Everybody recognizes the importance of the Coal Industry to the Crowsnest Pass, it is our single largest employer, the industry as seen record prices in the last year, strong growth in earnings and a lot of jobs created. Some people have stated that the we have nothing to worry about that our community is going to continue to grow, our population will get younger, our schools will be full of kids soon.
(Will the mines continue to hire? some believe as many as 250 people per year).
Is the industry immune to what's going on around the world, I hope so because after losing Arctic Spa at the beginning of the month I fear for our community.
Read the following;
Cia. Vale do Rio Doce, the world's largest iron-ore producer, is allowing customers to alter supply contracts as a global economic slowdown prompts steelmakers to scale back output
Vale said in an Oct. 31 filing it would cut Brazilian iron- ore output by 30 million metric tons a year because of a 20 percent drop in global steel output.
Fortescue Metals Group Ltd., the third- largest iron-ore exporter in Australia, said shipments may drop to as low as 16 million metric tons this year, because of weak demand and a temporary shutdown of its port and mine processing plant.
Teck Cominco Ltd., which last month gained control of the world's second-largest exporter of coking coal, fell the most in 20 years in Toronto on speculation that prices for the steel making ingredient will decline.
There have been a lot of rumors just in the past 24 hours about steel companies trying to renegotiate, and just about every other commodity is off today,'' Salman Partners analyst Haytham Hodaly said in a telephone interview. ``It doesn't mean that buyers will renegotiate with Teck; it's just not good for coal prices in general.''
- OAO Magnitogorsk Iron & Steel, Russia's third-largest steel producer, slashed fourth-quarter spending as metals companies seek lower costs and government help to compensate for a collapse in demand.
Several producers agreed to lower washed coal prices 30 percent for Magnitogorsk, while iron-ore producers have not yet agreed to a discount, according to the corporate newspaper.
Steel Authority of India Ltd., the nation's second-biggest producer, may lower output as the global financial crisis cuts car and construction demand and commodity prices tumble.
Steel Authority may join competitors around the world in slashing output as consumers delay purchases of homes and cars, driving down steel demand and prices. ArcelorMittal, the world's largest steelmaker, will slash production by more than 30 percent in Europe and U.S.
Very scary stuff!
1 comment:
It might be interesting to point out that our single largest employer that you are mentioning is in fact the second largest metallurgical coal exporter in the world that Teck Cominco has recently bought.
I am asking this because I do not know any better, but I am curious if our council has been paying attention to what is going over there and which municipal department, committee, or office (Whether we know if it acually exists or not) is responsible for capitalizing on this enormous resource?
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