First Powder River coal exported to asiaThis should answer any questions about the viability of bituminous and sub-bituminous coal in Saskatchewan Mr Zerb. Wouldn`t everyone rather see quality Saskatchewan coal exported to asia through Vancouver rather than the American stuff? I know i would.
UPDATE 1-More US coal moving to Asia - market sources
Mon Jul 7, 2008 8:09pm BST
(Adds details, adds byline)
By Bruce Nichols
HOUSTON, July 7 (Reuters) - More U.S. coal is moving toAsia, including the first Utah coal and the first whole cargoof Powder River Basin coal through Westshore Terminals atVancouver, Canada, market sources said Monday.
Utah coal has never before moved through Westshore, thelargest dry bulk terminal on North America's West Coast, andPowder River Basin has shipped there only as part of a blend,said Denis Horgan, terminal general manager.
Coal analysts have been watching for increased movement ofU.S. coal to Asia as prices soar in a booming, coal-hungrymarket. Asian demand coupled with delivery problems inexporting countries has made U.S. coal attractive.
"It's because there's such a shortage in the world marketnow," said John Hanou, vice president of Hill & Associates, acoal consultancy. "It tells you how desperate people are."
David Khani, manager of energy research at Friedman,Billings, Ramsey investment bank, predicted more cargoes willmove from unusual origins to non-traditional destinations."We're seeing inventories around the world depleted," he said.
Prices for steam or power-plant-grade coals have moved past$140, from less than $50 early last year, while metallurgicalor steel-making coals have sold for well over $300 a ton,triple prices of last year.
The prices of the deals moving through Westshore were notdisclosed, but PRB is sub-bituminous and lower in heat contentthan bituminous coals, so it sells for around $10 a ton in theUnited States.
The Utah coal is coming from Consol Energy's (CNX.N: Quote, Profile, Research) EmeryMine in Utah and is part of a deal for 750,000 short tons soldto an Asian buyer and announced earlier, Consol spokesman TomHoffman said.
One cargo already has moved, and a second will move "veryshortly," Horgan said.
The Emery coal is bituminous and is being blended with coalfrom another source to be sold as a steel-making coal, Hoffmansaid.
He did not disclose the destination or the buyer.
The Powder River Basin (PRB) sub-bituminous coal is comingfrom Rio Tinto Energy America's Spring Creek mine near Decker,Montana, market sources said.
A person familiar with the PRB market said the coal isgoing to South Korea to replace Indonesian power-plant-gradecoal, which is comparable to PRB.
Rio Tinto could not be reached immediately for comment.
"Never, ever, has Utah coal gone through here before," saidHorgan. "The rail rate is prohibitive, and it can only happenin a high-price scenario."
The Utah mine is more than 1,600 miles from Vancouver,making the haul one of the longest ever done for export coal inthe United States, Hanou said.
PRB also is a long way from Vancouver, but the coal hasmoved through the terminal in the past as part of a blend,analysts said.(Editing by Christian Wiessner)