OREANDA-NEWS. January 28, 2015. New export data reveals that global demand for NSW coal has increased over the last financial year, with a significant jump in exports to China, which the ?industry body’s chief says defies the “doomsayers” willing an end to the sector.

Demand from the economic powerhouse for coal increased 22 per cent over the last financial year, sustaining its position as the second largest market for NSW’s coal exports.

The data, released by Coal Services, revealed that in 2013-2014 NSW coal exports ?increased by nearly 8 per cent from the previous financial year to 167 million tonnes.

“It’s not a great surprise to those in the industry watching closely what has been happening, as we have been saying all along that demand is growing,” NSW Minerals Council chief Stephen Galilee said.

“We have also been strongly focused on maintaining our global share through increased production, which also helps to bring down our unit costs at a time when coal prices are low. It defies the predictions of some of the doomsayers, particularly those that seem to be willing an end to the coal industry and the loss of jobs and economic dislocation that would entail.”

The mining council highlights that coal is NSW’s single most valuable merchandise export, contributing 20 per cent of all exports leaving the state by value, including goods and services.

Chinese demand for NSW coal has had significant growth over the last six years. In 2007-08, only 1.1 per cent of NSW coal exports were going to China, today China accounts for 23 per cent of all NSW coal exports, second only to Japan.

Japan accounts for 43 per cent of NSW coal exports, Korea with 16 per cent, Taiwan with 10 per cent and the rest of Asia ?accounting for 6 per cent.

The International Energy Agency outlined in its medium-term outlook report, which runs until 2019, that China would add more coal demand than any other country.

Mr Galilee said he expected NSW would continue to see an increase in production levels similar to the rates witnessed over previous years. He said it was still unclear what impact new Chinese policies related to coal imports would have on NSW production.

“We have growing demand in other markets that will potentially compensate for any impact and we are still seeing growth in volumes into China despite what we have heard about changes in their policy settings,” he said.

Coal, used as an energy source and in steelmaking, is one of ?Australia’s top exports but the price of both thermal and metallurgical coal have hovered at prices that challenge the profits of operations.

Mr Galilee said there were forecasts predicting that over the next 12 months there will be a gradual improvement in the thermal coal price globally, adding that the NSW sector was well positioned to take advantage of that when it happened.

“These export numbers show the industry is weathering the storm of low prices and, until recently, high currency rates,” he said.

“What we need to see now is the right policy settings from government that when the recovery gains strength and we see an upswing in price that we are positioned as an industry to take advantage of that.

“We have seen encouraging commitments from the NSW premier late last year but we need a bipartisan commitment from the Labor Party to match the premier’s intention to reduce planning assessment time frames in NSW by half.”