Global Coal Producers Get Support - Except in Australia

Australia’s metallurgical coal producers are seeing pressure from declining global prices, but government policy remains unchanged, with no new support measures announced.

Queensland, the country’s key coal-exporting state, forecasts royalty revenue will drop sharply—from A$10.5 billion in FY2023–24 to A$5.5 billion in FY2024–25—due to softer coking coal prices.

Unlike other major coal-producing nations, Australia has opted not to adjust fiscal policy in response to the current downturn. Russia has begun offering tax deferrals, state aid, and transport subsidies, while the United States recently introduced a 2.5% production tax credit for metallurgical coal under its revised industrial strategy.

Australia’s decision to maintain its current royalty structure, despite a sharp drop in revenue and rising cost pressures, signals a policy preference for fiscal consistency over short-term industry relief. While this may support long-term budget planning, it could leave high-cost producers more vulnerable compared to peers in Russia and the U.S., where government support may help sustain production and market share during the downturn. Without policy adjustment, Australia's competitiveness in the global met coal market may gradually erode if price pressures persist.