As prices for premium Australian coking coal blast past the $US300 a tonne barrier for the first time in five years, Minister for Resources and Water Keith Pitt has highlighted how the commodity is continuing to provide thousands of jobs and significant economic benefits both here and across the world.

Coal remains Australia’s second largest export, with Minister Pitt reiterating that won’t be changing any time soon despite suggestions otherwise from London-based academics.

“The reality is that global demand for Australian coal is increasing and forecast to continue rising into the next decade at least,” Minister Pitt said.

Australia accounts for approximately 8 per cent of the world’s thermal and metallurgical coal production, which is exported to over 25 countries including the UK, Germany and New Zealand.

“Our coal is providing the power and steel-making capability to developed and developing nations throughout Asia, creating economic and social opportunities for millions of people,” Minister Pitt said.

“That translates to around $50 billion in exports and the industry provides direct jobs for over 50,000 Australians and supports the jobs of another 300,000.

“Over $3 billion in royalties last financial year made a significant contribution to the New South Wales and Queensland Governments’ ability to pay for the health services, schools and other essential services Australians rely on.

“With coal prices currently now back at near record highs, the royalties and taxes paid by the industry will make an even more important contribution to the national economy as our recovery from the global COVID pandemic continues.

He said coal-fired power still provides around 65 per cent of Australia’s electricity and remains the most reliable form of power generation.

“As our Government has repeatedly stated, technology holds the key to future emissions reductions, including carbon capture and storage which can contribute to a reduction in coal-fired power station emissions by 90 per cent or more, according to a 2020 International Energy Agency report.