Coal news and updates

Turkey's environment ministry is considering a proposal to increase a limit on the volatile content of imported thermal coal, a move that could potentially allow more Colombian producers to sell their products to the country, according to market sources Wednesday.

 

Cerrejon -- a joint venture between Glencore Xstrata, BHP Billiton and Anglo American -- is currently the only Colombian producer which can ship coal that satisfies all of Turkey's imported thermal coal quality restrictions.

 

Government approval of the proposed move to increase the volatile content limit of imported thermal coal from 40% to 43% air dried basis would mean that export material from other major miners operating in Colombia -- US firm Drummond, Glencore Xstrata's unit Prodeco and Colombian Natural Resources, a unit of investment bank Goldman Sachs -- would be eligible for sale into Turkey, one source said.

 

According to the source, the proposal -- initiated by major Turkish consumers of thermal coal -- has to be signed by the country's environment minister and could be applied as early as April.

 

However, one source at a Colombian producer said that, while he was aware there was lobbying within Turkey to change the specification limit, his understanding was that there are "no immediate plans for change on [Turkish imports of] thermal coal for power generation but there are likely changes on limits for [industrial consumption]."

 

One potential stumbling block to any ratification of the proposal is Turkey's forthcoming local elections on March 30, seen by many in the country as an important barometer of whether the ruling Justice and Development Party (AKP) will manage to cling on to power.

 

After Russia, Colombia was the second-largest supplier of thermal coal to Turkey in 2013, shipping 7.157 million mt, a 1% on-year fall, according to the Turkish Statistical Institute (TUIK).

 

Platts assessed the weekly CIF Turkey 6,000 kcal/kg NAR 90-day price at $90/mt Friday, up $2 on the week.

 

 

Source: Platts