Frequently Asked Questions (FAQs)

Coal Australia’s members reflect the full spectrum of Australia’s coal industry, and the communities that support it. Members include both thermal and metallurgical producers, as well as suppliers, customers and local businesses.

Coal Australia’s purpose is to promote the significant positive contribution of the Australian coal industry to local communities and the nation while fostering pride within our membership companies and bolstering our shared social licence to operate.

Coal has a range of uses, but the primary uses of coal are for electricity generation (thermal coal) and creating steel (metallurgical or coking coal). As a power generation source, coal provides one of the most reliable and affordable sources of baseload power across the world, ensuring stable, dispatchable electricity. Metallurgical coal is a critical element in the production of the majority of the world’s steel.

Australia exported $113.8 billion worth of coal in 2021-22. Australia exported an estimated 338 million tonnes (Mt) of coal in 2022–23.

Australia produced 172 Mt of metallurgical coal in 2021–22 of which 163 Mt was exported. Australia also produced 246 Mt of thermal coal of which 196 Mt was exported. Exports of metallurgical coal were worth $67.6 billion in 2021–22 while exports of thermal coal were worth $46.3 billion.

Total exports of coal were valued at $114 billion in 2021–22 which accounted for 19.1% of the value of total exports of goods and services from Australia. This compares with an 8.5% share of total exports of goods and services in 2020–21 when coal exports were valued at $39.2 billion.

Coal royalties in Australia are some of the highest in the world. Queensland in particular has the world’s highest coal royalties. While royalties can be one way of harnessing the economic benefits of a strong coal industry, the cyclical nature of coal pricing and the global competition for coal investment mean that excessive royalties can be a blunt instrument that can significantly impact the investment decisions of mining companies.

Australia’s coal industry contributed $99.3 billion to our national and local economies in 2022-23 and is Australia’s second largest export industry after iron ore. In addition to the direct economic benefits, Australia’s coal industry plays a critical role in supporting regional communities, especially in Queensland and NSW, both by providing jobs and supporting businesses and also through direct support of local organisations, sports groups and infrastructure.

Coal remains a critical source of reliable baseload power across the world. In 2022, the world used more coal than ever before. Also, as an essential mineral in the production of the world’s steel, coal remains one of the most important resources in building our future prosperity.

Global projections for future coal demand show an ongoing need for coal production, especially for Australian coal which is the highest quality coal in the world

Across the world, coal mining remains a significant economic contributor to countries with large coal reserves and coal production.

Australia has shown that emissions reductions are possible alongside maintaining our critically important resources sector.

Australia’s carbon emissions have fallen by well over 20 per cent since 2005, going further than countries such as the US, Canada and New Zealand. At the same time our resources exports have grown from $79 billion in 2005 to around $310 billion today.

Coal Australia agrees with FutureCoal, that by investing in low emissions technologies, together with carbon capture and storage (CCS), the industry can contribute to meeting both our energy needs and emissions goals.

Australian coal is highly sought after by international customers and helps to power the industries and economies of our neighbours in the Asia-Pacific region, including Japan, South Korea and Taiwan.

Recent Australian Bureau of Statistics reports show that Australia’s coal mining industry directly employs 42,500 people. However, across supporting industries and businesses, current estimates indicate that coal supports a further 300,000 jobs, primarily in regional Australia.

For many regional communities, particularly in Central and North Queensland and in NSW’s North West and Hunter Valley, coal mining is an important part of their local economy, creating jobs, supporting other local businesses and industries, training young people and generating economic opportunities and investment. Without coal mining, the future of many of these communities is at risk.

Coal Australia is funded by membership fees paid by coal producers, suppliers and customers.

Coal Australia strongly supports the work of Australia’s mining industry associations, such as the Minerals Council of Australia, Queensland Resources Council and NSW Minerals Council. The purpose of Coal Australia is to provide a specific voice for Australia’s coal community as a segment of the broader mining industry, supporting producers and associated businesses primarily focused on coal production and export.