Asia's coal surge clashes with Australia's declining output under Labour policy

The IEA’s mid-year review lifts its 2026 coal-consumption forecast to almost nine billion tonnes, a 1.2 % increase, as China and India push output to historically high levels. Australia, which supplies about 83 % of Asian coal consumption, has seen its production fall from a 505 mt peak six years ago to 431 mt last year, with further reductions projected before a small recovery in 2027. The piece attributes the downturn to policies of the Albanese Labor government, including red-tape, environmental law suits and bureaucratic delays.

It warns that without policy changes, the United States—already exporting around 110 mt of coal—could fill the gap in Asian markets. The article also notes Indonesia’s shift toward domestic coal use for its expanding aluminium sector and the potential for Vietnam to become a new buyer, while highlighting the Hunter Valley coal-mining extension as a possible boost if approvals are secured.