Venezuela’s coal moves may cut exports-analysts

Coal exports from Venezuela this year could fall because of government moves to take greater control of the industry, U.S. analysts and traders said Friday.

The cut in Venezuela’s premium grade coal exports would come as the world runs short of coal, prices skyrocket and buyers scramble for supply.
Venezuela has replaced marketing and mine management and staff, canceled export contracts and taken other steps to tighten control since mid-2007 as the OPEC nation moves to nationalize strategic sectors of the economy.

“It is creating uncertainty and increasing the risk for buyers, so I think people are reluctant to depend on Venezuelan coal,” said a U.S.-based veteran coal industry analyst, who did not want to be identified by name.

Venezuelan exports were expected to grow about 700,000 tonnes this year but expansion plans will falter as government measures discourage private investors and drive out skilled managers and staff, the analyst said.

In addition, as much as half of the 1.2 million tonnes of coal shipped through Venezuelan ports from eastern Colombia is at risk because of government takeover moves and tensions between Venezuela and Colombia, sources said.

Reuters