Queensland’s coal sector has taken another blow with new State Government data confirming a 25% decline in coal export values in 2025.
According to the Queensland Resources Council (QRC), the value of Queensland’s coal exports fell by a massive 25% last year or AUS$13.4 billion reflecting the significant drop in coal prices.
This worrying new data was discussed by industry leaders at a recent resources panel meeting in Brisbane – one of several issues causing structural decline in the coal sector.
While coal export values declined in 2025, the sector has faced a range of pressures since 2022 and is calling on the State Government to take this latest data into account when forecasting upcoming State Budget revenues.
The coal export value collapse reflected the significant drop in coal prices, according to latest Department of Natural Resources figures.
The value of Queensland coal exports fell from AUS$52.3 billion in 2024 to AUS$38.9 billion in 2025, which is the first time since 2021 the value of coal exports has been less than AUS$40 billion.
Queensland coal production for 2025 was down 1.4 million t on 2024 levels, or 224 794 254 t of saleable coal for energy and steelmaking.
Coal export volumes last year were still down 11.2%, or 24 million t below where they were 10 years ago.
Janette Hewson, QRC’s CEO, said the data reflected the decrease in coal prices and that companies were facing tougher times:
“We’re two months away from our most important State Budget ever and there is still time to make sensible decisions with fairer support for the industry and protect our exporters.”
“Coal output was largely steady but the returns are under pressure.
“Lower coal prices coupled with significant operating cost increases and the world’s highest coal royalties, have put even more pressure on coal producers.
“While prices are lower, higher royalty tiers are still biting due to the conversion of sales price into Australian dollars. Currently we are seeing some Queensland coal companies paying 30% and 40% royalty rates.
“Operational costs have also increased 29% for the coal sector since 2022 and this doesn’t include recent diesel price increases or proposed increases to water and energy costs in Central Queensland.
“We want Queensland to be the place to invest but we’ll see more tough decisions about workforces and operations while this uncompetitive business environment exists.
“Investment decisions for new mines are made decades before new coal is mined.
“Now, at a time of shifting global risks when we need our sovereign energy and resources capability, Queensland needs fairer royalties for our state’s future prosperity.”
India and Japan are Queensland’s top importers of Queensland steelmaking and thermal coal.
South Korea more than doubled its thermal coal imports from Queensland last year.