Minerals mining company Xstrata South Africa’s production of coal 
decreased by 9%, to 4,2-million tons, because of the planned shutdown of the Southstock opencast mine in the second half of 2009, the company’s first-quarter production report and interim management statement state.

The decrease is also partly 
because of reduced volumes during the ramp-up phase of the new Impunzi opencast mine. The mine was transferred to Xstrata in December 2009, as a result of the Douglas-Tavistock joint venture (DTJV) restructuring.

Total production for the year ended December 31, 2009, was 20,8-million tons of South African thermal coal, but this included production from the DTJV.

The statement reports that total international consolidated 
coal production for the first quarter of 2010 increased by 9%, to 21,7-million tons, with particularly strong increases in coking coal and semisoft production and higher thermal coal volumes, despite the loss of production at Rolleston owing to flooding.

A range of spot, quarterly and yearly contract business has been settled at prices ranging from $200/t to $270/t for prime hard coking coal, with an average price in the upper end of the range. Xstrata settled semisoft coking coal contracts on a quarterly basis to June at $167/t, a 114% increase on last year’s figures, because of a strong coking coal market.

Xstrata finalised its thermal 
coal contract pricing with a major power utility customer in Japan for the 12-month period beginning April 1, 2010, at a price of $98/t, on a basis of 6 322 kcal/kg. This represented a 38% increase on figures for the previous Japanese contract period. Further, the company settled most of its 
yearly priced thermal coal contracts with north Asian customers at prices just below $98/t.

Prices for South African thermal coal increased to $73,9/t in the first quarter of 2010, up from $72,8/t in the first quarter of 2009. 
The average price for South African thermal coal for the year 
ended December 31, 2009, was $68,1/t.