The Queensland coal industry is on track to break new records with international markets set to grow in the face of growing energy demands, according to Queensland Resources Council Chief Executive Michael Roche. He said despite the price downturn there was still significant demand for the state’s commodities, and in particular, coal. “Coal exports to end-May sit at about 200 Mt and are set to reach a new record of around 220 Mt for the 2014-15 financial year,” Roche said.

“This new record level of coal exports will be 5% higher than last year’s 209 Mt, driven by continued strong demand from China, Japan, India and Korea for the Bowen Basin’s high quality coking coals, used in production of raw steel. In the medium term we expect those Queensland export numbers to increase with the growth in demand for Queensland thermal coal from energy hungry nations such as India.”

A recent report by the Office of the Chief Economist in the Federal Industry Department revealed India’s demand for coal is set to grow significantly due to the construction of new coal-fired power stations that require the high quality thermal coal Australia can deliver. Construction in India is also growing and Queensland is ready to supply more of its coking coal to service growing steel production.

“The Indian Minister for State for Power, Coal and New and Renewable Energy Piyush Goyal recently said that coal will remain the mainstay of India’s energy needs,” Roche said. “From 2017 India’s new coal-fired projects require high-energy low-ash coal. India’s domestic coal is largely high-ash low-energy. There are 300 million people in India who don’t have access to basic electricity and the Indian Government has been clear it wants to change that. Despite the claims of the well-funded anti-coal activist campaign, the future looks bright for Queensland coal to meet strong energy and steel demand in developing nations.”