China Shenhua Energy reported an 18% decline in coal sales in 2015. Shenhua's internal coal production was down 8.4% — with a further 10% drop in sales from third-party providers.
Its coal imports fell to almost nothing, reflecting an overall trend in which China's total coal imports were down 30%.
Shenhua still says it is committed to the $1 billion Watermark coal project in the Liverpool Plains of New South Wales, but the project now appears to lack financial backers.
China Shenhua Energy reported an 18% decline in coal sales in 2015. Shenhua's internal coal production was down 8.4% — with a further 10% drop in sales from third-party providers.
Its coal imports fell to almost nothing, reflecting an overall trend in which China's total coal imports were down 30%.
Shenhua still says it is committed to the $1 billion Watermark coal project in the Liverpool Plains of New South Wales, but the project now appears to lack financial backers.
Shenhua no longer relies on imported coal and faces the prospect of reducing its domestic coal production due to declining demand.
It clearly does not need a big new mine in Australia.
In fact, in 2015 Shenhua became a net coal exporter for the first time in many years. Shenhua owns dedicated in-house rail infrastructure and the largest coal port in the world, and with the continued decline in domestic demand it seems likely that Shenhua will be exporting coal from China rather than importing it from Australia.
Shenhua's coal-fired power generation was also down 3.6% in 2015, consistent with China's stagnating electricity demand and its continued diversification away from coal towards more hydro, nuclear, wind and solar generation.
In India, Coal India reported 10% growth in coal production in 2015, making it the largest coal producer on the planet.
China and India today are producing their own coal in a declining domestic market. The good news for those who care about the environment is that this suggests that neither country is in the market for Australian coal.
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