Nationals Leader, Matt Canavan, will reiterate the need to use all of Australia’s resources with the Party faithful at this weekend’s Nationals conference, as global coal investment reaches a 14-year high.
Senator Canavan said he was encouraged by a briefing from FutureCoal in The Nationals party room today, showing global coal investment reaching US$180 billion in 2026, the highest since 2012 and a four per cent increase on 2025 levels.
The International Energy Agency’s (IEA) World Energy Investment 2026 Report also shows China is investing heavily in coal value-chain modernisation, carbon capture, and coal-to-chemicals projects; while India is targeting the gasification of 100 million tonnes of coal by 2030.
“We need cheap energy, including coal, to keep the lights on, to keep energy prices down – and to lift our standard of living again,” Senator Canavan said.
“We have one of the highest inflation rates in the developed world and one of the highest interest rates in the developed world, while our productivity and living standards have gone through the floor. The answer to solving our nation’s issues is by using all our resources, including coal.”
The coal sector contributes $9.6 billion in state government payments, including royalties, and another $3.3 billion in payments to the federal government. Total direct expenditure relating to Australian coal mining companies was about $76.4 billion in 2024/25.
FutureCoal Chief Executive Michelle Manook said Australia’s international competitors were increasingly treating coal as a strategic industrial resource, not simply a commodity to be extracted and exported.
“Australia possesses world-class coal resources, expertise and infrastructure, but resource quality alone will not secure our future competitiveness,” Ms Manook said.
“Other economies are investing in coal beneficiation, gasification, higher-efficiency generation, and coal-derived products. They are capturing more value domestically, strengthening their supply chains and building new industrial capabilities.
“Australia must decide whether it wants to remain primarily an exporter of raw resources or participate in producing the fuels, chemicals, fertilisers, critical minerals and advanced materials those resources can create.”
Ms Manook said proven international projects demonstrated coal’s potential beyond its conventional uses.
In North Dakota, the Great Plains Synfuels Plant has operated commercially for more than 40 years, converting lignite into synthetic natural gas, fertilisers, and chemicals.
China’s Ningxia facility, the world’s largest single-site indirect coal-liquefaction project, produces approximately four million tonnes of synthetic fuels annually. In South Africa, Sasol’s Secunda complex produces around 160,000 barrels equivalent of fuels and chemicals each day from coal and gas.
“These are not theoretical technologies. They have been demonstrated and, in some cases, operated commercially for decades,” Ms Manook said.
“Coal is already one of Australia’s greatest economic assets. The next opportunity is to develop the technologies and industries that multiply its value here at home.”
Shadow Minister for Resources Susan McDonald said coal makes an enormous contribution to our nation, helping to underpin $165 billion of wealth, while also supporting almost 800,000 direct and indirect jobs across Australia.
“The Nationals will put an end to the business-destroying carbon tax and we will use all of our energy resources to drive industry, bring down energy prices, and deliver reliable energy for all Australians,” Senator McDonald said.
“The most recent GenCost report has proven that black coal is the cheapest form of reliable, baseload energy generation, and continuing to invest in our coal assets will ensure Australia can remain competitive, increase its industrial capability, and continue to deliver cheap power for Australians.
“The Nationals will axe Labor’s carbon taxes, scrap net zero, unlock more of Australia’s resources to drive our economy and protect our way of life.”
