Bloomberg reported that Australian mining companies are producing and exporting coal at a loss due to take-or-pay contracts with freight companies.Losses from exporting coal at current low prices are much less than what it would cost to default on the freight agreements.
Articles Tagged "Rio Tinto"
Reuters reported today that Rio Tinto (ASX:RIO,NYSE:RIO) lost an appeal to the Australian Supreme Court to expand its Warkworth coal mine in New South Wales, Australia. Managing Director Chris Salisbury told Reuters that Rio Tinto will submit a revised plan for the mine that will include funding for woodland and employment programs and a 1,800 hectare National Park.
Bloomberg reported that Rio Tinto plc's (LSE:RIO,ASX:RIO,NYSE:RIO) attributable thermal coal production came to 26.8 million metric tons in 2013. That's a record as well as a 12-percent increase from the previous year.
Mineweb reported that attendees of the Coaltrans Mozambique conference were told that the country's major coal producers, such as Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) and Vale SA (NYSE:VALE), need to decrease their logistics costs in order to become profitable.
Reuters reported that Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) will be selling its 50.1-percent stake in the Queensland-based Clermont thermal coal mine to Glencore Xstrata plc (LSE:GLEN) and Sumitomo Corp. (TSE:8053) for $1.015 billion in cash.
Linc Energy Ltd. (ASX:LNC,OTCQX:LNCGY) announced that New Emerald Coal Ltd., its 100-percent-owned subsidiary, has entered into a sale and purchase agreement under which it will acquire the Blair Athol coal mine from BACJV, a joint venture between Rio Tinto Coal Australia, Leichhardt Coal Pty Ltd., JCD Australia Pty Ltd. and J-Power.
The Wall Street Journal reported that talks regarding the sale of Rio Tinto plc's (ASX:RIO,LSE:RIO,NYSE:RIO) stake in the Queensland-based Clermont coal mine have stalled after bids from three different companies did not meet the mining giant's expectations.
Reuters reported that BHP Billiton (ASX:BHP,NYSE:BHP,LSE:BLT) will not sell its Australia-based Gregory Crinum coal mining complex. Bankers believe that the move may cause problems for other miners hoping to sell coal properties.
The Wall Street Journal reported that Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) is thinking of selling all or part of its Mozambique-based coal unit and is in the process of choosing a financial advisor to help it do so. The news follows Rio's decision earlier this week not to sell its diamond unit.
The Wall Street Journal reported that Coal India Ltd. (BSE:533278), Shenhua Group Corp. and Aditya Birla Group have said they will bid for Rio Tinto plc's (ASX:RIO,LSE:RIO,NYSE:RIO) Australian coal assets, according to "a person familiar with the matter." The companies must submit their first-round bids this week.