Coal news and updates

Essar Power likely to finalise deal for 0.9 mt imported coal

February 27: Essar Power Ltd, which had floated two separate enquiries to procure around 900,000 tons of imported coal of Indonesian and South African origin, is likely to finalise the deal soon, an industry source said.

"The company is in the process of finalising the deal and is in active discussions with suppliers and miners in Indonesian and South Africa," the source said.

Another source said, "Essar Power has already booked its requirement till March and thus is not in a hurry to finalise the deal."

However, a third source said, "Essar has already finalised the deal to procure about 250,000 tons of Indonesian coal and the loading is likely to commence within a few days in five Supramax vessels."

Essar Power, on February 5, had floated an enquiry to procure three parcels of 150,000 tons of South African coal (+/-10%), but had not mentioned the delivery period.

Again, on February 6, the company had floated an enquiry to procure 450,000 tons (+/-10%) of Indonesian coal for delivery between April and June 2014.

Where the South African material is concerned, Essar was looking to procure coal with a net calorific value of 6,000 Kcal/kg (as received), total moisture of 9% (as received), Inherent moisture of 2-5% (ADB), sulphur of up to 0.6% (ADB), ash content of 15% (ADB ), Minimum VM of 22.0 (ADB) and HGI of 45-55.

For Indonesian material, it was looking to procure coal with a gross calorific value of 4,700-6,200 Kcal/kg (as received),  total moisture of 9-28% (as received), Inherent moisture of 2-14% (ADB), sulphur of up to 0.6% (ADB), VM of 38-42 (ADB) and HGI of 45-55.