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China Studies Ending Australia Coal Ban on Supply Fear

  • Officials worried Russia coal sanctions to spark fuel shortage
  • Beijing is looking to avoid repeat of 2021’s power disruptions
The Newcastle Coal Terminal in Newcastle, New South Wales, Australia,

The Newcastle Coal Terminal in Newcastle, New South Wales, Australia,

Photographer: Brendon Thorne/Bloomberg
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Chinese bureaucrats studying the energy outlook are proposing to end a near two-year ban on Australian coal as tensions begin to ease and on concerns supply may tighten when Western-led sanctions on Russian energy kick in.

The proposal will be submitted to senior leaders, with a recommendation Beijing should resume Australian imports, according to people familiar with the plan. That’s been prompted by fears European-led curbs on Russian energy will increase competition for coal from China’s main suppliers such as Indonesia.