What we do
We are a research and consultancy business, specialising in engineering sectors such as mining, oil-and-gas and infrastructure.
Our work for clients ranges from
providing strategic advice on particular markets, to analysing market trends
and assisting clients in pursuing market opportunities.
We offer a specialised database on the coal industry in
Australia, giving details of all operating and planned mines and the key people involved in them.
For further information on our services, please contact us at 0411 478307 or email@example.com.
Source: Stephen Codrington
COAL: GOOD PROSPECTS 2019 –
Next year augurs well for
the Australian coal sector.
This applies to both thermal
coal (used in electricity production) and metallurgical coal (used in steel
Demand for thermal
coal in Asia is steadily increasing.
commissioned this year by the Minerals Council of Australia sees an increase in
such demand of around 50% between now and 2030.
based on the expectation that demand will increase strongly in India and
Southeast Asia and remain more-or-less stable in China, Japan, South Korea and
Australia, our largest exporter of thermal coal, shares this optimism.
the high quality of our coal and proximity to much of Asia, Australia is well
placed to remain the top supplier from outside the region.
position is strengthened by the likely fall of exports from Indonesia, the
world’s largest exporter of thermal coal. Indonesia is increasingly using its
own coal domestically; in addition, expansion of production faces bureaucratic
and technical restraints.
coal, strong prices (they have doubled since mid-2016) reflect continuing
growth in the global steel industry. This is the case, not only in China (the
world’s largest producer), also in other major steel-producing countries in
Asia and Europe and in the United States.
The strength in the steel
industry is also reflected in iron-prices, currently at US$75 per tonne. This
is an increase from about US$60 per tonne a year ago and in defiance of
widespread forecasts in 2017 that prices would drop below US$50 per tonne.
for coal depends basically on the growth of electricity and steel production in
But in the
case of thermal coal, the outlook for Australian exports also depends on what
happens at home.
particular, without the approval of new mines or expansion of existing mines –
politically difficult because of concerns about global warming – Australia will
do little to meet the expected increase in Asian thermal-coal imports.
of the importance of Australia as an exporter, this will only strengthen
High prices are a boon for
Australia in the short-term, but not necessarily in the medium-term.
First, they assist
competitors. Already, thermal-coal exporters from other countries – such as the
United States, South Africa, Colombia and Russia – are stepping up their
activity in Asia.
Second, high prices increase
the attractiveness for the region of importing liquefied-natural gas (LNG) for
electricity production. LNG imports are already significant in China, Japan,
South Korea and Taiwan and are being planned in Southeast Asia, e.g. by
Thailand and the Philippines.
In this context, the development by India’s Adani
Group of its planned mine in Queensland may play an important role in opening
the way politically for other mines in this area.
as the Galilee Basin (over 400 kilometres west of Rockhampton), the area has
substantial untapped thermal-coal resources.
Adani Group appears yet to secure financing for the mine, but says it is
“close” to doing so.
new thermal-coal mines – whether in the Galilee Basin or elsewhere – Australia
may inadvertently trigger its own demise in this sector.