Wednesday, 07 Dec 2011
Reuters reported that L&L Energy Inc a US based company with coal mining and distribution businesses in China subsidiary signed an agreement with China Chengtong Metal Corporation to jointly sell one million tons of coal in China during 2012.
L&L Energy which was founded in 1995 and operates in Yunnan and Guizhou provinces in southwest China said the sale pact is expected to generate USD 150 million in revenues at USD 150 per ton coal price.
L&L Energy said in a statement that DaXing-L&L Coal Inc a subsidiary of L&L Energy and China Chengtong Metal Tianjin Company a subsidiary of state owned CCMC will jointly source and sell coal in China.
(Sourced from Reuters)
Showing posts with label US coal miners. Show all posts
Showing posts with label US coal miners. Show all posts
Wednesday, December 7, 2011
Thursday, October 6, 2011
Deadline extended on Mac Coal offer
October 07, 2011 12:00AM
By Tony Grant-Taylor, Herald Sun
GLOBAL steel giant ArcelorMittal again has extended the deadline for Macarthur Coal shareholders to accept the $4.8 billion takeover offer tabled by the European group.
ArcelorMittal, the world's biggest steelmaker, and US coal miner Peabody are offering $16 a share for a stake of at least 50.01 per cent in Macarthur.
The companies last month said they had secured shares equivalent to 21 per cent of the Queensland-based group.
The bidding vehicle, PEAMCoal, yesterday extended to 8pm on October 28 the deadline for shareholders to accept the offer.
PEAMCoal originally had set a deadline of September 27, before pushing that to October 14. The takeover offer is backed by Macarthur's board.
The extension came as shares in another coal miner, New Hope, edged up only 1c yesterday, or 0.2 per cent, to $6.11 after rallying on Wednesday after its call for expressions of interest from potential bidders.
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Analysts say New Hope may be hard pressed to drum up offers at $7.60 or more - the starting price nominated by stockbroker RBS Morgans as the level necessary to win over New Hope's majority shareholder, Washington H Soul Pattinson.
Most bidders for coal assets over the past year have seen their share prices slump - including US groups Alpha Natural Resources and Peabody.
Alpha in January agreed to buy fellow US group Massey Energy, only to see its shares slump more than 60 per cent as investors worried about a fall in demand due to European and US economic woes.
Broker Bell Potter director Angus Aitken says New Hope could be worth $5.8 billion - about $7 a share.
But Rick de los Reyes, a manager at T Rowe Price Group's Global Metals and Mining Fund, said: "This deal is more attractive than the other coal deals that we've seen this year".
"The fact Australia is close to China, China went from net exporter to a net importer of thermal coal and New Hope has (its own) port capacity, that's huge."
New Hope said this week it would invite selected groups to submit formal offers.
By Tony Grant-Taylor, Herald Sun
GLOBAL steel giant ArcelorMittal again has extended the deadline for Macarthur Coal shareholders to accept the $4.8 billion takeover offer tabled by the European group.
ArcelorMittal, the world's biggest steelmaker, and US coal miner Peabody are offering $16 a share for a stake of at least 50.01 per cent in Macarthur.
The companies last month said they had secured shares equivalent to 21 per cent of the Queensland-based group.
The bidding vehicle, PEAMCoal, yesterday extended to 8pm on October 28 the deadline for shareholders to accept the offer.
PEAMCoal originally had set a deadline of September 27, before pushing that to October 14. The takeover offer is backed by Macarthur's board.
The extension came as shares in another coal miner, New Hope, edged up only 1c yesterday, or 0.2 per cent, to $6.11 after rallying on Wednesday after its call for expressions of interest from potential bidders.
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Analysts say New Hope may be hard pressed to drum up offers at $7.60 or more - the starting price nominated by stockbroker RBS Morgans as the level necessary to win over New Hope's majority shareholder, Washington H Soul Pattinson.
Most bidders for coal assets over the past year have seen their share prices slump - including US groups Alpha Natural Resources and Peabody.
Alpha in January agreed to buy fellow US group Massey Energy, only to see its shares slump more than 60 per cent as investors worried about a fall in demand due to European and US economic woes.
