Latest market news

More flooding forecast for Australian coal sector

  • : Coal, Coking coal
  • 22/10/18

Australia's coal industry is bracing for more wet weather across New South Wales (NSW) and Queensland, with flood warnings issued around the key port of Newcastle in NSW.

The Australian Bureau of Meteorology has issued a flood warning for the Lower Hunter and Wollombi rivers for 21 October into the weekend, as heavy rainfall combines with strong river flows from upstream. Flooding at Maitland in the Lower Hunter in July disrupted deliveries into Newcastle for two weeks and delayed maintenance into September causing further disruptions. Heavy fresh water flows into the Newcastle harbour has also reduced ship movements in the port by reducing buoyancy, meaning that only Panamax vessels can load not Capesize ships.

Heavy rainfall is also expected across the Bowen and Surat basins in Queensland and in the Hunter valley and Illawarra coal fields in NSW. Most mine sites are also operating with full on-site water storage and saturated ground, making it extremely difficult to drain pits after wet weather.

The third La Nina year in a row has disrupted coal shipments, with Newcastle exports tracking 12pc behind 2021 and 16pc behind the 2019 peak during January-September compared with the same period in earlier years. Queensland shipments are also behind, down by 5pc for January-September against the same period in 2021 and 13pc on 2019.

Argus last assessed high-grade 6,000 kcal/kg NAR thermal coal at $397.90/t fob Newcastle on 14 October, down from a peak of $444.59/t on 12 September. It assessed lower grade 5,500 kcal/kg NAR coal at $152.49/t fob Newcastle on 14 October, down from $199.12/t on 12 September.

It assessed premium hard low-volatile coking coal prices at $285.05/t fob Australia on 17 October, up from $187.35/t on 1 August.

Australian coal price comparisons ($/t)

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

24/10/03

Japan to phase out inefficient coal plants by 2030

Japan to phase out inefficient coal plants by 2030

London, 3 October (Argus) — Japan will target a phase-out of inefficient coal plants by 2030, as it continues its energy transition push, although the country is still yet to provide further details on any broader movement away from coal. "By 2030, the inefficient use of coal-fired power will be phased out," Japan's newly appointed environment minister Keiichiro Asao said at a press conference on Wednesday. Asao was appointed after Japan's new prime minister Shigeru Ishiba took office this week. Japan had earlier pledged to phase out "unabated" coal-fired plants by 2035 , or "in a timeline consistent with keeping a limit of a 1.5°C temperature rise within reach, in line with countries' net zero pathways". But inefficient, sub-critical coal plants — with below 40pc efficiency — make up only 22pc of Japan's total fleet, while 25pc is supercritical and 53pc is ultra-supercritical. The sub-critical plants probably produce less of Japan's coal-fired electricity, given the generation margins for them will fall below the majority of gas-fired generation in the merit order. This means Japan's overall coal-fired power generation is likely to be less impacted than the overall change to its coal fleet capacity. Japan has been considered a laggard in green energy transition among its G7 counterparts, but the country's coal demand could decline to some extent as a result of global divestment pressure. But coal is still key to the resource-poor country, as the government sees renewables and nuclear as insufficient to meet rising power demand driven by the growth of data centres needed to enable artificial intelligence. Japan's new government has recently announced that it will be restarting more of its nuclear reactors to help meet its power demand. Utility Shikoku Electric Power reactivated its sole nuclear reactor at Ikata on 29 September, after closing the unit for turnaround since 19 July. But the utility pushed back the restart of the 890MW Ikata No.3 nuclear reactor on Wednesday because of a technical issue during the process of resuming power generation. Japanese thermal coal imports rose by 10pc to 9.25mn t on the year in August, owing to increased deliveries from Australia. But this was 4pc lower than the past five-year August average of 9.6mn t. By Shreyashi Sanyal Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Colombia coal mining could halt with government decree


