Coal prices set to soar, creating more mining jobs in Australia
The Australian coal mining sector has been given a new injection of confidence with the price of coking coal rising by over 150 percent almost overnight. Renewed demand has prompted this latest ride in coal prices.
Coal prices in Australia rise 150%
As a result, the world`s second biggest steel producer, Japan`s Nippon Steel, has committed to purchase coking coal from Australia. This 2016 coal price increase will see most Australian coking coal be sold for $US200 (AUD$260) per tonne over the next three months, compared with $US81 (AUD$106) per tonne in the March quarter of 2016.
Coal mines reopen in QLD and NSW
This news has inspired a new sense of hope among many mining Australian companies, coal mining towns, and mine workers with many coal mines across QLD and NSW reopening as a result.
One mine set to reopen and create hundreds of new mining jobs is Collinsville coal mine in Queensland, which is owned by Glencore. Stanmore open-cut coal mine in NSW is also now thriving, with mining jobs expected to increase.
In fact, after performing weakly last year, experts also predict BHB Billiton`s coal division could contribute to around 20 percent of their operating earnings this financial year which is great news for the Australian coal mining industry.
Coal exports could increase 35% on 2015
With the world’s best quality coking/thermal coal coming from Australia, the Office of the Chief Economist estimates that coking coal exports will reach $26.4 billion, which is a 35% increase from last financial year.
This lift in demand and rise in price will provide a much needed economic boost for Australia, benefitting mining, trade and the federal budget.
Thanks to the Australian Financial Review for the information provided: Coal price doubling in three months could deliver $25b economic boost