Coal news and updates

The free trade pact that would remove the 3% duty on Australian coking coal imports into China will take effect in the fourth quarter this year, local media reported Thursday citing an Australian embassy official. 

 

Both countries are expected to sign the agreement within the next month, Australian economic counselor Lachlan Crews said at an event in Guangzhou province Wednesday. 

 

Beijing imposed a 3% import tariff on coking coal on October 15 last year in a bid to support the domestic coal sector. 

 

In November, the two countries agreed on an FTA that would remove the tariff on coking coal imports as well as cut the 6% tax on thermal coal over two years. There was no timeline given for its implementation, however. 

 

A source at a miner said that the lack of a formal implementation date had introduced some uncertainty in the market. 

 

The latest announcement will allow miners and mills to plan their procurement budgets and schedules accordingly, the source added. 

 

 

Source: Platts