Australian Government
Presentation for Japan Carbon Frontier Organization‘Energy Security with Decarbonization Symposium’
Presenter: Matt Brown | 3 September 2024
Our purpose is to help the government build a better future for all Australians through enablinga productive, resilient and sustainable economy, enriched by science and technology.
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Presentation structure
1

Coal industry overview

2State and Commonwealth responsibilities

3

Australia’s coal and energy policies

4

Emissions reductions policies

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2

Coal industry overview

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3

Australian coal industry update• Australia has 93 operating black coalmines, with most of the production in;• Queensland (56%) and• New South Wales (43%)• Globally, Australia is thefifth largest producer, thesecond largest exporter, and has thethird largest reserves of coal in theworld.
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Australian coal industry update• Weather affects production: La Niña
(wet) chance for coming Australian
Spring (BoM).

• The Resources and Energy Quarterly(REQ) outlook:• Metallurgical coal volumes expected togrow over the next five years as newmines ramp up.
• Thermal coal volumes have recoveredas weather disruptions ease and newmines ramp up.
• Prices are falling slowly as disruptions
ease and supply conditions improve.

• 10 coal projects (REMP) at committed
stage in Australia:• 5 in QLD and 5 in NSW.
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5Project pipeline and exploration• There are currently
10 coal committed
projects in Australia,
valued at
AUD$4.56 billion.

• Exploration spending
remains high.
• In 2023, coalexploration
expenditure
increased to$322.3 million, 7.6%of all exploration
spend (ABS).
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ProjectCompanyStateAnnual
Estimated New
Capacity (mt)ResourceBulga Optimisation Project mod 3
and Bulga Underground mod 7

Glencore

NSW

6.6

Thermal andmetallurgical coal

Hillalong

Shandong Energy Group

QLD

4.2

Thermal andmetallurgical coal

Isaac Plains Complex (IsaacDowns)

Stanmore Coal

QLD

n/a

Metallurgical coal

Mandalong Southern Extension

Centennial Mandalong
Pty Ltd (Banpu PCL)

NSW

n/a

Thermal coalMaxwell Underground Mine

Malabar Coal

NSW

4.7

Metallurgical coal

North Goonyella

Peabody

QLD

5Metallurgical coal

Vickery

Whitehaven Coal

NSW

8Thermal andmetallurgical coal

Wallarah 2

Korea Resources Corp /Sojitz CorpNSW4Thermal coal

Wilkie Creek

New Wilkie Energy

QLD

4

Thermal coal

Wilton-Fairhill

Futura Resources

QLD

3Metallurgical coal

Source: Resources and Energy Major Projects, 2023

6

Australia is the second largest exporter of thermal coal
• Values expected to decrease, butvolumes stable to 2025-26.
• Japan was Australia’s biggest export
destination for thermal coal in 2023.
• In 2023, Australia exported 202.2 Mtof thermal coal, including 70.6 Mt toJapan (35%).

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Australia is the world’s largest metallurgical coal exporter• Also expect value of exports to decrease, whilevolumes increasing to 2024-25.
• Japan is Australia’s second biggest export
destination, after India.
• In 2023, Australia exported 151.3 Mt ofmetallurgical coal, including 36.6 Mt to Japan (24%).

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Australian coal industry

Resources and Energy Quarterly, 4 times per year

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Resources and Energy Major Projects, 1 time per year

9

Coal Policy
State and Federal responsibilities

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10Constitutional responsibilities• Australia is a Federation of States which each have their own constitution, government and laws.
• The Commonwealth has exclusive powers for some matters (States cannot make laws).
• The Commonwealth and states have concurrent powers (both can make laws).

• States can make laws over matters not specifically listed in the Constitution of Australia.
FederalMining rights

State
Grant and regulate exploration and mining titles

Taxation/Royalties

Income tax/Corporate tax

Royalties

Environmentalapprovals

Matters of National Environmental
SignificanceManagement of contaminated land, protection of
threatened species, water rights, pollution andwaste disposal, and rehabilitation

Emissions

Climate Change Act reporting andSafeguard Mechanism

State-level emissions reduction targets

Foreign Investment

Foreign Investment Review Board

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Coal mining policy in Australia• The Commonwealth government does not operate,or invest in, coal mines.

