Australia calls for answers on reported Chinese coal ‘ban’

SYDNEY: Australia yesterday called for China to clarify whether restrictions have been placed on the import of Australian coal, a move that would deal a serious blow to the country’s already struggling economy. Trade Minister Simon Birmingham said he had asked via diplomatic channels whether China had instructed its companies to stop buying Australian coal-a business worth around $10 billion a year-as political punishment with relations between the two increasingly souring.

“I’ve had discussions with the Australian industry, and we are making approaches to Chinese authorities in relation to that speculation,” he told Sky News.

Birmingham stopped short of confirming that an unofficial coal embargo had been introduced, but his comments give credence to rumors that have swirled in the sector for weeks. “I don’t want us to get ahead of ourselves in terms of the speculation there, but we are working with industry and taking action and having discussions there with China,” he said.

Several trade publications including S&P Global Platts have reported that Chinese state-controlled energy providers and steel mills had received a “verbal notice” from Beijing to stop buying the commodity from Australia. Yesterday afternoon a Chinese Ministry of Foreign Affairs spokesman straight-batted the question over the coal ban, redirecting reporters in Beijing to other unnamed authorities for details.

“Healthy, stable China-Australia relations are in line with both countries’ mutual interests, but the two sides must put in efforts,” Zhao Lijian said, urging Canberra to “do more things that are conducive

to China and Australia’s mutual trust.” Relations between the two countries have been peppered by trade rows and spy scandals in recent months.

A ban on Australian coal could have serious implications for the country’s resource-dependent economy, which is already in its

first recession in almost 30 years. It would also be a blow to Australia’s conservative government, which has swatted aside environmental concerns to heavily promote the faltering coal industry in order to safeguard political support in key parts of the country. — AFP

Illustration of a coal mine. Australia yesterday called for China to clarify whether restrictions have been placed on the import of Australian coal, a move that would deal a serious blow to the country’s already struggling economy.