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.

China will no longer grant permission for new coal mining projects with designed annual capacities of below 300,000 metric tons, as authorities plan to take more steps to trim excess capacity in the sector, top industry officials said on Tuesday.

China's decision to reimpose tariffs on imported coal from Wednesday will help domestic coal producers in the short term and pose hardships for Chinese traders and foreign companies in the long run, experts said.

Australia must hold urgent talks with China to exempt coal producers from new tariffs in a free trade agreement due to be completed this year, an industry body said, following China's move to reintroduce coal tariffs after nearly a decade.

The outlook for thermal coal import demand in China, the world's largest importer, is weak, rating agency Fitch said in its latest industry report.

BEIJING - The Chinese government on Monday vowed to reform tax on coal.

The Chinese government's decision to ban imports of lower quality coal, or "dirty" coal, from 2015 could affect a major portion of Australia's coal exports to China, experts said on Tuesday.

Winter for China's coal mine industry may be longer and more severe than expected as a third coal mine behemoth announced plans on Monday to reduce production amid plunging prices.