The Indian government has so far allocated 75 coal mines for specified end uses, according to Piyush Goyal, Minister for Power, Coal, New & Renewable Energy and Mines. Of these, 31 were allocated through e-auction and 44 through allotment.
The allocation of the mines took place under the provisions of the Coal Mines (Special Provisions) Act of 2015, which was passed in the wake of the Indian Supreme Court decision that nullified the allocation of 214 coal blocks to end users.
The act aimed to ensure continuity of coal mining operations and promote the optimum utilisation of coal resources.
Goyal provided the information in response to a question from the Rajya Sabha, the upper house of the Indian Parliament.
Edited by Jonathan Rowland.
Following its launch in May, Schneider Electric has announced the US availability of Premset™, the company’s range of shielded solid insulated medium voltage (MV) switchgear for power distribution management in the mining industry.
Introducing shielded solid insulated switchgear, Premset is the first global product to use solid and shielded insulation. The earth-shielded system offers unprecedented safety, efficiency and ease of use. The main circuit components are insulated by a layer of solid material covered by an external conductive coating with ground potential. There is no electric field in the ambient air, because live conductors and the ground are confined within the switchgear enclosure.
“Premset is a breakthrough innovation that combines the Schneider Electric expertise in air-insulated switchgear and gas-insulated switchgear to deliver the innovation of a shielded solid insulation system (SSIS) that reduces internal arcing risk for increased safety,” said Juan Macias, Senior Vice President-Energy, Schneider Electric.
Premset includes SSIS and screening of all live parts, ensuring unmatched safety and reliability; simple, flexible, modular design, making it easy to install, upgrade and maintain, thanks to SSIS technology; and fully integrated advanced protection, control and monitoring technology for higher reliability and energy efficiency.
Premset enables simplified network upgrades, with the ability to leverage the same accessories and monitoring devices across the entire range. The “plug and play” design allows for on-site additions that do not require special training, tools or adjustments. Designed with standardized dimensions, a reduced footprint and simple front accessible power connections, Premset reduces installation time and cost and, when available Schneider Electric services are utilised, can minimise future downtime delays. Additionally, through advanced monitoring and control, Premset switchgear helps ensure the network is at its peak performance, enabling:
In addition to standard electrical, mechanical and visual equipment inspections, Schneider Electric also offers optional start up and commissioning services for all Presmet purchases, to ensure equipment and components are functioning properly. This service includes:
Beyond the standard 18-month warranty on all equipment, Schneider Electric Services also provides a one-year extended warranty for all commissioned Premset devices at no additional cost.
Edited by Jonathan Rowland.
CNX Coal Resources LP (CNXC) reported the strongest coal shipments since 1Q15 in the three months to the end of June 2016, according to its quarterly results announcement, as higher exports compensated for challenging domestic markets.
Quarterly coal sales were 1.2 million short t to 51 difference end users, up from 1.1 million short t to 39 different end users in 1Q16.
The company also said that it was fully contracted to the end of the year with expected sales of 5 million short t. Its 2017 sales volumes were 79% contracted, assuming a 5.2 million short t run rate.
“At the time of the IPO, we had a significant open position in our 2016 sales book while utility inventories were building and the price for coal was declining,” said Jimmy Brock, CEO of CNX Coal Resources GP LLC.
“Today we are fully sold out for 2016 and 79% sold for 2017. The shipment schedule is improving and for the first time we have an opportunity to optimise our customer mix.”
The quarter also saw the restart of the Harvey mine, which had been idled over winter as customer deferrals forced the company to reduce work schedule. Harvey is now running all five of its longwalls on a full five-day schedule.
CNXC was able to take advantage of an improvement in API2 prices, which are up 28% during 2Q16. The company exported 0.4 million short t in 2Q16, compared to 0.2 million short in the same quarter last year.
Additional business has also been booked for the remainder of the year and into 2017, although CNXC expects the share of exports in the sales mix to come down in 2H16 as shipments to US power plants pick up during the summer months and the railroads return from downtime.
Edited by Jonathan Rowland.
Maptek and VUMA, a subsidiary of Bluhm Burton Engineering Pty Ltd (BBE), have executed a memorandum of understanding (MoU) to facilitate collaboration and cooperation around mine ventilation solutions and mine design.
The primary focus will be on enabling detailed data transfer between Maptek Vulcan mine planning software and VUMA ventilation simulation software.
VUMA software is developed for analysis of underground mine ventilation, contaminant tracking, refrigeration and cooling networks. The heat engineering balance can be examined in detail, taking into account all factors contributing to heat load, including equipment, advance rates, heat from broken rock and mine design.
Vulcan software provides advanced underground mine design, planning and scheduling tools. Enabling detailed design, survey and operational data to be transferred to VUMA software will deliver valuable gains in accuracy, efficiency and speed for analysis and planning around ventilation and refrigeration in underground mines. This also allows ventilation factors to be considered earlier in the mine planning process.
“VUMA is an impressive software suite. Integrating VUMA with Vulcan offers huge benefits to mine planning departments,” commented Maptek Africa General Manager, Nick Venter. “It will allow mine survey and design data to be used in ventilation and cooling analysis, without replication of data, and ensures accurate, current representations of the mine surface can be applied to ventilation planning.”
“Maptek is committed to delivering the best technical capabilities to our customers. Collaboration with leading practitioners in specialised fields helps improve operational value and productivity,” Venter concluded.
“This unique interface enhances the holistic approach required for modern mine planning and design, particularly the intensifying demand for fast, accurate and reliable answers,” commented VUMA software specialist, Frank von Glehn.
Edited from press release by Harleigh Hobbs
Illawarra Metallurgical Coal reported total saleable coal production down by 6% to 8.4 million t in the financial year to the end of June 2016 (FY2016), according to South32’s results.
