A new report by NSW Minerals Council has found that the demand from emerging economies of Asia, especially from India, is expected to drive the coal industry in New South Wales, Australian.
Exports to key Asian markets have also increased over the current financial year.
NSW Minerals Council CEO Stephen Galilee said: "Exports of NSW coal to Korea are up 8%, while exports to Taiwan have risen by 21%; and across the rest of Asia outside of Japan and China, exports have more than doubled to 15.6 million tonnes over the last nine months.
"We are also seeing the rise of India as a new growth market for the quality NSW thermal coal, with exports to the country doubling so far over this financial year."
In the nine months up to 31 March, exports of NSW coal to India have doubled from 3.2 million tonnes (mt) to 7.7 million tonnes, according to figures released by Coal Services.
According to Galilee, around 80% of low-grade, high ash coal imported by India is sourced from Indonesia.
International Energy Agency says that coal is set to meet majority of the increase in global energy demand compared to oil or gas over the next five years and will still provide around a quarter of world energy by 2040.
Indian Prime Minister Narendra Modi in his speech to Federal Parliament in November 2014 said: "I see Australia as a major partner in every area of our national priority,’ including ‘clean coal."
Galilee added saying that NSW’s coal sector is well-placed for solid long-term prospects due to ongoing export demand and the emergence of new markets.
Image: Over the current financial year, coal exports to key Asian markets have increased. Photo: courtesy of SOMMAI/ FreeDigitalPhotos.net.