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7 Pages

Australian coal costs - how much lower can they go?


Australian coal costs - how much lower can they go?

Report summary

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.

What's included?

This report includes 2 file(s)

  • Australian coal costs - how much lower can they go? PDF - 293.12 KB 7 Pages, 0 Tables, 8 Figures
  • Australian coal costs - how much lower can they go.xls XLS - 461.50 KB

Description

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.

Wood Mackenzie is the only coal industry service provider that offers a market outlook integrated with other sector analyses, including macroeconomics, coal supply, steel markets and gas and power markets.

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.

  • Executive summary
  • Production and productivity
  • Unit rates fall
  • Foreign exchange
  • Margins still under pressure
  • How much lower can costs go?
  • Conclusion

In this report there are 8 tables or charts, including:

  • Executive summary
  • Production and productivity
    • Production and productivity
  • Unit rates fall
    • Australian coal costs - how much lower can they go?: Image 2
    • Australian coal costs - how much lower can they go?: Image 3
  • Foreign exchange
    • Thermal cash cost changes
    • Metallurgical cash cost changes
  • Margins still under pressure
    • Australian coal costs - how much lower can they go?: Image 6
    • Australian coal costs - how much lower can they go?: Image 7
  • How much lower can costs go?
    • Potential minesite (C1) cost reduction
  • Conclusion
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