Production was hit by challenging geological conditions encountered at the Appin and Dendrobrium mines in the first six months of the reporting period, while the company also undertook three longwall moves during the year.
Record quarterly production was achieved in final three months of FY2016, however, after the completion of the Appin Area 9 project in January increased longwall utilisation and cutting rates at the mine. The quarter was also without longwall moves at either Appin or Dendrobium, underpinning a 29% quarter-on-quarter increase in metallurgical coal production to 2.1 million t.
The Appin Area 9 project was completed ahead of schedule and under budget.
Annual metallurgical coal production hit 7.1 million t, a 5% fall on the previous year, while thermal coal production was down 11% to 1.3 million t.
Edited by Jonathan Rowland.
The Board of Carbon Energy has announced that Dr Chris Rawlings will be appointed as Interim Executive Chairman of the company, effective as of15 August 2016, while the company continues its search for a permanent Chief Executive Officer and Managing Director candidate for the position.
In an ASX announcement, Carbon Energy indicated that an executive search for a permanent replacement to the position of Chief Executive Officer and Managing Director is well advanced.
Dr Rawlings said: “We have an experienced senior management team and Board, who will work with me to manage the business until the right candidate is appointed. As far as our shareholders and stakeholders are concerned it will be business as usual at Carbon Energy.”
Edited from press release by Harleigh Hobbs
South32’s South African thermal coal production fell 8% to 31.7 million t in the 2016 financial year (FY2016), according to the company’s annual results statement, following the planned closure of the Khutala mine and a reduction in contractor activity at the Wolvekrans Middelburg Complex.
Coal sales totaled 32.3 million t. Domestic sales accounted for 53% of the total (17.2 million t) with exports (15.2 million t) making up the remainder. Domestic sales were down 7% on the previous year, while exports were down 8%.
South32 South African coal operations consist of four coal mining operations – Khutala, Klipspruit, Middelburg and Wolvekrans – and three processing plants. The operations are located in Mpumalanga Province near the towns of eMalahleni and Middelburg.
Edited by Jonathan Rowland.
Anglo American has appointed Themba Mkhwanazi as CEO of Kumba Iron Ore Ltd (Kumba) following Norman Mbazima’s decision to step down after four years to focus on his role as Deputy Chairman of Anglo American South Africa.
Norman Mbazima will remain a member of the Group Management Committee and will have oversight of the processes to restructure and divest Anglo American’s non-core assets in South Africa, including its interests in the Kumba and thermal coal businesses.
Mbazima said: “I have been privileged to lead Kumba through what has been a tough period for iron ore and for South African mining. Together with the Kumba team, we have transformed the business to put it on a firmer footing, making the difficult but necessary decisions to ensure the business’ profitability and long term health. I wish Themba Mkhwanazi well as he takes up the role as CEO and look forward to continuing to work closely with him and with July Ndlovu as I consider the optimal divestment path for Anglo American’s non-core interests in South Africa.”
Additionally, July Ndlovu, Executive Head of Processing Operations at Anglo American Platinum since 2007, is appointed CEO of Anglo American’s Coal business in South Africa, to replace Themba Mkhwanazi.
The Kumba Board’s appointment of Themba Mkhwanazi as CEO and Anglo American’s appointment of July Ndlovu as CEO of Coal South Africa will take effect on 1 September 2016.
Mkhwanazi commented: “I am excited by the prospect of leading one of South Africa’s great success stories. Kumba has a rich mineral endowment and a skilled and dedicated workforce enabling us to produce high quality lump and fine iron ore products to our steel customers around the world. My energies will be focused on maintaining Kumba’s strong track records in safe production, mutually beneficial relationships and further increasing productivity to ensure the sustainability of the business for the benefit of all our stakeholders.”
Both roles will report internally to Seamus French, CEO of Anglo American’s Bulk Commodity business.
Mark Cutifani, CEO of Anglo American, said: “We congratulate Themba Mkhwanazi and July Ndlovu on their new roles as CEO of Kumba and our South African coal business respectively. I thank Norman Mbazima for his tireless work to reshape Kumba’s cost structures over the last four years to create what is a much more resilient business to weather the lower iron ore price environment. Norman will now concentrate on how we deliver value through the restructuring and divestment of our non-core businesses in South Africa as we continue to explore all appropriate options, as we have been doing across our global portfolio of non-core assets.”
On his appointment as CEO of Anglo American’s South African Coal business, July Ndlovu added: “I am delighted to lead Anglo American’s South African coal business. I have always admired the business’ resolute commitment to the safety and wellbeing of its employees and sustaining this will be my priority. My immediate focus will be on operational performance that meets our customers’ needs, supporting the value of our domestic and export mines and working together with colleagues and our key stakeholders to advance the divestments.”
Seamus French, CEO of Anglo American’s Bulk Commodity business, concluded: “Both Themba Mkhwanazi and July Ndlovu have proven abilities in leading safe and productive complex operations at a time when cost competitiveness is critical to the sustainability of any mining business. Our priority for both businesses is to lead them safely through their divestment from Anglo American. We expect the price environment for both thermal coal and iron ore to remain under pressure and our operational focus is firmly on building upon the excellent work of the teams to date to further improve performance and value.”
Edited from press release by Harleigh Hobbs
Carbon Energy has received formal confirmation from the Queensland government’s Chief Scientist, Dr Geoff Garrett AO, that Carbon Energy met the key recommendations of the government appointed Independent Scientific Panel (ISP) into underground coal gasification (UCG).
Dr Garrett, who led the formal peer review process of the ISP, expressly acknowledged Carbon Energy as the only company to meet the recommendations of the ISP. He also recognises that the company’s successful and innovative keyseam technology is different from that of other technologies employed, stating “it is clear that Carbon Energy has contributed to the collective understanding of UCG and the conditions under which the operation is likely to be both safe and successful.”