24/10/03
24/10/03

Colombia coal mining could halt with government decree

Bogota, 3 October (Argus) — Colombia's coal operations could come to a stop as the government will soon start issuing resolutions that regulate mining areas as temporary environmental reserves, Colombian Mining Association (ACM) director Juan Camilo Narino said. The decree, enacted on 30 January, states the country's environment ministry will identify, delimit and declare through administrative acts reserves of natural resources in areas that require restoration and rehabilitation. Such areas will become environmentally protected zones for five years with the possibility of extending that period for an additional five years. The decree takes away the autonomy and competence of the Regional Autonomous Corporations, which until now grants key licensing to keep coal operations running, but without those licences, coal operations could come to a halt, Narino told Argus on the sidelines of a hydrocarbon summit held in Cartagena. Narino said coal, gold, copper and other types of mining firms are extremely concerned with the potential resolutions due to be issued as they need minor licences granted by the corporations. Such licensing includes environmental licences to pour water into channels, take water from rivers and to pass over rivers. The environment ministry is likely to announce those resolutions at the CBD Cop 16 in Cali, Colombia, on 21 October-2 November. Colombia is set to champion a comprehensive and regionally inclusive approach to biodiversity conservation and climate action at this conference. "The decree clearly states that those corporations could no longer grant permits," Narino said. "As a result, the operating activity of existing licences is unfeasible as you can no longer operate without those minor licences." ACM has filed a lawsuit against the decree, while 11 industry unions, including the regional autonomous corporations, joined in suing the government in a lawsuit submitted on 6 August. They filed the lawsuits with Colombia's state council, the highest administrative court in the country, while requesting precautionary measures including halting the decree. The state council agreed on studying the lawsuit and could annul the ruling, but it could take 6-12 months to examine the case. The state council must listen to the defendants — the environment ministry — lawyer Luis Eduardo Delgado Martinez said. Environmental minister Susana Muhamad was summoned by congress to face a political control debate to explain the scope of the decree, Narino noted. Narino levelled several other criticisms against the decree, including calling the time frame of the temporary environmental reserve designations arbitrary. He also said IT bypasses other legal and constitutional norms. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Groups challenge Montana coal mine expansion


24/10/01
24/10/01

Groups challenge Montana coal mine expansion

Houston, 1 October (Argus) — A number of conservation groups are challenging Montana regulators' approval of a mining expansion at Signal Peak Energy's Bull Mountains coal mine in Montana. Earthjustice filed a complaint for declaratory relief with the Montana 13th Judicial District Court on 27 September, claiming the state Department of Environmental Quality's (DEQ) environmental analysis of Signal Peak's permit application was insufficient. The complaint accuses the Montana DEQ of violating the Montana Environmental Policy Act (MEPA) by inadequately analyzing the mine expansion's potential effects on water supplies and cultural resources. Earthjustice is representing Bull Mountains Land Alliance, Northern Plains Resource Council and the Montana Environmental Information Center in the lawsuit. The environmental assessment and permit amendment approved by the state DEQ in August allows operators of the Bull Mountains mine to access an additional 12.7mn short tons (11.5mn metric tonnes) of recoverable coal. Environmental groups claim the Montana DEQ failed to assess the expansion's "cumulative and secondary impacts […] to water quantity, wildlife, unique resources and cultural and historical sites, greenhouse gas pollution, agriculture, worker safety and the community's inevitable transition from coal mining to other, more sustainable sources of revenue", the environmental groups argue in the lawsuit filed on 27 September. Additionally, DEQ's decision to not prepare an environmental impact statement — which is more comprehensive than an environmental assessment — before permitting the Signal Peak coal mine expansion also violated MEPA because such a statement is required by state agencies if a proposed action is expected to "significantly affect the quality of the human environment", the complaint stated. The Montana DEQ said it does not comment on active litigation. Signal Peak did not respond immediately to a request for comment. Signal Peak applied for the permit amendment on 7 November 2023. That came nine months after the US District Court for the District of Montana vacated a federal agency's approval of a different plan to expand Bull Mountains' mining on federal land after the US 9th Circuit Court of Appeals found fault with the US Office of Surface Mining Reclamation and Enforcement's (OSMRE) environmental assessment of the plan. OSMRE has not yet concluded a revised analysis of that plan. By Anna Harmon Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

