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Bushfires in Australia Affects Coal Production

The destructive bushfires across Australia are leaving a great impact on the country’s coal industry. According to the BHP Group, the poor and inadequate air quality in the country is hurting production.

The smoke caused by the ravaging fire is not only hurting the health of the country’s people and wildlife. Production of commodities such as coal is also suffering.

Also, Australian authorities say that a reprieve from the hazardous bushfire conditions will end in a couple of days. However, scores of bushfires were still burning through the country’s east coast as of today.

That is even despite the thunderstorms and the rain that poured over the recent days.

Local officials from New South Wales also announced a high fire caution rating in the state as temperatures are expected to intensify. The strong gusts of wind and the rising temperatures could fan the existing fires or spark new ones.

Authorities have declared extreme fire danger to some areas in the parts of Victoria state and other neighborhoods in South Australia.

Australia is currently the world’s second-largest miner for coal. And the unusually prolonged bushfire has greatly damaged the country’s coal industry, making headlines in commodity news everywhere.

The scorching fire burned through an area that is reportedly one-third of the size of Germany. Investors fear that the world’s 14th biggest economy will place lower this 2020 thanks to the fire.

Ageing Coal Power

Australia’s aging production for energy commodities has become more inefficient and unreliable recently. Then, the bushfires came in, making it even worse for the industry as it suffers break downs more frequently.

According to a published report, the country’s gas and coal production experience turbulence at least 3 times each week. This raises concerns about the country’s energy sector as it still heavily relies on coal and fossil fuels.

Just recently, a study by an international organization says that the Reserve Bank of Australia could purchase some coal mines. The study could pressure banks to take in firms to avoid economic and environmental consequences.

The report notes that banks should mobilize among governments, individuals, and businesses to be successful. The study also arrived very timely as the Australian coal production industry is facing great problems due to the fires.

Wildfire smoke that’s reducing visibility and raising safety concerns are making it difficult for workers to continue with their jobs. Coal mining facilities are just miles away from the raging fire, meaning that smoke and debris could easily get near.



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