Thermal coal market showing ‘considerable strength’: TerraCom

Demand for Australian thermal coal has been strong in recent months, according to TerraCom.

The miner operates the Blair Athol operation in Queensland, a site it acquired for $1 in a deal announced two years ago.

TerraCom re-launched production at Blair Athol last October and has progressively extended its mine life in the time since.

In an ASX statement released today, TerraCom pointed to a healthy market for Australian thermal coal, saying it had shown considerable strength over the past two months.

The company added there was “a strong focus from buyers wishing to secure low total sulphur bituminous coal, such as product from Blair Athol.”

“The (TerraCom) sales portfolio continues to expand as old customers return looking to secure volume, and new customers trial the product. The Blair Athol brand is strong amongst Japanese and Korean buyers.”

TerraCom has secured sales for 520,000t at a forecast average price of $US92/t for the September quarter. The company plans to lock in another 130,000t of sales in the coming weeks to reach a quarterly target of 650,000t.

Its mix of September customers, by country, is led by Korea (46 per cent), followed by Japan (33 per cent), Indonesia (12 per cent), and others (9 per cent).

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