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Australia seeks clarity from China on coal import curbs

  • : Coal
  • 20/10/13

The Australian government has approached China seeking more clarity over potential disruption to its coal shipments, after many large importers were told by the government to stop buying Australian coal.

Coal trade between the two countries has been dragged into political disputes on more than one occasion this year, after Canberra's calls for an independent investigation into the origins of the Covid-19 outbreak drew a strong reaction from Beijing.

But Chinese bids have notably dried up in recent days on buyer concerns over whether Australian coal would be able to clear customs, threatening the biggest impact on trade so far.

Canberra is still unsure whether the halt to buying is related to the China's quota system that limits imports of Australia coal, or whether it is something new linked to trade tensions between the two nations. Australian trade minister Simon Birmingham has been unable to secure a meeting with his counterpart in Beijing, despite seeking one on several occasions this year.

Australian coal producers are also looking for more clarity, with few willing to comment on whether Chinese customers have cancelled shipments or cut buying. Most Australian coal mining firms are struggling to make a profit, although a rebound in prices over the past month has offered some relief for exporters of higher-grade coal.

Coal exports to China have made up proportionally more sales of Australian coal in 2020 than in previous years, as other key customers — such as Japan, South Korea and India — struggle to emerge from Covid-19 lockdowns.

The Minerals Council of Australia, the main industry body, downplayed the threat from a halt to sales to China. "The trade with China changes through the year based on a range of factors, including quotas. Australia will continue to see demand for its high quality of coal and the medium term outlook remains positive," the MCA's chief executive Tania Constable said.

Australia sold A$9.7bn ($7bn) of metallurgical coal and A$3.97bn of thermal coal to China in 2019, accounting for 24pc and 18pc respectively of the total value of these exports.

China's thermal coal imports from Australia totalled 45.77mn t last year, according to data from China's general administration of customs (GAC).

Imports were 38.65mn t in January-August this year, up by 14pc from the same period in 2019. But arrivals have slumped in recent months. July and August intakes registered year-on-year declines of 34pc and 55pc to hit 4.09mn t and 2.97mn t, respectively.

Coal trade is much smaller than China's A$79bn of iron ore purchases from Australia in 2019, which made up 82pc of total sales, but is significant enough to make Canberra pay attention. Coal is a politically charged subject in Australia, given the industry provides employment in key marginal seats in Queensland, where a state election will be held on 31 October.

China's customs authorities are stepping up their supervision of Australian coal imports, a GAC spokesman said today.

Questioned further by reporters about China's attitude to Australian coal, the spokesman emphasised the volume of Australian-China trade that he said totalled almost 860bn yuan (A$177bn or S128bn) in January-September.


