- In light of Russia’s invasion of Ukraine, the Australian government is aiding nations that purchase coal from Russia by linking them with local suppliers, according to a government spokeswoman
- Australia’s top independent producer, Whitehaven Coal (WHC) has said they have been approached to supply coal-reliant countries like Poland
- However, industry sources told Reuters that other buyers are looking for alternatives in preparation for potential sanctions against Russian energy exports
- Coal prices for loading at Newcastle (the world’s biggest coal port on Australia’s east coast) sharply rose to a record $440 a tonne on March 2, 2022
The Australian government is assisting countries that import their coal from Russia by connecting them with local producers in light of Russia’s invasion of Ukraine, a government spokesperson has said.
Australia’s top independent producer, Whitehaven Coal (WHC) has said they have been approached to supply coal-reliant countries like Poland, whom have traditionally relied on Russian coal.
As a result, WHC’s share price has risen 10.6 per cent to $3.96 at market close.
This is expected to climb as more countries are looking to stop buying coal from Russia, especially in the European Union.
“The Australian government is facilitating access to Australian thermal coal producers to interested parties as they seek alternative supplies from Russia,” a spokesperson for Resources Minister Keith Pitt said.
Poland has been the most critical nation of Russia’s invasion, as it continues to press fellow European Union countries to follow its lead and stop buying coal from the Russians.
Poland also wants to impose an embargo on Russian coal.
However, industry sources told Reuters that other buyers are looking for alternatives in preparation for potential sanctions against Russian energy exports.
“Australia’s coal producers have indicated they are willing to help our friends and allies if they can,” Pitt’s spokesman said.
Glencore Mining have said in its press statement that they are looking to see how they can best support humanitarian efforts for the Ukrainian people, however it was not mentioned how they would help.
At the moment, coal supply is extremely tight. This is because of the current floods and labour issues at the mines in Australia, which means local producers would be hard-pressed to fill any supply gap in Europe in the immediate future.
However, coal prices for loading at Newcastle (the world’s biggest coal port on Australia’s east coast) sharply rose to a record $440 a tonne on March 2, 2022 – a five-fold jump from a year ago.