THE surprise surge in coal prices will provide an unexpected profit boost for the world’s biggest mining companies as they navigate a commodity downturn that sapped earnings.Gains for coking coal, used with iron ore to make steel, accelerated in recent weeks and benchmark prices from top producer Australia jumped 28% this week, the most in data going back to 2013. At current prices, that would add almost $5bn to BHP Billiton’s underlying earnings before interest, tax, depreciation and amortization in the year ending June 30, according to Liberum Capital.Coking coal has more than doubled this year as China’s production curbs increased its reliance on supplies from other nations. The rally — which Morgan Stanley called a "complete surprise" — is a bright spot for miners still suffering from a plunge in commodities over the past five years. It will also help compensate for a worsening outlook for iron ore, BHP’s main earner, with the firm and a raft of banks expecting prices to retreat...
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