Developing coal preparation facilities is a priority for Russian coal company, SUEK, according to its Director General Vladimir Rashevsky. “We should not ship tones, but calories,” said Rashevsky at the International Coal Preparation Congress in St Petersberg.
According to Rashezsky, demand for high-quality coal will continue to grow, particularly from Asian countries that are developing modern coal-fired power plants designed to use such coal. “Therefore it is important to offer the market enriched coal,” Rashezsky said.
“In the long run, we aim to enrich almost all SUEK coal that goes for export. Therefore, we plan to further expand our preparation facilities in all regions in which we develop the extraction of hard coal,” concluded Rashevzky.
SUEK currently mines coal in the Kuzbass, Khakassia, Buryatia, Zabaikalye and Habarovk regions of Russia. The company began developing its preparation facilities in 2009, when it opened a new processing plant at the Tugnuisky opencast mine in Buryatia.
Since then, SUEK has become the leading processor of coal in Russia, said Rashevsky said, constructing a number of new coal preparation plants and investing around RUB 20 billion in coal preparation projects. As a result, it now processes around 38 million tpy of coal, up from 10 million t in 2008.
The International Coal Preparation Congress has been held every 3 – 4 years for the last 60 years. This year is the first time the congress has been held in Russia. Around 900 people attended the congress from 25 countries, including India, China, Poland and the UK.
Edited by Jonathan Rowland.
US coal production crept up 3.2% in the week ending 18 June compared to the previous week, according to the US Energy Information Administration’s (EIA) weekly coal production forecast. Weekly production hit 13.35 million short t, the highest since February.
Production remained 18.1% below the same week last year, however, while year-to-date production is 28.8% lower than 2015.
US coal mines have produced 302.94 million short t of coal so far this year, compared to 425.26 million short t last year.
Kentucky remains the hardest hit state with production down 35.1% year to date, although production in southern West Virginia is down more, by 38.3%. Northern West Virginia production is down 24.2%.
Out West and Wyoming – the US’s largest coal producer – is down 31.5% at 120.2 million short t compared to 174.2 million last year.
Railcar loadings from US coal mines also show a steep decline on the back of the fall in production. Cars loaded are 31.7% down this year.
Edited by Jonathan Rowland.
Coalbed methane (CBM) gas flow testing at Tlou Energy’s Selemo 4 test well has exceeded expectations, according to a company press release.
“Data received from the Selemo 4 well is extremely encouraging with gas production exceeding our expectations,” said Tlou’s Managing Director, Gabaake Gebaake. “Positive gas flows have already been achieved from Selemo 1 and we are encouraged that significant gas is still expected to flow from the lateral wells.”
The results from Selemo 4 follow gas flow testing at Selemo 1, where sustained gas flow was achieved.
“These positive results follow the recent announcement from the Botswanan government that it is proposing the delivery of 100 MW of CBM power to be incorporated into its future generational supply plans,” Gebaake said.
Edited by Jonathan Rowland.
Greece-based global shipping company, Star Bulk Carriers Corp., has reported a loss of US$48.8 million in its first quarter results (ended 31 March 2016).
The shipping company focused on the transportation of dry bulk cargoes posted revenue of $46.3 million in the period, compared to US$45.4 million for 1Q15. This increase is primarily driven by the increase of the average number of vessels to 72.7 in 1Q16, from 65.1 in 1Q15, and was partially offset by lower charterhire rates prevailing in the dry bulk market during the 1Q16, compared to the first quarter of 2015.
For the first quarter of 2016, operating loss was US$34.9 million compared to operating loss of US$33.9 million for the first quarter of 2015.
Net loss was US$48.8 million (US$1.11 loss per basic and diluted share), calculated on 43 824 122 shares, which is the weighted average number of basic and diluted shares, giving effect to the 1 to 5 reverse stock split effective 20 June 2016 (reverse split-adjusted basis).
