Australia's Bureau of Agricultural Resources and Economic Affairs, ABARE, recently released its first quarterly report in 2011, stating that in 2011 the world's metallurgical coal exports are expected to increase by 4% to 264 million tons. By 2016, the world's metallurgical coal exports will increase to 341 million tons.
The Australian Bureau of Agricultural Resources Economics stated that imports of traditional metallurgical coal import countries and regions such as Japan, South Korea and the European Union will maintain steady growth, and India and China’s import growth will be relatively fast. Australia’s exports will resume, and new projects, including Mozambique and Mongolia, will also be completed.
The Australian Bureau of Agricultural Resources and Economic Affairs believes that although the flood in Queensland has caused disruptions in the production of metallurgical coal, it is expected that the export of metallurgical coal in Australia will still increase by 3% in 2011 to 163 million tons. Supported by the capacity of the coastal ports along Queensland and the expansion of rail traffic, Australia’s metallurgical coal exports will achieve a compound annual growth of 5% over the next five years and reach 219 million tons by 2016.
The Australian Bureau of Agricultural Resources and Economic Affairs believes that Canada’s metallurgical coal exports in 2011 are expected to remain at a level of 25 million tons. Moderately increased new production capacity will be offset by weather-based interference with supply. Teck Resources, Canada’s largest metallurgical coal producer, announced in January that extreme weather has affected rail transport and the company is facing force majeure. Canada's port operator WeSTShore TerminaLS also announced in January that the number of coal handled at the port will drop due to mechanical failure for at least two weeks. The company's annual coal handling capacity is 21 million tons. In the next five years, Canadian metallurgical coal exports will achieve a compound annual growth of 5% and reach 33 million tons by 2016. These increases will come from the planned expansion of Tyco Resources Inc., including the expansion of the Fording River Project and the Elkview Project and the expansion of the Quintette Project, which is expected to be completed in 2013.
The export of metallurgical coal in Mongolia is expected to increase from 4.5 million tons in 2010 to 9 million tons in 2016. Mongolia has a large amount of high-quality metallurgical coal resources and is close to the steel producers in China and Russia. However, the remote land distances between mines and ports or steel mills and the lack of infrastructure will pose challenges to the development of its coal industry. In the medium and long term, it is particularly important for the development of the coal industry in Mongolia that the Mongolian government and foreign investors establish a legal cooperation and development framework.
In Mozambique, Africa, Vale will complete its Moatize project in 2011 with an annual coal production capacity of 11 million tons, of which 8.5 million tons will be metallurgical coal. Riversdale's Benga project will also be completed this year, with an annual production capacity of 5.3 million tons of raw ore and a potential for further expansion to 20 million tons. The progress of these "greenfield projects" will ease the pressure on metallurgical coal prices. The Australian Bureau of Agricultural Resources Economics estimates that by 2016, the annual export volume of metallurgical coal in Mozambique will reach 10 million tons.
The Australian Bureau of Agricultural Resources Economics stated that imports of traditional metallurgical coal import countries and regions such as Japan, South Korea and the European Union will maintain steady growth, and India and China’s import growth will be relatively fast. Australia’s exports will resume, and new projects, including Mozambique and Mongolia, will also be completed.
The Australian Bureau of Agricultural Resources and Economic Affairs believes that although the flood in Queensland has caused disruptions in the production of metallurgical coal, it is expected that the export of metallurgical coal in Australia will still increase by 3% in 2011 to 163 million tons. Supported by the capacity of the coastal ports along Queensland and the expansion of rail traffic, Australia’s metallurgical coal exports will achieve a compound annual growth of 5% over the next five years and reach 219 million tons by 2016.
The Australian Bureau of Agricultural Resources and Economic Affairs believes that Canada’s metallurgical coal exports in 2011 are expected to remain at a level of 25 million tons. Moderately increased new production capacity will be offset by weather-based interference with supply. Teck Resources, Canada’s largest metallurgical coal producer, announced in January that extreme weather has affected rail transport and the company is facing force majeure. Canada's port operator WeSTShore TerminaLS also announced in January that the number of coal handled at the port will drop due to mechanical failure for at least two weeks. The company's annual coal handling capacity is 21 million tons. In the next five years, Canadian metallurgical coal exports will achieve a compound annual growth of 5% and reach 33 million tons by 2016. These increases will come from the planned expansion of Tyco Resources Inc., including the expansion of the Fording River Project and the Elkview Project and the expansion of the Quintette Project, which is expected to be completed in 2013.
The export of metallurgical coal in Mongolia is expected to increase from 4.5 million tons in 2010 to 9 million tons in 2016. Mongolia has a large amount of high-quality metallurgical coal resources and is close to the steel producers in China and Russia. However, the remote land distances between mines and ports or steel mills and the lack of infrastructure will pose challenges to the development of its coal industry. In the medium and long term, it is particularly important for the development of the coal industry in Mongolia that the Mongolian government and foreign investors establish a legal cooperation and development framework.
In Mozambique, Africa, Vale will complete its Moatize project in 2011 with an annual coal production capacity of 11 million tons, of which 8.5 million tons will be metallurgical coal. Riversdale's Benga project will also be completed this year, with an annual production capacity of 5.3 million tons of raw ore and a potential for further expansion to 20 million tons. The progress of these "greenfield projects" will ease the pressure on metallurgical coal prices. The Australian Bureau of Agricultural Resources Economics estimates that by 2016, the annual export volume of metallurgical coal in Mozambique will reach 10 million tons.