New Tax Could Impact Power River Coal

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A new South Korean tax could have a hefty impact on coal, especially Powder River Basin coal. The new tax is being seen as significant according to Clark Williams-Derry, who is the deputy director at the Sightline Institute. The tax, he says, ranges between $16-18 per metric ton of coal, which sells for $14 per ton at the mining site. On top of that, he adds, the coal market is seeing current prices drop to levels seen four to five years ago...
Korea he says has been up front about trying to reduce coal imports, and a tax is an effective way to force change. As you may have been aware, coal companies are trying to push for more exports on the west coast to get coal from the Powder River Basin to Asian markets. Coal isn't just used for electricity in South Korea...

South Korea is at the top of the market because shipping to the country is shorter, not China as many may assume.
This report courtesy Deb Smith - Public News Service.

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