Petros Pappas, Chief Executive Officer of Star Bulk, commented: “The first quarter of 2016 was the worst of the last 30 years, as freight rates remained below operating costs and vessel values reached new lows across all dry bulk vessel classes. We continue implementing cost containment initiatives and maximising internal efficiencies, resulting in our average daily OPEX per vessel excluding pre-delivery expenses being reduced by 19% y/y to US$3591. This reduction was not at the expense of the quality services provided to our customers and the maintenance of our vessels, as evidenced by the fact that 91% of vessels under our management has been assigned 5 – star rating from Rightship. In the last few months we have entered into negotiations with our banks, with which we have long standing relationships, to defer principal payments and waive or substantially relax financial covenants, so as to preserve liquidity well into 2019. In order to finalise these discussions and relevant documentation, we have entered into standstill agreements covering debt principal repayments as well as certain covenants with our Lenders for a period of three months ending on 31 August 2016.”
Caterpillar has released a new training video for operators of Cat K Series Large Wheel Loaders, including the 988K, 990K, 992K, 993K and 994K.
The video is designed to educate potential operators and to update experienced operators on safe and efficient operation of these loaders. Topics include basic safety considerations, the location and function of controls, start-up and shutdown procedures, and best practices for bucket loading, truck loading, load and carry, and floor maintenance.
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Kibo Mining has completed the independent, integrated Water Availability Study for the Mbeya coal-to-power project (MCPP).
The study determines sustainable groundwater yields and pit inflows through aquifer testing and numerical flow monitoring. It concluded that the available groundwater would be sufficient and sustainable to supply the power plant with water.
“We are delighted with the outcome of the Water Availability Study,” said Louis Coetzee, CEO of Kibo Mining. “With yet another work stream completed, we are getting ever closer to concluding work on the MCPP feasibility studies.”
The MCPP is a 250 – 350 MW minemouth power plant based on a thermal coal deposit in Mbeya in southwest Tanzania.
Kibo is currently in the process of completed an integrated bankable feasibility study for the combined mining and power aspects of the project with release expected in the near term.
Edited by Jonathan Rowland.
Coal trader, HMS Bergbau, achieved a profit of €0.2 million in the 2015 financial year (FY2015), despite continued falls in the price of coal on global markets as the company boosted volumes and diversified into other raw materials, including ores, metals and cement products.
Prices on the international coal market fell by roughly 20% in 2015, while HMS Bergbau suffered only an 8.6% fall in earnings in €117.6 million.
The company also said it expected to continue its positive results though 2016 with a recovery in ram materials markets anticipated from the 2Q16.
“Complimenting our business activities with other raw materials enables us to meet the requirements of our customers and deploy our operative expertise in the areas of mining, handling and trading,” said Heinz Schernikau, Founder and CEO of HMS Bergbau.
‘By expanding our business activities, we are able to maximize our capacities, diversify risk even further, boost gross margins and ultimately gain a competitive advantage.”
Edited by Jonathan Rowland.
Babcock & Wilcox Enterprises Inc. (B&W) is restructuring its traditional power business that serves coal-fired power generation to reduce overhead and improve efficiency in response to projections that coal usage, particularly in the US, will decline faster than previously forecast.
The new organisational structure includes a redesign of workflow for its North American-based coal power generation resources to provide an organisation that can adapt to the changing market conditions.
As part of these changes, B&W will eliminate over 200 positions in North America immediately and undertake other cost-savings measures across the enterprise. The company also expects additional facility consolidations in the coming year. Severance expenses and other costs over the next 12 months will be approximately $US55 to US$60 million, of which approximately US$30 million are non-cash and include the write-down of B&W’s one coal-fired power plant and deferred tax assets related to the India manufacturing joint venture and various state net operating loss carryforwards. These savings are expected to allow the coal business to hold gross margins constant in the coming years despite the expected decline in volume.
B&W is consolidating aftermarket and global new build activities for coal-fired generation into one segment that will be led by Mark Low, Senior Vice President of the new Power segment. All renewable energy projects, including the B&W Vølund subsidiary, will be consolidated into another segment, led by Paul Scavuzzo, Senior Vice President of the new Renewable segment.
