Trade deal to singe domestic coal firms

The long-awaited free trade agreement finalized between China and Australia on Monday in Canberra will significantly boost Australia's commodities market, especially its coal industry.

President Xi Jinping and Australian Prime Minister Tony Abbott jointly announced the completion of the FTA talks in which commodities including bauxite, coking coal, thermal coal and other mineral resources exported from Australia to China will be exempt from tariffs within two years.

The Chinese government's tariff committee announced last month it planned to impose a 3 percent tariff on coking coal, which is used in steel mills, and a 6 percent tariff on thermal coal, which is used in power stations, causing huge concern among Australian coal producers.