Broker Bell Potter director Angus Aitken says New Hope could be worth $5.8 billion - about $7 a share.
But Rick de los Reyes, a manager at T Rowe Price Group's Global Metals and Mining Fund, said: "This deal is more attractive than the other coal deals that we've seen this year".
"The fact Australia is close to China, China went from net exporter to a net importer of thermal coal and New Hope has (its own) port capacity, that's huge."
New Hope said this week it would invite selected groups to submit formal offers.
Saturday, October 1, 2011
US coal consumption up 3pct last week - Genscape
Saturday, 01 Oct 2011
Reuters quoted data from power industry data monitor Genscape showed that US coal consumption rose 3% last week versus the week before but stayed unchanged from a year earlier.
Warmer weather spread last week in the populous East, WSI Corp weather service said. A slight uptick in nuclear plant outages boosted coal use despite cheapening natural gas.
Coal use swings up and down seasonally, and varies from week to week and region to region, depending on electricity demand to run air-conditioners or heaters.
Coal plants produce slightly less than 50% of US electricity. Power generation accounts for more than 90% of US coal consumption.
(Sourced from Reuters)
Reuters quoted data from power industry data monitor Genscape showed that US coal consumption rose 3% last week versus the week before but stayed unchanged from a year earlier.
Warmer weather spread last week in the populous East, WSI Corp weather service said. A slight uptick in nuclear plant outages boosted coal use despite cheapening natural gas.
Coal use swings up and down seasonally, and varies from week to week and region to region, depending on electricity demand to run air-conditioners or heaters.
Coal plants produce slightly less than 50% of US electricity. Power generation accounts for more than 90% of US coal consumption.
(Sourced from Reuters)
Saturday, August 27, 2011
Alpha Natural Resources to buy back USD 600 million in stock
Aug27, 2011
Alpha Natural Resources, Inc a leading US coal producer announced that Alpha's board of directors has approved a share repurchase authorization permitting Alpha to repurchase up to USD 600 million of its outstanding common stock. The authorization, which remains in effect through December 31st 2014, enables Alpha to repurchase shares from time to time as market conditions warrant, subject to applicable securities law and other requirements.
The new USD 600 million authorization is in addition to the existing USD 125 million repurchase authorization announced in May of 2010, under which approximately USD 108 million has been used to repurchase approximately 3.2 million shares at an average price of USD 33.74 per share through August 19th 2011. Approximately USD 17 million remains available for repurchases under the existing USD 125 million authorization.
Mr Kevin Crutchfield CEO of Alpha said that "This new repurchase authorization affirms Alpha's long-standing commitment to maximizing shareholder value. Throughout its history, Alpha has been focused on operational excellence, thoughtful growth, and the maintenance of a strong balance sheet and an appropriate capital structure. Executing on our strategic plan, Alpha has emerged from the recent acquisition of Massey with a premier reserve base that positions us as a leading global supplier of metallurgical coal, a sound balance sheet and ample liquidity. With today's announcement, Alpha will continue to be able to deploy a portion of its capital and expected future free cash flows to fine tune our capital structure and return cash to shareholders while at the same time continuing to focus on successful integration and operational execution following the acquisition."
Alpha Natural Resources, Inc a leading US coal producer announced that Alpha's board of directors has approved a share repurchase authorization permitting Alpha to repurchase up to USD 600 million of its outstanding common stock. The authorization, which remains in effect through December 31st 2014, enables Alpha to repurchase shares from time to time as market conditions warrant, subject to applicable securities law and other requirements.
The new USD 600 million authorization is in addition to the existing USD 125 million repurchase authorization announced in May of 2010, under which approximately USD 108 million has been used to repurchase approximately 3.2 million shares at an average price of USD 33.74 per share through August 19th 2011. Approximately USD 17 million remains available for repurchases under the existing USD 125 million authorization.
