Brazil’s Vale said Tuesday it expects to sell 13 million mt and produce 17 million mt of coal at Moatize, Mozambique, over 2017, up from 6 million mt produced in 2016.
No coal sales are earmarked for China, with 11 million mt sold via Nacala and the reminder using the Beira rail and port corridor, according to a company presentation delivered in New York.
Coal sales will be split 65% as met coal, 35% as thermal.
The company has 2017 coal sales evenly split into three regions, with 34% to northeast Asia of Japan, South Korea and Taiwan, a third to the Atlantic excluding South America, and the remaining third going to surrounding mainly Southern Hemisphere countries such as India, those in Africa and Brazil.
Pricing for met coal in 2017 is expected to be dominated by index-linked at 66%, with a reduction in exposure to the benchmark for pricing after 70% was priced off the benchmark in the first nine months of 2016.
“Index-based sales [will] increase to manage pricing volatility,” Vale said, explaining the move in pricing.
Source: S&P Global Platts
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