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NTPC’s plans to invest in coal assets abroad come in the wake of a $1.3 billion deal by Tata Power Company to buy stakes in two Indonesian mines in April last year. The last couple of years have marked growing concerns among Asian utilities over the security of long-term coal supplies, with other utilities in the Asian region also scouting aggressively for assets in places such as Indonesia and Australia.

http://www.thehindubusinessline.com/2008/0...12952761000.htm

Jan. 28 (Bloomberg) -- Coking-coal miners in Australia, the world's biggest exporter of the raw material used in steelmaking, may lose at least 10 million metric tons of output because of flooding, Merrill Lynch & Co. said.

That's equal to about 8 percent of Australia's annual coking coal exports, based on 2006 data. This month's weather forced Macarthur Coal Ltd., the world's biggest coal exporter, and Wesfarmers Ltd. to declare force majeure, a legal clause allowing companies to default on delivery commitments due to circumstances beyond their control.

``We calculate at least 10 million tons of coking coal could be lost,'' Merrill analysts including London-based Daniel Fairclough wrote in a report today. With train and port capacity strained, ``there is little or no chance of making up this lost tonnage.''

Producers including BHP Billiton Mitsubishi Alliance, the world's biggest coking-coal exporter, are in talks with buyers to set annual prices. International prices for hard coking coal were set at $92 to $98 a ton for the current year, which ends in March. Prices may rise to $160 to $170 a ton, Merrill said.

Merrill had forecast a global annual supply shortfall of 6 million tons before the flooding in Australia. The bigger deficit in supply may constrain global steel production, Merrill said.

http://www.bloomberg.com/apps/news?pid=206...refer=australia

25 January 2008

The global coal Newcastle (spot thermal) index is expected to be updated today.

Last week's listed price was $US89.85.

http://fairfield.yourguide.com.au/news/nat...rs/1169417.html

http://www.altonaresources.com/Coal_deposits.html

http://www.advfn.com/p.php?pid=ukfinancial...;symbol=L%5EANR

More coal price increases on the way, says senior analyst

The coal price started to soar from the $50-t mark in May 2007, bringing the price to the current $100-t mark.

“For only the fourth time in the past 100 years, we are in the midst of a significant coal price hike, this time driven by strong demand,” says International Energy Agency energy analyst Brian Ricketts....... http://www.miningweekly.co.za/article.php?a_id=124596

China orders coal exports suspended, struggles to meet shortage

China's Transport Ministry has ordered ports to temporarily stop loading coal for exports as the country struggles to meet domestic needs amid mounting power shortages. read more »

http://go.infomine.com/?re=18&tg=http:...sp?NewsID=71116

NEWS | Perth, Western Australia, Australia

BHP/Mitsubishi alliance declares force majeure at Queensland coal mines

Heavy flooding has played havoc with central Queensland coalfields. One of the biggest miners in the area, the BHP Billiton Mitsubishi Alliance (BMA) joint venture told customers that it has declared a force majeure because of disrupted operations. read more »

http://go.infomine.com/?re=18&tg=http:...sp?NewsID=71086

Hello, I was invested in Ridge Mining for a while

LSE:RDG

looking for another near-term junior-producer too.

Australia regulator approves extension of coal quotas

http://www.mining-journal.com/Breaking_New...article_id=4307

Australia`s competition regulator gave interim approval to extend the use of a coal-export quota system at Newcastle, the world`s biggest export harbor for the

fuel, to help prevent an increase in shipping delays.

 

The Australian Competition and Consumer Commission separately said it plans to approve a similar system at Dalrymple Bay port in Queensland for 12 months "only," to provide industry with time to develop a solution to tackle the issue of ships waiting outside the port.

 

Bottlenecks at Australian ports have helped constrain the supply of the fuel to Asian customers, boosting spot prices to a record and increasing costs for mining companies. The two ports both have quota systems to try to better match port and rail capacity with demand. Newcastle`s quota system, known as the

capacity balancing system, or CBS, was due to end on December 31.

 

Interim authorisation to continue the Newcastle quotas "simply facilitates the continuation of the existing CBS as a means of limiting the queue of ships and consequential costs" as the regulator considers other proposals to manage coal exports at the port, Graeme Samuel, chairman of the Canberra-based

commission, said in the statement.

 

The regulator last week rejected an alternative plan by the operator of the two coal terminals at Newcastle to change the way export capacity is allocated by basing quotas on rail transportation contracts. The modified plan was backed by Xstrata plc, the world`s biggest power-station coal exporter, and Rio

Tinto.

 

Port Waratah Coal Services Ltd, the terminal operator, agreed to the interim plan to continue the existing system through to 2008, the group said in a separate e-mailed statement. Under the system, coal producers have export allocations rationed on a pro-rata basis when demand for exports exceeds the capacity

of the coal transportation system from the Hunter Valley mines through to Newcastle port.

 

"It is hoped that a medium-term solution, if one can be agreed upon mid-next year, will serve the coal chain up until mid-2010," Port Waratah said in the statement. Proposals to extend an existing system to share capacity at the New South Wales port were made by Newcastle Port Corp and Donaldson Coal Pty, the regulator said.

 

Rio Tinto Group`s Coal & Allied Industries Ltd last month said that without quotas, the line of ships waiting outside Newcastle to load coal could exceed 70-80 by the end of the first quarter, incurring "substantial" costs.

 

Separately the competition regulator said it isn`t satisfied that the companies involved in coal transportation to and through Dalrymple Bay port are working to tackle the ship queue. The port`s quota system, known as the vessel queue management system or QMS, has been operating for two years so far.

 

"The ACCC is concerned that the operation of the QMS for an extended period may hinder the development of a long-term solution to address" the bottlenecks, the regulator said, explaining its decision to limit approval for the system to another year.

 

(Bloomberg, December 20)

MET COAL TO BENEFIT FROM STEEL DEMAND

Fitch: Coal outlook is stable, possible modest production growth

While the debate over global warming has stalled plans for new U.S. coal-fired plants, Fitch Ratings forecasts that the outlook for U.S. coal next year is stable.

Author: Dorothy Kosich

Posted: Thursday , 20 Dec 2007

http://www.mineweb.com/mineweb/view/minewe...6&sn=Detail