Resources Minister Keith Pitt says booming coal prices and new export markets are great for Australian exporters, while China suffers through shortages, price surges, and the coldest winter in 40 years.
China – which relies on coal for 60 per cent of its energy generation - formally banned Australian coal in December after a two-month blockade, forcing power companies to look elsewhere for coal imports.
The communist country is now experiencing a record cold winter, along with surging prices and supply shortages.
Mr Pitt said it is very unusual for one of Australia’s coal buyers like China to “intentionally drive up the price”.
China typically imports $14 billion worth of Australian coal which usually serves as a top off to its 90 per cent domestic production.
In the wake of Chinese ban Australian exporters have been forced to look elsewhere to countries like India, South Korea, and Japan, while the price of Australian coal has reached around over $80.
“It’s a position we don’t want to be in, but clearly we’ll continue to drive Australia’s exports,” Mr Pitt said.
“This is really good news; the coal sector has more people employed in it now than it’s ever had since 2012 over eight years ago. That’s a great reflection on the industry and the people who work in it.”
