The massive disruptions to Australia’s coal mining in the past month—mainly due to the worst flooding seen in the region in 50 years—have been devastating for the industry, causing the price of coking fuel used in steelmaking to skyrocket.
Global demand for coal drove prices up in 2010, and this trend should continue in coming years, due in part to growing energy needs of the world’s two largest consumers of coal: India and China.
In spite of international efforts to phase out the use of coal power plants, global demand and prices for the resource are on the increase fueled largely by China’s growing energy needs.
South Africa will not be able to reach its 65 million tonnes of coal exporting expectations for 2010 due to the transport strike that has crippled rail and ports. This is according to the Richards Bay Coal Terminal (RBCT). RBCT Chief Executive Raymond Chirwa is quoted saying: “On average we could be receiving 1.3-1.4 million [...]
Coal exports at Australia’s Newcastle port, the world’s largest coal export terminal, slipped 10 percent in the past week, while ship queues eased to below 40 as a new export quota system kicked in, data showed on Wednesday. For full story, click here
Red Hill Energy (CVE:RH) announced today that their 100% owned Ulaan Ovoo coal project in Mongolia received a positive pre-feasibilty study. The study shows at a coal price of $76US/tonne, an after tax and royalty NPV of $US250 million with a discount rate of 10%.
China has discovered a new coal field containing more than 13 billion tonnes of proven coal reserves in the northwestern region of Xinjiang, the China News Service reported on Monday. The 1,400 square-kilometre Sha'erhu coal field, located in the county of Shanshan in eastern Xinjiang
A dip in the contract price of coal by 40 per cent is being shrugged off by the industry. However, it will make a multi-billion-dollar dent in national export revenues. PricewaterhouseCoopers mining analyst, Tim Goldsmith, said: You’ve got to look at the fact that last year prices pretty much doubled and in some cases tripled. [...]
Philippine coal producer Semirara Mining Corporation plans to export 2.5 million tones of coal this year. For more information, click here For company’s website, click here
We are into the second half of the second month of 2009 and pressure on coal prices have not eased. While the long-term outlook in this sector remains strong, thanks to strong fundamentals, spot prices continue to be under pressure. The reasons are being cited as high utility coal inventories, lower demand for electricity and competition from natural gas.
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