Coal firm forecasts demand
A major Australian coal producer has made some optimistic claims about the rock’s future.
Coronado Australia - which runs the Curragh open cut coal complex, supplying the Queensland Government-owned Stanwell Power Station - says international demand for metallurgical coal will rise.
The company predicts a 14 per cent increase in demand by 2030, but says China’s trade dispute with Australia will continue to lower local coal prices.
“This has had a negative effect on global pricing, over the longer term this may be offset by the positive impact of more global steel producers restarting,” a company statement claims.
Coronado says coal supply will grow by around 13 per cent from 17 million tonnes in 2021 to 190 million tonnes in 2030.
It also says seaborne metallurgical coal supply will increase from 298 million tonnes in 2021 to 340 million tonnes in 2030, with metallurgical coal requirements increasing by over 50 per cent from 2021 to 2030.
However, the company’s saleable production of coal was down to 17 million tonnes in 2020 compared to 20.2 million in the previous year.
Sales volumes dropped 9 per cent to 18.2 million tonnes last year due to temporary mine suspensions in Australia and the United States.
Coronado managing director and chief executive Gerry Spindler says the company is ready for markets to recover.
“We are now in the fortunate position of having high quality, well-operated assets with a 20 year plus life span,” he said.
“That means when markets recover, we can get on with business and not be concerned with greenfield or brownfield development risks, project financing, regulatory approvals or permitting.
“We can prudently increase production to meet demand in a scalable manner, with capital expenditure funded from cash flows and facilities.”