“We have reduced the size of our organisation that supports the coal market by roughly 20% and restructured how we support this market,” said E. James Ferland, Chairman and Chief Executive Officer. “These changes will allow us to continue to provide outstanding service to our customers and maintain solid profit margins in our power business despite an expected 15 – 20% reduction in US coal customers’ demand for our parts and services by 2017 or 2018.”
Following the restructure, the company has updated its guidance for 2016 to reflect:
National Mining Association (NMA) Senior Vice President and General Counsel, Katie Sweeney, is to tell a Senate panel that the Bureau of Land Management’s (BLM) withdrawal of more than 10 million ha. of mineral-rich federal land from mining activity under the guise of sage grouse conservation “will cause serious hardship to the nation’s economic and mineral security,” while doing nothing to combat proven threats to the sage grouse.
Before the Senate Public Lands, Forests and Mining subcommittee, Sweeney will explain that the massive withdrawal goes against the government’s own findings that identify the primary threats to the sage grouse come not from mining but from wildfire and the loss of native habitat to native species and conifer encroachment.
The withdrawal will come with few measurable benefits for sage grouse, but the economic repercussions of removing 10 million ha. from new mining claims will be potentially severe.
“Mining provides for nearly two million high-wage jobs, generates US$46 billion annually in taxes and provides key minerals to industries – from laptops and cars, to infrastructure and life-saving medical devices – that comprise 14% of US GDP,” she said.
BLM never detailed the number of existing mining claims in the area it recommended for withdrawal. Using BLM’s database and maps of the proposed withdrawal area, Sweeney identified nearly 6000 existing mining claims throughout impacted states.
NMA’s analysis of agency land use planning data further calls into question the purpose of this massive withdrawal from mining operations.
“In no state did existing mining claims impact more than three percent of the withdrawal area and, in total, effected only about one percent of the 10 million ha.,” said Sweeney.
Among the aims of the Federal Land Policy and Management Act is the requirement to manage public lands in a manner that ‘recognises the nation’s need for domestic sources of minerals.’
“The proposed withdrawal is simply bad public policy that comes with a dangerously high price tag,” said Sweeney.
Edited from press release by Angharad Lock
Westmoreland Coal Co. has successfully modified certain terms of its revolving credit line to provide financing flexibility over the summer – a time when cash flow is typically at its lowest.
The changes include a 16 day extension to the seasonal borrowing period, an easing of the fixed charge coverage ratio from 1:10 to 1:15, and a reduction in the seasonal borrowing availability from US$25 million to US$19 million.
“The changes we made better accommodate the seasonal trends in our business,” said Jason Veenstra, Westmoreland’s Chief Financial Officer.
The seasonal borrowing period now runs from 15 June to 31 August. There was no change to the US$50 million base borrowing commitment.
Westmoreland owns opencast coal operations in the US and Canada, as well as underground coal mines in Ohio and New Mexico. It also has a stake in the ROVA coal-fired power plant in North Carolina through Westmoreland Resource Partners, a publically-traded coal master limited partnership.
Edited by Jonathan Rowland.
To mark Screen Machine’s 50th anniversary, the company has debuted about 75 short t of new machinery and welcomed nearly 700 guests to celebrate the day.
On 23 June 2016, Screen Machine invited dealers, suppliers, local, state and federal officials, families of employees and other special guests to its 125 000 ft2 facility in Etna, Ohio, US.
The company indicated that it was a day to celebrate a great American success story, and to look ahead to a bright future.
“Fifty years is a long time,” said President Steve Cohen. “Screen Machine Industries not only survived but prospered through many recessions and wars. A business must adjust to survive.”
In testament to the company’s plans to not only survive, but thrive, in the years to come, Screen Machine debuted two new machines:
“These machines are all about efficiency,” said Doug Cohen, Vice President of Operations. “The 4043TR allows the operator to produce crushed and sized product from a single machine. The return conveyor ensures the product keeps recirculating until it is reduced to the desired size. The 514TS3 adds an additional deck to our mid-priced screening plant.”
