Insight

Australian coal costs - how much lower can they go?

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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.

Table of contents

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

Tables and charts

This report includes 8 images and tables including:

  • Production and productivity
  • Australian coal costs - how much lower can they go?: Image 2
  • Australian coal costs - how much lower can they go?: Image 3
  • Thermal cash cost changes
  • Metallurgical cash cost changes
  • Australian coal costs - how much lower can they go?: Image 6
  • Australian coal costs - how much lower can they go?: Image 7
  • Potential minesite (C1) cost reduction

What's included

This report contains:

  • Document

    Australian coal costs - how much lower can they go?

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