Regardless of trade wars, the COVID-19 pandemic, and the US president getting impeached – again – the coal industry continues to operate at a high level.
This is illustrated by Coronado Global Resources, which has operations in both the US and at the Curragh mine complex in Queensland.
Coronado CEO Gerry Spindler said that, to date, a small number of the company’s workforce had tested positive for COVID-19 with none reported in Australia.
Institute for Energy Economics and Financial Analysis analyst Tim Buckley – who is normally a harsh critic of Australian coal – was upbeat about its short-term prospects.
“Even as total volume of Australian coal exports have dropped in the December quarter, the value has surged, and more importantly, the profitability much more so,” he said.
“Australia sells the vast majority of its coal to Japan, South Korea and Taiwan. And if China buys more Russian, South African and Indonesian coal to replace Australian coal, then we can, by and large, simply swap customers, maybe with a month’s disruption.”