Mr Kevin Crutchfield CEO of Alpha said that "This new repurchase authorization affirms Alpha's long-standing commitment to maximizing shareholder value. Throughout its history, Alpha has been focused on operational excellence, thoughtful growth, and the maintenance of a strong balance sheet and an appropriate capital structure. Executing on our strategic plan, Alpha has emerged from the recent acquisition of Massey with a premier reserve base that positions us as a leading global supplier of metallurgical coal, a sound balance sheet and ample liquidity. With today's announcement, Alpha will continue to be able to deploy a portion of its capital and expected future free cash flows to fine tune our capital structure and return cash to shareholders while at the same time continuing to focus on successful integration and operational execution following the acquisition."
Wednesday, August 24, 2011
US coal exports in June up by 35pct
Wednesday, 24 Aug 2011
According to a recent edition of National Mining Association International Coal Review, US coal exports increased 35% to 53.6 million short tons through June 2011. Strong demand from Asia and Europe for steam and metallurgical coal is expected to push coal exports above 100 million tons by the year’s end, the highest level in nearly 20 years.
NMA’s economic forecast prepared in May predicted 2011 coal exports would reach 101.5 million tons (up 24%). The Energy Information Administration’s August Short-term Energy Outlook predicts 2011 coal exports of 98 million tons. The annualised rate based on half year data would be about 107 million tons by the year’s end. In 2010, the US exported just more than 81 million tons of coal.
Steam coal exports through June 2011, excluding lignite and anthracite, increased 88% to 18 million tons and metallurgical coal exports increased nearly 18% to 35 million tons, according to the report. Anthracite and lignite exports were up 6% and 1% respectively.
NMA’s report found that imported coal, which stood at about 6.8 million tons year to date, was down about 31% from the 2010 level of 9.9 million tons. Annual coal imports peaked at 36.3 million tons in 2007, dropping somewhat in recent years. Coal imports totaled 22.6 million tons in 2010 and now account for roughly 2% of US coal consumption.
(sourced IM-Mining)
According to a recent edition of National Mining Association International Coal Review, US coal exports increased 35% to 53.6 million short tons through June 2011. Strong demand from Asia and Europe for steam and metallurgical coal is expected to push coal exports above 100 million tons by the year’s end, the highest level in nearly 20 years.
NMA’s economic forecast prepared in May predicted 2011 coal exports would reach 101.5 million tons (up 24%). The Energy Information Administration’s August Short-term Energy Outlook predicts 2011 coal exports of 98 million tons. The annualised rate based on half year data would be about 107 million tons by the year’s end. In 2010, the US exported just more than 81 million tons of coal.
Steam coal exports through June 2011, excluding lignite and anthracite, increased 88% to 18 million tons and metallurgical coal exports increased nearly 18% to 35 million tons, according to the report. Anthracite and lignite exports were up 6% and 1% respectively.
NMA’s report found that imported coal, which stood at about 6.8 million tons year to date, was down about 31% from the 2010 level of 9.9 million tons. Annual coal imports peaked at 36.3 million tons in 2007, dropping somewhat in recent years. Coal imports totaled 22.6 million tons in 2010 and now account for roughly 2% of US coal consumption.
(sourced IM-Mining)
Sunday, August 21, 2011
US coal exports in June 2011 up by 23pct YoY
Sunday, 21 Aug 2011
Argus reported that US coal exports reached second highest level of the year in June 2011 despite coking coal volumes falling slightly from May.
According to US Census Bureau data, total exports increased by 23% YoY to 9.1 million tons from 7.39 million tons in June 2010 and marked a slight gain from 9.04 million tons in May 2011. US exports for the first half of 2011 rose to 53.6 million tons, up by 35% YoY from 39.7 million tons in the year ago period to set an annualized pace of 107 million tons. In 2010, US exports totaled 81.7 million tons.
While coking coal again accounted for the majority of total coal exports, the segment fell month to month to 5.79 million tons in June from 6.43 million tons in May. In contrast, shipments of all steam coal types, including anthracite, bituminous, lignite, non bituminous steam coals and sub bituminous coals, rose to 3.31 million tons in June from 2.61 million tons in May.
Among the six major US ports where coal is shipped, the Norfolk Census district saw the largest amount of shipments at 3.25 million tons, although coal exports from Norfolk actually declined for the third consecutive month.
