In 2014 thermal and metallurgical costs declined 15% and 19% respectively with around a third of the reduction due to the lower A$ exchange rate. In 2015 we expect further cost reduction however margins remain under significant pressure at less than US$10/tonne. Margin pressure means producers will continue to search for cost reductions however our analysis suggests that further significant cost cuts from existing capacity will be harder to achieve.
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Insight | Jun 2015
Australian coal costs - how much lower can they go?
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