china also needs smokeless coal, page-15

Got nothing to do with labor costs. Its got to do with Investment Capital and Risk Appetite. Australia, although as you point out, pays a lot more for labour, has an established mining industry with a track record of delivering product to the market place. With demand for coal declining, as a user would you rather buy from an established player, or a newbie? Remember, Coal is the same price whether its bought from Australia or Mongolia. Transport costs are not a huge factor when the product is declining in price. What you are more interested in is profit margins. BHP can absorb a lower Coal Price more easily than a start up who is seeing potential margins squeezed before they have proven the resource or even pulled anything out of the ground. Its happening right across the exploration sector unfortunately.....