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2017 coal shipments steady through Port of Duluth-Superior

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2017 coal shipments steady through Port of Duluth-Superior

As its 2017 shipping season draws to a close, coal and coke shipments through the Port of Duluth-Superior have held steady this year, a port official said Dec. 20.

Through November, 9.36 million tons of coal and coke moved through the port, up slightly from 9.32 million tons in 2016, according to figures compiled by Becky McMillan, executive assistant for the Duluth Seaway Port Authority.

Most of the coal originated in the Powder River Basin and was bound for coal-burning power plants ringing the Great Lakes, port spokeswoman Adele Yorde said in an interview.

"The coal dock that does the lion's share is Midwest Energy Resources Co., a wholly owned subsidiary of DTE Energy Co.," Michigan's largest electric utility, she said. "The vast majority of shipments are going to utilities on the lower lakes, most coming from unit trains from the [Powder River Basin]."

Some of the coal and coke is being shipped overseas in a rejuvenated export market. Through November, 210,374 tons were sent overseas from the port, up 30% from 161,497 tons a year ago.

Yorde said because the Minnesota port is located 2,340 miles inland, 2018 shipment volumes will depend, in part, on a healthy international market but also on demand from Canada.

Coal and coke sales to Canada have plummeted from a decade or so ago, as the government has made a decision to phase out most coal-fired generation by 2030. The provinces of Saskatchewan and Nova Scotia may be exceptions, as they seek to continue burning coal at least through 2040.

Bob Matyi is a contributing reporter to S&P Global Platts, which, like S&P Global Market Intelligence, is owned by S&P Global Inc.