AUSTRALIAN coal exporters are scrambling to clarify the fallout from proposed changes to China's coal import rules but Indian owned Griffin Coal said the new rules would be 'fantastic'.
It has been reported that the industry could be exposed to billions of dollars in lost sales as China seeks to cut air pollution and limit the use of imported coal with more than 16 per cent ash and three per cent sulphur from January 1, 2015.
However, Lanco Resources general manager David Trench said their Collie coal fits the bill nicely.
"We are low sulphur, low ash, mid energy so it's fantastic for the coal industry," Mr Trench said.
"We can now become more attractive to a larger market."
"We can now become more attractive to a larger market."
- David Trench
Chinese owned Premier Coal general manager for investor relations James Rickards said Premier Coal is solely a domestic supplier so what is happening in China will not impact on their operation.
The Chinese government’s decision comes following a bid to improve air quality in China, especially in cities such as Beijing and Shanghai.
As part of this China is moving to force power utilities to slash coal import volumes, a move which is expected will also give China's local coal miners a lift.
Part of the measures, which were disclosed on Tuesday, include slashing China's coal import volumes by 50 million tonnes over the balance of this year alone.
Australian exporters had been wary before the decision to impose the ban, since it appears to apply irrespective of the energy value of the coal, and gives exporters of low-energy coals such as lignite a free kick.
The Minerals Council of Australia has also hosed down any potential impact on exports.
''There is nothing in the information … to suggest that Australian coal exporters will be disadvantaged and we are confident that we can meet the proposed specifications,'' Minerals Council executive director of coal Greg Evans said.
''We disagree with the assertion that the coal import restrictions proposed by China's National Development and Reform Commission will hit Australian exporters hardest.
There is no evidence to suggest that Australian coal exports to China would be significantly affected if this proposal became law,'' he said.
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Source: Collie Mail