Dr Garrett further confirmed that the ISP report and its key recommendations were accepted by the Queensland Department of Natural Resources & Mines (DNRM). Dr Garett also confirmed the company’s actions demonstrating safe and effective decommissioning and completing a plan for rehabilitation were independently reviewed by experts appointed by the Department of Environment and Heritage Protection (DEHP).
Carbon Energy Managing Director Morné Engelbrecht, said: “This is further confirmation that our technology is robust, grounded in science and suitable for wide scale use for energy generation.”
“The Queensland Government’s Chief Scientist has acknowledged the superiority of our CSIRO developed technology and its uniqueness among other UCG technologies and will be an important foundation in the further commercialisation of our technology both in Australia and internationally,” he continued.
“Having invested eight years and over $150 million of shareholders’ funds, this validation is an important recognition of our technology,” Engelbrecht concluded.
While this acknowledgement does not reverse the Queensland Government’s decision to ban UCG in Queensland, it does officially recognise the success of Carbon Energy’s keyseam technology in meeting the rigorous assessment parameters set out by the Queensland government.
Carbon Energy is the only company to meet the ISP requirements accepted by DNRM and reviewed by DEHP. It intends to pursue further project opportunities to commercialise its keyseam technology internationally.
Edited from press release by Harleigh Hobbs
Qinhuangdao Port has warned shareholders to expect a substantial fall in net profits for 1H16 on the back of weakened supply and demand in the coal market. Qinhuangdao is China’s main centre for coal shipping.
According to a release to the Hong Kong Stock Exchange, Qinhuangdao’s profits are expected to fall by 80 – 90% for the first six months of the year.
The fall is “mainly attributable to the decrease in revenue of the group resulting from the decline in throughput of coals of Qinhuangdao port, which was cause by the weakened supply and demand in the coal market,” as well as increased competition from surrounding ports.
Edited by Jonathan Rowland.
BHP Billiton metallurgical coal production increased by 1% for the 2016 financial year (FY2016) to 30 June, hitting a record 42.8 million t. The final quarter of FY2016 saw output grow 4% year on year and 17% on the previous month to 11.8 million t.
Production was underpinned by increased plant and equipment availability and utilisation, offsetting the completion of longwall mining at Crinum, a convergence event at the Broadmeadow mine and unfavourable weather conditions.
In the upcoming, the company is planning a longwall move at Broadmeadow and a wash plant shutdown at Saraji.
BHP metallurgical coal production is expected to hit 44 million t over the next financial year on the back of higher wash-plant and truck hours, which will offset the closure of the company’s Crinum mine and the divestment of BHP’s IndoMet Coal subsidiary.
The company also remains in the running to purchase Anglo American’s Queensland metallurgical coal assets at Moranbah North and Grosvenor, which could be easily integrated into BHP Billiton’s existing Queensland metallurgical coal mining infrastructure.
In June, the President of BHP Billiton’s Australia mining operations, Mike Henry, said the company was planning to boost its metallurgical coal volumes from the Bowen Basin, taking advantage of its low-cost mines and bullish outlook on metallurgical coal demand. Anglo American’s assets would fit well within the strategy.
“Even in today’s difficult environment, all of our operations remain case positive,” said Henry. “The development world needs steel; steel needs coking coal. We have the strongest resource position in the seaborne market.”
Edited by Jonathan Rowland.
BASF and The Linde Group have successfully completed a joint pilot project to improve capture of carbon dioxide (CO2) from flue gas at a coal-fired power plant at the National Carbon Capture Center (NCCC), which is a US Department of Energy (DOE) research facility managed and operated by Southern Company, in Wilsonville, Alabama.
Since January 2015, the project operated a pilot plant under a cooperative agreement with DOE’s National Energy Technology Laboratory (NETL). Based on the successful completion, BASF and Linde will begin larger-scale testing and explore commercial opportunities.
The technology used during the pilot project integrates BASF’s advanced aqueous amine-based solvent and process technology, marketed by BASF under the OASE® blue brand, with novel CO2-capture process and engineering innovations developed by Linde. Parametric and long-duration testing confirmed the main performance targets set for the facility. Specifically, it captured more than 90% CO2 from the fluegas, while the purity of the CO2 was more than 99.9%.
The design capacity of the operation was up to 1.5 MWe and required less than 2.8 gigajoules of regeneration steam per metric tonne of CO2.
The NCCC includes a post-combustion carbon capture facility that allows testing and integration of advanced technologies using actual coal-derived fluegas from an 880 MW pulverised coal unit at Alabama Power’s Plant in Gaston. The pilot plant has operated at the facility for more than 1200 hrs at a higher regeneration pressure of 3.4 bar absolute, thereby demonstrating a cost advantage over other amine-based technologies.
“The amine-based OASE blue technology offers significant benefits for CO2 capture as it aims to reduce the regeneration energy requirements using novel solvents,” said Dr Andreas Northemann, Vice President of BASF’s OASE Gas Treating Excellence. “Long-term pilot testing demonstrated the solvents’ performance and stability. BASF’s almost 50 years of experience in industrial gas treating, combined with the expertise of Linde in large-scale engineering, procurement and construction, will lead us to the commercial scale-up of OASE blue technology.”
The pilot plant at the National Carbon Capture Center leveraged the earlier experience that Linde and BASF jointly gained in a similar project in Germany. Together with BASF and Germany’s power plant operator RWE, Linde also installed a pilot plant for carbon capture in Niederaussem, Germany in 2009. As part of this cooperation, BASF developed it’s highly energy efficient technology to capture CO2 from fluegas.
