The study delves into the history of Australia’s coal industry – mentioning that the Hunter River was originally called the “Coal River” and that Newcastle was named after its British counterpart because of the abundant coal resources – and also investigates the global role of Australian coal.

While Japan, Korea and Taiwan are the traditional top three destinations for Australia’s thermal coal, the growing industrialisation of China and India has these countries tipped to move up the ranks from their respective sixth and seventh places.

In his prologue to the study, Knights says Australia’s thermal coal exports to China are primarily used in power stations in the country’s south.

“In the event that the cost and availability of Australian thermal coal exports were affected by carbon taxes and environmental concerns, China would most likely turn to Indonesia and Russia to supply its thermal coal needs in the southern provinces,” he says.

But he questions the ability of these countries to meet the demand that has “China currently building the equivalent of two new 500-megawatt coal-fuelled power stations each week”

At current production rates, Knights says, Indonesia’s coal reserves are likely to be depleted in 30 years, while Russia has complicated logistical issues to overcome to access its largest coal reserves in the country’s interior.

“In the event of volatility in supply, China could revert to exploiting reserves of inferior-quality coals located in its central and southern provinces.

“This coal has inferior heat content, higher ash and sulfur content than the high-quality Australian thermal coals.

“It is therefore in the world’s best interests to continue to make low-emission Australian coal available at competitive world prices.”

The study also looks into the socio-economic benefits provided by Australian coal.

“The growth of GDP per capita for Japan, Korea, India, Taiwan and China is strongly correlated to installed electricity generation capacity.

“Japan is dependent on coal for 26 per cent of its electrical energy needs, Korea for 38 per cent and China for 82 per cent.

“Life expectancy in these countries has increased as a function of energy consumption per capita, an example of the vital role that Australian thermal coal exports have played in elevating living standards.”

He also commented on the benefits provided by Australian metallurgical coal exports to India, second only to Japan in its demand.

Knights said India’s urbanisation was dependent on the availability of low-cost steel for which Australian metallurgical coal was an essential ingredient.

He views this urbanisation as increasing India’s health expenditure per capita as well as the percentage of the population that has access to sanitation facilities.

The study also covered ongoing developments in carbon capture and storage technology.

“Australia's coal drives the next generation of improved lifestyles, economic stimulus and technology advancement toward near-zero emissions,” Peabody Energy chairman and chief executive Gregory H Boyce said at the study’s launch today at Peabody’s Brisbane office.

“Coal has transformed society over hundreds of years by fuelling industrial revolutions and digital economies.

"It’s the pride of Australia’s past and the pride of its future.”

Facts and figures from the study include:

• Australia’s coal industry employs more than 32,000 people and indirectly creates another 126,000 jobs in Queensland and New South Wales.
• It contributed $A55 billion in export revenues and $4 billion in state royalties and taxes in the 2008-09 financial year.
• Australia has more than 260 years of high-quality coal reserves and these will outlast oil and gas reserves by centuries.