Mongolian Mining Corp. (MOGLF)

[OMOLIVES]

Australia's BOM declares 'La Nina watch' over coking coal producing region late 2017

Singapore (Platts)--24 Oct 2017 503 am EDT/903 GMT

Australia's Bureau of Meteorology declared a "La Nina watch" Tuesday across eastern Australia, predicting possible heavy rains in late 2017 in that region, which includes the primary coking coal producing region of Queensland.

As Queensland is the world's biggest exporter of metallurgical coal, this declaration has put the global met coal industry on watch for the wet weather.

There is a 50% chance of La Nina forming in late 2017, "which is double the normal likelihood," BOM said in a statement.

La Nina events typically bring above average rainfall to eastern Australia during late spring and summer, BOM said.

Heavy rainfall following Cyclone Debbie in March this year caused serious disruption to met coal exports out of Queensland, which in turn triggered a 100% spike in prices by the end of April to $304/mt FOB Australia, for premium low vol coal, according to S&P Global Platts data.

Platts last assessed PLV FOB Australia prices at $181/mt on Monday.

https://www.platts.com/latest-news/metals/singapore/australias-bom-declares-la-nina-watch-over-coking-27881569