Budget boost as coal price booms again; but big Queensland mines stall

Stanmore Resources has reported coal prices had jumped by more than $US100 ($A158) a tonne potentially boosting royalty income for the State Government, but the increase has come from production problems at some of Queensland’s big mines.

Oct 17, 2023, updated Oct 17, 2023

Stanmore said the price increased from $US233 a tonne at the start of the September quarter but finished at $US333 a tonne at the end. Since then it had increased further.

“With generally favourable weather conditions, Queensland operations have recovered to a position of stable supply for most grades,” the company said in its production report.

“Notably though, a combination of extensive maintenance programs as well as production issues at large Queensland prime coking coal mines has resulted in a very constrained availability for this grade.”

Stanmore said the lower-quality coal had not been impacted as much and there was competition from Russia in this sector of the market.

While steel demand remains subdued for the Eurozone and the USA, Stanmore said feedback from Indian steel producers was very strong and expected to remain so for the forthcoming period, which underpinned demand for coking coals.

The introduction of duties for coal exports from Russia has also impacted price expectations for material from this origin and the upcoming winter period traditionally impacts availability from the eastern ports.

Chief executive Marcelo Matos said Stanmore was well positioned to capture ongoing strong demand in the fourth quarter, underpinned by the south east Asian steel market.




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