Atlantic Coal enters jv, sales agreement with China’s CIC

USA-focused anthracite coal miner Atlantic Coal has entered a joint venture and coal sale agreement with China-based CIC Brancepeth Coal, it announced on Thursday November 14.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

The UK-based company hopes that the deal will help it to develop its Stockton anthracite coal mine in the US state of Pennsylvania while also giving it opportunities in China.

As part of the three-year deal, Atlantic Coal will provide coal mining and processing expertise to CIC. In return, CIC and its Chinese subsidiary, coal group King Harmony, will purchase the coal mined and processed by Atlantic in an offtake agreement.

“Our expansion plans in Pennsylvania in part depend on developing export markets. We see China as one of the main targets, with anthracite imports already having risen by more than 11% in the first five months of this year,” Atlantic Coal md Steve Best said.

“While we have no immediate plans to enter the Chinese coal mining industry, the joint venture with CIC Coal, with its interests in Chinese coal operations, also brings new opportunities to use our coal mining and processing expertise to develop new coal mining projects in China,” he added.

Atlantic Coal will sell a minimum of 100,000 tpy of coal and 20,000 tonnes a quarter to CIC Coal, at an agreed price that can be adjusted depending on market conditions.

Atlantic Coal will be responsible for all shipment costs up to the point of delivery to CIC Coal in Tianjin, China.

The coal sale agreement will start by March 31, 2014, at the latest. The joint venture agreement could be extended by mutual agreement.

Anthracite is the highest quality metallurgical coal. International demand for anthracite is at historically high levels, and it represents 1% of world coal reserves, according to Atlantic Coal’s website.

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed