Over the past few years, Xstrata Coal has been studying a potential new coal export terminal development at Balaclava Island, about 40 km north of Gladstone. Following completion of the merger with Glencore and a review of the project, Glencore Xstrata has decided to cease its work on BICET.
Poor market conditions in Australia’s coal industry
According to a company statement, this decision has been made as a result of the poor current market conditions in the Australian coal industry, excess port capacity in Queensland, specific shipping limitations and concerns about the industry’s medium-term outlook.
Long-term need for more coal export capacity
In the long-term, however, the company believes that Australia will need to increase its coal export capacity to respond to increased demand for coal in Asia: “the Queensland state government will need to ensure its long-term ports strategy provides for the growth of coal export capacity that is essential to the Australian economy and the maintenance and improvements of people’s living standards overseas,” the company commented in its statement.
Adapted from press release by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/13052013/glencore_xstrata_cancels_balaclava_island_coal_export_terminal_431/