Greg Evans from the Coal Council is upbeat about the future of coal following a new report. In a statement released today, Evans highlighted the positive outlook for the sector moving forward.
He said, “In good news for the Australian coal industry, both global coal consumption and production rose in 2018 according to the newly released BP Statistical Review of World Energy, 2019.”
“The better news is that most of the action and strength was in our key markets at our doorstep in Asia including India and China.”
Asian economies are expanding and need affordable and reliable electricity which coal provides, this growth is being driven by the construction of high-efficiency low emission (HELE) power stations.
The BP report showed a continued bounce back in coal in 2018 with consumption up by 1.4% and production increased by 4.3%. This increase is at the fastest rate for five years.
“This is further evidence of the strong demand fundamentals for Australia coal which is high quality and in close proximity to markets.” Evans said.
Those coal industry detractors who repeatedly say demand for coal is languishing need to understand the facts and appreciate our coal industry has a long future and will remain an important part of regional NSW and Queensland.
Consumption growth in 2018 was led by India and China, with Asia now accounting for over three-quarters of global consumption.
The report shows strong consumption growth in 2018 in a range of important Australian markets with Vietnam up 23%, India up 8.7%, Malaysia up 9.4% and the Philippines up 5.2%. This represents an encouraging picture for Australian coal producers.
Coal production rose in China, Indonesia and India with these countries providing the largest increases.
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