Coal import comment sparks anger
A discussion paper on the electricity market in WA has raised concerns about the rising price of coal in Collie, calling for widespread industry and market reform.
The paper stated that if coal prices continued to increase in WA, coal imports from countries such as Indonesia could become more competitive and would provide an effective cap on domestic prices.
But Energy Minister Mike Nahan said the State Government would not consider this as an option.
“There are no plans to import coal from Indonesia as we have a plentiful supply of coal in the South West, ” he said.
“This Government is invested in and will continue to invest in and support Collie.”
The paper noted that coal reserves in Collie would be sufficient for more than 40 years, but mining methods and the cost of production should be examined.
Mr Nahan said in Parliament this week that market dominance was stifling better results for consumers and the State Government could not continue subsidising electricity as it did.
“I am committed to driving costs out of the electricity sector and reducing Synergy’s annual subsidy, ” he told the South Western Times.
Speculation about Indonesian coal imports sparked outrage from Collie-Preston MLA Mick Murray this week and Collie shire chief executive officer David Blurton agreed that reports coal could be imported were harmful.
“Unfortunately this type of story does nothing for local confidence and not only threatens the future of Collie but the economic prosperity of the South West region, ” he said.
“The importance of Collie to the South West should not be underestimated as Collie delivers an estimated $1.7 billion Gross Regional Product per year to the region.”
Collie Chamber of Commerce and Industry chief executive officer Richard Jackson said Collie was already actively pursuing ways to diversify its economy in case coal mining ceased
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