In addition to seeing these two new machines, 50th Anniversary attendees were given factory tours led by Screen Machine engineers and were able to drive a Screen Machine scalper, had a chance to run a hoist, could visit the I Make America interactive game and had an opportunity to view a crushing and screening demonstration.
During a brief lunchtime presentation, Screen Machine Founder Bernard Cohen recalled that his accountant told him 50 years ago that nine out of ten business failed in their first three years. “I wonder what he would say today about our company,” he said.
Edited from press release by Harleigh Hobbs
South African mining company Exxaro is expected its coal CAPEX to jump by 32% in 1H16 compared to the same period the year before, as optimisation remains a focus area.
The company is expecting total CAPEX spending to be ZAR 1.27 billion for the six months to June this year, compared to ZAR 1.00 billion last year.
Of this, sustaining CAPEX will total ZAR 937 million – of which ZAR 922 million will be spent at the company’s coal operations in the Waterberg coalfield and Mpumalanga Province. Expansion CAPEX will total ZAR 336 million of which ZAR 307 million will be spent at the company’s operations in the Waterberg.
Annual CAPEX expenditure for the 2016 financial year is forecast to be ZAR2.96 billion, up from the previous forecast of ZAR 2.91 billion and FY2015 spending of 2.39 billion.
Exxaro manages six coal mines and produces 36 million tpy of coal. It owns the Grootegeluk coal mines, the only producing mine in the Waterberg coalfield and adjacent to Eskom’s existing Matimba and new Medupi power plant.
The company also owns the Arnot, Leeuwpan, Matia and North Block mines in Mpumalanga Province. A new mine – the Belfast mine – is scheduled to be commissioned by 2017 and will deliver around 2.2 million tpy of coal at full capacity.
Edited by Jonathan Rowland.
Navios Maritime Partners LP, an international owner and operator of container and dry bulk vessels, has appointed Lampros Theodorou as its newest member to its board of directors.
“We are delighted Mr. Theodorou has joined our board and believe that his deep understanding of shipping and finance will significantly benefit the Company,” said Ms. Angeliki Frangou, Chairman and CEO of Navios Maritime Partners L.P.
Theodorou founded Garnet & Associates Inc. in 2014 and has been Director since that time. For almost 20 years, he worked at EFG Eurobank S.A., most recently as Deputy General Manager and head of the Shipping Unit. He served as a Non-Executive Director of Paragon Shipping Inc. for the period May 2015 to April 2016.
Navios Partners has also announced that John Karakadas, a director of Navios Partners’ since October 2007, has resigned. Frangou commented, “We thank Mr. Karakadas for his valuable contribution and his good service to the company. We wish him well in his future ventures.”
Edited from press release by Harleigh Hobbs
The presidents of China, Russia and Mongolia have agreed a trilateral programme to develop an economic corridor between the three countries, including the establishments of a new Northern Rail Corridor connecting China with Russia through Mongolia.
The proposed Northern Rail Corridor will be a continuous railway connecting Tianjin Port on China’s east coast through Beijing, Erlian, Ulaanbaatar, Erdenet to Ovoot, Arts Suuri to Kyzyl, connecting to the Trans-Siberian Railway at Kuragino.
About 2100 km of this rail link already exists, while Aspire Mining subsidiary, Northern Railways, has been awarded a concession by the Mongolian government to build, operate and transfer a new 547 km section of the rail corridor to link Erdenet to Aspir’s Ovoot metallurgical coal project.
In total a further 1414 km of new track will be required to complete the rail link.
“The establishment of this Northern Rail Corridor confirms that the Erdenet-to-Ovoot Railway has developed from being a rail connection to a large coking coal project to now being part of an important new trade infrastructure route,” said Aspire Mining in a press release.
