Byron Creek coal sale will double production

A major coal sale to the Japanese steel industry by Byron Creek Collieries, a unit of Esso Resources Canada, will lead to a doubling of production at its mining operation near Sparwood, B.C. Up to 100 more workers will be required for the expanded operation, says Esso.

“Negotiations, concluded recently in Tokyo, will move Byron Creek into the dominant position as Canada’s premier weak coking coal supplier and boost production to almost double the levels of the last two years,” says Giacomo Capobianco, Esso vice-president coal.

An agreement was reached with major Japanese steel companies for 550,000 tonnes of coal, with deliveries starting as soon as possible. The contract calls for deliveries to be completed by the end of the Japanese fiscal year, March 31, 1989. A further 200,000 tonnes had been requested, subject to availability, Esso notes. The negotiated price reflects an increase of approximately 10% over last year, Esso reports.

“With the use of weak coking coal expanding rapidly in the Japanese steel market, we have a clear understanding with the customer that purchasing will continue at this level on a long-term basis, with potential for significant tonnage increases in the future,” says Capobianco.

In comparison to metallurgical coal, weak coking coal is a lower quality, lower cost type of coal. Renewed interest in its use by Japanese steel companies, combined with increased thermal coal demand forecasts by the Korean and Taiwanese power utilities, holds the potential for significant future tonnage increases for Byron Creek, he emphasizes.