June exports from New Orleans, the second highest exporting port, were at their second highest level for 2011 at 1.85 million tons, jumping from a flood slowed May when its volumes totaled 1.39 million tons.
Europe and Asia again were the two continents importing the most US coal. But while exports to Europe were at their highest monthly level this year, at 4.33 million tons, exports to Asia were at their lowest level for 2011, at 2.21 million tons.
While US coal exports were at their second highest level for the year in June, US coal imports were at their second lowest level as generators relied on ample inventories and as low natural gas prices encouraged fuel switching.
The US imported 970,196 tons of coal in June as compared with 1.31 million tons in May and 1.77 million tons a year ago. Imports of Colombian coal totaled 518,351 tons, off 58% from 1.23 million tons a year ago and off 41% from 876,399 tons in May.
(sourced ArgusMedia)
Argus reported that US coal exports reached second highest level of the year in June 2011 despite coking coal volumes falling slightly from May.
According to US Census Bureau data, total exports increased by 23% YoY to 9.1 million tons from 7.39 million tons in June 2010 and marked a slight gain from 9.04 million tons in May 2011. US exports for the first half of 2011 rose to 53.6 million tons, up by 35% YoY from 39.7 million tons in the year ago period to set an annualized pace of 107 million tons. In 2010, US exports totaled 81.7 million tons.
While coking coal again accounted for the majority of total coal exports, the segment fell month to month to 5.79 million tons in June from 6.43 million tons in May. In contrast, shipments of all steam coal types, including anthracite, bituminous, lignite, non bituminous steam coals and sub bituminous coals, rose to 3.31 million tons in June from 2.61 million tons in May.
Among the six major US ports where coal is shipped, the Norfolk Census district saw the largest amount of shipments at 3.25 million tons, although coal exports from Norfolk actually declined for the third consecutive month.
June exports from New Orleans, the second highest exporting port, were at their second highest level for 2011 at 1.85 million tons, jumping from a flood slowed May when its volumes totaled 1.39 million tons.
Europe and Asia again were the two continents importing the most US coal. But while exports to Europe were at their highest monthly level this year, at 4.33 million tons, exports to Asia were at their lowest level for 2011, at 2.21 million tons.
While US coal exports were at their second highest level for the year in June, US coal imports were at their second lowest level as generators relied on ample inventories and as low natural gas prices encouraged fuel switching.
The US imported 970,196 tons of coal in June as compared with 1.31 million tons in May and 1.77 million tons a year ago. Imports of Colombian coal totaled 518,351 tons, off 58% from 1.23 million tons a year ago and off 41% from 876,399 tons in May.
(sourced ArgusMedia)
Friday, August 12, 2011
US coal exports on pace to hit 107mn st this year
Aug11, 2011,
Washington, 11 August — June's US coal exports reached their second-highest level of the year despite coking coal volumes falling slightly from May.
Total exports increased 23pc to 9.1mn short tons (8.3mn metric tonnes) from 7.39mn st in June 2010 and marked a slight gain from 9.04mn st in May, according to US Census Bureau data released today. US exports for the first half of the year rose to 53.6mn st, up 35pc from 39.7mn st in the year-ago period to set an annualized pace of 107mn st.
In 2010, US exports totaled 81.7mn st, the Census reports.
While coking coal again accounted for the majority of total coal exports, the segment fell month to month to 5.79mn st in June from 6.43mn st in May. In contrast, shipments of all steam coal types, including anthracite, bituminous, lignite, non-bituminous steam coals and sub-bituminous coals, rose to 3.31mn st in June from 2.61mn st in May.
Among the six major US ports where coal is shipped, the Norfolk Census district saw the largest amount of shipments at 3.25mn st, although coal exports from Norfolk actually declined for the third consecutive month.
June exports from New Orleans, the second-highest exporting port, were at their second-highest level for 2011 at 1.85mn st, jumping from a flood-slowed May when its volumes totaled 1.39mn st.
Europe and Asia again were the two continents importing the most US coal. But while exports to Europe were at their highest monthly level this year, at 4.33mn st, exports to Asia were at their lowest level for 2011, at 2.21mn st.
