The Deloitte Queensland Energy & Resources Index, which is based on market capitalisation, increased by $A3.6 billion (15.8%) for the September quarter, led by the mid-tier coal companies.

New Hope is at the head of the pack with a 27.1% jump in its market cap for the September quarter to $1 billion, taking its climb for the September 2008-09 period to 35.4%.

New Hope exports much of its coal and managed to increase its tonnage during the September quarter, as well as announce new reserves. The company also impressed with positive profits for the 2009 financial year.

Macarthur increased its market cap to $783 million, up 48.4% for the quarter, and increased its exports to China.

Felix Resources increased its market cap 25.7% to $690 million and is currently subject to a takeover offer from China-based Yanzhou Coal.

“The bid for Felix has buoyed all three major Queensland coal companies during the quarter with speculation that more Chinese investment is a real possibility,” Deloitte said.

China has been stockpiling its domestic production and has increased monthly imports from a traditional ceiling of 5 million tonnes to a high of 16.1Mt in June and 11.8Mt in August.

“The sale of coal to new, non-traditional markets has occurred in 2009, leading to a substantial widening of customer bases and the increasing of Australia’s market share in global seaborne coal trade,” Deloitte said.

“Although demand for coal products is predicted to taper somewhat in the latter part of 2009, and certainly throughout 2010, the long-term outlook for the industry is very positive.

“A concern for thermal coal producers are the significant decreases in contract prices for thermal coal that are likely to cause decreases in profit for FY10.”

In no huge surprise, Deloitte pointed out infrastructure capacity was the major barrier to expansion of the Queensland coal industry.

However, it said with the planned expansion activities Queensland was well placed to compete for rising demand in the Asia-Pacific region due to its proximity, the relatively low cost of its coal and high supply security.

“This high supply security has arguably led to Baosteel Group Corporation’s purchase of 15 per cent in Aquila Resources Limited and Yanzhou’s $3.54 billion all-share bid for Felix.”

Deloitte pointed to a Bloomberg survey of economists which indicated rates for ships carrying large cargoes of iron ore, coal and grain may fall to as low as $18,000 per day, after reaching $93,000 per day in early June.

“This is a significant positive for Queensland coal exporters – while demand remains high in emerging markets and continues to recover in traditional markets, shipping costs will remain low for as long as it takes for the fundamentals of demand and supply to realign.”