Australia's coal competitiveness is improving, Peabody Energy says THE competitive position of Australia's coal export industry is on the mend, according to the worlds biggest private sector coal producer, the US-based Peabody Energy. Peabody - also a big producer from Australian operations - attributes the improvement to the fall in the dollar, moderating inflation and the election of the Abbott government. Chairman and chief executive Greg Boyce said that the new federal government "fosters policies to improve the competitive position of the resource sector." The Abbott government is to dismantle both the carbon tax and the mining tax, with the latter applying to both iron ore and coal. Mr Boyce was commenting on the release of Peabody's September quarter financial results. Peabody posted a net loss of $US26.1 million compared with a $US42.9m profit in the previous corresponding period. Margins came under pressure from the slump in coal prices. Third quarter revenues totalled $US1.8 billion compared to $US2.06 billion due to lower prices in the US and Australia. Australian price decreases were partly offset by a 6 per cent rise in shipments to 9 million tonnes, including 4 million tons of metallurgical coal and 3.1 million tonnes of exported thermal coal. Peabody's Australian operations contributed earnings before interest, tax, depreciation and amortisation of $US74.8 million, with the $US185 million hit from lower pricing partly offset by an 8 per cent improvement in costs as a result of continued cost cutting, contractor reductions, recent owner-operator conversions and productivity improvements. Peabody said unit costs in its Australian operations had now improved 18 per cent since early 2012.