Coal prices have risen 30 per cent from their low in March. However, for the second half of 2009, there are still risks of tight coal supply. In China, many domestic producers have arbitraged the low offshore prices with higher onshore prices, which has made demand look stronger than it was. So, correction is expected in the new two months. However, strong demand for thermal coal in China and India is expected to help Asia avoid the first fall in imports for a decade this year, and push import growth even higher in 2010.
U.S. oil major ConocoPhillips and Australian partner Origin Energy are sticking with their 2014 output start-up date for a $24.5 billion gas-export project in Australia, despite uncertainty over future demand. For full story, click here
Gloucester Coal Limited climbed to a 7 month high in Sydney trading after agreeing to a sweetened takeover offer from Noble Group Limited which values the Australian mining company at AUD 572 million. For full story, click here
China has boosted its imports of Australian coking coal fiftyfold in the first quarter. The increase in import comes as China’s domestic production was cut, potentially saving Queensland from a further round of mine closures. For full story, click here
Australian mining firm Riversdale and Indian partner Tata Steel have risen their estimate of coal resources at their Benga mine in Mozambique by 90 per cent. For full story, click here
Monday, September 21, 2009