COAL DEMAND STRONG: REPORT
By Jessica Cummins
DEMAND for coal will continue to grow through to 2040, according to the latest World Energy Outlook (WEO) report by The International Energy Agency (IEA).
The WEO estimated the growth in demand for coal in the Asia Pacific region would increase by 492 million tonnes of coal equivalent (mtce)within the next 22 years.
This included substantial growth in India and Southeast Asia, which counteracted projected falls in China and Japan.
Federal Resources and Northern Australia minister Matt Canavan said the IEA had forecast Australia’s net exports of coal would grow by about 20 per cent to 430 mtce by 2040.
About half of those exports would be metallurgical coal.
Mr Canavan welcomed the IEA report and its positive outlook for the global coal sector.
“Our proximity to these markets means our coal industry is well placed to meet this growing demand,” Minister Canavan said.
“These figures show a bright future for Australia’s coal industry.
“They’re also a short, sharp shock for those who have set out to destroy confidence in our world-class coal industry.
“Australia is the only exporting coal producer projected to significantly ramp up coal production over the period to 2040, supported by its strong resource base and proximity to Asian markets.”
Other positive results from this year’s WEO included a growing international metallurgical coal market, especially in Asia, with Australia well positioned to meet demand.
Australia’s production was also forecast to exceed that of the US by the late 2020s, with more than 40 per cent of coal produced in Australia expected to be sourced from new mines in 2040.
QLD Resources Council chief executive Ian Macfarlane said the report demonstrated “just how important QLD commodities will be under all scenarios modelled”.
“Our resources sector is the industry of the moment and the industry of the future for Queensland,” Mr Macfarlane said.
The Australian Mining Review
Whitehaven coal train. Image: Whitehaven Coal.