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New China coal guidelines 'not a disadvantage' to Aust exporters

19 September, 2014

Reports on draft new guidelines for China's coal use and their impact on Australia's coal industry are misleading and unnecessarily alarmist, the Minerals Council of Australia (MCA) has asserted.

China's National Development and Reform Commission has issued proposed guidelines dealing with import restrictions applying at different coal quality threshold levels.

"There is nothing in the information which suggests that Australian coal exporters will be disadvantaged and we are confident that we can meet the proposed specifications," Greg Evans, Executive Director at MCA said in a recent statement.

"Australia is fortunate to have reserves of high quality black coal, which will continue to be in strong demand from established and emerging markets, including China.

"The main impact of this development in China appears to be on brown coal or lignite, which Australia does not export and low quality domestic black coal. To the extent it impacts imports of black coal destined for northern cities this relates to small scale coal use, not large scale power plants or other industrial users," Evans said.

"China remains a valued coal trading partner with Australia and its demand for our high quality thermal coal resource will continue.

"The future for Australia's $2.7 billion annual thermal coal trade with China remains strong."

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