Coal news and updates

The international coal trade has reshuffled as a result of China’s ban on Australian imports, with a major miner saying locally produced coal is still making its way to the Asian superpower through other markets.

 

In its December quarterly report released on Thursday, Whitehaven Coal said the restrictions – which came after China imposed bans and punitive tariffs on Australian products including wine, barley and beef – had altered seaborne coal trade flows.

 

“China has supplemented its domestic production with higher cost coal from alternative countries such as Russia, Indonesia and South Africa,” the company said.

 

“In addition, late in 2020 China lifted its total import quota in response to strong domestic demand and an extremely cold winter.

 

“Instead of being delivered to China, Australian coal is now finding customers in alternative destinations, including India, Pakistan and the Middle East, and traded coal historically delivered into these markets is finding its way into China.”

 

The ban has left ships laden with Australian coal languishing off China’s coast, unable to unload, and the federal government considering seeking intervention by the World Trade Organisation.

 

Source : https://www.news.com.au/finance/business/mining