While US coal exports were at their second-highest level for the year in June, US coal imports were at their second-lowest level as generators relied on ample inventories and as low natural gas prices encouraged fuel-switching.
The US imported 970,196st of coal in June, compared with 1.31mn st in May and 1.77mn st a year ago. Imports of Colombian coal totaled 518,351st, off 58pc from 1.23mn st a year ago and off 41pc from 876,399st in May.
(sourced Argus)
Sunday, January 30, 2011
Alpha Natural Agrees to Buy Massey Energy for $7.1 Billion in Cash, Stock
By Mario Parker and Zachary R. Mider
Sunday, Jan 29, 2011
Alpha Natural Resources Inc., the third-biggest U.S. coal producer, agreed to buy Massey Energy Co. for about $7.1 billion in cash and stock, gaining the largest coal company in the U.S. Central Appalachian region.
Massey shareholders will receive 1.025 Alpha Natural shares plus $10 cash for each share held, the companies said in a statement yesterday. The bid values Massey at $69.33 a share, 21 percent more than Massey’s price at the close of trading Jan. 28. Massey has $1.63 billion in debt, according to Bloomberg data.
The combination will give the new company more than 110 mines and coal reserves of about 5 billion tons, and creates the world’s third-largest metallurgical coal producer behind BHP Billiton-Mitsubishi Alliance, known as BMA, and Teck Resources Ltd. It will be the second-largest U.S. coal company by sales, with almost 14,000 employees.
“We’ve always thought the combination between our two companies was strategic, transformational and compelling,” Alpha Natural Chief Executive Officer Kevin Crutchfield said in a telephone interview yesterday. “We went into the process with an eye toward winning, and, at the end of the day we did emerge victorious and we’re absolutely delighted that we did.”
Alpha Natural will own 54 percent of the company, and Richmond, Virginia-based Massey will own the remaining 46 percent, according to the statement. Both companies’ boards have approved the transaction, they said.
Alpha and Arch
Alpha Natural won Massey over a competing proposal from St. Louis-based Arch Coal Inc., according to two people with knowledge of the talks.
Alpha Natural, the largest U.S. metallurgical coal producer, has operations in Virginia, West Virginia, Kentucky, Pennsylvania and in Wyoming’s Powder River Basin. The Abingdon, Virginia-based company bought Foundation Coal Holdings Inc. for $2 billion in July 2009 to gain access to the low-cost thermal coal reserves in Wyoming, and controls about 2.3 billion tons of reserves.
Massey has about 2.8 billion tons of reserves, 1.3 billion of which is of the metallurgical or coking coal used to produce steel. Prices for steelmaking coal may surge 78 percent to a record $400 a metric ton for the three-month contract starting April 1, amid flooding in Queensland, Australia, which has disrupted supply, Bank of America Merrill Lynch said in a Jan. 25 report.
Mine Disaster
The company owns the Upper Big Branch mine near Montcoal, West Virginia, where 29 people died in an April 5 explosion, the worst U.S. coal mining disaster in 40 years. Massey has posted consecutive losses since the accident, citing associated costs and increased regulatory scrutiny.
Crutchfield said he will remain CEO of the combined company, while Alpha Natural’s Michael Quillen keeps his job as chairman and Kurt Kost continues in his role as president of Alpha.
Massey Chief Executive Baxter Phillips will remain with Alpha as an adviser, Crutchfield said.
“Baxter will be staying on with us in an advisory-type capacity,” Crutchfield said. “He will play a very key role in the integration process as well as other key business matters.”
Alpha executives have coveted Massey since at least 2007, when the companies discussed a stock merger, according to the two people familiar with the talks. The previous year, Massey had announced it was exploring alternatives after activist hedge fund Third Point LLC, run by Daniel Loeb, won two board seats and pressed for a sale.
Blankenship’s Opposition
Massey’s chief executive officer at the time, Don Blankenship, opposed the Alpha combination, the people said, and ultimately succeeded in keeping the company independent. Loeb and his colleague quit, chiding the board for failing “to follow through with an attractive business combination with a competitor,” according to a regulatory filing.
