Rio Warns of Rising Costs, Competition Creating Problems for Australian Coal

The Sydney Morning Herald reported that Rio Tinto’s CEO Tom Albanese sees challenges ahead for the Australian coal industry, given the competition from natural gas and from coal suppliers from other nations.

As quoted in the market report:

From our perspective it elevates the urgency of focusing on cost, productivity, particularly as some of the existing coalmines get deeper and deeper and deeper, and look at all aspects of Australian costs, and the Australian coal cost chain, in a drive to make it more competitive in an environment where you can imagine the US will have every incentive to put more tonnes into the seaborne market.

To view the whole Sydney Morning Herald report, click here.