Coal boss sees strong mid-term demand Nicole Stevens September 7, 2010
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Xstrata Coal says demand for thermal coal is expected to outstrip supply in the medium term.
The mining giant also called for debate on climate change, saying it favoured policies that reduced carbon emissions at a gradual rate while maintaining business competitiveness.
Xstrata Coal chief executive Peter Freyberg said demand for thermal coal (used for power generation) would continue to be driven by rapid urbanisation and modernisation in China, India and Brazil until at least 2014.
Advertisement: Story continues below"On the supply side, while there is likely to be further growth of Indonesian production, amongst others," Mr Freyberg told a luncheon in Sydney on Tuesday.
"We believe there is a potentially significant undersupply in the market in the medium term."
Xstrata Coal, a subsidiary of Anglo-Swiss miner Xstrata Plc, has interests in 30 coal mines in Australia, South Africa and Colombia.
Mr Freyberg said Australia needed a transparent and informed debate on climate change, taxation and infrastructure policy to get the greatest benefit from the booming resource industry.
"Significant opportunities exist to maximise the resource sector's contribution to the nation, but this will only be achieved in the right policy environment," he said.
Xstrata favoured policies that would see carbon emissions reduced at a gradual rate, while maintaining business competitiveness, he said.
Investment in new technology, such as carbon capture and storage would be necessary to make a balanced transition to a lower-carbon economy.
"Carbon capture will form a very large part of future energy use around the world," Mr Freyberg said.
"Some investment has to be made into retrofitting existing coal-fired power stations, while new stations will need to be designed to capture and store carbon from the start."
The alignment of rail and port infrastructure was critical to the success of the coal industry, he said.
He pointed to the situation in Queensland, where Xstrata was one of several coal companies that had bid for the nation's biggest coal rail system.
Coal boss sees strong mid-term demand Nicole Stevens September 7, 2010
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Xstrata Coal says demand for thermal coal is expected to outstrip supply in the medium term.
The mining giant also called for debate on climate change, saying it favoured policies that reduced carbon emissions at a gradual rate while maintaining business competitiveness.
Xstrata Coal chief executive Peter Freyberg said demand for thermal coal (used for power generation) would continue to be driven by rapid urbanisation and modernisation in China, India and Brazil until at least 2014.
Advertisement: Story continues below"On the supply side, while there is likely to be further growth of Indonesian production, amongst others," Mr Freyberg told a luncheon in Sydney on Tuesday.
"We believe there is a potentially significant undersupply in the market in the medium term."
Xstrata Coal, a subsidiary of Anglo-Swiss miner Xstrata Plc, has interests in 30 coal mines in Australia, South Africa and Colombia.
Mr Freyberg said Australia needed a transparent and informed debate on climate change, taxation and infrastructure policy to get the greatest benefit from the booming resource industry.
"Significant opportunities exist to maximise the resource sector's contribution to the nation, but this will only be achieved in the right policy environment," he said.
Xstrata favoured policies that would see carbon emissions reduced at a gradual rate, while maintaining business competitiveness, he said.
Investment in new technology, such as carbon capture and storage would be necessary to make a balanced transition to a lower-carbon economy.
"Carbon capture will form a very large part of future energy use around the world," Mr Freyberg said.
"Some investment has to be made into retrofitting existing coal-fired power stations, while new stations will need to be designed to capture and store carbon from the start."
The alignment of rail and port infrastructure was critical to the success of the coal industry, he said.
He pointed to the situation in Queensland, where Xstrata was one of several coal companies that had bid for the nation's biggest coal rail system.
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