The forum for the declaration was the European Union/Australia coal conference held at Aachen in late September to discuss three main themes:

- Environmentally friendly technologies for energy generation from coal and the resulting market opportunities for European companies in Australia;

- Opportunities for collaboration in coal production and coal mine technology;

- Utilisation of Australian coal as well as investment in Australian coal mines.

The declaration was signed by Ernst Schwanhold, minister for economics and SMEs, energy and transport of the federal state of North Rhine Westphalia, Robert Carr, premier of New South Wales, and Terry Mackenroth, deputy premier and treasurer of Queensland.

The three government representatives have agreed to strengthen co-operation between Germany and Australia in areas of trade, coal production and research.

Germany wants to ensure reliable, economical, long-term supplies of coal and Australia believes it can fulfil these requirements. Germany also wants to ensure the survival of its technology providers and equipment suppliers and the deal emphasises the importance of selling German equipment.

The declaration read: “Expansion of trade, and consideration of investment plans, will be supplemented by a wider program of collaborative work between businesses and governments in North Rhine Westphalia, Queensland and New South Wales. Sales of mining equipment were highlighted as a particular priority.”

The partnership is expected to result in expanded trade, increased investment, enhanced technical and technological co-operation, and a stable, reliable long-term relationship in energy supply. Increasing the productivity levels of Australian mines is something the two countries committed to encouraging.

The German coal mining industry has been undergoing major restructuring, with a gradual removal of the subsidies that have propped up the cost of production in the country. Between 2000 and 2005 subsidies will be reduced from 9.2 billion DEM to 5.5 billion DEM, with further reductions likely thereafter.

During 2000, German production fell by 15% to 33.3 million tonnes while imports rose 11% to 33.5Mt, according to the Federation of German Coal Importers, which predicted hard coal imports could reach 45 to 50Mt in the medium term.

This has already created opportunities for Australian coal producers who are making inroads into the European market, and Germany in particular. Australian exports to Germany increased from 1.977Mt in 1999 to 2.691Mt in 2000. Of these amounts metallurgical coal was 1.727Mt and 2.619Mt respectively. For the first half of this year the figure was 1.322Mt (1.223Mt metallurgical).

The Australian coal industry is already supplied by German manufacturers, particularly in underground coal mining through companies such as DBT and others.

Australian Trade Minister Mark Vaile returned from the conference predicting a boom in exports to Germany.