Tyre shortage drives down Elk output

THE global shortage in tyres continues to play a dampening role on commodity output, with a Canadian coal producer the latest to be impacted.
Tyre shortage drives down Elk output Tyre shortage drives down Elk output Tyre shortage drives down Elk output Tyre shortage drives down Elk output Tyre shortage drives down Elk output

Courtesy Elk Valley Coal

Michael Quinn

According to Macquarie Research, Elk Valley said it would produce 24 million tonnes of coking coal in 2005, down from the 25.5-26.5Mt forecast only three months ago.

Production in 2006 is put at 24-25Mt, compared to previous guidance of 28.5Mt.

Such is the shortage of tyres, that an Australian analyst recently told MiningNews.net that a used tyre with only 10% of its life left was costing 90% of a new tyre.

MiningNews.net

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