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How Does Coal Mining Affect Australia's Economy

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Introduction The Australian coal mining boom has had diverse effects on the environment, society and economy. Since 1987 Australia has been the world’s greatest exporter of coal. While coal mining greatly supports other industries, employment and the economy, in the last few years, it has been under serious attack by Greenies who debate the adverse environmental effects that the mining and burning of coal for energy is creating. How Coal Is Formed Coal is formed underground over millions of years where accumulated organic matter has decayed and been exposed to varying pressures and temperatures. The coal predominantly consists of carbon, hydrogen and oxygen with small amounts of water, ash, nitrogen and sulphur. The decaying process determines …show more content…

This constant re-radiation of thermal radiation slowly increases Earth’s average temperature. The increased temperature of Earth leads to the melting of polar icecaps and sea level rises. Benefits of Coal Mining for Society and Economy Coal mining is very beneficial to Australia’s society and economy. It directly supports coal mining towns such as Newcastle, Singleton and Muswellbrook and directly employs approximately 50,000 people while providing indirect employment for another 150,000. Coal mining supports other industry as it is a key element for the production of steel and cement. Australia is and has been the world’s leading coal exporter since 1987. Thousands of tonnes of coal are shipped to Japan and other countries for their power generation. This greatly supports Australia’s economy, representing 4.2% or around $60 billion of domestic product annually. Unlike other Australian industry, the mining sector only receives a small amount of government assistance. Coal mining receives about $242 million while farming and manufacturing receive $1.54 billion and $8.28 billion respectively. Not only does mining receive little government support, but it returns $1.48 billion in royalties per year and expected to increase to $8.9 billion by

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