Global Demand Spurs Growth in Australia’s Coal Exports
Australia is projected to see a rise in coal exports in the next three years, driven by increasing demand from India and Southeast Asian nations, according to a report by Australia’s Department of Industry, Science, and Resources. The forecast anticipates steady growth for thermal and metallurgical coal exports until 2025. Also, the law of China’s informal ban on Australian coal has led to a surge in shipments to China. Despite being the second-largest coal exporter globally, Australia strives to develop renewable energy resources alongside its coal and natural gas sectors. The report also projects a 7.3% increase in thermal coal exports and 2.6% in metallurgical coal by 2023. However, the export value may decrease due to dropping global coal prices.
Moreover, experts predict a dip in liquefied natural gas exports for the 2023-24 financial year. At the same time, exports of energy transition commodities, including lithium, copper, and nickel, should rise. Even with this growth, these sectors’ revenue still falls short compared to major exports such as iron ore, coal, and LNG. In the wake of the Russia-Ukraine conflict, Australian energy and mineral export earnings hit a historic high of A$460 billion ($305 billion) in FY 2022-23. However, the following years might see a decline. Meanwhile, iron ore exports, Australia’s most lucrative commodity, should steadily rise in the upcoming years. (read more…)
