Tough times in mining likely to continue - resources council
THE coal industry could be facing another difficult year, according to Queensland Resources Council chief executive Michael Roche.
"There isn't going to be a spectacular turnaround any time soon," he said yesterday.
Mr Roche's comments came after BMA announced it would slash 700 jobs across Central Queensland.
He said an oversupply in the global coking coal market had driven prices down from more than $300 per tonne in mid-2011 to less than $115 a tonne.
He said expert analysis suggested it could be at least 12 months before the problem of oversupply was overcome.
"That will be through a combination of high-cost producers, hopefully in other parts of the world," he said.
However, he said the coal industry was cyclical and the demand would steadily increase in the long term.
He said a significant reset of the Australian dollar could be a potential positive factor.
"The challenge we face now is to achieve a cost structure that can withstand the market," he said.
"We should not lose sight of the fact the Bowen Basin is blessed with some of the world's best coking coal."