Inclusion of the Erdenet-to-Ovoot railway in the Northern Rail Corridor project also opens up funding for the project from China’s Policy Banks, Sinosure, the Asian Infrastructure Investment Bank and funds, such as the Silk Road Fund.
“It is very significant news that the Erdenet-to-Ovoot Railway is now recognized as a key part of a new rail trade route between Russia and China through Mongolia,” said Aspire Mining Managing Director David Paull.
“This new corridor will be of significant long-term value to the people of Mongolia. The Erdenet-to-Ovoot railway has now officially moved from a rail extension to service a world-class coking coal deposit, to a strategic piece of rail infrastructure to facilitate China’s Silk Road Initiative and Mongolia’s Step Road trade initiative.”
Edited by Jonathan Rowland.
Mechel, a leading Russian mining and metals company, has closed the deal on selling to Gazprombank AO the 49% share in the Elga metallurgical coal deposit development project for 34.3 billion rubles.
According to the agreement, Mechel sold to Gazprombank 49% of shares in Elgaugol OOO, the project operator company and owner of its subsoil licence, 49% of shares in Elga-Doroga OOO, which owns the Ulak-Elga railroad, and 49% of shares in Mecheltrans Vostok OOO, which is the railroad’s transport operator. The cost of these shares totals 34.3 billion rubles.
“Together with Gazprombank we have followed the long and difficult path of restructuring Mechel’s debt, and now, building on our partnership, we have exercised the Gazprombank’s option to purchase the 49% share in Elga Coal Complex. Completion of this deal will not only help decreasing Mechel’s debt, but will also enable us to further develop the Elga deposit, which has tremendous importance for Russia’s mining industry,” Mechel PAO’s Chief Executive Officer Oleg Korzhov commented.
Edited from press release by Harleigh Hobbs
Rio Tinto paid US$4.5 billion in taxes and royalties in 2015, according to the company’s latest tax report, as well as spending almost US$18 billion buying goods and services.
“Rio Tinto continued to provide a significant direct benefit to the governments and communities where we operate,” said its Chief Financial Officer, Chris Lynch. “The US$4.5 billion we paid in taxes and royalties last year takes out total contribution to US$47.3 billion since 2010.”
Australia benefitted most from Rio Tinto’s tax and royalty payments with the country as a whole receiving US$3.32 billion in 2015. Of that US$1.55 billion was federal level corporate income tax.
Western Australia – the home of Rio Tinto’s giant iron ore mining operations – received US$1.08 billion in royalties, while the coal states of Queensland and New South Wales received US$150 million and US$145 million, respectively.
Compared to Australia, Rio’s tax contributions elsewhere were much lower. Canada was the next largest recipient with London-based mining company paying US$345 million to the federal and various provincial and local governments.
Mongolia, home to the giant Oyu Tolgoi copper project, received US$278 million and Chile, US$196 million. France, South Africa, Guinea, Singapore, the UK, Peru, Iceland, Switzerland, the Netherlands, China and the US also received tax payments from Rio Tinto.
Overall, Rio Tinto had an average corporate income tax rate of 29.9% globally on underlying earnings over the past five years.
Edited by Jonathan Rowland.
The American Coal Council has become the latest organisation to criticise a report on the economics of federal coal leasing from the White House’s Council of Economic Advisors (CEA), accusing it of failing to understand the workings of the coal market.
“As an example of the problematic nature of the report, one of the CEA’s conclusions is that increasing the cost to produce coal under federal leases, which mainly occurs in the Powder River Basin, through higher royalty payments will raise the market price of coal nationally,” the ACA said.
“This conclusion is incorrect, and it demonstrates a failure to appropriately analyze the competitive market forces at play in the various coal-producing regions of the US, as well as the greater energy marketplace.”
The ACA continued that is would be a “grave mistake for American taxpayers to believe that increasing royalty rates under this programme will be beneficial for them.”
“It would reduce coal investment and decrease the amount of coal mined on federal lands,” the ACA concluded. “That means fewer federal and state revenue dollars and a lower, not higher, return for taxpayers. And while not improving the lives of everyday Americans, such a policy change would be devastating to an industry already burdened by weak markets and oppressive governmental regulation.”
