Coal news and updates

Australian coal exports will be exempt from new tariffs imposed by China, Australian media reported on Wednesday, following talks between Treasurer Joe Hockey and his Chinese counterpart.

 

China agreed to exempt Australian coal from the tariffs as part of talks to seal a free trade agreement (FTA) before the end of this year.

 

The 3 percent tariff on metallurgical coal used in steel mills and 6 percent tariff on thermal coal used in power stations announced this month had stunned the Australian government, with the industry already reeling from a slump in prices.

 

It would have favoured coal exports from Indonesia over Australi, as Indonesia would not be subject to the tariffs under China's free trade agreement (FTA) with the Association of Southeast Asian Nations.

 

Hockey met with Chinese Finance Minister Lou Jiwei in Beijing on Tuesday and said Jiwei had told him China imposed the tariffs to help tackle its air pollution problems.

 

"He recognised that Australia is the cleanest coal in the world, so there was not much room to move other than for him to point out that countries that have FTAs with China are not affected by the tariffs. We both agreed to make sure the FTA happens fast," Hockey was quoted saying in The Australian newspaper.

 

 

Source: Reuters