Indonesia's energy ministry (ESDM) has set the country's coal production target at 694mn t for 2023, around 5pc higher than the 2022 target of 663mn t, which has been exceeded.

Europe may continue to dominate US thermal coal exports in 2023 but demand for high-sulfur coal may wane.

The channel is also a major route for China's west-to-east coal transportation, ensuring the country's energy consumption demand is met.

This means that renewables, which have lower individual production costs, end up having to share the price burden of more expensive fossil fuels.

Thanks to the large-scale development of clean energy, especially solar and wind power, consumption of fossil fuels is expected to decrease by 3.15 billion ton standard coals during the 2030-60 period, Dai said.

Indonesian state-owned coal producer Bukit Asam has raised its 2023 output target to 40mn t.

Uncertainty over international thermal coal prices continues to weigh on Vietnam's coal import outlook, but the country's economic growth momentum is supporting coal demand despite its move to enter a $15.5bn energy transition pact.

Coronado joins a number of mining firms in Australia that have cut production guidance this year.