“Linde is pleased to partner with BASF on the Wilsonville project,” said Dr Christian Bruch, Member of the Executive Board of The Linde Group. “It allows us to combine our experience in the Niederaussem project with our decades of large plant engineering experience and process integration capabilities to reduce the capital cost when built at scale. The result should prove that CO2 capture is economically feasible, substantially reducing emissions and their negative impact on climate.”
Edited from press release by Harleigh Hobbs
Mechel PAO, a leading Russian mining and metals companies, reports receipt of the notice for introduction of a temporary state administration at the integral property complex of the Private Joint-Stock Company ‘Donetsk electrometallurgical plant’, which is part of Mechel Group.
The Decree #12 dated 25 June 2016 and signed by A.V. Zakharchenko, Chairman of the Council of Ministers of the self-proclaimed Donetsk People’s Republic, announces institution of a temporary state administration at the integral property complex of the Private Joint-Stock Company ‘Donetsk Electrometallurgical Plant’ (DEMZ) as well as creation of a state-owned entity ‘Yuzovsky metallurgical plant, on its base with all of DEMZ’s property to be transferred for the newly created enterprise’s use.
The company’s preliminary view is that Mechel runs the risk of losing control over any future production and commercial activity of DEMZ for an indefinite period.
Mechel is currently examining the situation from legal perspective and will, if necessary, take all measures to protect the company’s rights and interests through the due process of law.
These events will not materially affect the company’s financial results, since production at DEMZ has been suspended in 2012 and the company created full provision for impairment of DEMZ as a result of 2013 – 2014.
Operating profit at Sandvik Mining continuing operations fell 16% to SEK720 million on revenues of SEK 5.1 billion in 2Q16. Operating profit for the first six months of the year was up 31%, however, to SEK1.4 billion compared to SEK1.1. billion the year before.
The continuing operations results exclude the Mining Systems business, which the company intends to divest.
Order intake remained largely stable, showing only a slight fall of 2%, as overall customer activity remained relatively unchanged. Orders fell in the Africa and the Middle East and North America, offsetting gains elsewhere.
Orders for mining equipment fell slightly, while order intake for aftermarket products remained stable.
From 1 July, Sandvik Mining and Sandvik Construction will be combined into one business area: Sandvik Mining & Rock Technology with Lars Engstrom taking the role as President.
The company also recently announced the sale of its Mining Systems business to private equity company CoBe Capital. The transaction is expected to close in 4Q16 and entails a capital loss of SEK800 million, which will impact results for 3Q16.
Edited by Jonathan Rowland.
Wesfarmers’ reported metallurgical coal production of 2.1 million t and thermal coal production of 1.6 million t from its Curragh and Bengalla mines in 2Q16.
Curragh production was 3 million t, 61.4% higher than the previous quarter. Metallurgical coal production was 79.6 million t – 79.6% higher than the previous quarter – and thermal coal production was 27.9% higher that the previous quarter.
Curragh is responsible for all of Wesfarmers’ metallurgical coal production. The jump in output came as production returned to normal following significant rainfall in the previous quarter.
For the twelve months to 30 June 2016, Wesfarmers’ metallurgical coal production fell 19.3% to 7.6 million t.
At Bengalla, Wesfarmers’ share of thermal coal production for the quarter was 0.8 million t, 14.4% lower than the previous quarter due to operating in a less productive section of the mining sequence.
For the year to June 2016, Wesfarmers’ share of production increased by 2.4% to 3.4 million t. Bengalla Mining Co. is a joint venture ownership with Wesfarmers holding 40%, New Hope Group 40%, Mitsui 10% and Taipower 10%.
Edited by Jonathan Rowland.
Coal India has been set a target of producing 598.61 million t in the 2016 – 2017 (FY2017) financial year, according to a written reply from Piyush Goyal, the Minister for Power Coal, New & Renewable Enery and Mines, to a question from the Rajya Sabha, the upper house of the Indian Parliament.
This will require an increase of 11.11% on FY2016 production of 538.57 million t, Goyal said. The FY2016 production just missed hitting Coal India’s target of 538.75 million t.
Goyal added that coal imports fell from 217.8 million t in FY2015 to 199.99 million t in FY2016. Coal stocks at power plants remain at an elevated level, growing slightly in July to 31.39 million from 30.51 million t at the end of June.
This slight rise bucks a trend seen so far this year of falling coal stocks. At the end of FY2016, coal stocks were 38.87 million t, the highest levels seen over the last four years.
A stockpile of 31.39 million t is sufficient to operate India’s coal-fired power plants for a period of 23 days – two days more than the “normative stock requirement” of 21 days, said Goyal.
Edited by Jonathan Rowland.
Dust Control Technology (DCT) has appointed Laura Stiverson as the new President of the company, following her service to the company as General Manager for nearly five years.
Her primary responsibilities will continue to revolve around new product engineering, business development and customer service. She is described by CEO Edwin Peterson as “uniquely qualified in experience and temperament to lead the firm in exploring new markets, services and equipment designs.”
Stiverson has been cited as instrumental in developing a number of the company’s products, including the OdorBoss® family of machines and the very successful new Fusion™ equipment design.
“Laura has been taking us in new directions for some time,” Peterson observed. “And we felt it was appropriate that her energy and passion be formally recognised.”
Incorporated in 2004, DCT has earned its reputation as a leading supplier of open-area dust suppression equipment, and engineers continue to develop atomised mist technologies to bring new levels of effectiveness and versatility to dust and odour management.
“It’s a natural pairing of mechanical and chemical technologies,” Stiverson said. “We’ve demonstrated that the equipment design is far more effective than commonly-used approaches to odour control, and our goal now in expanding our line of additives is to combine product efficacy with the highest level of environmental stewardship.”
