Coal news and updates

HZL again in market to procure imported steam coal

September 30: Hindustan Zinc Ltd, a division of the Vedanta Group, has floated an enquiry to procure 150,000-200,000 tons of high sulphur (2.5% to 3.5%) imported steam coal of any origin for loading in October or November and has subsequently sought offer for a six- month contract for similar cargo.

The company had sought bids from interested miners or overseas traders on or before September 30 with a validity of three working days.

However, ICMW understands that the company is willing to extend the validity of receipt of bids by a few days depending on the type of offers.

The company is looking to procure coal with GCV of more than 5,700 Kcal/kg (ARB), ash content of less than 15%, total moisture of less than 15%, and sulphur of 2.5% to 3.00% with HGI of 42-55 for delivery at Navlakhi port on the western coast of India.

The company had on September 24 floated another enquiry to procure 200,000 tons of similar type of coal, but with sulphur of less than 3%. The last date for submission of bids was September 26.

ICMW understands that the company has received only a few bids from overseas miners or traders against the earlier enquiry.

An Indian trader said, "The terms and conditions, particularly for CIF quotes, of HZL is not that friendly as it pays 90% on the basis of load port analysis and the balance 10% after discharge and disport analysis."

However, for FOB basis quotes, the company makes 100% payment based on loadport analysis.