Bowen Coking Coal is reviewing the future of a steelmaking-coal mine that only restarted last year, and a potted history.
The coal is used in steelmaking.Falling prices for steel-making coal has forcedThe Brisbane-based miner on Monday confirmed its Bluff mine in central Queensland is undergoing a strategic review, and it is talking with customers and contractors “about the future operational status of the mine in the current pricing environment”.
Russian steel-making coal is finding a market in China and India despite sanctions and putting pressure on prices.“The PCI [pulverised coal injection] price has fallen significantly this calendar year with the resumption of Russian PCI trade flows,” Bowen said on Monday.“The reduction in sale price for a high-cost mining operation is a key consideration for Bowen in the strategic review process.
Despite his company acquiring the mine only in December 2021 and mining coal since June last year, Mr Jorss maintained the strategic rationale behind the acquisition remained sound. That included demand for steel being projected to grow, he said. “These are valuable assets in the right market,” he toldStill, even in its latest quarterly updates, Bowen said it had not achieved target production rates.
PCI prices have, according to Queensland budget papers, dropped from $US310 a tonne in the 2022 financial year to $US265 a tonne in the past financial year, and are forecast to fetch $US158 a tonne this year and $US149 a tonne in the following three years. “The price coming off has definitely hurt us,” Mr Jorss said.
While Russian commodities have been hit with sanctions in some countries following its invasion of Ukraine,
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