Coal rises - would be longer, longer in the future :

o The problems is in infrastructure haltings in overseas - that would be
not solved even in short-term futures

o Some exporter's countries cut their exports recently - meaning it's
advantage, benefititing to Indonesia - as the world's largest producer of
thermal coal

o Meanwhile - it has advantage from oil rises - but also benefittings from
the above factors themselves directly

Happy chuan,

Aria


Newcastle Coal Rises to Record on Australian Floods (Update2)

By Angela Macdonald-Smith

 Feb. 18 (Bloomberg) -- Thermal coal prices rose to a record for a fourth
week at Australia's Newcastle port, a benchmark for Asia, as floods cut
deliveries in Queensland, adding to supply disruptions in China and South
Africa.

Power-station coal prices at the New South Wales port gained $13.68, or 11
percent, to $139.16 a metric ton in the week ended Feb. 15, according to
the globalCOAL NEWC Index. The price rose 73 percent in 2007. The increase
comes as mine owners and fuel buyers are set to negotiate annual contract
prices to take effect April 1.

Xstrata Plc, the world's biggest exporter of thermal coal, last week
advised customers of delays to deliveries from two mines in Queensland,
including the Newlands mine that produces the type of the fuel burned in
power plants. China, with coal deliveries disrupted by the heaviest
snowstorms in 50 years, has halted exports until April, while power cuts
in South Africa have reduced mine production.

``It's clearly a supply issue, it's just one problem after another,'' said
Mark Pervan, a senior commodity strategist at Australia & New Zealand
Banking Group Ltd. in Melbourne. ``It still looks as if we've got some
heavy wet weather coming through Queensland and I think the market is
going to remain very tight until the whole thing passes.''

Coal for delivery in northwest Europe also rose to a record on Feb. 15.

Monsoon Trough

The rains are being caused by a monsoon trough that extends across the
tropics of Queensland from the Gulf of Carpentaria to the central Coral
Sea, the Bureau of Meteorology said on its Web site. The town of Mackay on
Queensland's central coast was declared a disaster zone Feb. 15 as
residence were evacuated due to flooding following the heaviest rain in 90
years.

The Bureau is warning of ``damaging wind gusts'' and ``dangerous wave
conditions'' around Queensland's central coast.

``High tides over the next few days will result in waves running up over
levels exceeding the highest tides of the year in areas exposed to the
open ocean causing beach erosion,'' it said in a report at 11 a.m. today.

Rio Tinto Group, BHP Billiton Mitsubishi Alliance, Wesfarmers Ltd., Ensham
Resources Pty and Macarthur Coal Ltd. are among other companies that have
declared force majeure on shipments from some mines, allowing them to miss
contracted deliveries due to circumstances beyond their control. The
Queensland flooding has also disrupted rail networks delivering coal,
Queensland Rail said last week.

Vietnam's Exports

The disruptions drove a surge in spot prices to a record, Tex Report said
last week, without citing anyone. Coal used in steelmaking rose to $270 a
ton, while power-station coal climbed to $150, it said.

Citigroup Inc., UBS AG and JPMorgan Chase & Co. are among banks that in
the past three weeks have raised their forecasts for the new annual
contract prices for thermal coal. Prices may almost double to $100 a ton,
Citigroup Inc. estimates. UBS is also forecasting $100 a ton for
power-station coal, while JPMorgan raised its forecast to $90, up from
$55.65 this year.

GlobalCOAL's monthly index for Newcastle thermal coal prices rose $1.71,
or 1.9 percent, to $90.87 a ton in January, the fourth successive monthly
record. Newcastle is the world's biggest coal-export harbor.

Vietnam, China's largest coal supplier, plans to reduce exports by 32
percent this year and gradually eliminate the sales to meet rising
domestic demand, a government official said last week.

Coal exports may drop to a forecast 22 million tons from 32.2 million in
2007, Nguyen Khac Tho, vice director of the Ministry of Industry and
Trade's energy and petroleum department, said in an interview in Hanoi on
Feb. 14. The ministry will recommend Prime Minister Nguyen Tan Dung halt
overseas shipments by the world's eighth-largest exporter of energy coal
after 2015.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at
[EMAIL PROTECTED]




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