Reasons why Indian poverty coal could keep Queensland mining jobs alive
Oil aside, coal ““ specifically the power-generating variety ““ has turned out to be the real surprise commodity of 2015.
The benchmark thermal export price from Australia’s port of Newcastle is up 22% in a month and on Monday scaled $70 a tonne for the first time in nearly six months.
The advance was most keen in the Pacific seaborne market as mines in Australia and South East Asia close, but Rotterdam and Appalachian prices (despite still rising production in the US) have also been lifted from multi-year lows.
The rally in thermal coal (metallurgical continues to languish in the low $90s) also come despite Chinese coal imports falling sharply in January on the back Beijing’s crackdown on the commodity through tough emissions regulations and newly-imposed import tariffs.
The jury may still be out whether the coal rally has legs but further out a structural shift in the seaborne market should support price in the longer term.
The same conditions that were present before the Chinese economic boom set off a commodity supercycle
Hopes are high that India, the world’s second most populous nation after China, could take over the role of China as the world’s growth engine, particularly since the election of business-friendly Prime Minister Narendra Modi who presides over the country’s first majority government since the 1980s.
There is a dire shortage of infrastructure on the sub-continent and the population is urbanizing rapidly, the same conditions that were present before the Chinese economic boom set off a commodity supercycle.
A recent study by independent commodity research house CRU show India’s domestic demand in 2014 equalled around 80% of the global seaborne market.
That means that “small changes in supply and demand can have a relatively large impact on total import requirements” and “even if domestic coal production was to increase, there would still be issues getting the coal to market due to logistical bottlenecks.”
India’s electricity consumption is set to grow by nearly half over the next five years and while the subcontinent’s domestic production is rising it won’t be able to keep up with the growth in demand.
According to CRU India will requiring an additional 136 million tonnes of imports by 2019. The majority of this import growth is expected to materialise over the next three years as significant coal-fired capacity comes on stream, and CRU expects India to replace China as the world’s largest import market by 2015-2016.
Learn more about the Bowen Basin mining location.
The Bowen Basin contains the largest coal reserves in Australia. This major coal producing region contains one of the worldâ€™s largest deposits of bituminous coal.
The Basin contains much of the known Permian coal resources in Queensland including virtually all of the known mineable prime coking coal. It was named for the Bowen River, itself named after Queenslandâ€™s first Governor, Sir George Bowen.
The Bowen Basin covers an area of over 60,000 square kilometres in Central Queensland running from Collinsville to Theodore and is dotted with many coal mines operated by multiple mining companies.
Caterpillar Haul truck 793
The 793F has a load cpacityof 226.8 ton (US) and a top speed of 60 kilometres an hour. It's a turbocharged air-to-air aftercooled diesel engine that has enhanced power management capability for maximum hauling performance. The C175-16 is a 16-cylinder, four-stroke design that uses long, effective power strokes for optimum efficiency.
The 793F, is an autonomous-driven truck. Over 100 793F trucks are now operating via Command for hauling, the Cat autonomous truck operations system, which is a part of Cat MineStarâ„˘
Read more about the CAT 793 automomous mining dump truck on our website.
Resources and Infrastructure Industry (RII)
Commonly refered to as Black Coal Competency (BCC), the RII competency is one that can be attained by an operator who has previously worked in the industry and has completed a number of operating hours on various types of machinery.
RII competency is granted to prove correct and safe operation of mine site machinery. It is a very useful qualification to have, as it confirms the operator has the required experience and expertise.
You can transfer your nationally recognised civil Excavator, Front End Loader or Dozer tickets only to RII Black Coal Competencies.