Ambre Energy’s international coal marketing and trading division is integral to our US coal export supply chain. We are seeking to be a major participant in the burgeoning Asian thermal coal market by supplying coal through our own operations, plus trading coal from other US coal producers.

Total coal demand from Asia until 2030 is forecast to grow at 6.7 per cent per year – 1.3 billion additional metric tons of coal. The US is currently a minor supplier of thermal coal into the Pacific export market, accounting for only 8 million of Asia’s 650 million metric tons of thermal coal demand*.

As export facilities are commissioned in the US Pacific Northwest, the US share of the Asian market will increase. We believe our port developments, the Morrow Pacific project and the jointly owned Millennium Bulk Terminals-Longview, will be the first two projects developed, giving us a significant competitive edge.

Our international coal marketing and trading business will seek to optimise sales from our current co-owned mining operations. The marketing division will also buy coal from other western US coal producers and export through our wholly and jointly owned export infrastructure, once commissioned. The primary markets will be South Korea, Japan and Taiwan – the markets geographically closest to the US west coast.

New sales will build on Ambre Energy’s current 10-year coal supply agreements with two South Korean companies: Korea South East Power Co. Ltd (KOSEP) and Korea Southern Power Co. Ltd (KOSPO).

Within the US, our jointly held Decker and Black Butte mines will also focus on expanding sales to current and new customers. Across 30 years of operation, both mines have established an excellent reputation for reliable and consistent supply.

*Wood Mackenzie 2012