Chinese met coal ban leads to Bluff going on C&M

UNCERTAINTY regarding Chinese government policy relating to Australian metallurgical coal imports has contributed to Carabella Resources deciding to place its Bluff pulverised coal injection project in Queensland’s Bowen Basin on care and maintenance.
Chinese met coal ban leads to Bluff going on C&M  Chinese met coal ban leads to Bluff going on C&M  Chinese met coal ban leads to Bluff going on C&M  Chinese met coal ban leads to Bluff going on C&M  Chinese met coal ban leads to Bluff going on C&M

The parties are working to fulfill current coal sales obligations with mining services expected to halt around the end of November.

MACA, which has a mining services contract at the Bluff project, said it had agreed to place the project in care and maintenance while the coal price remained below economic levels.

The parties are working to fulfill current coal sales obligations with mining services expected to halt around the end of November.

MACA CEO Mike Sutton said: "In conjunction with our client, Carabella, we believe it is prudent to cease operations until a sustained recovery in the PCI coal price occurs.

"MACA are able to redeploy the majority of the Bluff fleet to existing and new projects, which are commencing shortly.

"A relocation of the Bluff fleet will reduce the expected capital expenditure for FY21 by $35 million as a result."

The carrying value of the receivable amount owing from Carabella for mining services performed and the working capital facility as at June 30 was $34.7 million.

While the monthly balance fluctuates with the working capital cycle MACA expects the overall future recoveries to be materially in line with the carrying value of the receivable.