Coal is mined in nearly every state of Australia. The largest black coal resources occur in Queensland and New South Wales. About 70% of coal mined in Australia is exported, mostly to eastern Asia, and of the balance most is used in electricity generation. In 2019-20 Australia exported 390 Mt of coal (177 Mt metallurgical coal and 213 Mt thermal coal) and was the world's largest exporter of metallurgical coal and second largest exporter of thermal coal. Despite only employing 50,000 mining jobs nationally, coal provides a rich revenue stream for governments.
Coal mining in Australia has been criticized, due to carbon dioxide emissions during combustion. This criticism is primarily directed at thermal coal, for its connection to coal-fired power stations as a major source of carbon dioxide emissions, and the link to climate change in Australia and worldwide. Coal was responsible for 30% (164 million tonnes) of Australia's greenhouse gas (GHG) emissions, not counting methane and export coal, in 2019. Coal as a fuel was responsible for 41% (160 million tonnes) of carbon dioxide emissions in Australia in 2020. Problems of environmental injustices have risen historically, and to this day. Coal mines in Australia have been built on or near indigenous lands and more vulnerable communities. The Aboriginal peoples and Torres Strait Islander peoples, specifically, have been impacted the most by the pollution from the mines. Protests from these people have been prominent because of how strong their relations to their land are. Similarly, more vulnerable communities living in low-income neighborhoods have been disproportionately affected compared to those of higher class who live far from these mines. This pollution is also extremely harmful to nonhuman species, and can take away from their role in ecosystems.
The Carbon Pollution Reduction Scheme, which followed the draft report in the Garnaut Climate Change Review, placed a price on carbon emissions through a reducing cap and trade emissions trading scheme and incentivised against carbon pollution temporarily, before it was revoked in 2014.
In 2021, coal accounted for 64% of energy production and 32% of the Total Energy Supply (TES), with 93% of its consumption by the heat and electricity generation sector and the remaining 7% by the industrial sector. Coal remains a significant source of electricity generation in Australia, however its share has declined in recent years as renewable energy and battery storage capacity have expanded.
History
Australian coal was first discovered in New South Wales by shipwreck survivors in August 1797, at Coalcliff, north of Wollongong. George Bass discovered coal soon afterwards in the cliffs at Newcastle off Point Solander. Coal exports first left Newcastle in 1799, with it being mined by convicts. Shipments left for India, marking Australia's first commodity export. Mining in the area was initially small scale and used in domestic heating.
In Queensland, coal mining began near Ipswich in 1825. The following year coal was discovered at Cape Paterson in Victoria. In the 1850s the deposits were mined, but it was not enough to sustain Victorian communities. Coal was discovered in Tasmania at Plunkett Point in 1833. In Western Australia, the first coal deposits were discovered in 1846 at Irwin River in what is known as the Coalseam Conservation Park. There have been long term impacts due to coal mining at the park. For example, long lasting impacts to are typically permanent, and the land may never return to its former state.
By 1901 Australia was exporting several million tonnes annually. By the 1900s coal had become integral to the economy as it was used in locomotives on railways and in steam mills cutting logs, and grinding wheat. In New South Wales development was particularly influenced by coal during the 20th century. During the 1940s Australian coal mines experienced significant strikes. Strikes were largely due to the fact that communities living close to these mines were put at risk. Evidence of these dangers are shown by, Barbara Heaton, a retired public servant and graduate of the University of Newcastle, “A NSW miner who worked for 40 years between 1902 and 1976 had a one-in-24 chance of accidental death and a one-in-five chance of serious, debilitating injury.” The 1949 Australian coal strike lasted for seven weeks. The Joint Coal Board was formed to aid in the resolution of workers' disputes. Before WWII underground mines dominated. After WWII, Australia began exporting coking coal to Japan to aid in their production of steel. Exports to South Korea and Taiwan soon followed. Australia became the number one coal exporter in 1984. By 1986 Australia was supplying around half of all its exports to Japan. As the Bowen Basin Coalfields were developed, open-cut mines became more common. From the 1980s onwards the ratio of thermal coal exported to Asia increased significantly. High-grade coking coal extracted from the Illawarra region has supported a steel and steel products market with exports leaving via Port Kembla harbour. An anti-coal movement is a recent historical development.
Production and reserves Australian coal is either high-quality bituminous coal (black coal) or lower-quality lignite (brown coal). Bituminous coal is mined in Queensland and New South Wales. It is used for both domestic power generation and is exported. Mining is underground or open-cut. The coal is transported by rail to power stations or export shipping terminals.
Lignite is mined in Victoria and South Australia, and is of lower quality due to a lower thermal value largely caused by a high water content. Ash content varies significantly but some Australian lignites have relatively low ash content. In 2013 coal from three open cut lignite coal mines in Victoria was used for power generation.
It was the fourth-highest producer with 6.9% of global production (503 Mt out of 7,269 Mt total). 77% of production was exported (389 Mt out of 503 Mt total). At the end of 2019, Australia earned $63.9 billion from black coal. The value of Australian coal exports reached $112 billion in the 2021-22 financial year. This was the second time a commodity had reached $100 billion in exports for Australia, after iron ore. In 2021, Australia ranked second among International Energy Agency (IEA) member countries for the highest utilization of coal in both energy generation and electricity production.
Exports
In 2016, Australia was the biggest net exporter of coal, with 32% of global exports (389 Mt out of 1,213 Mt total). Australia exports the largest share of coal of any nation, at 54% of the total. In 2020, exports of coal accounted for 1% of national revenue, with a total value of A$55 billion. Australia is the world's leading exporter of coking coal. In 2021-2022, about 55% of its coal exports were thermal coal, with the remainder being metallurgical coal. The primary destinations for its coal exports are Asian countries, notably Japan, Korea, India, and Taiwan. Following import restrictions by the Chinese government in 2021, coal exports to China ceased, even though China had previously received 69% of Australia's exports in 2020. Currently, the main importers of Australia's metallurgical coal include India, Japan, the European Union, and Korea.
+Major export markets for Australian coal (2018)Country/areaMillions of tonnesRank% of exportsCokingSteamingTotalJapan 35.881.0116.8130.0China 39.649.889.4223.1India45.34.850.1313.0Other 30.319.549.8412.9Korea (ROK) 17.830.147.9512.4Taiwan 10.022.532.568.4Total 178.8207.7386.5
Major coal export ports
The Port of Newcastle, New South Wales, is the world's largest and most efficient coal handling operation through its two terminals: Carrington and Kooragang. Australia has nine major coal-export ports,Minerals Council of Australia, Australia's Coal Industry - Ports and Transport including:
+Major Australian coal export portsPortStateMillions of tonnes 2009 2008NewcastleNSW92.891.4Hay Pointhttp://www.transport.qld.gov.au/resources/file/eb3e0c4a36b1d25/Pdf_port_of_abbot_point_cape_flattery.pdfQLD82.480.4Gladstonehttp://www.transport.qld.gov.au/resources/file/eb3dff4a36695d1/Pdf_coal_metals.pdfQLD56.254.1Abbot PointQLD14.412.5Port KemblaNSW13.713.3BrisbaneQLD6.35.5Total 265.8257.2
Table of Coal Mines in Australia