Australia holds significant resources of high quality coking and thermal coal. Australia currently accounts for around 7% of world black coal production with around 96% of this mined in Queensland and New South Wales. Over the past 18 months, rising demand for both thermal and coking coal from traditional customers in Asia, particularly China, has led to a significant increase in spot coal prices and a continued growth in Australian coal exports. Industry analysts also regard India as a major driver for high quality coking coal.

As the demand for coal increases, many mine owners are now reviewing the feasibility of mining thin coal seams, that the have previously been ignored.