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“ The coal industry needs to solve some issues itself , and some issues we need to work on with government ”
– Peter Freyberg head of coal assets at Glencore
technically and economically more attractive ,” Citi notes .
Australia has to adopt a disciplined approach to coal investment
Coal isn ’ t going away just yet . Major coal miners in Australia have become vocal about their plight in the coal sector , warning further obstacles lie ahead in Australia if governments , both state and federal , don ’ t get the regulatory settings right . According to BHP Billiton ’ s president of coal , Dean Dalla Valle , Australia ’ s cost environment is making the local sector globally uncompetitive , and risks losing to rivals unless the settings are corrected .
“ Australia needs to ask itself where future coal supply will come from — coal is abundant globally ; we aren ’ t the only coalminers in the world ,” he said .
According to Peter Freyberg , head of Glencore ’ s global coal
assets , the Australian coal industry is under extreme pressure despite ongoing growth in global demand . “ The Australian coal industry isn ’ t as competitive as it should be .”
Freyberg believes productivity , industrial relations and regulatory setters were factors impacting the country ’ s competiveness . He believes Australia needs to adopt a disciplined approach to investment .
“ The coal industry needs to solve some issues itself , and some issues we need to work on with government .”
If the coal industry is to survive in Australia , the government has to actively support mining developments and help grow the industry into the future .
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