China's State Council recently announced new measures to address urban air quality through rapid upgrades to pollution controls and more stringent enforcement actions, while continuing to use coal for electricity generation, conversion to other fuels and chemicals, and steel production.

Boyce applauded the world's largest coal consumer for continuing its use of the fuel while taking steps to accelerate the use of emissions-control technology.

"I commend China's cabinet for increasing the intensity of efforts to deploy modern emissions-control technologies," Boyce said.

"The approach announced by China's leaders has proven successful in the United States in the past, allowing substantial improvement in emissions from coal-fueled generation in recent decades. It addresses air quality challenges – while increasing coal use to fuel economic growth – through greater investment in and use of technology that is widely available."

Peabody Energy – the world’s largest privately owned coal company – has an extensive coal footprint in Australia after its acquisition of Macarthur Coal and has indicated that it wants to expand into Mongolia to supply the Chinese market.

Boyce made the comments while on a trip to Australia where, at the Minerals Council of Australia's Minerals Week Seminar, he warned newly re-appointed Prime Minister Kevin Rudd that the country’s current resources policies were putting its economy at risk.

“Coal remains the fuel that can advance Australia's energy, economic and environmental goals, but recent policies have eroded competitiveness and jeopardised economic growth,” he said.

“It's now up to Australia's leaders to implement the policy reforms that will ensure coal can continue to drive the economy and enhance Australia's position as a global leader in the decades ahead.

“There are decades of opportunity ahead in the Asia-Pacific region, but Australia's competitors recognize this and all of Australia faces a steep cost if its policymakers get it wrong,” he said.

“Australia's recent policies have put at risk two pillars of the economy: affordable electricity and the leading position of a resource sector that has delivered a decade of economic growth that made Australia the envy of the developed world.”

Boyce said that despite current market headwinds, the long-term fundamentals for coal remained strong and Australia's exports would have a critical part to play in shaping the Asia-Pacific region's future.

“Affordable, reliable electricity benefits both households and businesses and is the backbone of economic growth,” Boyce said.

“Europe and the US state of California serve as examples of the catastrophic effects ill-advised carbon policies have had on other developed economies.”

Boyce said Australia could achieve its energy, economic and environmental goals by embracing and deploying advanced coal technologies that would make a measurable difference to the nation's emissions profile.

“Super-critical coal plants are highly efficient, and their carbon emissions rate as much as 40% below the oldest plants,” he said.

“Granting this technology the same status as renewables would be a leap in the right direction for a forward-thinking nation."