Photo by: Bloomberg
PERTH (miningweekly.com) – Federal Resources and Water Minister Keith Pitt has, for the second time this week, defended the role of coal in the Australian economy.
Pitt said in a statement on Thursday that Australian coal would not be staying in the ground while it continues to provide thousands of jobs and bring significant economic benefits both here and across the world.
Pitt said that coal remained Australia’s second largest export and that won’t be changing any time soon despite suggestions otherwise from "London-based academics".
“The reality is that global demand for Australian coal is increasing and forecast to continue rising into the next decade at least,” the Minister said.
“Australia accounts for approximately 8% of the world’s thermal and metallurgical coal production, which is exported to over 25 countries including the UK, Germany and New Zealand.
“Our coal is providing the power and steelmaking capability to developed and developing nations throughout Asia, creating economic and social opportunities for millions of people.
“That translates to around A$50-billion in exports and the industry provides direct jobs for over 50 000 Australians and supports the jobs of another 300 000.
“Over A$3-billion in royalties last financial year made a significant contribution to the New South Wales and Queensland governments’ ability to pay for the health services, schools and other essential services Australians rely on.
“With coal prices currently now back at near record highs, the royalties and taxes paid by the industry will make an even more important contribution to the national economy as our recovery from the global Covid pandemic continues,” the Minister said, pointing out that coal-fired power still provided around 65% of Australia’s electricity and remained the most reliable form of power generation.
“Australia has shown that emissions reductions are possible alongside maintaining our critically important resources sector. Emissions have fallen by well over 20% since 2005 - above countries like the US, Canada and New Zealand - and at the same time our resources exports have grown from A$79-billion in 2005 to around A$310-billion today.
“As our government has repeatedly stated, technology holds the key to future emissions reductions, including carbon capture and storage which can contribute to a reduction in coal-fired power station emissions by 90% or more, according to a 2020 International Energy Agency report.”
Pitt’s staunch support of the coal industry follows suggestions from United Nation climate expert Selwin Hart that the global phase-out of the fossil fuel was not happening fast enough.
“We fully understand the role that coal and other fossil fuels have played in Australia's economy, even if mining accounts for a small fraction, around 2%, of overall jobs,” Hart was quoted by CNN, while speaking during a video address to the Crawford Leadership Forum at the Australian National University on Monday.
“But it's essential to have a broader, more honest and rational conversation about what is in Australia's interests, because the bottom line is clear: If the world does not rapidly phase out coal, climate change will wreak havoc right across the Australian economy, from agriculture to tourism, and right across the services sector. Similarly, construction, housing and the property sector, in a country where the vast majority live on or near a coastline. It will be even more catastrophic in your neighborhood.”