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The majority of coal mines in Australia have been able to withstand lower coal prices and avoid closure. The fixed cost nature of infrastructure charges ('The pain of take-or-pay'), is one of many factors that has made shutting down even more expensive than producing coal at negative margins. As a result, negative margin producers have an incentive to maintain or increase output, instead of opting for production cuts or mine closure. We estimate that 4 million tonnes of Australian coal...
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This report includes 2 file(s)
Australia: Is it time to shut down? PDF - 435.41 KB 4 Pages, 1 Tables, 3 Figures
Is it time to shut down.xls XLS - 208.03 KB
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This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.
Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.
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Our coal analysts are based in the markets they analyse. They work with objective, proprietary data to help you maximise your current and future decision making. From market dynamics to trade patterns, we give you confidence in your strategic planning.
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Insight | Jun 2013
Australia: Is it time to shut down?
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