A 100-Year-Old Australian Coal Mine Returns as Prices Double – by Rajesh Kumar Singh and Archana Chaudhary (Bloomberg News – September 14, 2016)

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Jindal Steel & Power Ltd. has ramped up output at the 100-year-old Wongawilli coking coal mine in Australia and is set to resume operations at another in Mozambique as prices more than doubled this year.

The New Delhi-based company is producing about 100,000 metric tons a month at the mine in Australia’s New South Wales, which it started in July, and has sought regulatory approval for resuming output at the Russell Vale mine in the same area, Chief Executive Officer Ravi Uppal said.

The company, which is one of India’s largest steel producers, plans to resume operations this month at its Chirodzi coal mine in Mozambique and produce 300,000 tons a month, he said.

“Our mines have zoomed into action,” Uppal said in an interview in New Delhi Monday. “Coking coal prices are going to remain high for the next six months.”

Metallurgical coal prices have surged and thermal coal has rebounded after five years of declines as China seeks to cut its overcapacity and curb pollution. Output from the world’s biggest producer and consumer of the fuel has fallen more than 10 percent in the first eight months of the year.

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