Vale-Sumitomo halt Isaac Plains mine in Australia on coal price

Brazilian mining major Vale and Japan’s Sumitomo Corp are placing their Isaac Plains 50:50 coking coal joint venture on care and maintenance, due to unfavourable coal prices.

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

Vale said it was taking the “necessary steps” to place Isaac Plains into care and maintenance, saying that the operation was not “economically viable under current market conditions’”.

The miner said halting operations at the Bowen Basin, Queensland, mine had been agreed with joint venture partner Sumitomo Corp.

“The decision is consistent with Vale’s strategy to focus on discipline in capital allocation and maximising value for its shareholders,” Vale said.

The move is the latest in a round of cuts among coal miners in Australia, who are struggling to remain competitive in a severely depressed pricing climate.

Last week coking coal mining major BHP Billiton Mitsubishi Alliance (BMA) announced 700 jobs cuts across its coking coal operations in Australia.

Steel First’s premium hard coking coal index fob Australia’s DBCT port has lost more than 15% of its value since the beginning of 2014, falling to levels of around $113 per tonne in the last week of September from over $133 per tonne at the beginning of the year.

What to read next
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
Low supply, strong demand to spur scrap prices higher in Feb, market says
US deep-sea ferrous export prices from the East Coast to Turkey have plateaued, with a Turkish mill purchasing a cargo at prices stable from the last-reported sale
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed