A roundup of internationalcoal news from Sept. 16 to Sept. 23.
Metallurgicalcoal spot prices continueto rise, reaching$209 per ton on September 22, World Coalreported. "The fact remains that coking coal is a key raw material fornearly all new steel production in the world," the report quoted BenFitzsimmons of Hume Coal as saying.
coal consumption inAsia paved the way for Australian physical coal prices to to May 2015's high of $72.50 pertonne, Reuters Africa reported Sept. 20. Australian Newcastle benchmarks wereup almost 50% in 2016, while South African and European coal benchmarks jumpedby 31% to 43%, said the report.
Canada: subsidiary sent out arequest for proposalson Sept. 16 to supply both 4.5% and 6% sulfur petcoke to its power plants. Theutility is seeking 50,000 tonnes to 60,000 tonnes, plus or minus 20%, ofpetcoke for delivery during the fourth quarter of 2016.
Germany: The European Commission approvedSwedish power company VattenfallAB's proposal to sell its coal assets in Germany, The AssociatedPress reported. The loss-making assets, which include four active mines and aformer open-cast lignite mine in Brandenburg and Saxony, would be sold to Czechenergy company EPH and private equity group PPF Investments Ltd..
Netherlands: The Dutch parliament voted77 to 72 to cut the country's CO2 emissions by 55% by 2030, putting theNetherlands squarely in line with the Paris climate agreement, The Guardian reported. To achieve thetarget, the Netherlands' five remaining plants in operation, must be shuttered.Three of the five plants came online in 2015 and are being blamed for a 5% risein emissions.
China: China's oversupply managementefforts and the resulting increase in coking coal prices are expected to affectJapanese steelmakers' quarterly supply contract negotiations, Bloomberg Newsreported. Spot hard coking coal more than doubled in 2016 to more than $205 pertonne, which puts Japanese steel mills and miners in a difficult position asthey negotiate contracts for the fourth quarter.
Inan effort to stabilize coal prices and appease concerned consumers, 14 coalmines owned by Chinese coal producer ShenhuaGroup Corp. Ltd. were given permission to raisecoal production by as much as 2.79 million tonnes in September amid thegovernment's efforts to curb oversupply, Bloomberg News reported, citing "peoplewith direct knowledge of the matter." Inner Mongolia Yitai Group Co. Ltd. and were also allowedto raise output.
India: The Indian government seeksto eliminatecoal imports within three to four months to encourage consumption of CoalIndia-produced surplus coal, the Press Trust of India reported. "When Itook charge in 2014, I was faced with the challenge of inadequate supply offuel. But now after two years we have come to a point where we have surpluscoal and we are worried how to sell the surplus," Coal Minister PiyushGoyal said.
said Sept. 23 thatsubsidiary Orion Mining Pty Ltd.signed a binding sale and purchase agreement to the coal mine inQueensland from the Blair Athol coal joint venture, or BACJV. Upon completionof the A$1 deal,TerraCom will receive A$80 million from BACJV to meet Blair Athol'srehabilitation liability.
and 'sAustralian unit, Adani MiningPty. Ltd., reached a settlementto sell Glencore's shares in the Abbot Point BulkCoal Pty. Ltd., which operatesthe Abbot Point terminal in Queensland to Adani's Abbot Point Operations Pty.Ltd., the companies said Sept. 20.
iscutting 45 jobs atits Duralie open-cut mine, part of its Gloucester Basin operations in New South Wales, citinggeological problems rather than a decline in coal prices as the cause, FairfaxMedia reported Sept. 17, citing company spokesman James Rickards.
NewSouth Wales' Department of Planning and Environment 's Drayton South open-cut coal project inAustralia, according to a Sept. 19 government release. The department ofplanning has recommended the project, with 23 conditions to manage the dust,noise, blasting and water, and said the planning assessment commission will nowmake the final decision.
TheAustralian Conservation Foundation filedan appeal with the federal court against the that declared Adani EnterprisesLtd.'s Carmichaelcoal mine approval lawful, the Australian Associated Press reported Sept. 19.The foundation wants to have its appeal heard by the court's full bench, as thecoal mining project will have an impact on global warming and the Great BarrierReef.
This feature was updated asof 2:25 p.m. ET on Sept. 23. Some external links may require a subscription.