Australian coal industry

• In 2008, coal provided 26% of global primary energy needs and generates 41% of the world's electricity, an 8.8 % increase over the previous year & 92% growth over the past 25 years.[1]
• There are 60 coal mines and 30 development projects located in NSW coalfields (NSW DPI 2008 Coal Profile)
• The New South Wales coal mining industry produced around 170.3 million tonnes (Mt) of raw coal, yielding 131.3 Mt of saleable coal in 2006-07. This accounted for $8.1 billion in income, or 66% of the total value of the NSW mining sector. During 2006-07, the 91.5 Mt of coal that was exported represents 70% of the saleable coal production. Thermal coal exports totaled 78% of coal exports (compared to 1997-98 when only 51.8 Mt of thermal coal was exported.)[2]
• Coal is Australia’s largest export earner, with a value of $24 billion in 2007-08 [3]
• Contract prices for bulk commodities, including coal and iron ore, have reached record levels. Contract negotiations for the Japanese financial year 2008-09 (Apr 2008 to Mar 2009) resulted in prices for iron ore, and metallurgical and thermal coal increasing by 85 per cent, 200 per cent and 125 per cent, respectively.[4]
• World thermal coal trade in 2008 is forecast to increase by 4 per cent to 722 million tonnes because of increased imports by Asian countries, particularly Japan and the Republic of Korea. In 2009, world thermal coal trade is forecast to increase by a further 3 per cent to 745 million tonnes.[5]
• Production of coal is projected to increase from 181 million tones in 2007 to 192.4 million tones in 2009, which will increase the export value from $6, 758 billion in 2007 to $17, 797 billion (in Australian dollars)[6]
• According to initial data from the Australian Bureau of Statistics, the value of thermal coal exports in 2007-08 increased by 23 per cent to $8.3 billion.[7]

For further reading, consult our section on greenhouse gas emissions here.

Greenhouse

A report by Dr Mark Diesendorf reveals that electricity generation produces more than a third of Australia's greenhouse emissions and that 97 per cent of these emissions are produced by 24 coal-fired power stations. "The greenhouse pollution produced by these power stations is equivalent to the annual emissions from about 40 million cars" says Dr Diesendorf, Director, Sustainability Centre and formerly Professor of Environmental Science at the University of Technology, Sydney. [8]

Coal mining also contributes to greenhouse gas emissions through the fuel used in mining operations, coal-seam methane released as the coal is extracted. energy used in processing and transportation.

Australia has the highest per capita greenhouse gas emissions figure in the world (Australia Institute figures) and coal is the fastest growing source of greenhouse gas emissions in Australia.

Coal from Australia contributes to other countries greenhouse gas emissions; in 2007, for example, Australia's 428.4 million tonnes of raw black extracted (in Australia alone) will produce over a billion tonnes of CO2 emissions. These figures are not counted as part of Australia's emissions under either Kyoto or UNFCCC. 

• For further reading, consult our section on greenhouse gas emissions here.

Industry and Federal Government Response

"By 2020, coal consumption will be 50% higher than it is today. Decreasing the use of coal and other fossil fuels in order to cut greenhouse gas emissions is simply not a realistic option for the foreseeable future." [9]

The Minister for Industry, Ian Macfarlane, attacked the environment movement for promoting renewable energy as a viable alternative to current forms of energy generation such as coal.

"I really [have] to wonder how much effort has been made by the resource sector to explain the harsh reality of life without fossil fuels and why so many people still seem able to imagine life without a basic, consistent and affordable supply of energy," Mr Macfarlane told a forum promoting the environmental initiatives of the coal industry.

Australia's energy needs for the next two decades would continue to revolve around coal, and the perception the industry was doing nothing to reduce greenhouse gas emissions needed to be changed, he said.

Mr Macfarlane urged the fossil fuel industry to begin a campaign telling people that without them "electricity will become an unknown, unreliable quantity, unravelling life as we know it".

There was no need for a carbon tax to rein in greenhouse gas emissions because Australia's levels had already been reduced by 4 per cent in the past five years, Mr Macfarlane said.

Despite the decline, Australia's greenhouse gas emission levels remain the highest per capita in the developed world.

The Australian Greenhouse Office predicts the level of emissions will be nearly 25 per cent higher by 2020, largely due to rising electricity consumption and greater vehicle use.

www.smh.com.au/news/National/Garrett-calls-for-debate-on-nuclear energy/2005/04/06/1112489562800.html 

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