The supply gap figure increased by 8Mt over 2005 and is also 19Mt more than the forecast production for this year.

The total demand is expected to grow 3.6% from 2005 to 14Mt, while the total production may reach 63Mt, up 2.4% year on year.

Power plants will be the largest user and may consume some 60Mt in 2006.

Statistics from the Department of Commerce show the price for premium mixed bituminous coal averaged 380 yuan per ton ($A62/t) in early April, growing 22.6% from 2005, but down 1.3% over the beginning of 2006.