It’s not looking good for Australian exporters as China’s consumption of coal-powered electricity dropped 10% in the first three months of the year.
The AFR reports China’s “war on pollution” has already begun reducing the mining and sale of “dirty” coal with high levels of ash and sulphur which could leave Australian exporters out in the cold.
“This is one of the lowest rates of quarterly growth in the last two decades,” said Lin Boqing, director of the China Centre for Energy Economics Research at Xiamen University.
China is the world’s largest energy consumer deriving 77% of electricity from coal and gas-fired utilities, Bloomberg has reported.
The $60 million coal mining industry in Australia which produces 8.9% of the world’s coal could be in trouble if Chinese demand does not pick up.
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