© Reuters. FILE PHOTO: Coal is unloaded into large piles at the Ulan coal mines near the rural town of Mudgee in central New South Wales in Australia March 8, 2018. REUTERS/David Gray/ Stock Photo
By Melanie Burton and Sonali Paul
MELBOURNE (Reuters) – Australia’s most populous state will require coal miners to reserve up to 10% of output for the domestic market, as part of a nationwide measure to limit rising energy prices, officials said. government on Thursday.
Australia’s Labor government, led by Prime Minister Anthony Albanese, passed legislation in December to cap prices for a year and won agreements from coal-producing states New South Wales (NSW) and Queensland to cap the price of coal. coal sold to power plants.
NSW Treasurer Matt Kean said on Thursday that the state would require coal miners who do not currently sell on the domestic market to set aside 7-10% of their production for home use.
The new arrangement would ensure fairer burden sharing among coal companies as part of the federal government’s push to cut energy prices, he said.
Thai firm Banpu’s Centennial Coal and Peabody Corp are the main suppliers of coal for the state’s power plants.
Other major coal miners in the state include BHP Group (NYSE:), Glencore (OTC:) Plc, Whitehaven Coal, Yancoal and New Hope (OTC:) Corp, which all focus on exports.
The NSW Minerals Council, which represents miners, said the policy would have little impact on electricity prices but could upset trading partners, increase costs by disrupting existing supply chains and deter future investment in resources in the state.
“Extending the policy to coal producers who do not currently participate in the national coal supply is a step change in approach that highlights how extremely rushed this policy process has been,” said NSW Minerals Council chief executive, Stephen Galilee, in a statement.
He added that coal producers would continue discussions with state officials “to minimize the economic damage of this flawed policy.”
Whitehaven said on Thursday it was in talks with state government officials to supply coal.
