Met coal price slide for Wesfarmers

WESFARMERS’ latest quarterly metallurgical coal price settlements for its Curragh mine have slumped 11% from the previous quarter.
Met coal price slide for Wesfarmers Met coal price slide for Wesfarmers Met coal price slide for Wesfarmers Met coal price slide for Wesfarmers Met coal price slide for Wesfarmers

Courtesy Wesfarmers

Blair Price

The weighted average price fell by 11% for the mine’s December quarter settlements covering the full range of its hard coking, semi-hard coking and pulverised coal injection coal.

But Wesfarmers Resources managing director Stewart Butel said he was satisfied with the outcome for the mine’s hard coking coal, which settled at about $US205 a tonne, free on board.

Unfortunately, the company downgraded its 2011 financial year met coal sales forecast from 6.5-7.0Mt to 6.2-6.7Mt.

“Recent unseasonal wet weather conditions in Central Queensland are significantly impacting Curragh’s metallurgical coal production,” Butel said.

Wesfarmers joined other key Australian coal producers by adopting quarterly pricing this year, as opposed to annual contracts based on the Japanese financial year.

The company settles about 75% of its contracted tonnage under quarterly pricing.

Shares in the mining and retail giant closed up one cent to $32.90 on Friday afternoon.

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