Financial consultancy group Deloitte expects coal mines in the Hunter region of New South Wales to be cushioned this year from the worst effects of the global financial crisis.
The company is warning Australia's mining sector that rapid falls in commodity prices as well as cost pressures could result in mine closures in 2009 if producers do not heed the changing economic climate.
But Deloitte's lead mining partner Bhavesh Morar says the Hunter's thermal coal industry should remain reasonably buoyant.
"What we're seeing in the global economy at the moment is a general slowdown in consumption, dovetailing into reduced demand for steel," he said.
"Steel is made from coking coal and iron ore.
"[As far] as the NSW industry is concerned where the majority of coal produced is thermal coal used in electricity generation, coal miners should be buffered from what's going on with coking coal."
Mr Morar is warning the region's coal mines can still expect some fallout from the global downturn.
"With thermal coal the prices have pared back," he said.
"If we look at spot prices quoted out of Newcastle however the demand is going to be relatively steady.
"My sense is [there will be] some production cutbacks because if general consumption is reducing electricity demand will probably reduce as well."
Source: Australian Broadcasting Commission
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