"Glencore Xstrata Plc, the world’s fourth-biggest mining company, will suspend steelmaking coal production at its Ravensworth mine in Australia from September, citing lower prices, high costs and a strong local dollar. "
"Producers in Australia are locked into long-term rail freight and port deals, which are required to finance the export infrastructure. Under such take-or-pay agreements, suppliers must pay a fee regardless of whether cargoes are shipped, discouraging them from cutting exports."
Coking coal prices are at their lowest levels in about 6 years and the Aussies are going to export more of it this year! How dumb is that?
Mr B as I posted the miners in Australia must have taken a course from Obama because they believe they should be paid double what others are. Most Met mines in Australia have cost greater than what ANR sells Met at . Then when you have the Australia dollar up to the US dollar it really kicks them.
Now if they have a flood it would help both of us. They would be able to have a force majeure and not have to pay cost and ANR could filll those orders. Now I think it is our Christian duty to help them out so let`s pray for rain .
Ben is seeing a lot of rain on the east coast of Australia right now. I have been watching the weather stations and it is more than the last two years. Will it cause flooding where the mines close? We can only pray so the miners don`t get laid off but get a check from the government because of the flood. Then the workers of the railroads get to work over time repairing the tracks while ANR puts in another shift to meet supply. Yes praying for rain is good Karma all around . Wash out the old and In with the new and put a few dollars back in the pockets of ANR shareholders. AMEN.