Treasurer downplays China coal issues

Australia is continuing to talk with China about restrictions on coal imports, but prices and demand remain strong, Scott Morrison says.

Treasurer Scott Morrison says there are some "practical issues" with Australian coal exports to China, but he doesn't expect any major impact.

Coal is Australia's second largest export to China, worth about $8 billion a year.

Chinese authorities are insisting on their own authorities testing imported coal, and some smaller ports have extended custom clearance times or even reportedly halted imports.

Industry sources have suggested the Chinese government is trying to boost the cost of imported coal in a bid to make domestic coal more competitive.

Mr Morrison, who has just returned from China, said there were some issues to be worked through including the testing regime and access to ports.

"But the overall story... I still think remains a very positive one because our quality of product is very strong," Mr Morrison told Sky News on Monday.

He understood it was "frustrating and irritating" for the resources industry.

"I don't think we are seeing any great material impact as yet ... we are seeing good prices and strong demand," he said.


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Source: AAP



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