Please see the following news release dated Jan. 7, 2008, on Consol Energy regarding the suspension of loading operations at Consol's CNX Terminal in Baltimore.CNX Baltimore advises that coal continues to be received and rail cars dumped at the terminal while the loading pier/quay is being repaired.As advised in this news release, repairs are expected to be completed in approximately 28 days.We will continue to advise and update you as repairs progress.
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"There's a dip in it, so every time you try to run the loader-unloader across it, alarms go off" said Tom Hoffman, CONSOL vice-president for external affairs.
"The preliminary estimate if, if we don't have horrible weather, it's probably about a four-week repair period," Hoffman said of the problem at the Baltimore terminal.
He said CONSOL exports about 6 million tons of coal a year from the terminal, which means that on an annual basis 500,000 tons of shipments mostly to Europe, could be delayed.
Closure of one of two main Eastern U.S. coal terminals is bullish for prices because U.S. exports are filling shortfalls in supply from elsewhere in the world, traders said.
Traders have estimated U.S. exports of steam coal to Europe could total 20 million tons this year. The other main category of U.S. exports is metallurgical coal, used to make steel.
Hoffman said CONSOL exports mostly medium-sulfur grades of steam coal.
The pier problem was detected on Thursday January 3, 2008. Industry sources earlier had said the terminal shut down Sunday January 6, 2008.
The problem would not be immediately apparent to a casual observer. "This is not like a bridge collapsing," Hoffman said.
There was no damage to loading equipment, which stopped moving when the alarms started going off, he said.