Rio Tinto (NYSE:RIO) reported it surpassed analysts' expectations for iron ore production in the third quarter, breaking its own quarter record in the segment, while also breaking quarterly production records for coking coal and alumina.
Iron ore production was up 10 percent, alumina 6 percent and coking coal 17 percent. Another metal gaining significantly was bauxite, which gained 17 percent in the same period.
The company said: "This quarter we achieved record production in iron ore, alumina and coking coal. Our investment in organic growth is gathering momentum. We approved more than $4 billion of capital projects during the third quarter, including investment towards the expansion of our Pilbara iron ore operations to 330 million tons per annum. This takes our total approvals this year to $5.5 billion and is consistent with our capex guidance of $13 billion over the 18 months to December 2011."
The bad news for the company was gold and copper production was down at a time when prices for both metals have been skyrocketing. Copper was down 19 percent and gold 33 percent in the third quarter.
Also slightly down was aluminum production, dropping 2 percent, and thermal coal production in Australia, which fell 14 percent.
Showing posts with label Coking Coal. Show all posts
Showing posts with label Coking Coal. Show all posts
Friday, October 15, 2010
Friday, July 2, 2010
Peabody Energy (NYSE:BTU) in Joint Venture with Winsway Coking Coal Holdings of China
Peabody Energy (NYSE:BTU) has entered into a joint venture with China's Winsway Coking Coal Holdings for mining of coking coal in Mongolia, according to Peabody. Coking coal is used to make steel.
The new company will be named Peabody-Winsway Resources. Winsway acquired the 50 percent interest which had been held by Canada's Polo Resources (TSE:POL).
A press release from Polo stated Winsway paid $15 million upfront for the stake, with an additional $20 million to be paid in stock or cash sometime in 2011.
The newly formed company holds uranium and coal licenses in Mongolia, and is actively involved with exploration in the South Gobi region of the country.
The new company will be named Peabody-Winsway Resources. Winsway acquired the 50 percent interest which had been held by Canada's Polo Resources (TSE:POL).
A press release from Polo stated Winsway paid $15 million upfront for the stake, with an additional $20 million to be paid in stock or cash sometime in 2011.
The newly formed company holds uranium and coal licenses in Mongolia, and is actively involved with exploration in the South Gobi region of the country.
Tuesday, March 30, 2010
Teck Resources (TSE:TCK.B) Surges on Steel Demand
Teck Resources looks good on steel demand
Demand for steel continues to explode from China and emerging markets, driving up the prices of iron ore and coking coal, while companies like Teck Resources (TSE:TCK.B), which provide the raw materials needed for steel production, go up with the prices.
Add to that an estimated increase in production in steel industries residing in G7 countries, and you have a huge market about to explode for some time to come.
Iron ore and coking coal are key ingredients in the production of steel, the reason they're moving up in price along with the demand for steel.
Consequently, companies like Tech Resources are able to command top prices for their raw materials as countries and companies battle to be sure they get what they need for production.
Tech Resources will increase contract prices for its top-grade coking coal from $128 a ton to $200 a ton for the quarter beginning in April and ending in June. When you consider they make a nice profit at the $128 level, you can see how good it should be going forward, barring any unforeseen geopolitical problems or slowing down in the economies of the countries generating the demand.
Demand for steel continues to explode from China and emerging markets, driving up the prices of iron ore and coking coal, while companies like Teck Resources (TSE:TCK.B), which provide the raw materials needed for steel production, go up with the prices.
Add to that an estimated increase in production in steel industries residing in G7 countries, and you have a huge market about to explode for some time to come.
Iron ore and coking coal are key ingredients in the production of steel, the reason they're moving up in price along with the demand for steel.
Consequently, companies like Tech Resources are able to command top prices for their raw materials as countries and companies battle to be sure they get what they need for production.
Tech Resources will increase contract prices for its top-grade coking coal from $128 a ton to $200 a ton for the quarter beginning in April and ending in June. When you consider they make a nice profit at the $128 level, you can see how good it should be going forward, barring any unforeseen geopolitical problems or slowing down in the economies of the countries generating the demand.
