Good news for coal mining companies in New South Wales– domestic coal production has increased by 5.7 percent over the past year despite weak prices for the black gold, according to a new report.
The statistics by Coal Services shows coal production in NSW has grown from 185 million tons to more than 196 million tons from 2013-2014.
Major export hubs have also grown as coal exports to China have ascended by roughly 26 percent. The China Coal Industry Association reports that more than two thirds of Chinese coal mining companies are operating at a loss.
“The old self-sufficient China has turned into one that is vulnerable, and dependent on imports,” said economist Lord King.
Export volumes to other major markets such as Taiwan, Japan and South Korea have also increased. Exports rose 15 percent for Taiwan, 4 percent for Japan and 9 percent for South Korea.
“This growth in production and the volume of coal exported is a good sign for economic growth in NSW,” NSW Minerals Council CEO Stephen Galilee said.
“These figures show demand is still strong.”
The International Energy Agency (IEA) estimates global electricity could double between 2009 and 2035 as more people in developing countries gain access to electricity and household energy consumption grows.
Over the next five years coal is slated to meet more of the increase in global demand than oil and gas.
“The NSW coal industry is well placed to make the most of this demand,” Galilee stated.
“So while the local industry is experiencing short-term challenges, the long term prospects are good, provided we can continue to meet the future demand.”