Coal producers lose 1.7Mt allocation at PWCS

Brisbane (Energy Publishing) - In New South Wales, coal producers have been warned they’ll lose Newcastle export shipping allocations totaling 1.7Mt, mostly through February and March, because of bad weather, equipment failures and vessel loading delays through January.

Coal terminal operator, Port Waratah Coal Services (PWCS), concedes January was “a disappointing month” when 8Mt throughput fell 1.7Mt short of expectations. The company says the export allocation cuts will be applied pro rata to producers.

One Sydney-based coal trader said the allocation reduction has had no immediate effect on the Newcastle spot price but may have a longer term impact.

Meanwhile, PWCS has confirmed a proposal to add 20Mt of Newcastle coal shipment nameplate capacity with an approved expansion of A$670M to be completed by the end of 2011.

The expansion is the largest in more than 10 years at PWCS and will bring nameplate capacity to 133Mt. PWCS has contractual obligations to handle 123.6Mt in 2012.