Development and perspectives of the Australian Coal Supply Chain and Implications for the Export Market

The Australian coal industry is critical for the nation’s domestic energy supply and economy with an export value of almost A$24 bn in the fiscal year 2007/08. With almost 75% of production destined to the export market, Australia is also the world’s largest hard coal exporter and an essential secure source of energy particularly to meet both thermal and metallurgical coal demand in the fast growing Pacific Rim. This paper examines the Australian mining sector prospects to retain its position as the world’s largest coal exporter in the mid-term, by analysing the potential increases in export capacity along the coal supply chain through expansions in mine, rail and port capacities. Despite current financial challenges and restrictions, the authors conclude that export volumes, depending on demand, could rise by 50% in the period to 2014.