“During the course of growing our dust control business, we have encountered a variety of opportunities to expand our scope,” Stiverson continued. “These opportunities have largely been a result of repeated inquiries from businesses that had an unmet need within their industries,” she added. “Over time, we have become more of a solutions provider, with the expertise to address a much wider range of applications. These new business segments are growing far beyond our initial expectations.”
Edited from press release by Harleigh Hobbs
Fuel Tech, Inc. a global leader in advanced engineering solutions for the optimisation of combustion systems and emissions control in utility and industrial applications, has reported receipt of multiple air pollution control (APC) contracts from customers in China, the Middle East and the US.
These awarded contracts have an aggregate value of approximately US$2.3 million.
In China, Fuel Tech received an award for a NOXxOUT® Selective Non-Catalytic Reduction (SNCR) system for a coal-fired utility boiler. The company’s SNCR technology is proving to be a viable solution as combustion unit owners look to comply with more stringent NOX control requirements mandated by China. Equipment deliveries are expected to occur during 3Q16.
The company received additional orders in China for multiple ULTRA™ systems that will be installed on utility units firing coal, which are being retrofitted with NOX reduction technology. Fuel Tech’s ULTRA process provides for the safe and cost-effective onsite conversion of urea to ammonia for use as a reagent where Selective Catalytic Reduction (SCR) is used to reduce NOX, eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. Deliveries for these projects commenced in 2Q16, and are expected to continue in 3Q16 and 2Q17.
The order in the Middle East is for an SNCR system using NOX OUT technology on a cement kiln, which the company believes is evidence of the continued viability of its technologies in markets outside the US. The contract is with ISGEC Heavy Engineering Ltd. (ISGEC), who will resell a Fuel Tech SNCR system as part of its scope of equipment supply to a third party. In June 2016, ISGEC, one of India’s leading engineering companies, signed an exclusive agreement with Fuel Tech to license Fuel Tech’s SNCR technology for use in SNCR system sales in the emerging air pollution control market in India. In the US, a change order was received for a project using conventional SCR systems on an industrial gas-fired boiler. Final deliveries for these projects will be second quarter 2017.
Vincent J. Arnone, President and Chief Executive Officer, commented: “We are excited to announce this SNCR order with ISGEC and we believe that they are an ideal partner to introduce Fuel Tech’s proven emissions control technologies to India and other regional countries that are promising new markets for our solutions. Collectively, these orders continue to demonstrate our capabilities to provide cost-effective technology solutions on a global basis.”
Edited from press release by Harleigh Hobbs
BHP Billiton’s thermal coal production fell 16% in the financial year to June 2016 (FY201), following the sale of the San Juan coal mine in the US. Unfavourable weather in New South Wales and Colombia also hit output, as did operational rescheduling at the New South Wales Energy Coal (NSWEC) mines.
Thermal coal production slid to 34 million t in FY2016 with production in the three months to June falling to just under 7 million t – a 34% decline year on year and 12% reduction on the March quarter. In FY2015, the company produced 41 million t of thermal coal.
NSWEC production fell 13% due to heavy rainfall, the progression through a higher-strip ration zone and rescheduling of the mine plan. NSWEC production was 17.1 million t over the financial year, compared to 19.7 million t the year before.
Output in the June quarter dipped below 4 million t compared to production of 5.1 million in the June 2015 quarter.
Meanwhile a combination of drought followed by heavy rainfall hit operations at Cerrejon. BHP Billiton’s share of Cerrejon production was down 11% year-on-year at 10.1 million t. The Colombian mine is co-owned with Anglo American and Glencore.
Production is forecast to fall to 32 million t in FY2017 as the company completes the sale of the Navajo mine to in New Mexico to the Navajo Transitional Energy Co. Navajo production fall 18% in FY2016 on the back of the lower customer demand.
The sale of the Navajo mine will complete the company’s withdrawal from the US coal sector, following the completion of the sale of San Juan mine to Westmoreland Coal Co. in January 2016.
Edited by Jonathan Rowland.
Two new shiploaders have arrived at Port Waratah Coal Services’ (PWCS) Carrington Terminal at the Port of Newcastle, replacing three units that have loaded over 300 million t over the past 40 years.
The two new shiploaders arrived in the Port of Newcastle on the big lift vessel, the Happy Buccaneer. The port expects normal operations at Carrington to resume by the end of the year.
“Commissioning and integration into the operation will take about five months and we expect to resume normal operations at Carrington by the end of the year,” said Hennie du Plooy, CEO of PWCS. “Our operations on Kooragang Island will be unaffected.
PWCS is licensed to export 146 million tpy of coal – 120 million t from Kooragang and 25 million t from Carrington. Last year, the terminal exported about 109 million t. Newcastle rival, Newcastle Coal Infrastructure Group, shipped more than 49 million t.
The overall cost of the contract was about AUS60 million with AUS$ spent in Australia and AUS$9 million “locally”. The shiploaders were built near Shanghai and shipped from China.
Edited by Jonathan Rowland.
FirstEnergy Corp.’s FirstEnergy Solutions subsidiary will make operational changes to coal-fired units at two of its Ohio power plants in response to challenging market conditions.
The company plans to sell or deactivate the 136 MW Bay Shore unit 1 in Oregon, Ohio, by October 2020. In addition, units 1 – 4 of the company’s seven-unit W.H. Sammis plant in Stratton, Ohio – collectively representing 720 MW of capacity – will be retired in May 2020. Units 5 – 7 will continue to provide 1490 MW of reliable baseload generation.
In 2015, Bay Shore unit 1 and Sammis units 1 – 4 contributed about 4% of the electricity produced by the company’s generating plants. FirstEnergy does not intend to offer these units into the PJM capacity auction for the 2020 – 2021 timeframe.
