News Wrap

IN THIS morning’s News Wrap: Australian coal ‘high risk’ on exports, green tape; World Bank predicts iron ore will be worst metal performer of 2016; and Palmer's nephew in sights of Queensland Nickel administrators.

Lou Caruana

Australian coal ‘high risk’ on exports, green tape

Australia's embattled coal exporters are in deep trouble because of their reliance on foreign markets, political activism and environmental regulation, a study funded by the Norwegian sovereign wealth fund shows, according to the Australian Financial Review.

A report by Oxford University's Smith School of Enterprise and the Environment says the coal industry is exposed to uncertainty over future demand for thermal coal for power stations from countries such as China and India, which are increasingly relying on domestic production and other forms of energy.

World Bank predicts iron ore will be worst metal performer of 2016

Iron ore prices are likely to post the biggest loss among metals this year as low-cost supply continues to outstrip consumption, according to the World Bank, which cut its forecasts through 2020, according to the Australian Financial Review.

Iron ore has collapsed to less than a quarter of its 2011 peak as the slowdown in China restricts demand from the biggest user, spurring a glut. The global market is set to see a further jump in supply, with the largest miners including Brazil's Vale SA and Rio Tinto Group and BHP Billiton in Australia increasing output to build market share.

Palmer's nephew in sights of Queensland Nickel administrators

A multimillion-dollar Gold Coast mansion, one of the jewels in the crown of Clive Palmer's family property interests, could be in the sights of administrators chasing debts from the wealthy politician's failed nickel business, according to the Sydney Morning Herald.

Sources close to Queensland Nickel said voluntary administrators were looking at assets linked to Palmer's nephew and close business confidante, Clive Mensink.

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