New South Wales' rich endowment of quality thermal coal continues to be in great demand by our export partners, creating record employment opportunities for the state.
Coal exports to NSW's major trade partners are up almost 16%, while coal mining jobs in NSW reached record numbers in March, smashing through the 25,000 barrier for only the second time since coal job numbers were first recorded a quarter of a century ago.
This is because governments around the world are prioritising energy security over reaching emissions targets.
The political pendulum is well and truly swinging the other way, with the federal coalition changing its stance on reaching overambitious net zero targets by 2030 and instead raising the importance of installed base load power, which could include coal and gas, during the transition process.
Opposition leader Peter Dutton has also introduced nuclear energy back into the mix and is threatening to withdraw from the Paris Agreement, where states are required to reduce net emissions by 43% below 2005 levels by 2030.
"We'll look into places where there is an existing coal-fired power station coming to an end of life [for nuclear]," he said.
"The reason that that's important is that you've got poles and wires already there to distribute the power that's generated from the small modular reactor, or the reactor that's there."
Some of our trading partners may be on the same wavelength as Dutton. They are holding on to their last vestiges of thermal coal supply and ownership.
Slow-down in divestment
Japanese giant Itochu is keeping its 15% share of Whitehaven Coal's Maules Creek thermal coal mine in NSW despite launching a coal divestment strategy three years ago.
Itochu's reason for the change is a "change in decarbonisation trends".
It should be noted that in April 2023 the Japanese conglomerate paid $213 million for a 30% slice of Fitzroy Queensland Resources, which mines both metallurgical and thermal coal – the latter principally for use by power generators.
In Germany, one of Europe's leading renewable energy proponents, old coal mines in the Ruhr district have been redeployed to provide feedstock to old coal-fired power stations after the gas pipeline with Russia was sabotaged.
The coal being used is lignite – which is a high ash and high polluting product.
Compared to the alternatives from other seaborne coal suppliers such as Indonesia, Australia's thermal coal is clean with a high yield – the two essential requirements for utilities keen on supplying their customers while maintaining their social license to operate.
Hogsback reckons NSW will continue to experience the benefits of exporting its high-quality and clean coal for many years to come as customers around the world clamour around for the black stuff.
