The price for coking coal is skyrocketing as explained in the...

The price for coking coal is skyrocketing as explained in the following article from The Australian

http://www.theaustralian.com.au/business/coking-coal-prices-to-skyrocket-as-stockpiles-dry-up/story-e6frg8zx-1225993253543

an extract of which is below

"Prices for Queensland coking coal jumped $US33/tonne to $US383 last week, up 70 per cent on quarterly contract prices of $US225/tonne, according to the latest Platts assessments quoted by Macquarie.

"There is not enough slack in the metallurgical (coking) coal supply chain to cover the losses being incurred," Macquarie analyst Max Layton said."

While BTU is not yet a producer and can only hope to take part in a future market of similar strength. The current atmosphere must help when negotiating the second offtake agreement. Forther more I understand that BTU are negotiating with multiple parties and they have the first offtake agreement as the line in the sand.

I am only a modest poker player but it would be hard as a buyer fronting up to these negotiations and preteneding that you have anything like a reasonable hand. Of course this is about building long term relationships so I am sure that when the deal is done Hamish and co will not want a future partner going away feeling violated.

They will leave Im sure actually feeling empowered and with a bounce in their step, probably becuase they no longer have to carry that big bag of money around with them

What a Wonderful World

Viney