Australia's biggest coal exporting state is set to finalise an order that will require all miners to save up to 10% of their production for domestic supply, as part of efforts to curb soaring energy costs, reported Reuters.

A New South Wales Department of Planning and Environment spokesperson said the government would issue final directions after talks with miners. 

"The draft revised directions allow suppliers 

coal closeup

the option to provide coal from their own production or to strike an agreement from another supplier to meet their obligations under the directions," the spokesperson said. 

The plan is designed to control coal prices and drive down household energy bills. New South Wales had planned to issue the expanded order by the end of January, but has faced resistance from miners.

Directions issued in December required a dozen coal mines that supply power plants in New South Wales to fill a shortfall in supply at a capped price of A$125 per tonne – well below the export price currently at about $265/tonne – under a deal with the federal government.

However, the state now wants to spread the requirement to all of its coal producers, including those that export all of their output, including BHP, Whitehaven Coal and Yancoal Australia.

The department did not say how many tonnes of coal will be required.

Source: Reuters