China defends Australian coal block while Glencore's shock decision to cap output

China has responded to reports of an indefinite ban on Australian coal imports, saying the move is to protect the interests of Chinese importers and the environment.

An open-cut coal mine in Singleton in the Hunter Valley north of Sydney Source: Getty Images

The Federal Government is standing firm in its promotion of the coal industry despite the shock decision by one its most powerful players to scale back production.

Under pressure from investors, Glencore - which operates mines across Australia - will limit its output to reduce greenhouse gas emissions.