24 November 2023
Port of Newcastle Protest
Statement from Chief Executive Stephen Galilee
As activists and extremists attempt to shut down the Port of Newcastle this weekend, they may wish to consider some facts regarding NSW coal exports and global coal supply.
NSW coal exports are a very small component of global coal supply.
In 2022, coal exports through the Port of Newcastle represented less than two percent of global coal supply.
However, coal is a major contributor to the NSW economy.
Coal exports represent NSW’s most valuable exports by far, and are worth more than $70 billion nationally.
Coal exports provide jobs for over 25,000 people across NSW. Coal exports also indirectly support tens of thousands more jobs, including in thousands of mining supplier businesses across the state.
Coal exports support the economic stability of communities across the Hunter region, as well as the Illawarra, Mudgee and Gunnedah regions, and others.
Coal exports also generate billions in royalties for the NSW Government each year.
Around $13 billion is forecast in royalties for the NSW Government over the next four years, mostly from coal exports, helping to fund police, hospitals, schools and other public services and infrastructure.
Disrupting coal exports through the Port of Newcastle will have no impact on global coal demand or supply.
However it will potentially cause significant economic damage to NSW.
Everyone has the right to protest. However it should be done legally and safely.
With difficult weather conditions forecast for Newcastle this weekend, protest organisers must ensure those participating do so safely, and within the law.
BACKGROUND
NSW coal exports and global coal supply
In 2022, coal exports through the Port of Newcastle represented less than two percent of global coal supply.
NSW coal exports fell last year, largely due to weather-related disruptions, but have remained relatively steady at around 150 million tonnes annually over the past decade.
According to the IEA, global coal supply rose by 8 percent in 2022 to reach an all time high, rising above 8.6 billion tonnes.
This global increase in coal supply was more than four times the total of all coal export volumes through the Port of Newcastle.
Global coal demand from Coal Power Stations
World coal demand is largely driven by the global number of coal-fired power plants.
In June 2023 there were 2458 coal plants globally, an increase of 9 since 2021. Another 195 were in construction, and 320 in pre-construction.
China produces, and uses, around half the world’s coal.
China had 1135 coal power plants in July 2023, an increase of 53 since 2021. Another 96 were in construction and 162 in pre-construction. By comparison, NSW has four.
Excluding China, there were 592 coal power plants across Asia and India, an increase of 35 since 2021. Ongoing demand for coal in these countries is the primary driver of demand for NSW coal exports through the Port of Newcastle.
If coal exports from Newcastle are not available, these countries will just source the coal they need from elsewhere.
That coal is likely to be of a poorer quality than the coal exported from NSW, resulting in higher global emissions.