India and Brazil to lead coking coal demand - BHPB BMA
BHP Billiton Mitsubishi Alliance, a JV between BHP Billiton Limited and Japan's Mitsubishi Corporation said that India and Brazil will lead gains in long term demand for the steelmaking raw material.
Mr Michael Lambourne CFO of BHP Billiton Mitsubishi Alliance said that it plans as many as 11 projects in Australia's Queensland state as part of an aggressive growth strategy to meet demand. He added that "India's steel consumption is expected to grow by 16% annually until 2012, fuelled by demand for construction projects worth USD 1 trillion. The scope for steel demand in India is huge".
Mr Lambourne said that India is now the second largest buyer of coking coal from the alliance, which sold 9.7 million tonnes to the country last year. He added that "Looking forward, we expect demand to remain very strong".
It may be noted that prices for coking coal tripled to a record USD 300 a tonne this year as floods in Australia's Bowen Basin cut output from mines, including those of BHP and power constraints in China and South Africa limited supplies.
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