Mining Sites
China ’ s demand for coal is beginning to dwindle . India is facing power generation issues and the two factors combined are causing Australia ’ s coal industry to quickly enter a structural decline .
According to a recent report by the Institute for Energy , Economics and Financial Analysis predicts countries like China won ’ t be able to afford imported coal and will resort to either its own reserves or renewable energy such as solar and wind .
“ Renewables are a lower cost , cleaner solution , particularly when the deflationary impact of wind and solar is incorporated ,” the study states .
In the last three years alone the
Tim Buckley , IEEFA Director
The future of Australia ’ s coal exports
price of coal has dropped significantly . The mining sector claims this is part of a cyclical reverse in fortunes as the resources boom begins to cool . But with several high-profile projects being cancelled in recent years , the outlook isn ’ t looking good .
“ Evidence is mounting that coal mining in Australia is entering structural not cyclical decline ,” Tim Buckley , IEEFA director of energy finance studies Australasia said . “ This report is a wake up call to investors and industry ,
34 June 2014