Minerals and Energy: Coal - Outlook to 2005-06

After several years of decline, metallurgical and thermal coal prices are projected to recover in 2001, before easing (in real terms) over the medium term, as strong competition in supply and further productivity improvements contribute to a continuation of the long term downward trend in prices. The volume of Australian coal exports is projected to increase by 8 per cent to 216 million tonnes in the five years to 2005-06. However, over the same period, easing coal prices and an assumed appreciation of the Australian dollar are projected to result in real export earnings falling by 17 per cent, to $8.7 billion.