China’s Coal Imports Poised to Jump as Coke Export Tax Scrapped (COKING COAL IMPORTS)Bloomberg

Helen Yuan  hyuan@bloomberg.net
Editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

The “silent” removal of a 40 percent tax on China’s coke exports, coming after the World Trade Organization ruled against the practice, will drive up production and boost the nation’s coal imports, analysts said.

Exports of coke, used to make steel in blast furnaces, will jump next year, leading to more demand for the coal used to make the product in coking ovens in China, UOB Kay-Hian Ltd. analyst Helen Lau and researcher Custeel.com’s Mu Wenxin said.

China’s coke exports plunged to about 1 million metric tons this year amid the curbs, from an annual average of 15 million tons between 2000 and 2007. Should exports rebound to that average, demand for coking coal may rise by 20 million tons, benefiting suppliers including Mongolian Mining Corp. (975) and Winsway Coking Coal Holding Ltd. (1733), Lau said.
China didn’t include coke on the official list of export taxes for next year announced this week by the Ministry of Finance.

. . .  The price of coke shipped from China’s Tianjin port may drop to $285 a ton from the current $401, making it affordable for Japanese users, Lau estimated.

CN lands export coal contract

Progressive Railroading

Coalspur Mines Ltd. and CN reached an agreement on a seven-year coal transportation contract for the planned Vista project in Alberta, which has the potential to become one of North America's largest export thermal coal mines. The pact is expected to be executed in first-quarter 2013.

.....Coalspur President and Chief Executive Officer Gill Winckler.

... CN plans on supplying equipment to move Coalspur's coal to West Coast terminals. Coalspur has secured a port allocation agreement with Ridley Terminals Inc. at the Port of Prince Rupert, British Columbia, to export thermal coal from the Vista mine to Asia Pacific Rim countries, including China, Japan and Korea.

Australian Newcastle coal exports surge 19% on week in year-end rush

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