Queensland coal exports are set to hit record levels as end of financial year reporting comes through.
Queensland Resources Council CEO Michael Roche said that while coal exports for the end of May were 200 million tonnes, he expected exports to reach 220 million tonnes for the end of 2014-15.
“This new record level of coal exports will be 5 per cent 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,” Roche said.
“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.”
With expectations for increased demand for thermal coal in India backed up by a report from the Office of the Chief Economist, increased demand for construction is also expected to boost demand for coking coal.
“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.