Coal news and updates

HZL in market to procure 0.2 mt imported steam coal

October 29: Hindustan Zinc Ltd, a Vedanta Group company, has once again floated an enquiry to procure 200,000 tons of Indonesian/Colombian/US/Australia or any other origin coal for loading in December 2013/January 2014 and which is to be discharged at Navlakhi port on the western coast.

The enquiry was floated on late October 25 with the last date of submission of offers on or before October 29, with three days validity. However, ICMW understands that offers can be submitted till October 31.

The company is looking to procure coal with GCV of 5700 Kcal/kg (ARB) , total moisture of less than 12%, ash content of less than 25%, sulphur of less than 3.5%, HGI of 42-55.

The company had on September 30 floated an enquiry to procure 150,000-200,000 tons of high sulphur (2.5% to 3.0%) coal of any origin for loading in October/November and had subsequently sought offer for a six-month contract for similar cargo.

The quality specification for that enquiry was similar to that of the current enquiry.

ICMW understands that the company has received only a few bids from overseas miners or traders against its earlier enquiries floated in September and those received were for GCV of 6,100 Kcal/kg.

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."