[miningmx.com] — THE search for new coal markets has become a
matter of urgency for producers across the globe, market analysts IntierraRMG said
on Tuesday.
The group said uncompetitive prices in the United States relative to gas were leaving
the country’s coal producers struggling to offset the cost of production. “While miners
with producing assets close to the US West Coast can redirect exports to satisfy Asian
demand, those unable to export through the Pacific region are left to reduce output or
leave their mines idling indefinitely,’ it said.
India has seen its coal import demands increase annually due to inefficient domestic
production. Relative to Japan and South Korea, the sub-continental superpower is a
latecomer to strategic overseas asset acquisition. However, Indian conglomerates are
increasingly venturing abroad in search of supply assets, the latest example being
Jindal Steel’s acquisition of Canadian CIC Energy, which has projects in Botswana.
In other market dynamics, IntierraRMG said that Mongolia and Mozambique are
examples of countries that would be able to offset their respective production.
However, Mongolian coking coal has a grade and price advantage in the Chinese
market compared to Australian coking coal, and Mozambique’s strategic location gives
it an advantage in relation to fulfilling future Indian and Chinese demand.