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25/02/03

South Africa has 44mn t/yr coal projects in pipeline

South Africa has 44mn t/yr coal projects in pipeline

Cape Town, 3 February (Argus) — South Africa currently has 16 project proposals for mostly thermal coal projects in the pipeline with an aggregate capacity of 44mn t/yr, according to the IEA. Globally, new or expanded coal mines aimed at the export market with a total capacity of 430mn t/yr are planned, the IEA says in its Coal 2024 Analysis and forecast to 2027 report. Last year coal consumption in Africa increased by 6mn t to 191mn t, the IEA estimates, driven mainly by South Africa's higher coal consumption owing to an improved performance by state-owned Eskom's electricity plants. In the near term, the IEA forecasts modest growth in Africa's total coal demand to 203mn t/yr by 2027. South Africa increased its coal consumption to 165mn t last year on improved economic activity and less load shedding. The country is by far the biggest coal consumer in Africa, accounting for 86pc of the continent's coal consumption in 2023. Strong electricity demand growth is expected to create room for an additional 14 TWh of coal-fired generation in South Africa over the next three years, the IEA predicts. Three coal-fired power plants of 4.5GW capacity that were due to shut by 2027 will run until at least 2030 . Hence the IEA projects that South Africa's coal consumption for power generation will rise to 124mn t by 2027. "The future of coal demand in South Africa will be shaped by policy makers' decisions regarding the coal-fired power fleet, either to invest in their maintenance to keep them running for longer or to phase them out," the IEA says. Coal production in South Africa grew marginally over the past two years to 234mn t in 2024, the IEA estimates. The main challenges to increasing production have been an unstable electricity grid and frequent disruptions to coal transport as state-owned Transnet has struggled with collisions, equipment failures, cable theft, derailments, power outages and increased costs. Last year, South Africa's Canyon Coal started shipments from its Gugulethu mine that is set to produce 2.4mn t/yr, half of which will be NAR 5,500 kcal/kg fob RB thermal coal. After years of being in administration, the Optimum coal mine was added to the project pipeline after new owner Liberty Coal settled outstanding legal issues related to the mine. Liberty plans to increase Optimum's capacity to 11mn t/yr of mid-CV thermal coal, but the mine first needs significant reconstruction. Until 2027, the IEA expects coal production in South Africa and most other African countries to remain flat, apart from Ethiopia where a new coal mine will slightly boost output, the IEA said. But growing steel production in Mozambique and Zimbabwe is set to propel coal production. In Mozambique, India's state-controlled Steel Authority of India (Sail) will invest up to $200mn over the next four years to double the capacity of its Benga coking coal mine to 4.5mn t/yr. Most of the mine's output is intended for Sail's internal use in India. In Zimbabwe, Chinese firm Tsingshan Holding's Dinson Iron and Steel (Disco) unit started production last year, with initial capacity of 600,000 t/yr to be expanded to 5mn t/yr once the plant is complete. In addition, Mozambique, Zimbabwe and Botswana plan a major infrastructure project, which includes a new deepwater port at Techobanine, south of Maputo, that will cost up to $1.5bn. Botswana plans to revive a long-standing project to create a 1,700km rail link through Zimbabwe to Maputo, enabling the landlocked country to export its coal reserves estimated at over 200bn t. South African infrastructure operator Grindrod will take full ownership of the Matola Coal Terminal in Mozambique by spending $77mn to acquire Vitol's 35pc stake. Grindrod then intends to expand the terminal's capacity beyond its current 7mn t/yr. Thai Mocambique Logistica plans to construct a coal port at Macuse in Mozambique and build a railway line to connect the port with coal mines in Tete province. Neighbouring Malawi also aims to import coal from Tete via a rehabilitated railway from Balaka to its capital Lilongwe. "The country is seen as a favourable option for coal exports compared to South Africa, whose ports are expected to reach capacity limits," the IEA says. Elaine Mills Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US manufacturing expands in Jan after 26 months: ISM


25/02/03
25/02/03

US manufacturing expands in Jan after 26 months: ISM

Houston, 3 February (Argus) — US manufacturing activity expanded in January after 26 consecutive months of contraction, according to the Institute for Supply Management's latest factory survey. The manufacturing purchasing managers' index (PMI) registered 50.9 in January, up from 49.2 in December. The new orders index rose to 55.1 last month from 52.1 in December, marking a third month of expansion. Readings above 50 signal expansion while readings under that point to contraction. Production rose to 52.5 last month from 49.9 the prior month. Employment rose to 50.3 from 45.4. "Demand clearly improved, while output expanded and inputs remained accommodative," ISM said. "Demand and production improved; and employment expanded." US factory activity expanded robustly in the first two years after Covid-19 hit, then contracted for the subsequent two years, even as growth in services activity, the largest part of the economy, maintained the overall economy in expansion territory. The new export orders index rose by 2.4 points to 52.4 and the imports index rose by 1.4 points to 51.1. The prices index rose to 54.9 from 52.5, with aluminum, freight rates, natural gas, and scrap among gainers. "Prices growth was moderate, indicating that further growth will put additional pressure on prices," ISM said. The inventories index fell by 2.5 to 45.9, signaling contracting inventories. Backlog of orders fell by one point to 44.9, indicating order backlogs contracted for the 28th consecutive month after 27 months of expansion. Supplier deliveries rose by 0.8 to 50.9, suggesting marginally slower deliveries. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s BCC on track to meet coal sales target


