15th Oct 2020 07:00
(Alliance News) - Miner BHP Group PLC has confirmed that Chinese customers have asked for deferrals of their coal orders amid reports Beijing had told state-owned steelmakers and power plants to stop importing Australian coal.
Speaking after BHP's annual general meeting Wednesday evening, company chairman Ken MacKenzie said they had recently received deferment requests and were working with customers in China "to understand the situation more comprehensively."
"We understand there may be some new developments relating to how China plans and moderates imports versus their own domestic coal production," MacKenzie told reporters, as cited by local media.
Earlier in the week, the Australian government said it was seeking reassurance from Beijing after industry news services cited several unnamed sources claiming the state-owned mills were given verbal notice to stop importing Australian thermal and coking coal with "immediate effect".
"It would be concerning if the rumours are true regarding an import restriction for Australian coal into China," MacKenzie said.
Australian Prime Minister Scott Morrison on Tuesday brushed off concern of a total ban, saying the reports were more likely linked to coal import limits.
"It's not uncommon for domestic quotas to be in place in China."
Relations between China and Australia have become increasingly strained this year, after Canberra supported US calls for an investigation into the origins of the coronavirus pandemic.
In recent months, China has placed trade restrictions on Australian wine, beef and barley.
Australia is China's largest supplier of thermal coal and exports of coking coal surged by 67% in the first half of 2020.
source: dpa
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