Regional Coal: Macarthur Coal lifts force majeure

The world's biggest producer of pulverized coal (PCI) used to make steel Macarthur Coal announced on Thursday that it has lifted force majeure declaration with its customers, effective 28 April 2011.

?Unseasonal heavy rain in the Bowen Basin disrupted production and necessitated the declaration of force majeure to customers on 3 December 2010. Unprecedented and sustained heavy rain rainfall continued with cyclones Anthony and Yasi, which resulted in the depletion of stockpiles and severely impacted coal recovery from both the Coppabella and Moorvale mines,? the company said in statement.

CEO and Managing Director, Nicole Hollows, said whilst operations continue to be affected by additional rainfall, recovery has progressed and there is now sufficient delivery certainty to allow Macarthur Coal to resume its contractual commitments.

Macarthur Coal has settled prices for long term volume contracts for the June 2011 quarter. Prices increased in line with market settlements with premium low volatile PCI coal at a record price of $275 per tonne. Deliveries of March 2011 quarter volumes at March 2011 quarter contracted prices will extend into the June 2011 quarter, due to ongoing delays in production.

Production guidance is currently being revised.It has been a challenging five months, but as we move into a historically dry period, we expect to be back to full production by the end of June,? Hollows said. (denny)