Coronado loads 136,400 metric ton of Logan coal on the Frontier Unity cape vessel (above), which was shipped from Newport News Pier IX, bound for China. (Photo: Coronado)
Metallurgical coal supplier Coronado continues to benefit from the Chinese import restrictions placed on Australian coal, thanks to their geographic diversification, according to CEO Gerry Spindler. U.S. operations continue to successfully move met coal into China at record levels as evidenced by the company’s record U.S. east coast shipment of 136,400 metric tons in a single cargo of Logan HVA coal on June 28.
In its second-quarter earnings report, Spindler explained that metallurgical coal pricing has substantially increased in the back half of the quarter with the PLV HCC FOB AUS index reaching $194/metric ton (mt) on June 30. The benefits of these price increases will be realized by Coronado in the third and fourth quarters due to an approximate three-month pricing lag between contracting and delivery. The company said it expects to see strong cash generation for the business at current pricing levels in the second half.
At Buchanan, Coronado completed a Longwall move and maintenance upgrade activities at the preparation plant to increase coal throughput rates. At Logan, the preparation plant set a new ROM daily processing record of 30,185 ROM short tons, according to the company.
