Coking coal price reaches five-year high, spiking interest in re-opening mines

Coking coal price reaches five-year high, spiking interest in re-opening mines

ABC Rural
By Mike Pritchard

Updated about 4 hours ago


The price of coking and thermal coal has reached new heights, prompting interest in coal developments in Australia.
Coking coal is fetching more than $300 a tonne, which has not been seen since the Queensland floods of 2011 cut Australian production significantly.
Mike Cooper, of Platts International Coal Report, said the price rise had been caused by a Chinese Government decision to cap production there.
"There was a meeting last week of the National Development and Reform Commission [and] they intend to keep the production restrictions going at least until March next year," he said.
"This is leading to more demand from Chinese customers for import coking coal."
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Mr Cooper predicts the high prices will continue beyond March.
"On the supply side, Australian coal mines haven't ramped up production much. They've been starved of investment," he said.
Mr Cooper believes more investment is needed to complement the re-opening of mines like Integra in New South Wales, which he said would be producing hard coking coal next year.
"We've heard of several entrepreneurs in the Hunter Valley region looking to get mines going again and revive some of the ones that have closed down," he said.
Topics: coal, mining-rural, mining-industry, muswellbrook-2333, sydney-2000
First posted about 7 hours ago

http://www.abc.net.au/news/2016-11-17/coking-coal-price-reaches-five-year-high/8030898