Prices for Australian coal have surged as the war in Ukraine worsens a global shortage of the fossil fuel.Credit:Louie Douvis
Swiss commodities trading giant Glencore,which operates prominent coal mines in New South Wales and Queensland,said it was “proud” of coal’s economic contribution.
“The coal industry continues to play a significant role in Australia’s economy,” it said. “The ABS trade data demonstrates the important role high-quality Australian coal plays in electricity generation,steel-making and energy security in many countries around the world,particularly in Asia.”
Coal usually ranks as the country’s second-largest export commodity,but prices for the fossil fuel have been rocketing this year as Russia’s invasion of Ukraine drives buyers across the globe to scramble to secure non-Russian coal supplies.
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Amid intensifying competition for spare cargoes,prices for thermal coal,which is used in power generation,have risen from an average of $US90 a tonne in 2021 to beyond $US360 a tonne. Prices for metallurgical coal used in the steel-making industry have gone from $US143 a tonne to more than $US400.
But coal’s status as the country’s biggest export may be shortlived. Federal Resources Minister Madeleine King says the government expects the steel-making raw material iron ore to remain the nation’s biggest export on an annual basis.