The Asia Miner

JUL-SEP 2019

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 35 of 59

the asia miner • volume 16 • issue 3 34 AROUND THE REGION The South Korean Ministry of Trade, Industry and Energy has proposed to increase the country's renewable energy ambiঞon. The country is likely to now target 30-35 per cent renewable energy by 2040, up from 8 per cent now. The Ministry also stated it will "drasঞcally" reduce coal-fired power generaঞon by banning new coal plants and reঞring old ones. The government has also raised the coal import tax a further 28 per cent and cut LNG import tax 75 per cent in an effort to reduce reliance on coal. The coal tax will now be US$40/t. These moves come on top of those already taken in 2017-18 to shi[ South Korea away from coal. These new government moves further undermine the raঞonale for the Bylong thermal coal project in New South Wales (NSW), Australia. The Bylong project proponent is KEPCO, a South Korean government-owned enঞty. South Korea is one of NSW's four major thermal coal export desঞnaঞons. The South Korean government's announcement further clouds the future of the NSW thermal coal sector. During a public hearing for South Korea's new energy master plan on 19 April 2019, the Ministry of Trade, Industry and Energy announced that it would seek to significantly cut reliance on coal-fired power generaঞon whilst shi[ing even more towards renewable energy. South Korea's energy master plan sets long-term energy policy and is renewed every five years. Under the new dra[ plan, the government intends to increase the share of power output from renewable energy sources by up to 35 per cent by 2040, up from around 8 per cent currently. The previous renewable energy target, set in 2017, was to reach 20 per cent by 2030. Park Jae-young, Director of the Ministry of Trade, Industry and Energy, stated that the role of coalfired power is to be cut further. Driven by air polluঞon concerns as well as carbon emissions, the government will "drasঞcally" cut power generaঞon from coal by banning new coal-fired power plants and closing old ones. In addiঞon, the government will favour the use of Liquefied Natural Gas (LNG) and stop the construcঞon of nuclear power reactors. Briefing Note: South Korea shifting further away from coal By Simon Nicholas, Research Analyst IEEFA & Tim Buckley, Director of Energy Finance Studies IEEFA South Korea's move away from coal has implicaons for Australia

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