Experts who warned three months ago that the skyrocketing international coal price was unsustainable may be patting themselves on the back.
The price for hard coking coal has plummeted US$32 a tonne in the last week - the biggest weekly drop in years - and the third consecutive weekly fall.
The price today was US$265/tonne, compared to US$297/tonne a week ago. It has plunged US$45/tonne since peaking at US$310/tonne last month.
The slide comes as Bathurst Resources considers reopening its Denniston Escarpment Mine and Phoenix Coal, a joint venture between Bathurst and Talley's Group, prepares to buy Solid Energy's Stockton export coal mine and Waikato domestic-supply coal mines Rotowaro and Maramarua.
Phoenix has agreed to pay $46 million cash, plus a contingent payment of up to $50m tied to coal sales revenue from Stockton.