Dipka Coal Mine Knocked out, Coal Price Predicted to Increase

Dipka Coal Mine Knocked out, Coal Price Predicted to Increase
Due to the flood, India’s Dipka coal mine production has declined much, local media reported worries on the fuel supply at power plants. Golden Future Enterprise HK Ltd, a company with more than 10 years experience in supplying mining industry with miner lamps and explosion proof mining lights, is also engaging the India mine market. Solutions should be come up with to improved current situation.
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One of India's top three coal mines, Dipka normally produces 35 million tonnes of coal annually. However, a dramatic flood in which the nearby Lilagar River changed course led to large areas of the mine being submerged, with heavy machinery damaged.
The mine's production is now less than half its normal level, and much of it remains underwater, according to operator Coal India. Local media reported fears of fuel shortages at Indian power plants, and a possible increase in demand for imported thermal coal.
Meanwhile, Deutsche Bank reported that Indian imports following the monsoon could have a bearing on coking coal prices, potentially supporting a price rebound in the fourth quarter of 2019. This would likely be supported by a return towards normality, after disruption caused by China's decision to limit coal imports begins to fade.
"The move has reflected short-term dislocations related to China's import policy, exacerbated by weaker ex-China demand trends rather than a wholesale shift in fundamentals, in our view... we see Aus hard coking coals averaging $160/t in Q419 and then $165/t for 2020, signalling 20% upside from spot." Said Liam Fitzpatrick, research analyst at Deutsche Bank.