“We have taken a number of steps in recent years to reduce operating costs of our generation fleet,” said FirstEnergy Generation President Jim Lash. “However, continued challenging market conditions have made it increasingly difficult for smaller units like Bay Shore and Sammis units 1 – 4 to be competitive. It’s no longer economically viable to operate these facilities.”
The company has reported that no job reductions are expected at either plant. FirstEnergy will work with any potential buyer to discuss continued employment for the 78 employees at Bay Shore, or if the plant is deactivated, provide employees with job opportunities at other FirstEnergy facilities. There are 368 employees at Sammis.
Plant deactivations are subject to review for reliability impacts, if any, by PJM Interconnection, the regional transmission organisation that controls the area where they are located.
Edited from press release by Harleigh Hobbs
Japanese heavy equipment maker Komatsu is to buy mining equipment manufacturer Joy Global in a deal worth US$3.7 billion, the companies have announced.
The deal will see Joy Global operate as a separate subsidiary of Komatsu, retaining the Joy Global bands names – which includes P&H, Joy and Montabert. The companies will also retain Joy Global’s headquarters in Milwaukee.
“This is a compelling transaction that delivers substantial and certain value to our stockholders, as well as expanded options for our customers and employees going forward,” said Ted Doheny, President and CEO of Joy Global.
Both companies have significant histories in the mining equipment sector – with Joy Global tracing its history back to 1884 and Komatsu to 1921. The acquisition will add Joy’s underground mining, rope shovels, super-large wheel loaders, draglines and drills to Komatsu’s large electric dump trucks, hydraulic shovels and crawler dozers.
“Komatsu and Joy Global’s products and services are highly complementary and the combined organization will continue to focus on safety, productivity and life-cycle cost improvement for customers,” said Joy Global in a press release.
Joy Global has been buffeted by a collapse in mining CAPEX spending over recent years – particularly in the US coal sector – a result of low commodity prices.
“The mining industry continues to face cyclical headwinds from oversupplied commodities and reduced end-user demand, resulting in cash flow restrictions for more producers, creating an increasingly challenging environment.” continued Doheny. “We are also seeing structural changes in the US and China coal industry.”
The acquisition is subject to approval by Joy Global shareholders and various regulatory approvals. It is expected to close by mid-2017.
Edited by Jonathan Rowland.
Mike Tracy, former President of Mining, has been named the new Chief Executive Officer of Drummond Co. Additionally, Dr Mike Drummond, Garry Neil Drummond’s son, has been appointed as the new Chairman of the Board.
Both appointments are effective immediately.
Drummond honours, acknowledges and celebrates Garry Drummond for his irreplaceable contributions toward building and sustaining an extraordinary company for over 50 years. Before his passing, Mr Drummond formulated a detailed succession plan for the leadership of the company that was implemented yesterday.
Mike Tracy and the rest of the management team will be supported by a renewed, nuclear and nimble Board of Directors designed to provide management with direction on strategic and critical issues.
Tracy has 43 years of mining experience, with more than 35 years with Drummond, and has held various positions in the company during that time.
“I am honoured to have been appointed as Drummond Company’s new CEO. Mr Drummond’s vision and leadership established Drummond as a global leader in coal, coke production and marketing, along with real estate development. He left a great legacy. Along with our outstanding management team and a massive group of loyal, dedicated associates, I am committed to continue driving and executing our growth strategy into this next chapter of the company,” commented Mike Tracy.
Along with Dr Mike Drummond’s appointment as the new Chairman of the Board, John Drummond, Sr, Dan Davidson, Tom Davidson, Mark Drummond, Beth Stukes, John Davidson, Ed Drummond, and Mike Tracy have also been named as members of the Board.
Dr Mike Drummond expressed confidence in the new board and direction of the company. “These individuals are of high moral character, sound judgment, and have outstanding life skills. All board members, except for Mike Tracy, are members of the Drummond family and are shareholders. Together with the management team at Drummond Company, we will guide Drummond into a new generation of prosperity and success.”
Edited from press release by Harleigh Hobbs
Raspadskaya’s raw coal production totaled 2.6 million t in 2Q16 – a 16% quarter-on-quarter rise – mainly on the back of higher output at Razrez Raspadsky and the Raspadskaya mine.
Sales of metallurgical coal concentrate amounted to 1.6 million t as shipments to Russian metals producers rose. Domestic sales hit 0.622 million t – up 4%. Exports reached 0.967 million – up 5% on increased demand from premium markets in Japan and South Korea.
Export sales remained 61% of the total concentrate sales with the majority (around 85%) going to the markets in the Asia-Pacific region. The remainder went to Europe.
Edited by Jonathan Rowland.
Joint provisional liquidators have been appointed over Mongolian Mining Corp., according to a resent company announcement.
Simon Conway of PwC Corporate Finance Recovery (Cayman) Ltd and Christopher Co Man Chun of PricewaterhouseCoopers Ltd were appointed following an application to the Grand Court of the Cayman Islands.
The liquidators were appointed on a “soft touch” basis to assist the company and its existing board of directors with the implementation of the proposed debt restructuring.
A petition for the winding up of the company was further adjourned pending progress of the debt restructuring. It is scheduled to be heard in early September.
Edited by Jonathan Rowland.
Yancoal has released its 2Q16 report, which includes the following highlights:
Mitsubishi Hitachi Power Systems Ltd (MHPS) has signed a supply contract for the first fluegas desulfurisation (FGD) system in the West Balkans for Ugljevik thermal coal-fired power plant, located in the Republic of Srpska – one of the two constituent entities of Bosnia and Herzegovina.
