Coal has been a pillar of Australian industry and remains Australia’s second largest export. Strong coal prices reflect the value global demand puts for its high quality thermal and metallurgical coal. It is a $39-billion-a-year export industry.
However, the climate change movement globally has been championing the acceleration to eliminate the use of thermal coal. The crucial question at this time is whether this can largely affect the Australian coal industry and its contribution to Australian economy.
Currently coal supply aids in more than two-thirds of Australia’s electricity needs. But the clean energy era is slowly pushing in. The Australian Energy Market Operator (AEMO) has declared the transition to be the fastest of anywhere in the world.
Ramifications of more wind and solar farms can be directly felt by the coal sector. However, there is a silver lining too. Coal consumption throughout Asia is forecast by the International Energy Agency to grow over the next decade to meet the energy demands of countries like China, India and South Korea. China is also reported to be revisiting the energy outlook on concerns of supply disruptions due to Russia crisis.
Australian coal is known for its high-energy, low ash characteristics ideally matching the requirements for modern, high efficiency coal-fired power plants being built throughout Asia.
Australia’s high grade metallurgical coals are amongst the best in the world for modern steel making. Australian coal can also reduce emissions when compared to lower-quality coal from other suppliers.
Australian Coal has a strong future which can meet the requirements of its modern economy. It will remain an important contributor to the Australian economy well beyond 2030 as global demand continues to grow.
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.