Alpha Natural went on to agree to a sale to iron ore producer Cleveland-Cliffs Inc. in 2008 that fell through and then it bought Foundation Coal.
The company approached Massey again last year, a few months after the Upper Big Branch explosion, and followed up with an unsolicited, written takeover proposal, the people said. Massey’s board entered into talks with Alpha and other potential acquirers.
“We’ve had discussions off and on for several years, but they reached a point of earnestness, call it, the last few months,” Crutchfield said yesterday.
Coal Premiums
The average premium for coal-industry deals announced in 2010 was 26 percent, according to data compiled by Bloomberg. Walter Energy Inc., a southern Appalachia producer of steelmaking coal, agreed to buy Canada’s Western Coal Corp. last month for C$3.3 billion ($3.3 billion) to add reserves and boost production.
Massey has about 7,000 employees and has been operating for more than 94 years and started with the Massey family selling coal door-to-door via horse-drawn wagon. St. Joe Minerals acquired a majority interest in 1974. Six years later, St. Joe and Royal Dutch Shell Plc formed Massey Coal Partnership, according to the company’s website.
Fluor Corp. bought St. Joe Minerals, reorganizing Massey into a subsidiary. Massey completed a reverse spinoff from Fluor in 2000.
Former CEO
Phillips, who has been with the company for 30 years, became Massey’s chief executive officer on Dec. 31 after Blankenship retired. Blankenship, who emerged as the face of the company in public disagreements with U.S. regulators following the Montcoal accident, had been with Massey for 28 years.
Blankenship, who began his career with the company as an office manager in 1982, had expressed reservations about the company’s potential sale. When he became president in 1990 Massey had about 700 million tons of coal, he has said. Under his management it mined 763 million tons of coal and he boosted its reserves to the 2.8 billion it currently holds.
Massey rose $2.84, or 5.2 percent, to $57.23 in New York Stock Exchange composite trading Jan. 28. The shares had fallen 35 percent since the fatal blast before surging on an Oct. 18 Wall Street Journal report that it was weighing a sale.
Alpha said that it received commitments for $3.3 billion in financing from Morgan Stanley and Citigroup Inc. and that it will use some of it to refinance both companies debt.
Morgan Stanley is the lead financial adviser for Alpha, in addition to Citi and Cleary Gottlieb Steen & Hamilton LLP is providing legal counsel.
Massey is advised by Perella Weinberg Partners LP and UBS Securities LLC. Cravath, Swaine & Moore LLP and Troutman Sanders LLP are Massey’s legal counsel. (Sourced:Bloomberg.com)
Wednesday, January 5, 2011
US coal miners rally, eye exports on Australia floods,
Courtsey news via Reuters by Steve James and Bruce NicholsMon Jan 3, 2011.
NEW YORK/HOUSTON, Jan 3 (Reuters) - U.S. coal miner shares rallied on Monday as massive floods in Australia disrupted a big chunk of the world's metallurgical coal supply, driving up prices and causing Asian importers to hunt for alternatives.
Floods in northeast Australia have brought most mining operations to a halt in Queensland, which produces the bulk of Australia's steelmaking coal. Australia is the largest exporter of the grade, exporting about 125 million tonnes, with the United States a distant second at 33 million tonnes in 2009.
Steelmakers globally are feeling the effect and are bidding up prices for U.S. exports of high-grade coal that is a key ingredient for producing steel. U.S. metallurgical coal is among the world's best, analysts said.
"Japanese, Korean and Taiwanese mills have started inquiring about near term U.S. coal at market prices higher than the pattern deal for the first quarter," said coal trader Frank Kolojeski at Export Commodities International Inc.
BHP (BHP.AX) and Japanese steelmakers agreed on $225 per metric tonne ($205 per U.S. short ton) for the first quarter of 2011 but analysts say $300 and above, last reached in 2008 when Australia suffered flood problems, is not out of the question.
All U.S. coal company stocks rose, with Consol Energy (CNX.N) leading the pack with a jump of 5 percent.
Inside Coal industry newsletter said met coal prices in Australia had risen past $240 a metric tonne before Christmas, and analysts said the price likely is higher than that now.
