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Demand and Supply of Coal in Australia PDF

   

Added on  2021-06-17

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DEMAND AND SUPPLY OF COAL IN AUSTRALIAAND ITS IMPACT ON THE ECONOMY OF AUSTRALIA[Type the document subtitle][Type the author name][Pick the date]

INTRODUCTIONCoal is said to be one of the most essential fossil fuel which accounts for nearly 40 percent ofthe entire power generation globally. Of the 40 percent, Australia alone meets the needs of 30percent of coal. The fact that coal being a non-renewable source of energy, yet it remains crucial and significant for the developed economies, especially Australia. Thus the present condition makes it clear that it is impossible to think of a future wherein coal is absent or not being used to meet the increasing requirement of power . Australia is also a part of the said trend, black and brown coal amount to Australia’s main energy generation source, covering 34 percent of its main energy requirement and 75 percent of its grid electricity. Black coal provides 90 percent of grid energy in New South Wales and 77 percent in Queensland, whereas brown coal provides 93 percent of electricity in Victoria. Source: http://www.minerals.org.au/resources/coal/coal_bringing_power_to_the_people

Thus the above pie charts make it clear that there exists no other fuel whether renewable or non-renewable, that can execute this critical aggressive role in Australia’s power production blend. The supply of coal is Australia is so abundant along with its propinquity to densely inhabited areas, construes that the cost of the electricity in Australia has always been very low across the globe. Electricity generated with the help of coal are also the reasons for the prices of electricity to be so competitive across the globe, dependable and efficient electricity generation that emphasizes energy-intensive industries, an employer of around one million Australians (minerals.org.au., 2018). DEMAND AND SUPPLY OF COAL IN AUSTRALIAAs is detailed above, Australia supplies around 30 percent of the world coal trade, the largest across the globe. Coal has various varieties of which it was noticed in the year 2011 that Australia was the world’s largest exporter of metallurgical coal and ranked second in the export of thermal coal. Apart from the same, the continent is ranked fourth in the production and fifth in the resources of black coal across the globe. So much is the production of black coal that Australia’s reachable financial established resources are adequate to uphold the present production rates for almost a century. Brown coal accessible economic resources are expected to be able to sustain current brown coal production for over five centuries. Australia is specifically dependent on coal exports both for present and upcoming economic development. Due to the said reason, it is critical to have a thorough knowledge with regards the prospective needs and demand and the expected rate of production supported on the recognized coal mineral deposits. The Supply of coal is still confined and restricted, reasons being China carrying out various safety scrutiny and checks and the action of the industry also has an implication on the Australian result. The continent’s coal discovery and investigation spending is still fairly unpretentious and unassuming, with $35.1 million invested in the second quarter of 2017. The figures are one third more than the June 2017 quarter, but almost unaltered during the year. The increase in the supply during the quarter was due to the greater investigation in Queensland, which presently constitutes to more than 80 percent of the entire coal investigation and exploration (Davidson & Silva, 2013). However, September 2011 witnessed one of the highest coal exploration expenditure. Unfortunately, the same has been gradually bolted back due to the lowering prices of coal and excessive supply of low quality thermal coal markets.

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