A positive outlook for coal at AIMEX

“Over the last 12 months there’s been a strong turnaround for mining in NSW with indications that this will continue in the medium term,” Mr Galilee said.

Coal has had a particularly strong recovery, with thermal coal prices rising from US$56/t in June 2016 to US$87/t in August 2017 and metallurgical coal prices skyrocketing from around US$80 /t to around US$200/t over the same period.

Improved coal prices has led to more jobs. There were just over 20 500 coal production jobs in NSW as at June this year - over 1000 more than at the same time last year, and the highest since March 2015.

“We’ve also had record levels of demand for NSW resources.  Last year a record 161 million t of coal was exported through the Port of Newcastle and this strong demand looks set to continue with Coal Services reporting an increase in coal exports in recent months.”

The metals mining sector in NSW is also experiencing improved conditions. Gold and copper prices have also increased, with the value of gold up by 12 percent since January and the value of copper up by 18% over the same period.

“There’s also new metals mining projects being developed across NSW.  These include Regis Resources’ development of the McPhillamys gold project near Blayney in the Central West of NSW, CleanTeQ’s development of its Syerston Nickel Cobalt Scandium Project, one of the highest grade and largest nickel and cobalt deposit outside of Africa. We also have Silver Mines Limited developing the largest undeveloped silver deposit in Australia just east of Mudgee, and Heron Resources is continuing with its plans to reopen the Woodlawn Zinc and Copper mine South of Goulburn. Each of these projects will create jobs and deliver economic growth for their respective regions,” Mr Galilee said.

“Over the last 12 months to March 2017, the ABS has also reported an increase in exploration spending in NSW of 28% to US$36.7 million.”

With rising demand for our resources and new projects being developed across the State, there will be growing economic opportunities, provided we get the policy settings right.

“The NSW Government has made progress in meeting its commitment to halve planning assessment timeframes for major mining projects. While there is still more be done, if we can lock in policies that support the mining sector we can build on these positive export figures, attract more investment, and create more jobs,” he said.

Read the article online at: https://www.worldcoal.com/mining/29082017/a-positive-outlook-for-coal-at-aimex/