The federal government faces the spectre of eventually collecting less revenue from commodities should coal prices plunge to the same levels seen from some few years ago but on the upside, some companies would end up as beneficiaries of a one percent cut in company tax should the proposed mineral resources rent tax is implemented.

According to a report released by Wood Mackenzie on Wednesday, up to $7.4 billion would be up for grabs by the government once coal prices maintained its strong level during the MRRT's first five years of operation but since the mining tax is wholly profit based, government revenue could also end up being quite sensitive to volatile price movements.

Wood Mackenzie's head of coal supply research Gero Farruggio said that even at this time miners were already being plagued by strong cost inflation and declining productivity and such developments could be compounded by Australia's recent placing in this year's global thermal coal export cash rankings, where it was only able to secure the sixth spot.

Mr Farruggio said that the rankings' top spot used to be reserved for the country but Indonesia has been dominating the list owing to its voluminous thermal coal production and minimal average cash cost.

He added that unlike in Australia, the government of Indonesia has wisely decided to reduce its take on the country's coal production resulting to its gaining advantage from other commodities-exporting nations and with such considerations, Wood Mackenzie suggested that some aspects of the MRRT must be explained further especially the definition of existing assets' market value.

The consultancy firm also reminded the Australian government that China is poised to increase its unconventional gas production by 2030, specifically shale gas, though it admitted that importations of liquefied natural gas and piped gas by the country would still be substantial until 2020.