The Minerals Council of Australia (MCA) has welcomed the federal government’s report on the use of coal in India, saying it provided additional opportunities for Australian producers to become more involved in that country.

MCA executive director of coal Greg Evans stated that, while India is already Australia’s fourth-largest coal export market, the country’s supply has mostly consisted of metallurgical coal for steel production.

The report, ‘Coal in India’, has now earmarked additional opportunities for Australia to become a supplier of high-quality thermal coal, Evans says, with the total export market having been valued at some $5-billion in 2013/14.

The report, released by the Department of Industry and Science, notes that coal is likely to remain a key input into India’s electricity generation mix in the long term.

“Energy access is a significant issue in India,” chief economist Mark Cully says.

“While India has announced impressive plans to expand renewable-energy source capacity, it is making even greater investments in coal-fired electricity generation.”

The International Energy Agency projects that by 2040 India’s energy consumption will be greater than that of the European Union and will be approaching that of the US.

“In recent years, India has become the world’s second-largest importer of coal, and is likely to continue to rely heavily on coal imports in the future to meet its energy demands.”

Cully notes that these developments in India’s coal market could create opportunities for Australia’s coal industry.

“Australia has large deposits of high-energy, low-ash coal suitable for use in advanced coal generation technologies.

“India’s desire to improve productivity and safety at its domestic mines may also present opportunities for Australia’s mining equipment, technology and services sector,” he says.

The MCA adds that findings by the report also contradict claims by antimining activists that India is turning away from coal as a source of energy production.

“India represents a welcome opportunity for Australian producers, especially in the medium to longer term. It is a growing economy, has an expanding energy market and Australia is well placed to provide a product to meet those requirements,” Evans says.