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Swiss: Xstrata sees lower coking coal, thermal output in Q2

https://www.chemnet.com   Jul 28,2010
Swiss miner Xstrata produced 3.8 million mt of hard coking coal in
Australia during the first half of 2010, up 73% compared with the same period
last year, although it had significantly lower output in the second quarter
than in the preceding three months, the group said Tuesday.


Semi-soft coking coal production hit 3.9 million mt in the first half, up
from 2.6 million mt a year ago, in a bid "to take advantage of higher prices,"
the company said.


Second-quarter output figures for hard coking coal were 1.6 million mt,
while semi-soft production in the three-month period totaled 2.1 million mt,
based on derived numbers using previously reported first-quarter figures of
2.2 million mt and 1.8 million mt, respectively.


First-half thermal coal production slipped 9% to 30.9 million mt, of
which the second quarter made up 13.2 million mt, based on the same
calculations. Xstrata said its Australian and South African thermal coal
output both dipped in the first half on the year-earlier period as more
material was sold as semi-soft coal and 2 million mt on a 100% basis was lost
from flooding at the Rolleston mine during the cyclone season.


Output from the company's joint-venture Cerrejon mine in Colombia was
flat, while production from the Prodeco coal operations was not included after
the assets went back to the full control of Xstrata's main shareholder,
Glencore International, earlier this year, despite Xstrata being entitled to
earnings from Prodeco up to April 13, 2010.


The inclusion of longwall operations at the Oaky No. 1 mine--which had
not been fully operational in the previous half-year period--and increased
productivity at the Oaky North mine helped boost output, Xstrata said. Both
mines are in Queensland, eastern Australia.


Pricing in the first half for hard coking coal averaged $193.70/mt FOB,
up from $142.60/mt in H1 2009, and compared with $166.70/mt in Q1 2010,
Xstrata said.


For semi-soft coking coal, first-half prices averaged $123.10/mt, down
from $169.80/mt in H1 2009, and up from $97.30/mt in Q1 2010.


Export thermal coal pricing from Xstrata's Australia mines averaged
$80.30/mt in the first half, down from $89.20/mt in H1 2009 and $73.40/mt in
Q1 2010.


South African export thermal coal prices achieved were $69.90/mt in the
first half, little changed on the $69.80/mt in the year-earlier period and
down from the $73.90/mt average for Q1 2010.


Xstrata's Americas coal price averaged $68.50/mt in the first half, down
from $77.50/mt in the year-earlier period and $72.70/mt in Q1 2010, it said.
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