Queensland Coal Industry Overview

An Overview of the Queensland Coal Industry

Coal is the most greenhouse-intensive of all of the fossil fuels and the leading cause of climate change worldwide. As the largest coal exporting state in the largest coal exporter in the world, the state of Queensland is literally at the ‘coal face’ of difficult decisions on climate change.

Queensland’s Coal Production, Exports and Revenue

In 2008, the state’s 54 coal mines produced a record 188 million tonnes of coal. We are a major player in the international coal market, with Queensland coal exports accounting for some 20% of the global trade. The industry generated $22.6 billion in export revenue, and is expected to generate $3.22 billion in coal revenues for the state government for 2008-09. Royalties from coal account for around 8.7% of the total anticipated income of the Queensland Government for the 2008-2009 financial year.

Around 85% of Queensland coal is exported. Queensland supplies around 45% of coking coal to the world market, and 6% of global trade in thermal coal. Queensland coal exports are roughly equal to those of Canada, the USA and China combined. Queensland exports to 33 countries worldwide, with major consumers Japan (24%), India (12%) and Korea (8%), which combined accounts for 45% of Queensland coal sales.

Coal and Climate Change

The coal industry is Queensland’s leading contributor to climate change. The greenhouse footprint of the emissions generated by the burning of Queensland coal amounts to around 394 million tonnes of greenhouse gas emissions per year. To put this in perspective, these emissions are 2.3 times the combined domestic emissions for the entire state, which stood at 170.9 million tonnes in 2006, including power generation, transport, agriculture and industry. Additionally, the mining, processing and transportation of coal contributes enormously to greenhouse gas production.

The Queensland Government’s commitment to coal expansion has the direct consequence of reducing our ability to prevent climate change. The 2008-2009 budget commits $700 million to expanding the coal industry, but in comparison only provides $35 million for investment in renewable energy and only $30 million for all of the government’s climate change initiatives. 

Plans for Coal Expansion

With current expansion plans, the Queensland Government is looking to more than double our coal production and exports by 2030. Even at conservative estimates, this will emit an additional 460 million tonnes of CO2 per annum into the atmosphere – equivalent to the annual emissions of 65 average coal-fired power stations.

The Government has committed $15.6 billion of public funds to provide infrastructure required to meet the needs of the Queensland coal industry over the next 20 years under the Coal Infrastructure Plan.

Amongst these investments, the Government is supporting the expansion of existing coal rail lines and all of the five major coal ports. In addition, plans are underway for two new rail lines and the construction of a new coal terminal on Wiggins Island, which will make Gladstone the second largest coal port in world.There are currently 18 new mines in various stages of development around the state.

Food and Water Security

It is not only the climate change impacts of coal that need to be addressed. Many proposed coal mines are located on the state’s prime agricultural land, including mines at Haystack Plains and the Felton Valley on the Darling Downs and at Kunioon, near Kingaroy. Once mined, this land will not able to be used for food or crop production. Additionally, coal mining causes water pollution from the downstream effects of mining. These impacts mean that expanding the coal industry poses a threat to a sustainable future for Queensland.

Employment in the Coal Industry

The Queensland coal industry directly employed around 19,200 people in 2008, although these figures have been declining as a result of recent job losses in the industry. While direct employment in the industry is quite low due to support industries and indirect jobs, many regions and communities in Queensland are almost totally dependant on the coal industry as a source of employment and as a catalyst for the growth of industry and service sectors in regional Queensland.

It is therefore crucial that the state and federal governments commit to a socially just and culturally relevant transition away from the coal industry to support such populations. 

Find out more about the transition from coal here...

Or more information about community opposition to the coal industry around the state here...