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Monday, 22 March 10
INDIA TO IMPORT COLOMBIAN COAL FOR FIRST TIME AS DEMAND SURGES - BLOOMBERG


Bloomberg reported that,  Adani Enterprises Ltd., India’s biggest coal importer, agreed to buy thermal coal from Colombia for the first time as surging electricity demand prompted diversification of purchases, an official said.

The first cargo of fuel will be imported in a capesize, a vessel that has a carrying capacity of at least 110,000 deadweight tons, the company official said, asking not to be named because of confidentiality agreements. The company is negotiating a long-term contract, he said, declining to identify the mine and provide quantities.

Colombia’s Cerrejon, the world’s largest open-pit mine producing coal for export, may make its first sales to India this year, Leon Teicher, the venture’s chief executive officer, said in an interview this month. The project started shipping fuel through the Panama Canal and on other routes to China after prices became “much better” than those in Europe, he said.

Colombian coal may land in Mundra and Dahej ports on India’s west coast because they can handle capesizes, the Adani official said.

BHP Billiton Ltd., Anglo American Plc and Xstrata Plc each own a third of Cerrejon, which will produce 31 million to 32 million tons of coal in 2010. Last year, the mine cut production because of weak demand in Europe and the U.S.

Indian thermal coal imports surged last year to a little less than 60 million metric tons from about 30 million in 2008, Macquarie Group Ltd. said in a report in March. India plans to almost double electricity generation capacity by 2012, when the shortage of coal will exceed 200 million tons.

India received 6.06 million tons of coal, which is used to produce electricity and as feedstock to make steel, in February from suppliers in Australia, Indonesia and South Africa, port data showed. That compares with a monthly average of 4.9 million tons a year earlier, India’s coal ministry said.
Source: Bloomberg (By Archana Chaudhary and Dinakar Sethuraman --With assistance by Heather Walsh. Editors: Ang Bee Lin, Clyde Russell.)



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