"Spot coal likely is trading at a significant premium," said Brian Gamble, coal analyst at Simmons & Co in Houston.
Lower-grade thermal coal, used to make steam in power plants, also is rising but the impact on utilities has beens less pronounced, analysts said.
U.S. coking coal exports have increased this year from 35.4 million in the 12 months through January 2010 to 49.8 million tons in the 12 months through October 2010, but infrastructure constraints could limit further immediate sales to the steel mills in Japan, South Korea and China.
One factor that could boost prices for U.S. exports is port capacity, which at about 130 million short tons is very small compared to the size of the 1.1-billion-tons-per year U.S. coal industry and is nearly full already, analysts said.
But the scramble for alternatives could be even more intense now that China is important about 10 times more than it was in 2008, said Kolojeski.
"The volatility may well be greater now," Kolojeski said.
The effect on steel prices could be muted by the fact that much of the steel used, particularly in the United States, is recycled and does not require coal to manufacture, said analyst Michelle Applebaum of Steel Market Intelligence in Chicago.
In afternoon trading on the New York Stock Exchange, Consol Energy (CNX.N) stock was up 5.4 percent at $51.39 and Alpha Natural Resources was up 3.4 percent higher at $62.04. Arch Coal (ACI.N) and Massey Energy (MEE.N) were up over 2 percent and Peabody Energy (BTU.N) rose 1.4 percent.
NEW YORK/HOUSTON, Jan 3 (Reuters) - U.S. coal miner shares rallied on Monday as massive floods in Australia disrupted a big chunk of the world's metallurgical coal supply, driving up prices and causing Asian importers to hunt for alternatives.
Floods in northeast Australia have brought most mining operations to a halt in Queensland, which produces the bulk of Australia's steelmaking coal. Australia is the largest exporter of the grade, exporting about 125 million tonnes, with the United States a distant second at 33 million tonnes in 2009.
Steelmakers globally are feeling the effect and are bidding up prices for U.S. exports of high-grade coal that is a key ingredient for producing steel. U.S. metallurgical coal is among the world's best, analysts said.
"Japanese, Korean and Taiwanese mills have started inquiring about near term U.S. coal at market prices higher than the pattern deal for the first quarter," said coal trader Frank Kolojeski at Export Commodities International Inc.
BHP (BHP.AX) and Japanese steelmakers agreed on $225 per metric tonne ($205 per U.S. short ton) for the first quarter of 2011 but analysts say $300 and above, last reached in 2008 when Australia suffered flood problems, is not out of the question.
All U.S. coal company stocks rose, with Consol Energy (CNX.N) leading the pack with a jump of 5 percent.
Inside Coal industry newsletter said met coal prices in Australia had risen past $240 a metric tonne before Christmas, and analysts said the price likely is higher than that now.
"Spot coal likely is trading at a significant premium," said Brian Gamble, coal analyst at Simmons & Co in Houston.
Lower-grade thermal coal, used to make steam in power plants, also is rising but the impact on utilities has beens less pronounced, analysts said.
U.S. coking coal exports have increased this year from 35.4 million in the 12 months through January 2010 to 49.8 million tons in the 12 months through October 2010, but infrastructure constraints could limit further immediate sales to the steel mills in Japan, South Korea and China.
One factor that could boost prices for U.S. exports is port capacity, which at about 130 million short tons is very small compared to the size of the 1.1-billion-tons-per year U.S. coal industry and is nearly full already, analysts said.
But the scramble for alternatives could be even more intense now that China is important about 10 times more than it was in 2008, said Kolojeski.
"The volatility may well be greater now," Kolojeski said.
The effect on steel prices could be muted by the fact that much of the steel used, particularly in the United States, is recycled and does not require coal to manufacture, said analyst Michelle Applebaum of Steel Market Intelligence in Chicago.
In afternoon trading on the New York Stock Exchange, Consol Energy (CNX.N) stock was up 5.4 percent at $51.39 and Alpha Natural Resources was up 3.4 percent higher at $62.04. Arch Coal (ACI.N) and Massey Energy (MEE.N) were up over 2 percent and Peabody Energy (BTU.N) rose 1.4 percent.
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