BHP Billiton chief executive Andrew Mackenzie has declared more than 70 per cent of the world`s energy will be supplied by fossil fuels in 2030.
Mining jobs in coal are not going away. Good news for Australian coal mining companies.
Amidst the rapidly expanding Asian countries with increasing urbanisation rates, there is a silent achiever sitting patiently as other forms of energy develop in their own way.
With so many sources of energy available such as nuclear, coal-seam-gas, LNG, solar, shale gas, hydro-power, how will the global trend of using coal to generate electricity and power industry be impacted?
“developing coal mining operations in Australia”
These questions are a continual topic of conversation for BHP Billiton and other Australian mining companies who have a vested interested in developing their coal mining operations in Australia. As more and more of the developing countries rely on coal to fire up power stations, there is a renewed focus on the ‘black gold’.
One of the biggest coal mining companies on the planet, BHP Billiton has made significant investments in its coal operations in Australia over the last few years and more notably in Queensland with the opening of the $5 billion Daunia Coal mine and the soon to be completed Caval Ridge mine.
“BHP Billiton – building its coal business in Australia”
What is the driving force behind these decisions to invest heavily in coal mining? Do the likes of BHP Billiton have the upper hand and superior knowledge about global demand and therefore see real value in taking a punt on building its coal business in Australia?
The various types of coal used by power and industry varies, and for Australian mining companies like BHP Billiton, the natural abundance of high-quality, low sulphur thermal and coking coal is a godsend.
Exploiting coal assets in Australia and meeting the demand of developing countries like China, India and Japan is high on the agenda for every mining company operating in the coal-rich states of NSW and Queensland.
“developing countries like India are dependent on coal”
Developing countries like India will be more dependent on coal to support economic growth and haul people out of “abject poverty”ť as the massive country modernises itself.
BHP Billiton’s Andrew Mackenzie went on to say the fastest-growing Asian economies have easier access to large coal reserves than they have to cheap gas, and that coal will remain the region`s primary source of affordable fuel.
“China and India’s coal demand high for 20 years”
Global energy demand is set to grow by more than 30 per cent in the next 20 years. It was envisaged that half of this demand would come from China and India. The way these emerging economies meet their power and energy needs will affect the stability of the global economy.
Mr Mackenzie also noted that gas was the strongest growth area as it was used in transport and power. However the infamous shale gas revolution – which would see the US become a major exporter, was “unlikely to go global quickly”.
“BHP Billiton – Australian coal mining is here to stay”