Coal is a fossil fuel accounting for around 40 per cent of total world power generation and Australia provides around 30 % of the world coal trade. In 2011, Australia was the world’s largest exporter of metallurgical coal; the second largest exporter of thermal coal, fourth largest producer, and fifth largest resources of black coal in the world and in Australia, coal is the largest energy export earner.
As per the reports given by William Rollo, the Queensland Resources Council i.e. QRC has warned Australia that it will fail to regain its position as the world’s top coal exporter, if its costs are not reduced.
According to global energy organisation, named International Energy Agency i.e. IEA investment in Indonesia’s coal sector surged, when Queensland was recovering from the 2010-’11 floods because of which Indonesia has now over taken Australia as the world’s largest coal exporter. The IEAs market report says that, because of several proposed mining developments, Australia will regain its top position within five years.
According to Michael Roche, QRC spokesman, in Australia major projects of coal industry might not go ahead unless costs are reduced, due to which the country is becoming internationally uncompetitive. He also says that Coal industry of Australia has plenty of opportunities in Queensland, opportunities in New South Wales but also opportunities in South Africa, Mozambique, Colombia and Mongolia.
According to Steve Smyth, the spokesman of Construction, Forestry, Mining and Energy Union i.e. CFMEU, a forecast has been made that there might be job cuts in Australian Coal industry. He also said that the industry has a prosperous future since there is no reduction in the amount of coal trains or stockpiles or coal required for export.