LISTEN: CQ coal industry to benefit from moves by China
DRAMATIC steps by the Chinese Government to address an oversupply in coal and iron ore supplies look to have paid off with expectations of a 20% growth in value by the end of the year.
And it is good news for the Central Queensland mining industry.
CQUniversity research fellow Dr Delwar Akbar specialised in urban and regional applied economics and said he expected the higher coal value to reflect some improvement in the local economy.
"(The economy) will not much decrease because of this coal price in the future but it does not bring any dramatic (changes) because the world is now open with supply and also has more alternatives in oil," he said.
"It will improve a little bit in my personal view I cannot expect dramatic change in the next two to three years."
Dr Akbar said the region's specialised coking coal was in demand from overseas.
The potential price increase comes after the Chinese Government in January declared it would not approve any new coal mines for the next three years, reduced national output by around 60 million tons in 2016, around 500 million tonnes of coal over the next three to five years and in March said it would slash close to two million jobs.