recorded by Coal Services Pty Ltd in 1998, when the workforce was 10,898.

At the end of March, 14,750 coalmining jobs were recorded in the NSW Hunter region, the state’s largest coalmining hub. Near record job numbers were also registered in Gunnedah (3116), western NSW (3585) and southern NSW (3344).

NSW Minerals Council CEO Stephen Galilee said strong job numbers were supported by ongoing demand for “our high-quality coal”.

“Coal Services figures show coal exports to our major trade partners are up almost 16 per cent, with thermal coal exports used in energy production up over 19 per cent,” Mr Galilee said.

“NSW coalmining is playing a critical role in the budget repair task being undertaken by the state government. In particular, the decision to increase coalmining royalty rates from July 1, 2024 was the single biggest revenue decision taken by the NSW government.

“Metals mining jobs are also at near record levels with nearly 8000 people working in the NSW metals mining sector based on the latest annual NSW mining industry expenditure survey.”

The Department of Resources March quarterly report said China and India are expected to remain the “largest importers of seaborne thermal coal over the next five years”.

World demand for thermal coal is still expected to be dominated by Asia. Picture: David Gray/Bloomberg

“World demand for thermal coal is still expected to be dominated by Asia. Long-term changes in thermal coal usage are linked to the scale of existing and proposed coal plants. There are currently 6550 coal plants in operation, with over 75 per cent in Asia,” the report said.

“The majority of coal plant projects in the pipeline are also concentrated in Asia, with China accounting for 63 per cent of the total projects, India for 10 per cent, and Indonesia … 6 per cent. Much of the planned capacity in China is replacement capacity or capacity intended to support renewables.

“As the share of coal plants in Asia continues to grow, the policy and administrative decisions of governments in the region will become increasingly important to coal markets.”

Mr Galilee said the increase in coalmining jobs “was a sign of the ongoing importance and resilience of the NSW coal sector”.

“The record number of people working in the NSW coalmining sector shows that over the last 25 years, coalmining has become increasingly critical to regional communities and the state economy. These job numbers also highlight the need to support mining communities,” he said.

Malabar Resources last week launched a recruitment drive for more than 200 workers to support its Maxwell underground mine, including mine deputies, underground operators and tradespeople. The miner, which has committed to our transition to a low-carbon economy, is hosting recruitment roadshows across the state including in Muswellbrook, Mudgee, Gunnedah, Lithgow, Campbelltown, Wollongong, Lake Macquarie and Singleton.