Usibelli sends coal test shipment to Chile

Alaska’s only commercial coal producer will send shipment to northern Chile power plant through agreement with Glencore

Patricia Liles

North of 60 Mining News Editor

Usibelli Coal Mine Inc., Alaska’s only commercial coal producer, landed a contract announced July 20 to provide test product for a northern Chile power plant, opening the door to a potential new market for Healy coal.

The contract was signed with Glencore Ltd., a leader in the international coal trade business, the company said in a July 20 press release.

The initial shipment of 45,000 metric tons of Usibelli’s coal will be transported by ship, scheduled to arrive for loading in Seward in the last half of August, the company said in its press release.

If the coal in the first shipment proves to be compatible with the customer’s boilers, there is an option for a second shipment of the same size in November, the company said.

“This is a very significant event for our company,” said Joe Usibelli Jr., president of Usibelli Coal Mine. “Not only is this our first shipment to South America, it is also a great opportunity to establish a relationship with Glencore.”

Usibelli currently exports about 400,000 tons of Healy coal to power plant consumers in South Korea. In the past, the company has sent test shipments of coal to Taiwan and Russia, ranging in size from 20,000 to 70,000 tons, according to Steve Denton, vice president of business development at Usibelli. This will be the company’s first test shipment of its ultra-low sulfur coal to a customer on the eastern Pacific Rim.

“The price of coal in the Pacific Rim has dramatically increased during the last year. That’s creating an interest in looking for new coal sources,” he told Petroleum News July 21. “We’ve been getting inquiries from a lot of potential customers.”

Usibelli’s workforce of about 85 produces 1.2 million tons of coal annually. About 800,000 tons provides fuel for power generation and heat throughout Interior Alaska.

Editor’s note: For more details about this story, please see the Aug. 8 issue of North of 60 Mining News.