Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (29722)	2/21/2008 6:01:33 PM
From: Snowshoe	Read Replies (1) \| Respond to of 217580

Usibelli ships (Alaska) coal to Chile power plants alaskajournal.com By Patricia Liles The first of five planned coal shipments left in January from the Usibelli Coal Mine in Healy, bound for electrical power plant consumption in Chile, an increase in the number of annual deliveries and tonnage for the emerging South American market. With the first vessel already sailing toward Chile, Usibelli Coal Mine officials anticipate sending in 2008 four more shipments, for a total of 385,000 tons of ultra low-sulfur Healy-mined coal. “We're progressing from what was a test shipment of one vessel to now multiples of vessels over a period of a year,” said Bill Brophy, Usibelli's vice president of customer relations. “It's an emerging market and the increasing demand is moving in the direction for securing a multi-year, large quantity market.” Glencore Ltd., an international trading company, inked the deal for Usibelli to provide coal for ocean-going shipments to coastal electric power plants in Chile. “We secured a relationship with them several years ago and it's been very positive for us,” Brophy said. “In the past, we've moved about a half-million tons to Chile?all of them are considered test shipments, so it's not a long-term, multi-year defined quantity each year.” Three ships sailed to Chile with Healy-mined coal in 2006, carrying 279,000 tons, and again in 2007, carrying 229,000 tons of coal. The transportation distance to Chile from Seward is less than from Indonesia or other Asian coal exporters, Brophy said. “We're strategically located on the Pacific Rim to accommodate that market,” he said. Interest in Alaska-produced coal by the Chilean market grew in 2003 and 2004, as China reduced its coal exports, leaving some coal-fired power plants in short supply. China's coal exports were cut to “?satisfy their own growing demand for coal in their own country,” Brophy said. “They are continuing to be an exporter and an importer of coal.” In Chile, Usibelli's ultra-low sulfur coal is blended with other product, which provides an attractive ingredient for them, Brophy said. Average sulfur content delivered to Chile is less than 0.4 percent, although typically the run of mine sulfur content is rarely above 0.2 percent, Brophy said. The increase in shipments to Chile helps offset a decline in Alaska coal purchased by South Korean power plants. “We have a contract with Korea, although they did not take any deliveries during 2007,” Brophy said. “It was predominately because of the cost of shipping.” The three-year contract for up to 550,000 tons annually is still in effect, he added. “We don't have a scheduled date for shipments at this time, but that doesn't mean that something couldn't break loose tomorrow.” Usibelli has shipped 13.8 million tons of coal from Healy to Korea since 1984. Last year, Usibelli coal miners produced 1.3 million tons of coal, a slight decline from the 1.4 million tons mined in 2006. Usibelli continues to work on the proposed coal gasification project called Blue Sky project with Agrium. The project would involve using coal as a replacement feedstock in Agrium's fertilizer production plant at Nikiski, which was shut down late last fall due to a lack of available natural gas purchases from the tightening supply in Cook Inlet.