Australia's coal output to rise 2.8% in 2024 before expected decline

• Key mines to produce 54.7 mnt coal in 2024
  
  
• 24 mines scheduled to close between 2027-29
  
  

SXCoal: Australia's coal production is set to rise by 2.8% in 2024 to 550 million tonnes (mnt), according to GlobalData. This growth is mainly fuelled by thermal coal production, which makes up over 60% of Australia's total coal output, with the rest coming from metallurgical coal used in steelmaking.

Key mines, including Bengalla, Callide, Ironbark No 1, Maules Creek, Moolarben, Olive Downs Complex, and Wilkie Creek, are expected to produce a combined 54.7 mnt in 2024, up from 41.1 mnt last year. Ironbark No 1 and Olive Downs Complex became operational in late 2023 and April 2024, respectively, while Wilkie Creek resumed output in early 2023 after being idle since 2014.

However, from 2027 onward, Australia's coal production is likely to decline, as 24 mines, including Clermont, Yallourn, Springvale, and Oaky Creek, are scheduled to close between 2027 and 2029. These mines produced 53.8 mnt in 2023, and their closure signals Australia's gradual move away from coal, aligning with policies to reduce dependence on fossil fuels.

Australian coal companies have also been dealing with rising operational costs, driven by increasing labour, fuel, and distribution expenses. Additionally, higher royalties and fees related to emissions management are adding financial strain.

Note: This article has been written in accordance with a content exchange agreement between SXCoal and BigMint.