For the FGD construction project, MHPS, Mitsubishi Hitachi Power Systems Europe GmbH (MHPS-EDE, Duisburg, Germany) and RUDIS d.o.o. (Slovenia) formed a consortium and received the order from Elekroprivreda of Republika Srpska. The FGD plant will be installed in Ugljevik thermal power plant, which has a capacity of approximately 300 MW, equal to one-fourth of the total electrical generation capacity for Republika Srpska.
The FGD construction project for Ugljevik was preceded under a Japanese ODA loan to reduce sulfur dioxide and particulates that pollute the air. According to MHPS in a media release, this will improve the environment, protect the health of residents in the area and contribute toward achieving the environmental standards required for joining the EU in the future.
The plant is scheduled to start commercial operations in July 2019.
In the Ugljevik project, MHPS is responsible for basic engineering and delivery of the main components, MHPS-EDE for delivery of components procured in Europe and Rudis for civil and installation works, including permitting at the job site.
Ugljevik thermal power plant started commercial operations in 1985 and emits high levels of sulfur dioxide because it uses lignite coal, which contains high sulfur content and has a low heat generation rate. Installation of the FGD plant will enable reductions of 99% of sulfur dioxide and achieve a sulfur dioxide level lower than 200 mg/Nm3, which complies with the European “Industrial Emission Directive” (IED).
Edited from press release by Harleigh Hobbs
Universal Coal’s Kangala coal mine in South Africa achieved record quarterly production of 1.044 million t in 2Q16, 35% up on the previous quarter, after reaching steady state production following a pit reconfiguration.
Year-to-date production hit 3.289 million t, a 32% rise on the previous year.
Sales also progressed strongly, hitting 0.609 million t in 2Q16 compared to 0.437 million t in the previous quarter. On a year-to-date basis, sales were up 21% compared to the previous year at 2.037 million t.
Sales were split between domestic and export markets with 0.576 million t heading to domestic customers. This was up 34% on the previous quarter following the return of the rotary breaker at the coal handling and processing plant to full operation. Export sales totaled 33 351 t.
“Having concluded the pit reconfiguration, Kangala is now firing on all cylinders and delivering record production in the process,” said Universal CAO, Tony Weber. “We anticipate increasing production further in the year ahead, thereby delivering strong sales and cash flow to pay down debt facilities and to fund growth prospects.”
Edited by Jonathan Rowland.
Kibo Energy has received positive feedback from a number of operations and maintenance (O&M) service providers in response to a recent request for expression of interest (REOI) in the O&M agreement for the Mbeya power plant.
The REOI was sent to a number of leading O&M service providers for coal-fired power plants and received positive feedback from 90% of the companies approached, with only one company declining the opportunity on the basis of capacity constraints.
“We are delighted to note that the response to our invitation for expressions of interest from leading O&M providers indicated a strong market interest in the [Mbeya project] but also confirmed the robustness of the project based on the willingness of prospective O&M contractors to commit for the entire life of plant,” said Louis Coetzee, CEO of Kibo Mining.
Edited by Jonathan Rowland.
Coal of Africa’s (CoAL) offer for Universal Coal has fallen through on delays in signing a coal supply agreement (CSA) with South African state-owned utility Eskom for the New Clydesdale Colliery (NCC).
As a result, the start of mining at NCC did not begin in 1H16 as had been envisioned in CoAL’s offer document. Revenue from NCC’s CSA has been a key part in ensuring the enlarged group would have enough working capital to enable relisting on AIM.
As a result, CoAL’s directors could not meet the requirement for AIM readmission, resulting in the lapse of its offer.
The company said it was “disappointed” that it could not complete the offer by would consider making another offer for Universal in future.
For its part, Universal said it would consider any subsequent offer “on its merits by reference to the best interests of shareholders versus Universal’s strong prospects as an independent company, and its prospects for successful completion.”
Universal also said that it would begin underground mining operations at NCC despite not having a long-term CSA in place with Eskom. Coal would be supplies to the export thermal coal markets with the balance being sold in the domestic space, including coal sales to Eskom on a short-term supply basis.
Edited by Jonathan Rowland.
Operations at the Wongawilli coal mine in New South Wales, Australia, are expected to restart this month with first shipments in the 3Q16, according to a press release from mine owner, Wollongong Coal.
Mining contractor, Delta SBD, will undertake mining operations after signing a mining services agreement with Wollongong. Under the agreement, the Delta will supply technical expertise, personnel and equipment services at the mine, as well as day-to-day operations.
The agreement with Delta covers an interim period of around two years and covers the extraction of up to 1.45 million t of coal while Wollongong focuses on the future approvals and longer-term management for Wongawilli.
“This is good news for workforce employed at the mine and also provides an impetus to leverage synergy from the two entities to deliver economic benefits to the Illawarra region,” said Rhys Brett, Wollongong’s Operations Manager.
Wongawilli is among the oldest mines in Australia with a history dating back to 1916. It is located 80 km south of Sydney and has direct access to coal export facilities at Port Kembla Coal Terminal.
Edited by Jonathan Rowland.
A report by the National Audit Office (NAO) released today (20 July 2016) states that HM Treasury’s decision last November to axe the Government’s carbon capture and storage (CCS) competition could increase the cost of meeting the UK’s carbon targets by 2050 by £30 billion.
Professor Stuart Haszeldine, Scottish Carbon Capture & Storage (SCCS) Director, said: “The Treasury’s axing of the UK’s CCS competition brought a great deal of criticism. It was a premature decision, made before the two preferred project bidders, White Rose and Peterhead, had even submitted their design studies. It also reflected a lack of understanding of the strategic value of CCS to the UK’s climate ambitions, as well as our perceived leadership on climate action globally.”
Haszeldine indicated that the outcome of the Paris COP21 agreement highlighted CCS is unavoidable but the Treasury cancelled its CCS competition just one week after. He said this “lack of foresight or joined-up thinking” between government departments was “baffling”.
