Vietnam forced to import coal

Thursday, 21 Jul 2011 | By VNS

Vietnam is becoming a coal importer due to high demand and dwindling domestic supplies. Last month, the state owned mining giant Vinacomin Group accepted the country's first ever batch of imported coal for domestic use.

The shipment of 9,570 tonnes imported from Indonesia arrived at Cat Lai Port in the southern province of Dong Nai and would be used as fuel for thermal power plants in the central and southern regions.

According to Vinacomin, Viet Nam has been a coal exporter for decades, relying on its large coal deposits, but the imports have become necessary as buying imported coal has become cheaper than extracting domestic coal.

Importing lowenergy bituminous coal for use in power generators became preferable to using domestic coal, a high energy anthracite mainly used in chemicals and metallurgy, Vinacomin's acting deputy director Vu Manh Hung said that "We should sell our high-quality coal and import cheaper coal. Power plants have been advised not to waste anthracite to generate electricity."

Mr Le Minh Chuan general director of Vinacomin said that earlier projections had said coal imports would become necessary in 2015, but heavy exports of domestic coal and inadequate policies for stockpiling supplies have pushed that date forward.

South Africa exports above 1 million tonne coal to India

Thursday, 03 Mar 2011

Reuters reported that India bought 1.5 million tonnes of thermal coal from South Africa in January 34% of its total exports of 4.4 million tonnes but down from 2 million tonnes in December.

Exporters said that China accounted for 452,000 tonnes of South African coal in January, little changed from 485,000 tonnes shipped in December.

One exporter said that "The tonnages moving to India have remained substantial, but Indian buyers are less visible in the market because they're buying more term contract coal and less spot.”

India has over the past two years become the biggest single importer of South African coal and is expected to increase its share over the next several years as power generation grows.

The strength of Indian and to a lesser extent Chinese imports of South African coal has been the main factor supporting coal prices at over USD 100 a tonne during the past several months.

(sourced:Thomson Reuters)

Indonesian Ports to Clear Coal Backlogs in Three Months

Feb 25,2011 08:08:09

The Indonesian Government will clear the bulk coal backlogs at its ports in the next three months, as the re-application process for exporters has been completed.

A change in Indonesia coal and mining laws requiring cargoes to undergo extra surveys to stop tax evasion halted the shipment of 3.5 million tons of coal due for export to China and India, reports Reuters.

Indonesia trade ministry mining exports unit head Junaedi, who only has one name, told Reuters that out of 320 firms that have submitted applications to resume export, the government has given approval to 81.

However the backlog of cargoes remains, with some shippers still waiting for export permits from the energy ministry. (sourced:Reuters)
Tags:tax evasion,China, India, export permit, raw material,

Colombia Cerrejon says coal exports normal after bomb

Thu Feb 24, 2011 1:39pm GMT

* Second reported attack on Cerrejon railway this year

* Cerrejon produces 85,000 tonnes a day of coal

BOGOTA Feb 24 (Reuters) - Coal exports from major Colombian producer Cerrejon remained normal after a bombing halted a rail line in the second attack on its operations in around a month, police and the company said Thursday.

Colombia, the world's No. 5 coal exporter, has seen a drop in violence after a U.S.-backed crackdown on rebels, and foreign investment has risen sharply.

But attacks are still a risk in rural areas where state presence is weak.

A blast late Wednesday hit the coal railway operated by Cerrejon, the country's largest coal producer, in a remote northern region of country, the company and police said.

A spokeswoman for Cerrejon said damage was very limited and exports were unaffected by the attack.

Cerrejon, operated by BHP Billiton (BLT.L: Quote), Anglo American (AAL.L: Quote) and Xstrata (XTA.L: Quote), produces on average 85,000 tonnes a day of high-quality thermal coal.

Violence, kidnapping and bombings from Colombia's long war have ebbed since 2002 when former President Alvaro Uribe began a hard-line campaign against FARC rebels and negotiated the disarmament of outlawed paramilitary militias.

Companies are still targeted by illegal armed groups for extortion and occasional kidnapping attempts.

Fueled by the cocaine trade, Colombia's conflict still impacts rural areas, where former paramilitaries, leftist rebels and criminal gangs often fight or form loose alliances over drug trafficking routes.

(Reporting by Luis Jaime Acosta, writing by Patrick Markey; Editing by John Picinich, sourced:Thomson Reuters)

Asia demand to push Colombia coal to Europe-Cerrejon

Wed Feb 16, 2011 9:01pm GMT
* Port to close for routine maintenance for 20 days
* Asian demand to draw Colombian coal to Europe
* Firm to present expansion plan in next few months
By Jack Kimball

BOGOTA, Feb 16 (Reuters) - Colombia's largest coal exporter, Cerrejon, sees Asian demand propelling more Colombian coal to Europe and that demand will also keep prices at current
levels, the company's president said on Wednesday.

The overall trend for coal prices this year is upward but a series of price shocks is likely as the market reacts to supply disruptions and the sudden appearance and disappearance of
Chinese spot buying, analysts say.

"Long-term (the current price of coal) is relatively sustainable because of the dynamics of supply and demand in the world," Cerrejon President Leon Teicher told reporters.

"China, India, Asia (are) growing and taking a lot of the volume from South Africa and therefore leaving more space open for us in Europe," he said in Colombia's capital, Bogota.

Prices hit a peak of $130 a tonne early in January when sentiment after Australian floods sent prices to a 12-month high. An April Colombian only cargo was bid on Wednesday at $115.00 against an offer at $117.50.

Colombia -- one of the top producers of high-quality thermal coal -- saw a dramatic increase in exports to China last year although the main markets for Colombian material
remain the United States and Europe.

Neither coal exporters, analysts nor officials believe the destination make-up of Colombian coal exports will shift dramatically -- though the Latin American nation has also seen increased exports to Japan and South Korea.

Teicher said the company -- a joint venture between BHP Billiton (BLT.L: Quote), Anglo American (AAL.L: Quote) and Xstrata (XTA.L: Quote) --had sent less than half a million tonnes to Asia so this year.

Cerrejon and union workers signed a two-year compensation agreement earlier this month, avoiding a strike at a time when the company is trying to recover production following heavy
rains across the country last year.

Teicher said Cerrejon exported 31.5 million tonnes in 2010 but produced only 30.3 million tonnes. "We had intensive use of our inventories," he said.

The company still expects production to hit 32 million tonnes or the mine's nominal capacity in 2011, while Teicher also said he expected a shareholder decision on the mine's expansion plan later this year.

Canada's SNC-Lavalin Group Inc (SNC.TO: Quote) and a partner have been awarded the expansion contract for a project to boost output to 40 million tonnes annually.

"I have not yet presented the expansion project for shareholder approval," Teicher said, adding that he expected to do so in the "next few months".

Cerrejon will close its port for 20 days from around Feb. 20 for routine maintenance and clients have been advised, Teicher said. It plans to replace parts of the shiploader.
(Editing by Dale Hudson, sourced:ThomsonReuters)

Tags:Asia coal demand, Colombian coal, Europe, Cerrejon, coal exporters, coal prices, thermal coal, BHP Billiton, Anglo American Plc, Xstrata, SNC Group Inc., raw material, South Africa