OECD's coal power in 2023 falls to half its peak: Ember


24/10/01
24/10/01

OECD's coal power in 2023 falls to half its peak: Ember

Singapore, 1 October (Argus) — The OECD's coal generation fell to just 17pc of its total power generation in 2023, down from 36pc at its peak in 2007, because of rapid growth in solar and wind power, according to think-tank Ember. A third of the 38 OECD countries are now coal-free, according to Ember's report on coal generation in OECD countries published on 1 October. The UK closed its last coal-fired power plant, the Ratcliffe-on-Soar, on 30 September , making it the 14th OECD country to achieve coal-free power. About three-quarters of the OECD nations will be coal-free by 2030. The majority of coal has been replaced by wind and solar power, which increased by 1,723TWh, or eleven-fold, over 2007-23. Only Turkey set a new record-high for coal generation in 2023, indicating it has not yet passed its peak. The country raised the share of coal in its electricity supply to 37pc, overtaking Poland as the second-biggest coal generator in Europe after Germany. There are also a number of countries in the OECD that still rely on coal for more than a quarter of their electricity needs, such as Poland with 61pc of its power mix, Australia with 46pc, the Czech Republic with 40pc and Germany with 27pc. But even countries that have been slower to phase out coal are still planning to reduce its share in their electricity mix, such as Japan, which aims to cut coal generation from 32pc in 2023 to 19pc by 2030, and South Korea, which targets to halve coal from 33pc in 2023 to 17pc in 2030. The drop in coal-fired power generation has also led to a 28pc drop in the OECD's power sector emissions over 2007-23, according to the report, although it did not provide further details on emissions reductions. Countries are boosting renewable electricity to cater to the increase in electricity demand, while reducing fossil fuels. Electricity demand in the OECD rose by just 1pc, so the growth in renewables was able to replace fossil fuels instead of "just meeting new demand," stated the report. But coal-powered generation globally hit a new record in 2023 as the fall in the OECD's coal power was outweighed by increasing coal-fired power in emerging Asian economies. OECD countries should end coal use by 2030 to align with the global warming limit of 1.5°C above pre-industrial levels the Paris Agreement seeks, energy watchdog the IEA and research institute Climate Analytics said. The OECD is working on a "gold standard" for financial institutions as part of the coal transition accelerator initiative, and the standard will provide clear guidelines on creating a robust financing policy or strategy to transition away from coal. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Some eastern US rail shipments restart after Helene


24/09/30
24/09/30

Some eastern US rail shipments restart after Helene

Washington, 30 September (Argus) — Some railroad operations in the southeastern US have resumed in the aftermath of Hurricane Helene, but major carriers warn that some freight may be delayed while storm-damaged tracks are repaired. Rail lines in multiple states were damaged after Hurricane Helene made landfall on the northeastern Florida coast on 26 September as a category 4 storm and traveled northwards as a downgraded but still dangerous storm into Georgia, Tennessee, and the Carolinas. The storm left significant rain and wind damage in its wake, including washed-away roads, flooded lines, downed trees and power outages. Eastern railroads CSX and Norfolk Southern (NS) said they are working around the clock to restore service to their networks. Norfolk Southern said it had made "significant progress" towards its recovery with most major routes back in service including its Chattanooga, Tennessee, to Jacksonville, Florida, line as well as its Birmingham, Alabama, to Charlotte, North Carolina route. Norfolk Southern said freight moving through areas that are out of service could "see delays of 72 hours". Several of Norfolk Southern's other routes remain out of service, including rail lines east and west of Asheville, North Carolina, because of historic levels of flooding. There are multiple trees to remove along a 70-mile stretch from Macon, Georgia, to Brunswick, Georgia. And downed power lines are keeping the railroad's lines from Augusta, Georgia, to Columbia, South Carolina, and Millen, Georgia, out of service. CSX said "potential delays remain" but did not provide specifics. However, the railroad said it had made "substantial progress" in clearing and repairing its network. The railroad's operations in Florida have mostly reopened, as have rail lines in its Charleston subdivision, which crosses South Carolina and Georgia. But bridge damage and major flooding has kept CSX's Blue Ridge subdivision out of service. A portion of the line running from Erwin, Tennessee, to Spartanburg, South Carolina, has been cleared, but CSX said "a long-term outage" is expected for other parts of the rail line. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more