Record coal prices to spur mine expansion

NATIONALS senator-elect Matt Canavan says record coal prices will encourage Australian miners to kickstart the further expansion of the nation’s coal industry, particularly in Queensland’s thermal coalrich Galilee basin.

The comments come as the price of thermal coal shipped out of Newcastle lifted 12.8 per cent to a fresh record high of $US204.75 ($280.50) a tonne on Monday night.

It means the price of thermal coal – which is used to generate electricity – has jumped more than 270 per cent since its 12 month low of $US54.70 last October.

Senator Canavan (pictured) said that although he thought prices would moderate, margins would remain strong enough to encourage expansion. “It’s unlikely prices will stay at these heights because prices at these amounts will encourage more supply,” he said. “But I think this will encourage people to look at the expansion of coal mining.”