PERTH (miningweekly.com) – Coal will remain a key part of the global energy mix for several years to come, says the Minerals Council of Australia (MCA), echoing sentiments expressed by newly appointed Prime Minister Malcolm Turnbull.

In a press conference on Tuesday, Turnbull said he did not support a moratorium on coal exploitation, as this was unlikely to make a difference to global emissions.

“If Australia stopped exporting coal, the countries to which we export would simply buy it from somewhere else.

“One of the things that is not perhaps well enough understood is that China, which by recollection is the largest coal producer in the world, is likely to, if it has not already, become a net coal exporter,” Turnbull said in response to questions on a moratorium on coal.

The Prime Minister added that coal had an important role to play in economic growth.

“You have to remember that energy poverty is one of the big limits on global development in terms of achieving all the development goals, alleviating hunger and promoting prosperity right around the world – energy is an absolute critical ingredient. So coal is going to play a big part in that.”

However, he noted that the pace of technological development in the renewable energy space had been extraordinary and that it was important to remain open to other energy sources.

The MCA has, meanwhile, pointed out that thermal coal is used to generate 41% of global electricity and 71% of Australia’s grid electricity.

“Calls for a global moratorium on coal mines ignore the scale of global demand for energy, the progress made in reducing the carbon footprint of coal by up to 50% and the adverse consequences for the world’s poorest people of eliminating the world’s most abundant, low-cost energy source,” MCA executive director for coal Greg Evans said.

“The reality is that demand for coal remains strong, particularly in South-East Asia.”

Pointing to the latest report from the International Energy Agency (IEA), Evans said that, by 2040, coal would surpass oil to become the most consumed fuel in the region. 

Total energy demand in South-East Asia is forecast to grow by 80% by 2040 with coal expected to supply 40% of the growth in electricity generation. The share of coal in electricity generation in the South-East Asia region was expected to rise from 32% to 50%.

Further, the IEA estimated an additional one-billion tonnes of coal would be used in 2019, compared with today and that, by 2040, global coal trade will grow by 40%.

“By arguing that we should restrict the development of Australian coal mines, we are essentially saying that demand for coal should be filled by other countries – whose coal is of a lower quality.

“Australia also has a rigorous environmental approval regime so we can be assured any mine development proposal in Australia only proceeds after the world’s strictest standards are adhered to,” Evans said.

The coal industry directly employs 41 000 people in Australia, paying around A$6-billion a year in wages, while a further 111 000 people are employed in industries directly related to the coal industry.