Strong overseas demand for Australia coal deprives local utilities of fuel

12 Sep 2017   Australia, China, Coal

Strong Asian demand for coal from Australia is depriving domestic power generators of fuel and driving electricity prices higher, energy providers and mining sources said. Local power companies are typically unable or unwilling to match the price premiums some Australian coal has been fetching in Asian markets, where less-polluting high energy, low emissions (HELE) plants are being introduced at a rapid rate, said three coal mining sources. Australian Newcastle thermal coal cargo prices, a benchmark for Asia, have jumped by more than 20 percent since July to over $100 per tonne on strong demand from overseas buyers. The shortage in one of the world’s top producers of the commodity comes as the nation battles to avoid blackouts that have become more frequent following a decade of uncertainty over carbon policy. The shortfall in coal is most acute in New South Wales, the nation’s most populous state, […]

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