Japan receivec confidence from Palaszcuk about coal export amid Aurizon curbs

Aurizon has previously warned that it would cut some 20-million tonnes of coal from its exports, after it revised train movements on the Central Queensland Coal Network in response to the Queensland Competition Authority’s (QCA) draft decision on the company’s 2017 draft access undertaking.

The cut in coal exports could result in a A$4-billion decline in Queensland’s coal exports, and a A$500-million decline in the state’s yearly royalty intake.
Japanese buyers have reportedly expressed their concern around the proposed cuts to exports, with steelmakers warning the state government that they would pursue other sources if the conflict was not resolved.

“It is very important that Aurizon and the Queensland QCA sit down and try to resolve this issue as a matter of urgency,” Palaszczuk said ahead of her visit to Japan, saying that she would take the time to reassure the Japanese government that coal exports were secure.
The Queensland Resources Council (QRC) has welcomed the Premier’s support, with CEO Ian Macfarlane saying that her call for Aurizon and the QCA to resolve the threat was “absolutely correct”.
Macfarlane noted that Queensland coal exports to Japan have increased to A$7.8-billion, the equivalent of one in every A$9 of the state’s total exports.
“The QRC and its member companies have worked with the QCA through its review process.
“In stark contrast, Aurizon have sought to delay, and most recently with an application for judicial review to the Supreme Court, tried to upend the QCA process,” Macfarlane said.