Today’s approval of the $16.5 billion Carmichael coal mine in Queensland’s Galilee Basin is further proof of the strong international demand for Australian coal.
Coal from the Carmichael project, which has been earmarked for export to India, will help lift millions of people out of energy poverty while generating jobs, exports, royalties and taxes for Australia.
The approval of the project today is good news for Australia and India.
Last Friday, the Department of Foreign Affairs and Trade produced new data showing that coal and iron ore exports increased in 2013. These two commodities continue to underpin Australia’s overseas trade.
According to the Bureau of Resources and Energy Economics (BREE), Australia’s thermal coal exports are projected to increase at an average 4.6 per cent a year to 244 million tonnes in 2018—19. Export earnings are projected to increase by 4.5 per cent a year to around $21.2 billion (in 2013—14 dollar terms)
Australia’s metallurgical coal export volumes in 2013-14 are expected to increase to 193 million tonnes in 2018-19. Higher export volumes and projected higher prices are expected to result in export values from metallurgical coal increasing to $28 billion (in 2013-14 dollars) in 2018-19.
BREE estimates the sector will contribute $224 billion (in real terms) in Australia’s cumulative export earnings over the next five years.
Australia's $60 billion coal industry continues to be a mainstay of the Australian economy. It employs hundreds of thousands of Australians and pays billions of dollars in royalties and taxes.