China doesn't want our dirty coal - are we fucked?

After announcing the implementation of carbon trading in a couple of years, China is now putting new regulations on it's coal imports as they're polluting the the fuck out of themselves over there. These new restrictions could affect half of Australia's entire coal exports to China.

Australian coal exporters are scrambling to clarify the fallout from changes to China's coal import rules, which could expose the industry to billions of dollars in lost sales as China seeks to cut air pollution. 

The Chinese government is to limit the use of imported coal with more than 16 per cent ash and 3 per cent sulphur from January 1, 2015 in a bid to improve air quality, especially in cities such as Beijing and around Shanghai. 

At the same time, China is moving to force power utilities to slash coal import volumes, also with the stated aim of improving air quality, although this move will primarily give China's local coalminers a lift. 

According to an analysis by Macquarie Bank, consultant Wood Mackenzie has indicated the ban could affect more than half of Australia's thermal coal exports to China, although the ban is also likely to hit Indonesian coal. 

''We all trying to sort out what is going on,'' one large coal exporter said. ''The information has been fairly fluid. I'm not sure what the endgame is beyond driving more domestic production.'' 

The Minerals Council of Australia said exporters could adapt to the changes. 

As much as a quarter of all coal shipped through Newcastle goes to China, up from less than 10 per cent a few years ago. Coal shipped through the port - the largest coal export port in the world - is running at around 170 million tonnes a year at present. 

Australia exports an estimated 49 million tonnes of thermal coal a year to China,and a large part of this could be at risk with the ban. 

Industry sources said the Chinese government moves were aimed at propping up its domestic coalminers as well as assisting its power generators amid the slowdown. 

Part of the measures disclosed on Tuesday include slashing China's coal import volumes by 50 million tonnes over the balance of this year alone, which could hit the Australian industry hard, they said. ''Both the miners and the power companies are doing it hard in the slowdown, and the measures are aimed at giving both some room to manoeuvre,'' one industry source said. Read more  

Palmer praises China over it:

Clive Palmer has issued some rare praise for the Chinese government, welcoming Beijing's decision to ban imports of "dirty" coal from next year. 

Amid concern that the ban - designed to improve air quality in China's smog-choked cities - could have a devastating effect on Australia's multi-billion dollar coal exports, Mr Palmer said the move was "good for the environment and good for mankind". 

"Comparatively, Australia has more clean energy than competing countries like Indonesia. It will have a greater impact on Indonesia," the leader of the Palmer United Party said. 

"It's a good move. There will be less pollution as a result." Read more