He explained that NAO’s report is in line with previous analysis: CCS “has immense value across an entire economy.” He emphasised: “It is not about expensive electricity, it is about the sustainable use of fossil fuel wealth. It means the provision of low-cost, carbon-free heat, and a cleaner atmosphere worldwide.”
“The development of a UK-based CCS industry also has the potential to maintain and grow the UK’s workforces in process, chemical and manufacturing industries. Overall, CCS means meeting carbon targets and playing our part in protecting society and the environment from the worst impacts of global warming, continued Haszeldine. “This report is very critical of the Treasury’s lack of success at working across departments to join up expenditure on the one hand with clear benefits on the other; in this case, clear cost savings in the long-term as part of decarbonising the UK’s power, industry, heat and transport sectors.”
“The cancellation of two well-developed CCS projects in 2015 has led to a collapse of industry interest in building projects in the UK. This will mean that, when projects are eventually built, the Government will need to pay more to convince industry investors that the UK can be trusted to deliver on its contractual promises. That is bad value for consumers, for industry and for the climate.”
He continued: “Now, with the UK’s decision to investigate leaving the European Union, developing and maintaining global expertise in science and technology design, consultancy and construction is more pertinent than ever.”
“Energy is one of the biggest global markets. CCS is one part of that market, where UK Government support could boost innovation and invention to ensure that the UK becomes a natural exporter of CCS expertise and consultancy, not an importer.”
He believes the Treasury should be “more sophisticated in its assessment of value” when assessing long-term infrastructure needs like CCS, rather than focusing on “simplistic calculations of near-term profitability.”
He concluded that, in order for the UK to be a low-carbon economy, it is essential the government make long-term investments across multiple sectors.
Edited from press release by Harleigh Hobbs
Frank Calandra Inc. (FC), the owner of ground control company, Jennmar, has completed the acquisition of the US underground mining business of Dywidag Systems International (DSI), according to a company press release.
The company has also completed the sale of its European and Latin American operations to DSI but said that DSI’s proposed acquisition of Jennmar Australia had been terminated.
“Jennmar has not immediate plans for divesting its very successful Australian operations,” the company added.
“We thank our loyal customers and employees for standing by us during these months of uncertainty. We will continue to deliver ground support options that are both commercially economical and safe to the Australian mining and tunnelling industries for the foreseeable future.”
FCI and DSI continue to operate three ROCBOLT joint ventures in China, South Africa and Australia.
Edited by Jonathan Rowland.
The range of modular brake systems from Twiflex Ltd. has been further expanded with the launch of the new VSD Series, which incorporates several of Twiflex’s newest technological improvements. Designed for use in a variety of industrial braking applications – including mining conveyors, hoists, geared grinding mills, offshore deck lifts and mooring winches – the VSD Series is simple to install, adjust and maintain.
The standard VSD Series comprises eight model ratings and follows the design principles of the well-proven VKSD and VMS2 ranges, featuring two spring module assemblies mounted on each side of a central mounting plate. As a spring-applied, hydraulically-released brake caliper, the VSD offers braking forces ranging from 100 kN to 220 kN.
VSD brakes include a parked-off feature, increased braking forces with lower operating pressures, an optional floating version and the improved flexibility of a modular design that is not achievable with the similarly-rated legacy “VS” range. The new brake will accommodate a wider range of disc sizes and provides a more compact and cost-effective solution.
The VSD Series is designed to make both installation and maintenance simple, offering a range of status monitoring options, as well as fast and simple adjustment and rapid pad change procedures that require no special tools.
Through continued commitment to R&D, Twiflex, which is part of Altra Industrial Motion, offers one of the widest and most technically-advanced range of heavy-duty brakes on the market. This expansive product offering makes it possible for Twiflex engineers to quickly design a solution that can be optimised to almost any application.
The new VSD consolidates the Twiflex modular brake range with a series of designs sharing common features and benefits, and a format that is repeated from the smallest (VBS) to the largest (VMS range). This is a time-saving advantage since installation, setting and maintenance processes will be familiar to anyone already operating Twiflex calipers.
Edited by Jonathan Rowland.
Geo Energy is to acquire a 98.73% stake in PT Tanah Bumbu Resources (TBR) for US$90 million, adding 44.4 million t to Geo Energy’s total mineable coal reserves. TBR is expected to start production in early 2017 and expand Geo Energy’s coal production to no less than 10 million t in 2017.
“The proposed acquisition of TBR would allow our group to double its coal JORC reserves to more than 100 million t to be one of the largest coal producer in Indonesia and a major one in the region,” said Geo Energy’s CEO, Tung Kum Hon.
TBR’s coal mine is located adjacent to Geo Energy’s existing subsidiary, Sungai Danau Jaya (SDJ). SDJ has a JORC estimated coal reserves of 42.4 million t with a calorific value of 4000 – 4200 kcal/kg. It began production in December 2015.
The acquisition of TBR is the third transaction announced this year by Geo Energy. In February, the group agreed to buy a 79.9% stake in PT Tarisma Jaya Abadi, while in March it agreed to buy a 99.5% stake in PR Cahaya Lembusuana.
According to Tung Kum Hon, now is an opportune time to be investing in the Indonesian coal sector.
“The Indonesian Coal Index is showing promising signs of sustained uptrend and coal asset prices around the region still remain at attractive valuations,” he said. “Based on current price trends, we are expecting the ICI for 4200 GAR to hit US$30 per tonne by end July or August 2016 and US$35 per tonne in 2017.”
The acquisition of TBR is expected to close by the end of the year and Geo Energy is now in discussion with its mining contractor on redesigning its SDJ mining plant into include a combine the SDJ and TBR assets.
Edited by Jonathan Rowland.
