Australia Welcomes Mexican Coal Contract

Trade Minister, Mark Vaile, and Industry Minister, Ian Macfarlane, today welcomed the announcement Australia will supply 2.28 million tonnes of coal to the Mexican Federal Electricity Commission.

“This deal, the largest single coal deal for Australia in Mexico, will be worth a record A$238 million (US $187 million). It underscores Australia’s reputation as a reliable and high quality coal supplier,” the Ministers said.

“The deal strengthens Australia’s commercial relationship with Mexico which is currently built on bilateral trade between our countries worth approximately $1 billion,” said Mr Vaile.

“The Australian Government is working closely with industry to promote goods and services in the Mexican market, this deal highlights the significant export opportunities for Australia in Mexico,” he said.

“Australia and Mexico have a natural energy synergy and this contract follows a A$153 million (US $120 million) contract in June this year also awarded to Xstrata Coal to supply coal from its Hunter Valley operations to Mexico,” said Mr Macfarlane.

“The coal in this latest deal will be sourced from Xstrata Coal mines in areas including Mount Owen, Liddell and Bulga in the Hunter Valley. It’s great news for those communities, providing job security and growth in regional Australia,” he said.

The strong cooperation between the countries is being further strengthened with the development of a bilateral arrangement on energy cooperation. The arrangement is to encourage expanded bilateral trade and investment in the energy sector.

A high-level Mexican energy delegation recently visited Australia for the World Energy Congress and the Carbon Sequestration Forum.

The Australian Ministers last year made successful representations to remove Mexican import tariffs to increase Australian trade.

“Energy is an important area of connection between Mexico and Australia, not just coal but hopefully that will soon be expanded to gas and renewable energies as well,” the Ministers said.

Media contacts: Danny O’Brien, Mr Vaile’s office, (02) 6277 7420 and Kirsty Boazman, Mr Macfarlane’s office, 0412 171 444