We already knew brown coal export is a disaster environmentally. A 2012 report commissioned by Environment Victoria shows that it’s not economically feasible either.
Undermined or Overburdened? Victoria’s brown coal: an economic perspective examines the economics of developing Victoria’s brown coal resource and concludes that new markets for our brown coal are unlikely to emerge in the near future.
The report, commissioned by Environment Victoria and undertaken by Economists at Large, assessed the prospects for new domestic brown coal projects and large-scale coal exports.
According to the report, three factors prevent the development of viable new coal projects:
· low quality and high moisture of Victoria’s coal resource,
· the need to process brown coal to higher grades, and
· the transport costs of getting Victorian coal to Asian markets.
These factors make Victorian coal projects more expensive than their competitors, and therefore unlikely to be financially viable without exorbitant subsidies.
Suggest insert text re Andrews Government coal policy review