Revenue from Australian coal exports rose by $73 billion in the 2021/22 financial year, according to the Australia Institute, a policy research and advocacy organisation.
Between $21 and $39 billion of this is said to be due to Russia’s invasion of Ukraine, which caused global coal prices to skyrocket.
Total revenue from exports reached $112 billion – which was more than Netflix and Coca-Cola’s combined annual revenues last year.
All because of Russia?
The report found Russia’s invasion of Ukraine was a significant contributor to the increased revenue in the last financial year. However, not all gains were attributable to this.
Coal price forecasts in New South Wales and Queensland (two areas of high coal production) have been adjusted to reflect continued upticks in profit.
The report estimated that profit windfalls – the unexpected gains from an external event – could reach $41 billion for coal companies in 2022/23, which is similar to what was recorded in 2021/22.
Coal price caps
Federal Parliament met on Thursday to pass urgent laws enforcing maximum price ‘caps’ for coal and gas amid rising energy prices.
This will impact the amount of revenue for coal companies, but is unlikely to change its market demand.