Tue October 23, 2012
First Shipment in Kentucky-India Coal Deal Delayed
The first shipment in a huge deal to export coal to India hasn’t yet left Appalachia. The deal was announced in August: Kentucky-based Booth Energy agreed to send up to nine million tons of coal a year to India for 25 years, at an estimated value of $7 billion. The first shipment was supposed to be on its way by the end of September.
But that shipment is delayed, and the coal trading company responsible for transportation says it’s unknown when it will leave the country.
John Grantham is a vice president with River Trading Company. He says as far as he knows, the deal is still on, but the first shipment isn’t scheduled yet.
“We have seen a decrease in price since the deal was inked. But India’s a far ways away and communication isn’t always fluid. But yeah, I think it’s driven by market conditions.”
Booth Energy hasn’t publicly released the contract, so it’s unknown what kind of pricing it includes, and how market fluctuations could affect the deal.