What Is Happening In Light Of Australia’s Coal Export Restrictions?

As the globe grappled with the coronavirus pandemic throughout 2020, political tensions across the world ran rampant. While some countries dealt extremely well, others didn’t and the divide between them became political in many countries. As Australia’s position on the origin of the coronavirus became known, politics between China and Australia became tense. Relations between the two countries have been strained ever since, and as a result, China placed restrictions on multiple Australian exports, including coal, beef and wine. In December of 2020, China formally placed import restrictions on Australian coal exports.  As a result, it is likely that China will now prioritise imports of coal from other countries such as Indonesia, Vietnam, India, South Africa and possibly South American countries.


This decision substantially hit the coal and iron ore industry within Australia, as we have been exporting our high-quality minerals to China for decades. However, this situation is likely a double-edged sword.


While China is turning to the next big players to import their coal, it will never be with the same ease and quality as they were used to with the Australian industry.

Since we have been exporting to China for years, we have the right supply and demand ratio, and overcame any logistical or quality issues many years ago. These other countries are most likely not ready to deliver such large quantities to China, and their systems aren’t prepared for the demand.

However, Australian systems are efficient and high-quality, with top-of-the-line train wagon scales and volumetric scanning systems. As a result of this it is likely that the Australian mineral sector will naturally recover.


So, what does this mean for our industry and our business? In light of the situation, what this means for Trakblaze is the opportunity to provide high quality scales and weighing equipment across the world.


As other countries are getting busier, they are realising the need for extremely accurate weighing equipment. Without proper and accurate weighing systems, their mining infrastructure could easily get damaged and that is why weighing always needs to be done correctly. The consequences could be extremely costly if a wagon isn’t balanced properly or is overloaded. The wagon could then easily cause millions of dollars’ worth of damage across tracks and other infrastructure, especially if as a result, the wagon de-rails or loses a wheel.


Replacing old, unreliable or damaged equipment with high-quality Australian equipment delivers weighing accuracy and ensures that these mining sectors can handle their new demands carefully. The last thing any mining organisation wants is to overload their wagons and ultimately deliver more minerals to other countries, and not receive equal compensation due to their own mistake.


Many mining exporters can’t afford for this to occur if demand increases the way it is expected too; all train scales and equipment needs to be up to scratch. Which is where Trakblaze can provide all the necessary equipment.


During this time enquiries in regard to mobile train scales and in-motion weighbridges have increased, as well as huge interest in volumetrics scanning systems. While the restrictions from China on Australian coal and iron ore are disappointing for the mining industry, we will continue to build and become a stronger industry. Just as Trakblaze will gladly assist other mining sectors to improve their processes as they prepare for future demand.