objective view, page-26

" CHINA is likely to turn to other markets for thermal coal if the cost and availability of Australia's exports are affected by carbon taxes and environmental concerns.

A study titled Coal and the Commonwealth, released yesterday by the University of Queensland, says China, an increasing importer of thermal coal, will probably look to Indonesia and Russia for supply if Australia's exports are affected.

"However, the ability of these countries to sustain supply to China is questionable," the report says.

"In the event of volatility in supply, China could revert to exploiting reserves of inferior-quality coals located in its central and southern provinces. It is therefore in the world's best interests to continue to make low-emission Australian coal available at competitive world prices."

http://www.theaustralian.news.com.au/story/0,25197,26279237-2703,00.html