Vancouver – Western Canadian Coal (WTN-V) will see US$100 for each tonne of PCI coal it ships to its customers at steel mills in northern Asia. The new prices for WCCC’s pulverized coal injection (PCI) coal take effect April 1. The upswing in prices for PCI coal are in line with current moves in coking coal prices.
“These prices are nearly double the prices we received last year,” says Gary Livingstone, president of Western Canadian Coal. He says prices are negotiated between suppliers and their customers once a year.
The company also nailed the six year contract for delivery of 2.8 million tonnes of coal to POSCO (PKX-N), after successful trial shipments earlier this year.
Livingstone says that its low volatile PCI coal is well-received by its customers owing to the high quality.
WCCC has been producing coal from its Dillon mine in northeastern British Columbia at a rate of 240,000 tonnes per year. With the high demand and prices for coal, it wants to speed up production to 960,000 tonnes per year.
This would allow it to finish up mining at Dillon in two years rather than six. It submitted its application in mid-March.
WCCC hopes that at the new rate, by the time it completes mining at Dillon, it will have the approvals it needs to begin mining at the Brule mine next door. Brule hosts PCI coal in the same rock formation.
The company will submit an application for its proposed Brule mine to the B.C. Environmental Assessment office in the third quarter this year.
The project will undergo a full-fledged review that should take some nine months to complete.
The company’s Burnt River coal is exported through Ridley Terminals in Prince Rupert.