COAL OUTLOOK: Teck, Hillsborough release numbers

VANCOUVER — Both Teck Resources and Hillsborough Resources released coal operations guidelines and prices in the last week.

Teck said it expects coal sales to reach almost 20 million tonnes, thanks to increased sales to China. Strong demand has allowed the company to cancel temporary shutdowns previously announced for several mines. The reported price was US$128 per tonne for the highest quality coal. Cost of sales in the 2009 calendar year is expected to be in the range of C$53 to C$56 per tonne.

Hillsborough, which operates the Quinsam mine near Campbell River, BC, has revised the terms of its contract with the Vitol Group of Companies. Hillsborough will ship 700,000 tonnes of thermal coal to Vitol at a base price of C$80 per tonne with favourable price adjustments for quality.

Learn about coal mining in Canada at www.Coal.ca, the website of the Coal Association of Canada.