Australia's largest metallurgical coal producer, BHP-Mitsubishi Alliance or BMA, has added a new blend, BMA PLV, to its suite of premium hard coking coals, the company told S&P Global Platts this week.
The new blend is being produced from three of its mines in central Queensland -- Caval Ridge, Peak Downs and Saraji -- which share a seam, the company said.
Pricing basis and availability details have yet to be released.
BMA PLV is an Australia premium low-volatile coal with 72% coke after strength reaction, 20% volatile matter air-dried, 10% total moisture, 10.5% ash air-dried, 0.6% sulfur air-dried, 68% vitrinite and 8.5 crucible swelling number, according to official specifications released by the company.
Market sources said the coal was a "spec brand" -- blended to fixed specifications. Most coking coals are single-mine coals.
BMA plans to build a conveyor belt between the Caval Ridge and Peak Downs mines. BMA PLV will be blended at port for the first two to three years until the conveyor belt is completed, then at Caval Ridge's wash plant.
BHP has an existing blended coal product, Peak Downs North, that is widely traded. It has 67-69% CSR, 22-23% VM, 10% ash and 0.51% sulfur.
One Asian mill buyer source said the launch of the new premium HCC blend would increase options for buyers at a time when there was a shortage of premium coals in the spot market, but noted buyers would have to take into account it specifications.
A source at a steelmaker in China that uses Australian premium low vol with 72% CSR and 18.5% VM said consistency of supply was another key concern. "We may start considering [buying BMA PLV] if the supply of the new brand is regular," the source said, adding his mill would need to test the blend before making a decision.
BMA is also formalizing the introduction of another coking coal brand, Daunia Coking Coal, as part of its brand portfolio. Daunia's typical specifications are 57.5% CSR, 21.5% VM air-dried, 10% TM, 8% ash air-dried, 0.4% sulfur air-dried, 52% vitrinite and 6.5 CSN.
According to Platts data, BMA coals accounted for 61% of spot trades for premium hard coking coal in 2017.
Australia accounts for 62.8% of global met coal supply, Macquarie said in a report last October.