• The Commonwealth government cannot direct any
coal mine operators to produce or supply coal to aparticular customer or country.
• There are many policies across theCommonwealth Government which impact on coalmining.
• The Commonwealth Government, as well as theNew South Wales and Queensland Governments,
are committed to remaining a reliable supplier ofcoal to Japan.
Meandu Mine, Queensland

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Australia is committed to being a reliable energy
supplier to Japan
Australia-Japan Ministerial Economic Dialogue
Joint Ministerial Statement

Madeleine King MP, Australian Minister forResources

October 2023

January 2024

“Australia has committed to remaining a“It is clear we will need more mining andresources, not less, to meet net zero
objectives… As we move into the future, wewant to deepen our resources trading
relationship with Japan.

reliable supplier of resources and energy toJapan and the region now and into the future.
This applies to traditional energy
commodities such as coal…”

This includes, of course, continued
development and investment in traditional
resources like iron ore and also metallurgicalcoal, the two vital inputs for steel"industry.gov.au13

Australia is committed to being a reliable energy
supplier to Japan
Australia understands each country has their own pathway to net-zeroand constraints to uptake of lower emission alternatives to thermal coal.

I assure you that Australia willremain a reliable supplier ofenergy resources to Japan andthe region as we work together toachieve our net zero objectives”Madeleine King MP, Australian Minister for
Resources
January 2024
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Australian coal use and energy policy

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Australia’s energy transition• Australia is committed to decarbonising
our domestic energy generation sector
while remaining a reliable supplier ofcoal to our international partners.
• Australia has committed to 82%
renewable electricity in the national
electricity system by 2030.
• The government has not mandated
how this will be achieved, but thepolicy will help manage the exit ofageing coal generation.
• The Australian Energy Market
Operator’s (AEMO) Integrated
System Plan (ISP) provides anindication of what the East Coast ofAustralia may look like in 2030.
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Australia’s emissions reduction policies

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Australian emissions reduction targets• Australia (Commonwealth) has legislated emissions
reductions goals in the Climate Change Act 2022.
• These goals commit Australia to:• Reduce greenhouse gas emissions to 43% below
2005 levels by 2030, and• Achieve net zero emissions by 2050
• The NSW and QLD State Governments have recently
announced new Emissions Reduction Targets:• NSW – 70% reduction by 2035
• QLD – 75% reduction by 2035

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Net Zero 2050 Plan and the Safeguard Mechanism
Net Zero Plans:

Safeguard Mechanism:• The Australian Government is currently
developing a Net Zero 2050 Plan, which will
set out how Australia will reach net zero by2050.

• Will drive emissions reductions at Australia’s
largest industrial facilities, including coalmines, gradually and predictably.

• The government is preparing six sectoral
decarbonisation plans.

• Sets legislated emissions targets (baselines) on
the net GHG emissions of covered facilities.
• Facility baselines are production-adjusted toavoid penalising economic growth.

• The decarbonisation plan for theresources sector will consider if further• Baselines for new facilities (including coalmeasures to address coal mine methanemines) are set based on international bestemissions are required.
practice, adapted for an Australian context.
More: https://www.dcceew.gov.au/climate• Facilities have access to flexible compliancechange/emissions-reduction/net-zero
options: Australian carbon credit units can beused to offset emissions.

industry.gov.au19Australia will reduce coal sector emissions andremain a reliable investment destination• Emissions from coal mining will be a focus of the AustralianGovernment’s Resources Sectoral Decarbonisation Plan.
• Fugitive (methane) emissions are a key challenge:• Australia is well placed to undertake research anddevelopment and implement solutions.
• Governments at all levels have made investments:• Queensland: $520 million for Low Emissions
Investment Partnerships (LEIP).

• New South Wales: Contributed $15 million to a VAM Pilot
project at Illawarra Metallurgical Coal, near Wollongong.
• Commonwealth: $10 million Resources Methane
Abatement Fund (RMAF).
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Conclusion•

The Australian Government knows how
important coal is for Japan’s
manufacturing and energy security.

•We are committed to remaining a reliablesupplier of coal.

•

Australia’s coal sector is internationallycompetitive.

•

It will always operate to the highest safety,environmental and ethical standards.

•

Decarbonising coal extraction (mining) will
be an important focus for the sector in the
coming years.

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Further information
Matt Brown
ManagerMinerals and Resources Division | Mining Branch | Major Commodities
Ngunnawal Country, Industry House, 10 Binara Street, GPO Box 2013 Canberra ACT 2601
Australia
Department of Industry, Science and Resources
Phone +61 2 6102 9648 | Email Matt.Brown@industry.gov.au

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