China's push for coal import tariff could cost Australian mining jobs

China's decision to impose tariffs on coal imports could cause mine closures and job losses in Australia, according to a leading resources analyst.

Independent analyst and author of StockAnalysis Peter Strachan said a price increase of 3 percent on coking coal and 6 percent on thermal coal, due to begin on October 15, would render many marginal coal mines in Australia unprofitable.

"There are certainly some projects now that are running very close to the wind, and I think another impost like that would be enough to tip the balance in many cases," Mr Strachan said.

Mr Strachan said many coal miners in Australia were already suffering because of high costs and low prices.

"These mines are already struggling," he said.

"Costs domestically in Australia have also gone up because wages over the last 10 years have probably doubled or more and the cost of inputs such as energy has also increased."

China's coal producers had been lobbying the Beijing government for protection since July, saying more than 70 percent of China's miners were unprofitable, with about half of them delaying or cutting wage payments.

Minerals Council of Australia chief executive Brendan Pearson was hopeful the tariffs would only be in place for a month while negotiations on a free trade agreement were concluded, and said he did not expect mine closures or job losses in Australia.

Prime Minister Tony Abbott had signalled he would like to see a free trade agreement with China signed when president Xi Jinping visited Australia in November for the G20 summit.

Trade Minister Andrew Robb said the new trade barrier should not slow the process.

"We are seeking elimination of tariffs for Australian exports in so many areas, but including the coal exports, and it does underline the importance of concluding the free trade agreements to shore up our competitive position," Mr Robb said.

"There's still substantive issues but we have got a timeline that should take us to conclusion before the end of the year.

"Australia has got amongst the highest quality coal in the world; [China] will still consume nearly a billion tonnes more coal over the next five years through to 2020, and Australia will, I think, be very competitive in securing so much of that increase."

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