Melbourne (Platts)--30Jan2013/345 am EST/845 GMT
Australia's Wesfarmers Resources has settled first-quarter 2013 contracts for coking coal from its Curragh mine in the Bowen Basin in Queensland 2% higher than the fourth-quarter 2012 price of $160/mt FOB, the company said Wednesday without providing the actual price. Wesfarmers managing director Stewart Butel said the coal pricing outcome for Curragh's metallurgical coals, including hard coking, semi-hard coking and PCI, "was in line with recent market settlements." Around 90% of the company's Q1 sales tonnage is expected to be at the new contract price, with the balance at a carry over price. "In response to continuing low metallurgical coal prices and the high Australian dollar, Curragh's immediate focus remains on cost reduction and control," Butel said. Article continues below...Request a free trial of: Steel Markets DailySteel Markets Daily provides transparent daily and weekly assessments of iron ore, coking coal, coke, ferrous scrap and ferroalloys prices, plus insightful analysis and commentary on the day's market activities.
Australia's Wesfarmers Resources has settled first-quarter 2013 contracts for coking coal from its Curragh mine in the Bowen Basin in Queensland 2% higher than the fourth-quarter 2012 price of $160/mt FOB, the company said Wednesday without providing the actual price. Wesfarmers managing director Stewart Butel said the coal pricing outcome for Curragh's metallurgical coals, including hard coking, semi-hard coking and PCI, "was in line with recent market settlements." Around 90% of the company's Q1 sales tonnage is expected to be at the new contract price, with the balance at a carry over price. "In response to continuing low metallurgical coal prices and the high Australian dollar, Curragh's immediate focus remains on cost reduction and control," Butel said.
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Steel Markets Daily provides transparent daily and weekly assessments of iron ore, coking coal, coke, ferrous scrap and ferroalloys prices, plus insightful analysis and commentary on the day's market activities.
Production of met coal from the Curragh mine was 1.81 million mt in the most recent quarter, down 11.6% compared with third-quarter of 2012's 2.05 million mt output, due to the utilization of lower yielding feed stocks and a scheduled mine shutdown, Wesfarmers said. The mine's output in the year-ago period was 1.57 million mt. In the 12 months ending December 31, Curragh's met coal production was 7.8 million mt, 49.5% higher than 2011's 5.35 million mt, reflecting the completion of Curragh's new coal handling and preparation plant in June 2012. Sales of met coal in the first half of the 2013 financial year -- which also ended December 31 -- were affected by a scheduled mine shutdown in December and lower short term demand from North Asian customers, Wesfarmers said. Meantime, recent high rainfall and flooding in Queensland brought on by cyclone Oswald have affected mine site production and rail and port availability. As a result, Curragh's sales are forecast to be in the range of 7.5-8 million mt for the 2013 financial year, subject to no further significant wet weather and the return of port and rail operations, Butel said.--Marnie Hobson, marnie_hobson@platts.com--Edited by Keiron Greenhalgh, keiron_greenhalgh@platts.com
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