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4 Pages

Australia: Is it time to shut down?

Australia: Is it time to shut down?

Report summary

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...

What's included?

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


This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

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  • Executive summary
  • Assessing the shut-down decision
  • Mines at risk of shutting down

In this report there are 4 tables or charts, including:

  • Executive summary
  • Assessing the shut-down decision
    • The likelihood of mine closure depends on cost structure and the flexibility of the operator
  • Mines at risk of shutting down
    • Negative margin tonnes at risk of shutting down (Base case pricing scenario 2013)
    • Tonnes at risk grows considerably under lower coal price scenarios
    • Assumptions and Impacted Production
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