Gloucester favours coking coal

GLOUCESTER Coal switched its focus to coking coal with a 73% increase in sales in the December quarter, but recorded an overall 9% drop in sales to 444,000 tonnes.
Gloucester favours coking coal Gloucester favours coking coal Gloucester favours coking coal Gloucester favours coking coal Gloucester favours coking coal

Leighton works at the Duralie mine.

Angie Tomlinson

Coking coal sales were 149,000t to take advantage of the strengthening market.

The company plans to take full advantage of the market in upcoming negotiations and is expecting “substantial price increases” for the 2010-11 financial year.

While the company will continue to focus on supplying Japanese steel mills, it will also seek to place coal in alternative markets to press the coking coal advantage with the planned Duralie extension late this year.

Thermal coal sales dropped 26% in the quarter with 295,000t sold.

Forward thermal coal sales of 4.3 million tonnes have been secured from 2010 to 2015, representing about half of the company’s production.

The upgrade and refurbishment of the Stratford coal handling and preparation plant continues, with replacement and new equipment being installed.

An increase of throughput to 4.3Mt is expected by late 2010.

Exploration drilling continued to target the Clareval and Weismantel seams. Nine rigs are currently drilling with two more expected to be added next month.

Gloucester shares were trading up 0.12% mid-morning, at $A8.42.

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