Coal India's production growth has been stagnant for the past two years due to problems obtaining environmental and regulatory approvals for mining.
One of the world's largest undeveloped coal deposits — Mongolia's Tavan Tolgoi, host to some 7.5 billion MT of coal — will remain undeveloped for some time longer, according to reports last week from the government company charged with moving the project forward.
State-owned Erdenes Tavan Tolgoi said that it will delay a planned IPO of the project; the IPO was previously projected to raise up to $3 billion. The company plans to put off the transaction until more infrastructure is in place for a mining operation.
The owners of the project are reportedly also looking to renegotiate prices for an existing coal purchase contract with Aluminum Corporation of China (NYSE:ACH), which some analysts say may be pricing coal up to $20 per MT cheaper than coal being sold to China from elsewhere in Mongolia.Spain is working on ways to keep its government-subsidized coal sector alive beyond an EU-mandated closure in 2019, according to Platts. The Spanish government had previously submitted plans to close subsidized coal mines in the country, but has now done an about-face and is looking for ways to keep the mines active, the nation's industry minister said. Price round-up As the world's coal markets are still without direction, NYMEX coal prices have remained mostly flat through the beginning of 2013. Central Appalachian moved up slightly last week, from $55.75 per ton to $57.22 per ton. Both Indonesian McCloskey and Eastern Rail held steady at $63.60 and $60.38 per ton, respectively. Western Rail PRB sits at $9.90 per ton. Company news Indonesian coal explorer Indus Coal (ASX:ICZ) expanded its project footprint this week, purchasing a 38-percent interest in two companies that own three coal projects in Indonesia's Jambi province for $6.5 million.