The Independent View: Troubling Signs for Future of Australia’s Giant Coal Industry

Coal has been King in Australia ever since British Colonists first spotted the Black Stuff in Coastal Cliffs North of Sydney in the 1790s.

Its Grand Epoch may finally be Fading. China, Australia’s Second-Biggest Coal Customer, after Japan, was Reported on February 21st to have imposed Delays on Coal Imports from Australia, but Not on those from other Countries.

Glencore, a Swiss-based Company and Australia’s Biggest Coal Miner, announced it would Cap Coal Production at Current Levels. Through Glencore is not abandoning Coal, it is steering Investments towards Commodities such as: Coal, Copper, and Nickel, which underpin a lot of the Transition to Renewable Energy. It is doing so after pressure from Climate Action 100+, a group whose Affiliates include serval Australian Pension Funds that want to support Cleaner Energy.

For the First time, an Australian Judge has Refused to Allow a New Coal Mine because it would have Contributed to Climate Change.

The Events have intensified a Debate over Coal’s Future in Australia.

Already, Coal risked being Enveloped in Political Battles over Australia’s Climate Policy and the Economy’s Reliance on China, the Country’s Biggest Trading Partner.

Mining Companies must increasingly grapple with Not just Green Protesters but anxious Banks, under Pressure from Investors to Limit Financing for New, Polluting Projects.

Some Big Miners brush off any Threat. “It is way too early for us to think that this is some turning point,” says Andrew Mackenzie, the Chief Executive of BHP, a Giant Miner based in Melbourne.

But the Transition from Coal to Cleaner Fuels may be Slower than in other Countries, because of the Industry's Scale. There has been an increase in Coking Coal, which is crucial for the Production of Steel, but a Slump in Thermal Coal.

Banks are Limiting the Amount of Financing they make available for Coal Projects. Australia's Banks have Declined to Underwrite a Controversial Plan by Adani, a Firm based in the Indian State of Gujarat, to build what was once billed as Australia's Biggest Thermal Coal Mine in the untapped Galilee Basin in Northern Queensland.