Coal in Australia is mined primarily in Queensland, New South Wales and Victoria. Coal is used to generate electricity and most of the coal mined in Australia is exported, mostly to eastern Asia. In fiscal year 2013/14, 430.9 million tonnes of coal was mined, and 375.1 million tonnes was exported. Coal provides about 69% of Australia's electricity production. In fiscal year 2008/09, 487 million tonnes of coal was mined, and 261 million tonnes was exported. In 2013, Australia was the world's fifth-largest coal producer, after China, the United States, India, and Indonesia. However, in terms of proportion of production exported, Australia was the world's second largest coal exporter, with exports accounting for roughly 73% of coal production. Indonesia exports about 87% of its coal production.
Coal mining in Australia has been criticised by members of the environmental movement, due to carbon dioxide emissions during combustion. This criticism is primarily directed at thermal coal, for its connection to coal-fired power stations as a major source of carbon dioxide emissions, and the link to climate change and the effects of global warming on Australia. The burning of coal for electricity produces 29% of Australia's total greenhouse gas emissions, based on 2013-2014 Clean Energy Regulator data.
Both Greenpeace Australia Pacific (Energy [R]evolution) and Beyond Zero Emissions (Zero Carbon Australia 2020) have produced reports claiming a transition can be made to renewable energy and Greenpeace has called for a just transition for coal based communities, but others argue at present there is no strong evidence of a viable alternative for the vast majority of Australia's electricity generation, or for the significant economic and social benefits coal mining delivers to regional communities. Many of these arguments specifically ignore the differentiation between thermal and metallurgical coal, and the different application they play in modern society. Coal Seam Gas, methane-based gas associated with deposits of coal has historically been flared, however over the past 10 years has been recovered and used to generate further electricity.