There is a general feeling in Australia that the current boom in coal and ore demand marks the start of a sustainable long-term trend. Confidence is reflected in market forecasts and long-term forward contracts. However, there is still a considerable challenge ahead ramping up transport infrastructure to cope with the planned increase in production. Brian Harwood, chairman of Rio Tinto's Coal and Allied Industries Ltd has forecast that China and India will underpin a more than doubling of thermal coal exports over the next 30 years. Coal received a further boost when China's Yanzhou Coal purchased the Hunter Valley mining leases and assets of Southland Coal from the receiver for the equivalent of US$23 mill, suggesting that China's role as an exporter will weaken further in coming years. Australian exports of met coal are picked to rise 7-8 per cent this year to 120 mt and another five per cent in 2005 to almost 126 mt.
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