SUPPLY-- Australian Supply Remains Calm Despite Floods

摘要

Despite Australia suffering from one of the largest flood events in a decade, coking coal supply has remained stable and the impact was much less than that experienced by thermal coal supply as the flooding was mostly in the Hunter Valley of NSW with almost negligible impact to Queensland operations. However, it did impact some of the lower tier cocking coal producers in NSW and further tightening the market. Mongolia’s biggest private coal mining company, Mongolian Mining Corporation (MMC), had reported a large drop in coal production in 2020. Year-on-year production volume of raw coal drastically fell 27%. This occurred because of the metallurgical coal export ban to China from Mongolia for a period of several months from February 2020, due to COVID-19. MMC is now running two coal mines in the Province of South Gobi, Ukhaa Khudag (UHG) coal mine and Baruun Naran (BN) coal mine. The total production capacity of raw coal at both coal mines reaches 15Mtpa. AME anticipates the full production capacity to be reached in the coming year with China relying more cocking coal import form Mongolia due to the recent ban on Australian Coal.