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Falling diesel prices to have a limited impact on mine site costs


Falling diesel prices to have a limited impact on mine site costs

Report summary

We expect falling diesel prices to reduce coal mine site costs by US$1/tonne in 2015 on a global weighted average basis. The impact is small but material as miners struggle to survive in a weak price environment. Our analysis is based on a diesel price of US$0.74/litre which represents a 28% decline from the average price in the first half of 2014.

What's included?

This report includes 2 file(s)

  • Falling diesel prices to have a limited impact on mine site costs PDF - 308.35 KB 4 Pages, 0 Tables, 5 Figures
  • Global coal - Falling diesel prices to have a limited impact on mine site costs.xls XLS - 211.50 KB

Description

This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

Wood Mackenzie is the only coal industry service provider that offers a market outlook integrated with other sector analyses, including macroeconomics, coal supply, steel markets and gas and power markets.

Our coal analysts are based in the markets they analyse. They work with objective, proprietary data to help you maximise your current and future decision making. From market dynamics to trade patterns, we give you confidence in your strategic planning.

  • Executive Summary
  • Diesel usage in the mining sector
  • The impact of diesel on global mine site costs
  • Implications for coal markets

In this report there are 5 tables or charts, including:

  • Executive Summary
  • Diesel usage in the mining sector
    • Diesel contribution in surface mining (%)
    • Diesel contribution in underground mining (%)
  • The impact of diesel on global mine site costs
    • Mine site costs comparison by region (US$/tonne)
    • Mine site costs sensitivity by region
    • Mine site cost reduction ranking
  • Implications for coal markets
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