Coal Industry Australia

Australia Coal Market Analysis

The Australia Coal Market is expected to register a CAGR of greater than 1.4% during the forecast period.

• Factors such as an increase in demand for power generation and the presence of large coal reserves are driving the growth of the coal market in Australia. Also, the growing demand for bituminous coal reserves, which have a major share in the Australian coal market, is expected to drive the market study.
• However, the shift to alternative sources of energy, such as natural gas and renewables for power generation, and the environmental impacts of coal mining are likely to restrain the growth of the coal market in Australia over the forecast period.
• Adopting new technologies such as geospatial data, 3D mapping, and hyperspectral core imaging in coal mining operations is expected to provide an opportunity for the Australian coal market in the near future.

Australia Coal Market Trends

Demand for Bituminous Coal to Drive the Market

• Coal production in Australia reached 12.43 exajoules in 2021, positioning it at number six in the world. The country exported about 28.8% of its coal in 2021, and it also exported 9.63 exajoules.
• Australian terminology for bituminous coal is black coal. Bituminous coals are largely used for power generation and to produce coke, which is mainly used in the production of iron and steel. Bituminous coal is also used in other metallurgical applications, including cement manufacturing, alumina refineries, paper manufacturing, and a range of industrial applications.
• In 2021, the production of bituminous coal in Australia was 246,127 short tons. Production of bituminous coal in Australia increased from 113,450 thousand short tons in 1999 to 246,127 thousand short tons in 2021, growing at an average annual rate of 4.48%.
• Black coal resources occur in New South Wales, Queensland, South Australia, Tasmania, and Western Australia, but New South Wales and Queensland have the largest share of Australia's total identified resources. These two states are also the largest coal producers.
• Hence, with abundant bituminous coal reserves and the highest production and exports, demand for bituminous coal is likely to drive the Australian coal market over the forecast period.

Demand from Power Generation Industry to Drive the Market

• Growth in power generation is expected to drive the coal market in Australia. This is mainly due to the increased demand for electricity and the increased use of coal in power generation in the country.
• As of 2021, electricity production rose to 267.5 TWh from 265.2 TWh in 2020, with a growth rate of 0.9%. Thus, the rise in demand for power generation is expected to boost the market for coal in the country since coal is the primary energy source.
• Coal remains the major energy source for electricity production in the country, and coal power generation accounted for about 64% of the total electricity produced in the country in 2021. Australia's electricity generation from coal was 137.4 TWh in 2021.
• Australia has 73,719 million metric tons of anthracite and bituminous coal in its reserves. Hence, coal power generation is expected to drive the market during the forecast period.

Australia Coal Industry Overview

The Australia coal market is fragmented. Some of the major players in the market (in no particular order) include Bloomfield Collieries Pty Ltd, BHP Group Ltd, Centennial Coal Company Ltd., HardRock Coal Mining Pty Ltd., and Yancoal Australia Ltd.

Australia Coal Market Leaders

Australia Coal Market News

• September 2022: AGL Energy announced the company's coal-fired Loy Yang A power station in Victoria will close in 2035.
• October 2022: New South Wales (NSW ) Electricity Infrastructure awarded the contracts to design and replace four of NSW's remaining five coal power stations in the next 11 years.