How could China’s recent announcement of a 3 percent tax on imports of thermal coal create more Queensland mining jobs?
This move by the Chinese government has far reaching benefits for Australian coal exporters and coal explorers. One of the pluses for Australia is that this new tax could hit Indonesian coal miners hard.
Coal from Queensland is once again in the sights of Chinese coal buyers
Indonesia is the largest supplier of coal to China of lignite, a form of low-grade (low calorific value*) coal, with its shipments accounting for 97 percent of China’s total lignite imports in 2013 up to end of July.
China’s State Council, the country’s cabinet, approved just last week a plan to implement the 3 percent tariff on lignite imported from countries.
This new tariff could possibly put a dent in sales of Indonesian coal with mining companies such as Bumi Resources and Adaro Energy feeling the pinch. This new tax could cause existing suppliers to default on their contracts.
“China imported 187 million tonnes of coal in 7 months”
In the first seven months of this year, China imported 187 million tonnes of coal, including lignite. Total lignite shipment imports into China (up about 12 percent from 2012) were at 35.97 million tonnes during the same period.
At this point in time lignite is priced at around $47 a tonne on a landed basis at Chinese ports, the newly imposed tariff would add about 8 yuan ($1.31) per tonne to its cost.
What does this mean for Australian Mining Companies and mining jobs in Queensland?
These sorts of actions by large nations who have a hunger for coal to fuel their power generating needs can cause a sudden shift in focus and indeed fortune – especially for coal mining centres in Queensland. Australian mining companies could benefit from this move by China. They would include:
- Whitehaven Coal
- New Hope
- Blackgold International;and
- Bandanna Energy
These mining operators are fiercely active in the Queensland coal mining sector and are the ones to watch for people who are looking for jobs in the mines in Queensland, especially given the recent announcement of China’s new tax on coal imports.
Queensland Mining Job Secrets Revealed
At iMINCO, we follow the mining industry news closely. Seeking out the local stories and international news that could help Australian’s who are looking for a career in mining to get a head start.
Many people looking for mining jobs, simply go to the mining jobs boards and find jobs, then send in their resumes in a ‘shotgun’ type fashion and wonder why they don’t get an interview.
This is a common problem – however, there is an answer – and it’s not as difficult as you think for you to improve your mining job opportunities.
Let’s review this news article about how China has imposed a 3% tax on coal imports.
- Any time a major importer of coal or any other mineral changes the rules and adds taxes upsets the market.
- Coal mining in Queensland is simply another hot spot for coal extraction and export to international markets.
- Mining companies mentioned here, like Whitehaven and NewHope, will already be on top of this news and executives from these companies will be talking to Chinese officials and putting their case forward on how they can manage continuance of supply, despite the extra tax. Whereas Indonesian cola mining companies may be struggling with having to find the extra cash to pay the taxes once the coal shipments hit the China shores.
- When the big mining companies head overseas to places like China and start to negotiate deals, it’s good news for mining jobs here, and especially in Queensland where most of the coal is mined. Coal mining is like any other business.. it has a product, it has to get that product prepared to sell to the market, it has to find customers who want to buy it; and it needs to get paid.
- Mining companies rely on keeping their customers supplied with their product by employing and training dedicated, hard working, experienced, safety focused and positive people to keep the coal supplies shooting out of Queensland, onto ships and off to the customer – in the shortest timeframe, all the while maintaining a cost-effective operation. After all, mining companies are in business – like every other business to make a profit. Profits help sustain a business and allow further investment in infrastructure and exploration, which overall sustains current mining jobs as well as provides career pathways for currently employed workers.
If you keep up-to-date with the industry news, start to read mining magazines and publications like “Mining Monthly” , “Resource Stocks”† and “The Mining Chronicle”, – then you start to get an understanding of how it all works. This is when you start to see the opportunities to get into a job in the mines before anyone else.
You could also consider getting the iMINCO Project News delivered free each week into your email in-box. It contains the latest news in the mining and resource industry, plus there’s loads of links to the latest jobs and training courses you can do to earn more money in mining.
Remember the people who wait to see the job advertised on SEEK, or other mining jobs boards? – do yourself a favour and start to do a little bit of mining prospecting for yourself and find your own money seam in a lucrative mining job in Queensland.
Reference: China Prefers Australian Coal | Mining Job Opportunities Queensland
* The calorific value of a fuel is the quantity of heat produced by its combustion – at constant pressure and under “normal” (“standard”) conditions.