I sure did not know thisGood post The Shadow!
So if I understand this right the only way to find out what grade of coke CMK coal will produce, they will have to send a bulk sample to be run through a coking oven? Have I got this right?
Surely this most important step must have been done by now? Othewise how will CMK be able to sell their coal to the right steel maker which has their blast furnace set up for the grade of coke CMK coal will produce?
Maybe in some sort of Technical Report put out by CMK? Anybody know?
Most don't realize that all met coals areactually quite different with respect to the actual coke that they canbe converted into - and it is coke, not the met coal, that is put intothe steel making blast furnaces.
Coke is made from met coal inmassive coking ovens - basically heating the met coal to very hightemperatures in an airtight, oxygen free oven to drive out most of thevolatiles and contaminants.
And since blast furnaces areengineered to run most efficiently using a certain grade or grades ofcoke - and there are about 8-10 grades of coke - if it turns out thatCMK met coal produces a coke grade which hardly any steel blast furnacescan use efficiently, then that would mean CMK coal would have to sellat a significant discount to the premium grades produced by Teck, WTNand GCE.
So the grade of CMK met coal is VERY important for investors.