Monday, March 29, 2010
Teck Resources (NYSE:TCK) Increasing Coal Production by 50 Percent in 5 Years
Teck Resources Coal Production
Teck Resources (NYSE:TCK) has stated it wants to increase its coal production by 50 percent within five years as demand for coking coal skyrockets.
This is probably a realistic goal if it's predicated upon China's hunger for coking coal, as they can't get enough of it to feed their needs, even after they increased coal imports by 500 percent last year.
In 2010 expectations are China will import over 30 million tons of coal this year, as their domestic supply can't keep up with their demand from steel mills.
Steel production is projected to continue to increase in China for some time, and that will guarantee demand for coking coal will increase with it.
Teck Resources will increase revenue and profits with it if they can meet their coal production goals.
Teck Resources (NYSE:TCK) has stated it wants to increase its coal production by 50 percent within five years as demand for coking coal skyrockets.
This is probably a realistic goal if it's predicated upon China's hunger for coking coal, as they can't get enough of it to feed their needs, even after they increased coal imports by 500 percent last year.
In 2010 expectations are China will import over 30 million tons of coal this year, as their domestic supply can't keep up with their demand from steel mills.
Steel production is projected to continue to increase in China for some time, and that will guarantee demand for coking coal will increase with it.
Teck Resources will increase revenue and profits with it if they can meet their coal production goals.
Coal Prices Rise on BHP Billiton (ASE:BHP) Closing Hay Point
BHP Billiton Hay Point Coal Prices
Spot prices for coal rose after the closure BHP Billiton's (ASE:BHP) Hay Point terminal in Queensland.
Top quality coal had an offer price of $220 to $225 originally, but has been sold for between $240 to $250 a ton.
BHP declared force majeure on shipments from the Hay Point terminal after it had been damaged by cyclone ului, and has remained closed since March 11.
Hay Point is included in the venture between BHP and Mitsubishi named the BHP Mitsubishi Alliance, which is the largest producer of coking coal in the world for the seaborne market. Of the approximate 58 million tons produced annually, about 45 million tons are exported through Hay Point.
Spot prices for coal rose after the closure BHP Billiton's (ASE:BHP) Hay Point terminal in Queensland.
Top quality coal had an offer price of $220 to $225 originally, but has been sold for between $240 to $250 a ton.
BHP declared force majeure on shipments from the Hay Point terminal after it had been damaged by cyclone ului, and has remained closed since March 11.
Hay Point is included in the venture between BHP and Mitsubishi named the BHP Mitsubishi Alliance, which is the largest producer of coking coal in the world for the seaborne market. Of the approximate 58 million tons produced annually, about 45 million tons are exported through Hay Point.
Tuesday, February 23, 2010
BHP Billiton (ASX:BHP) Japan Coal Prices
BHP Billiton (ASX:BHP) (NYSE:BHP) Japan Coal Prices
A proposal from BHP Billiton (ASX:BHP) to Japanese steelmakers to increase the price of coking coal provided by the company by 55 percent was greeted with luke warm response from the Japanese, to say the least.
BHP has held its coking coal prices down over the last couple of years, probably the reason it through out such hig percentage increase in prices to test the Japanese response. It also could be an attempt to secure higher prices than they hoped for by presenting such a large increase in the first place.
The Japanese have reportedly rejected the prices asked for, and BHP will now start to negotiate in earnest concerning the prices. This was probably BHP telling the Japanese they'll have to pay a lot more this year for the coking coal.
BHP Billiton (ASX:BHP) (NYSE:BHP) Japan Coal Prices
A proposal from BHP Billiton (ASX:BHP) to Japanese steelmakers to increase the price of coking coal provided by the company by 55 percent was greeted with luke warm response from the Japanese, to say the least.
BHP has held its coking coal prices down over the last couple of years, probably the reason it through out such hig percentage increase in prices to test the Japanese response. It also could be an attempt to secure higher prices than they hoped for by presenting such a large increase in the first place.
The Japanese have reportedly rejected the prices asked for, and BHP will now start to negotiate in earnest concerning the prices. This was probably BHP telling the Japanese they'll have to pay a lot more this year for the coking coal.
BHP Billiton (ASX:BHP) (NYSE:BHP) Japan Coal Prices
Subscribe to:
Posts (Atom)