Chinese Coal Sector Consolidates As Indian Coal Imports Surge
Major producer Xstrata (LSE:XTA) declared force majeure on several shipments of coal from its Queensland, Australia operations after heavy rainfalls flooded rail lines there. The disruption affected over a dozen mines that ship coal to the port of Gladstone. The company said mine operations themselves were not materially affected by the rains.
US coal junior Corsa Coal (TSXV:CSO) said last week that the company sold 57,000 tons of metallurgical coal during the fourth quarter of 2012 for an average realized price of US$123 per ton. The output was slightly above previous guidance of 55,000 tons. For the 2012 year in total, Corsa produced 373,000 tons of metallurgical coal.
Also in America, Tennessee coal developer NovaDx Ventures (TSXV:NDX) announced the purchase of a mine and facilities adjacent to its Rex coal project. The Mine 12 property was bought by the company and its streaming-model investor, Sandstorm Metals & Energy (TSXV:SND), for a total price of US$8.5 million. NovaDx believes the new property will provide additional reserves plus another mine entry for an overall project development.
Forbes and Manhattan Coal (TSX:FMC) saw a significant drop in production from its South African operations during its third quarter, which ended November 30, the company reported this month. A four-and-a-half week labor action during the quarter resulted in the company's total sales falling to 147,000 MT — a 48-percent decline from the previous quarter.The company also cited a “challenging international coal market” as responsible for the quarter's performance, which saw it post a net loss of $4.97 million. Securities Disclosure: I, Dave Forest, do not hold equity interest in any companies mentioned in this article. Related reading: Mining Trends to Watch in 2013 Chinese Coal Sector Consolidates as Indian Coal Imports Surge from Coal Investing News
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