Edited by Jonathan Rowland.
BMI Research have raised its thermal coal price forecasts to 2020 on the back of aggressive production cuts in the global coal market, with China leading the way.
The research company, which is part of the Fitch Group, now expects FOB prices for ICE Newcastle 6000 kcal/kg coal to average US$53 per tonne this year compared to a Bloomberg consensus of US$50.5.
“We expect coal prices to continue forming a base of 2016,” BMI Research said. “For instance, Newcastle coal prices have averaged US$51 per tonne in the year thus far and we forecast an average of US$55 per tonne over the remainder of the year.”
The strengthening price for coal comes as coal produced in the two largest produces – the US and China – has fallen dramatically in recent quarters. According to BMI Research, Chinese production was down over 10% year on year in 2Q15, while US production has collapsed by around a third.
“A second annual decline in global coal output will drive a rebalancing of the seaborne market after several years of surplus,” said the research company. “We forecast global coal production to decline by 4.1% in 2016, following a 4.3% contraction in 2015.”
Looking ahead, BMI Research now forecasts prices for Newcastle coal rising to US$57 per tonne in 2017 and US$61 per tonne by 2020.
Edited by Jonathan Rowland.
The US Mine Safety and Health Administration (MSHA) is to begin “enhanced enforcement” of its Rules to Live By initiative and nine underground coal exam rule standards that focus on the greatest risks to miners.
“While we’ve seen progress in reducing mining deaths associated with both Rules to Live By and the exam rule, mine operators need to conduct better site inspections and take appropriate action to improve compliance with these standards,” said Joseph Main, Assistant Secretary of Labour for Mine Safety and Health, in a press release.
“That is why we are increasing attention on these critical standard. We urge the mining industry to do the same.”
According to MSHA analysis of US mining fatalities over a ten-year period, deaths associated with Rules to Live By standards have fallen by an average of 23%, while citations for violations of these standards have fallen an average of 37%.
Similarly, fatalities associated with the underground coal exam rule have fallen by an average of 22% with citations down an average of 45%.
Beginning on 1 July, MSHA will make more extensive use of its web-based Rules to Live By and exam rule calculators to determine the number of citations and orders issued during the most recent inspection periods for which data is available.
This analysis will be provided to mine operators, who will be encouraged to use the online Rules to Live By and exam rule calculators to monitor their compliance and take actions to stop violations. The results will also be added to criteria for consideration of impact inspections, targeting mines with elevated non-compliance of these standards.
Edited by Jonathan Rowland.
Action Drill & Blast (ADB) has been awarded a three-year extension to its drill-and-blast services contract at MIddlemount coal mine in Queensland, Australia. ADB has been working at the Bowen Basin mine since the mine opened in 2011.
“We have formed a close partnership with mine owner, Middlemount Coal Pty Ltd since commencing onsite – a relationship that has delivered exceptional performance outcomes over the years,” said ADB General Manager, Warren Fair.
“We look forward to building on this and continuing to deliver an efficient, productive and high-quality service.”
Middlemount Coal Pty Ltd is a joint venture between Yancoal and US-based Peabody Energy, both of which hold a 50% interest.
The Middlemount mine produces PCI coal and hard coking coal for export markets with coal shipped through Dalrymple Bay Coal Terminal and Abbot Point Port. In 2015, the mine produced 5.53 million t of ROM coal and 4.01 million t of saleable coal.
Edited from by Jonathan Rowland.
SAN FRANCISCO — The city of Oakland, Calif., on Monday banned the transport and storage of large coal shipments, a blow to a developer’s plans to use a former Army base as an export terminal to ship coal to China and other overseas markets.
The terminal would have been the largest coal shipment facility on the West Coast, with a planned capacity to increase coal exports in the United States by 19 percent, according to the Sierra Club, the environmental group.
