Australian miners hit by lowest thermal coal price in more than a decade

coal export
coal export

Australia is facing lack in coal export annually since a decade. Although raising doubts about industry projections that demand will continue to grow is a big question.

The spot price of thermal coal, which is burned to generate electricity, was reported to be US$66.20 ($95) last week, less than more than a third from US$100.73 ($145) from the previous year.

Government has revealed that it is expected to cut export earnings from the industry from last year’s record A$26bn to A$20.6bn this year and A$18.8bn next year.

One of the major reasons in price drop came as China increased its reliance on domestic coal stocks and tightened its use of imported coal, and exported particularly from Australia.

Matthew Canavan, the resources minister, recently in his interview said that Australia would “need more than Adani” to keep up with the expected growth in demand from developing Asian countries.