Australia’s Most Populous State Required Miners to Reserve 10% Coal Production for Domestic Market

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On Thursday, the Australian government announced that New South Wales must require coal miners to have a 10 per cent reservation for the domestic market.

The decision of the Australian government officials for the most populous state to force coal miners to reserve up to 10% of production for the domestic market is part of a nationwide effort to control skyrocketing energy prices.

NSW Minerals Council

The Labor Party of Australia, under Prime Minister Anthony Albanese, approved legislation in December. This is to set a one-year price ceiling on natural gas and obtain commitments from the coal-producing states of New South Wales (NSW) and Queensland to set a price cap on coal sold to power plants.

According to NSW Treasurer Matt Kean, the state would mandate that coal miners who do not already sell into the domestic market set aside between 7% and 10% of their output for domestic use.

The new system would provide a more equitable distribution of coal business burdens as part of the federal government’s effort to lower energy prices.

Here is the list of coal miners operating in the state:

  • Thai firm Banpu’s (BANPU.BK) 
  • Centennial Coal 
  • Peabody Corp (BTU.N) 
  • BHP Group (BHP.AX)
  • Glencore Plc (GLEN.L)
  • Whitehaven Coal (WHC.AX)
  • Yancoal (YAL.AX)
  • New Hope Corp (NHC.AX)

According to the NSW Minerals Council, which speaks for miners, the legislation would have little effect on electricity rates. Still, it may irritate business partners, drive up costs by upsetting established supply chains and discourage future resource investments in the state.

“Extending the policy to coal producers not currently involved in the domestic coal supply is a radical change of approach that highlights how extremely rushed this policy process has been,” NSW Minerals Council CEO Stephen Galilee said in a speech.

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