Australia is going to stock up on coal
2023.01.19 02:36
Australia is going to stock up on coal
By Kristina Sobol
Budrigannews.com – As part of a national effort to contain skyrocketing energy costs, officials said on Thursday that coal miners in Australia’s most populous state will be required to reserve up to 10% of production for the domestic market.
In December, the Labor government in Australia, led by Prime Minister Anthony Albanese, passed legislation limiting prices for a year and secured agreements to limit the price of coal sold to power plants from the coal-producing states of New South Wales (NSW) and Queensland.
On Thursday, NSW Treasurer Matt Kean stated that the state would require coal miners who do not currently sell into the domestic market to reserve 7 percent to 10 percent of their output for domestic use.
He stated that the new arrangement would ensure a more equitable burden sharing among coal companies as part of the federal government’s effort to reduce energy costs.
Peabody Corp and Banpu’s Centennial Coal, a Thai company, are the state’s primary coal suppliers to power plants.
BHP Group (NYSE:), one of the state’s other major coal miners, (OTC:) Glencore Plc, Yancoal, New Hope, and Whitehaven Coal (OTC:) Corp., whose primary focus is on exports.
According to the NSW Minerals Council, which represents miners, the policy won’t affect electricity prices much, but it could irritate trade partners, raise costs by disrupting existing supply chains, and discourage future investments in the state’s resources sector.
Stephen Galilee, CEO of the NSW Minerals Council, stated in a statement, “Extending the policy to coal producers not currently involved in the domestic coal supply is a radical change of approach that highlights how extremely rushed this policy process has been.”
He went on to say that coal producers would keep in touch with state officials “to minimize the economic damage caused by this flawed policy.”
On Thursday, Whitehaven stated that it was in negotiations with state government officials regarding coal supply.