25/01/29
25/01/29

Australia’s BCC on track to meet coal sales target

Sydney, 29 January (Argus) — Australian coal producer Bowen Coking Coal (BCC) is on track to meet its 1.6mn-1.9mn t sales guidance for the year to June 30, but low stockpiles and rail and port access could hinder the target. The Queensland coal producer managed record sales of 544,000t of coal in October-December , but cut its stockpiles to 127,000t on 31 December from 172,000t on 30 September. These stockpiles were the lowest end-of-quarter levels since BCC started producing in late 2022, and might need to be rebuilt in January-June, weighing on sales. Sales could also be impacted by increased vessel arrivals at Dalrymple Bay Coal Terminal, which BCC ships through, and increased wet weather forecast for February-April . BCC is negotiating to secure more port and rail capacity, although it has met its "near-term" requirements. The firm's managed production ran at a rate of about 3mn t/yr run of mine (ROM) in October-December, down from the 5mn t/yr ROM rate it targeted for 2024 in early 2023 , but at the top end of guidance of 2.7mn-3mn t/yr to 30 June. Wet weather in Queensland has seen the premium for top-grade coking coal decline relative to second-tier hard coking coal owing to lower availability, according to BCC. Argus last assessed the premium hard coking coal price at $185/t fob Australia on 27 January at a premium of $34.95/t to lower-grade hard coking coal. This premium is down from an average of $39.24/t for January and $37.52/t for October-December, but above the $24.59/t average in July-September. Non-premium hard coking coal prices fell to a $15/t premium to high-grade thermal coal in early September, before widening to nearly $40/t on 24 January. Thermal coal sales made up 42.5pc of BCC's sales in October-December, with the rest coking coal, up from 40pc in July-September. BCC has the option to swing some production between thermal and lower grades of coking coal but this takes time to implement. Argus last assessed the hard coking coal price at $151.05/t fob Australia on 27 January, down from $157.90/t on 30 December and at the lowest level since June 2021. Argus last assessed high-grade 6,000 kcal/kg NAR thermal coal at $113.85/t fob Newcastle on 24 January, down from $123.44/t on 27 December. By Jo Clarke Bowen Coking Coal (BCC) Oct-Dec '24 July-Sep '24 Oct-Dec '23 Jul-Dec '24 Jul-Dec '23 BCC managed production (kt) ROM 788.8 768.8 785.2 1,557.6 1,425.6 Saleable coal 482.4 443.5 478.7 925.9 1,023.8 BCC sales volumes (kt) Metallurgical coal 312.8 248.8 264.8 561.5 567.4 Thermal coal 231.1 166.0 238.4 397.1 492.4 Total 543.9 414.8 503.2 958.6 1,059.8 BCC's average realised price ($/t) Metallurgical coal 165.8 179.2 210.0 171.7 192.0 Thermal coal 88.5 93.4 100.3 138.1 144.7 Argus average prices ($/t fob Australia) Premium hard low-volatile coking coal 202.6 210.5 333.6 206.5 298.4 Hard coking coal 165.1 185.9 277.0 175.6 250.6 6,000 kcal/kg thermal coal 137.5 138.4 139.8 137.9 147.3 — BCC, Argus Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump touts off-grid gas, coal for AI data centers


25/01/24
25/01/24

Trump touts off-grid gas, coal for AI data centers

New York, 24 January (Argus) — President Donald Trump said he plans to give developers "very rapid approvals" to build data centers running artificial intelligence (AI) software, as well as off-grid electric generating facilities to power them. "I'm going to give emergency declarations so they can start building them almost immediately," Trump told the World Economic Forum in Davos, Switzerland, in virtual remarks on Thursday. Allowing for a rapid increase in power generation capacity will enable the US to scale up its AI capabilities and be competitive with China, he said. Trump said he has been telling developers that he wants them to build electric generating facilities next to their planned data centers. These would bypass connection to the grid, which he said is "old" and unreliable. The developers will be able to fuel their generators with "anything they want," including natural gas, and could use "good, clean coal" as a back-up in case a gas pipeline were to explode, cutting gas supplies to a data center's off-grid gas power plant, he said. Trump's comments echo those made recently by executives in the oil and gas industry, who are betting that tech giants' desire to quickly build out data centers to develop their own AI software will force them to eschew the long, arduous interconnection process through which new customers connect to the grid, and instead secure their own personal supply of electricity generated by natural gas. ExxonMobil in December said it was in talks to provide AI data centers with "fully islanded" gas-fired power, which could be installed "independent of utility timelines" and at a pace that other baseload generation fuel sources, like nuclear, could not match. Alan Armstrong, chief executive of Williams, the largest US gas pipeline company, told Argus that AI data center operators are going to build in states where they can quickly secure off-grid electricity supplies. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Port of Nola reopens after winter storm


25/01/24
25/01/24

Port of Nola reopens after winter storm

Houston, 24 January (Argus) — The port of New Orleans reopened today after a prolonged shut-down propelled by a heavy winter storm that swept through the US Gulf earlier this week. Nola and Ports America reopened today to begin working on the backlog of movement caused by the storm. The port had been officially closed since 19 January in anticipation of the wintry temperatures, heavy precipitation and winds. Several inches of snow fell across New Orleans beginning Tuesday morning, according to the National Weather Service, with freezing conditions lasting through Thursday. Both ship and barge loadings and unloadings were significantly delayed across terminals. Several shipping and barge companies announced force majeures before the storm but are expected to reopen within the next couple of days, subject to safety conditions. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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