Queensland’s January coal exports at record

PERTH (miningweekly.com) – Despite the falling commodity prices, Queensland coal exports during the month of January reached just over 19-million tonnes, which was a record for the month of January and an 8% improvement on the same period last year.

Queensland Resources Council (QRC) CEO Michael Roche said on Friday that the coal ports of Abbot Point, Dalrymple Bay, Hay Point and Gladstone all had their strongest ever January.

“The latest export figures for January signify that Queensland regions are also the heavy lifters when it comes to royalty contributions. The Queensland government will receive royalties on those 19-million tonnes, even though one in every three Queensland coal mines is operating at a loss.

“It also illustrates that demand from Asia for Queensland’s high energy value, lower-emission coking and thermal coal remains strong.”

Roche said that the Queensland coal industry’s ability to maintain this strong export performance was not unlimited, especially for those mines running at a loss.

“Some mines remain open only because their high fixed costs (for example rail and port charges) mean that, if they were to close, the losses could be even greater. This higher production allows mines to spread their fixed costs over more tonnes.”

He added that if the Queensland government wanted to see this strong export performance and flow of royalties continue, it needed to work with industry on a comprehensive plan to deliver some breathing space.

“In the absence of such a plan, our fear is that more mines will be forced to close.”

The QRC earlier this week revealed that Queensland resource sector employment had fallen by about 21 000 in the past two years, while nearly one-third of the state’s coal miners were operating at a loss in the current economic environment.