Force Majeure Coal shipments From Rolleston mine in Australia
March 27th, 2008Xstrata Plc XTA.L, the world’s biggest thermal coal exporter, said on Thursday it lifted force majeure on coal shipments from its Rolleston mine in Australia, which produces 8 million tonnes of thermal coal annually.
“We’ve sent out a note to clients today informing them that the force majeure has been lifted and shipments will resume shortly,” said James Rickards, a spokesman from Xstrata’s coal unit in Australia.
The resumption of exports from Rolleston could drive prices below $120 a tonne, traders say.
Prices for prompt-delivery of thermal coal, used for power generation and making of cement, have sagged by around $30, or 20 percent, from a record $150 in early February, as urgent demand among North Asian utilities eased.
Xstrata joined a handful of miners in declaring force majeure following February’s heavy rainfalls in the coal-rich Bowen Basin of Queensland.
Shipments from its 8-million-tones-a-year Newlands thermal coal mine and the 4.9 million tonnes a year Collinsville mine, remain under force majeure, Rickards said. Collinsville yields thermal and coking coal.
Rio Tinto Ltd/Plc (ASX: RIO.ax) RIO.L on Wednesday said it had resumed shipments at its 4.5-million-tonnes-a-year Hail Creek coking coal mine in Australia.
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