The government of Australia is helping coal-importing nations find alternatives to Russia for supply, connecting them with local producers in the wake of Russia’s invasion of Ukraine, a spokesman for the country said on Thursday.
Coal is the second export product of Australia, this country represents 6% of the total annual production of the world, behind China (50%), India (10%) and Indonesia (7%).
Australia’s leading independent producer Whitehaven Coal and New Hope Group said they have been approached to supply countries, including Poland, that have traditionally relied on Russian coal.
The Australian government is facilitating access for Australian thermal coal producers to interested parties as they look for alternative supplies to Russia, a spokesman for Resources Minister Keith Pitt said.
Poland wants to impose an embargo on Russian coal over its invasion of Ukraine, while other buyers are looking for alternatives in preparation for possible sanctions against Russian energy exports, industry sources said.
“Australian coal producers have indicated that they are willing to help our friends and allies if they can,” Pitt’s spokesman said.
Coal supply is extremely tight at the moment, partly due to flooding and mine labor problems in Australia, meaning local producers would struggle to fill any short-term supply gaps in Europe.
“New Hope Group’s high-quality coals are in high demand in today’s markets; however, the group will examine supply opportunities to European markets,” the New Hope spokesperson said.
In a sign of how tight the market is, coal prices for loading at Newcastle – the world’s largest coal port on Australia’s east coast – soared to a record high of $440 a tonne on Wednesday, which means multiplying by five the figure of a year ago.
Source: Larepublica
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