【India’s BCCL Halts Operations at 1.47 Mt/y Mine Following Land Subsidence; Restart Timing Unclear】

Canadian mining company Strategic Metals released a scoping study and Preliminary Economic Assessment for its Division Mountain project on 20 August. The project contains a measured resource of 52.5 Mt of High Volatile “B” Bituminous coal and envisages an open-pit mine producing 0.5 Mt/y of clean coal, together with either one 100 MW or two 50 MW coal-fired power plants serving Yukon’s isolated power grid. At the proposed production rate, the measured resource could supply a 100 MW plant for approximately 105 years, although the preliminary mine and power plant designs are based on a 30-year operating life. The project has an estimated total capital cost of $978.6 million, while clean coal could be produced and delivered at an average cost of $52/t. Under the base case, an electricity sales price of approximately $194/MWh would be required to generate an after-tax IRR of around 8% at an 8% discount rate. With full carbon taxes, the required sales price would rise to $292/MWh. The project remains at a preliminary assessment stage, with no construction permits, financing arrangements, power purchase agreement or commissioning schedule disclosed.

Global seaborne coal flows increased by 1% year on year to 116.5 Mt in July 2026, although trends diverged sharply between coal types. Thermal coal flows fell by 2.3% to 87.3 Mt, mainly due to weaker demand in Europe and the United States. Meanwhile, combined thermal coal flows to the four major Asian importing markets—China, India, Japan and South Korea—rose by 18.3%, indicating strong summer power demand across Asia. Global seaborne metallurgical coal flows increased by 11.8% to 27.2 Mt during the same period. Imports into China and Japan rose by 30% and 24%, respectively, offsetting an 18% decline in India.

Pakistan’s total power generation rose by 7% year on year to 15,122 GWh in July 2026. Imported coal-fired generation increased by 90% from 1,140 GWh a year earlier to 2,169 GWh, while local coal-fired generation rose by 10% to 1,650 GWh. Combined coal-fired output reached 3,819 GWh, accounting for 25.2% of total generation, with both imported and local coal generation reaching their highest levels for any July. Meanwhile, RLNG- and gas-fired generation declined by 33% and 9%, respectively. The generation cost for imported coal rose by 13% to Rs 16.33/kWh, while Pakistan’s average power generation cost increased by 38% to Rs 10.75/kWh.