Weeks of feisty debate over the ban, which the Oakland City Council unanimously passed late Monday night and which will become law after a second reading next month, covered familiar ground: the trade-offs between jobs and environmental concerns.
But the debate also raised the larger and more unusual question of how much a city should weigh the global environmental impacts of the commodities that flow through its ports. A report prepared by the city argued for a coal ban partly because the coal, once it was burned overseas, would contribute to and rising sea levels.
“Oakland cannot afford to ignore the scientific evidence that clearly show the harmful effects and risk associated with coal,” said Dan Kalb, a City Council member who proposed the ban along with the mayor, Libby Schaaf. “With this new law, we’re taking the steps needed to protect our community, our workers and our planet.”
The city’s report calculated that the millions of tons of coal exported annually through the port of Oakland would release significantly more greenhouse gases than produced each year by all five oil refineries in the San Francisco Bay Area. And the report noted that Oakland was especially vulnerable to rising sea levels.
The ban is the second blow for the coal industry on the West Coast in recent weeks. In May, the United States Army Corps of Engineers planned 90 miles north of Seattle on the grounds that it would endanger wildlife.
The report, which was prepared by Claudia Cappio, an assistant city administrator, warned of the risks of cancer, heart and lung ailments and childhood developmental problems resulting from exposure to what it called “fugitive dust emissions” — the airborne particles generated from handling, transporting and loading coal onto ships.
The coal would have been shipped from Utah and other western states to the Oakland Bulk and Oversized Terminal, which is on an abandoned Army base across the Bay from San Francisco.
The lead investor in the project, Phil Tagami, the chief executive and president of the California Capital and Investment Group, warned in an email of “legal consequences” from the decision.
“Exactly how much of the city’s limited resources and how many jobs for West Oaklanders are this Council willing to sacrifice on this crusade?” he asked.
Mr. Tagami is one of the most prominent developers in Oakland and is a friend and political supporter of California’s governor, Jerry Brown, a former mayor of the city.
A lawyer for Mr. Tagami, David Smith of the firm Stice & Block, wrote in a letter to the Council before the vote that a ban would be a “pronouncement to the world that Oakland is not a trustworthy or reliable place to invest or do business.”
Mr. Smith called the argument that the coal exported from Oakland increased the emissions of greenhouse gases “nonsensical and absurd” because power plants overseas would burn coal from somewhere else if they did not get coal from the Oakland port.
Mr. Smith also asked whether the concern over the global consequences of the coal would apply to other goods that move through the city and its ports. “Under this approach, the city would have to hold gas station owners responsible for greenhouse gas emissions from cars that refuel at their facility,” he said.
The vote comes at a time when Oakland is increasingly shifting toward technology jobs — and away from the city’s blue-collar heritage. Pandora, the streaming music service, is based in Oakland, and Uber is moving its headquarters there next year.
An employee at the Klipspruit coal mine in Mpumalanga, South Africa, has been fatally injured, according to the mine’s owners, South32.
No further details were given but the company said that its incident management team has been activated and it was working with local authorities to investigate the incident.
The worker was named as Joseph Kiewiets. Operations at Klipspruit have been suspended.
Klipspruit is part of South32’s South African Energy Coal’s operations, which also includes the Khutala, Middelburg and Wolverkrans coal mine.
South African Energy Coal produced 34.3 million t of coal in the year to June 2015 (FY15), including 16.2 million t for the export market. It expects that to fall in FY16 to 31.9 million t with exports falling to 15.3 million t.
Edited by Jonathan Rowland.
South African coal company, Exxaro, is expecting to increase its half-year production of thermal coal for the six months to 30 June 2016, according to its Finance Director, Wim de Klerk.
In a letter to shareholders posted on its website, the company forecast 1H16 thermal coal production of 19.6 million t – a 9% rise on the 18.1 million t produced over the same period in 2015. Sales were also forecast to rise to 20.8 million t from 19.2 million t.
Thermal coal production a tied mines supplying Eskom power plants fell by 4%, however, on the closure of the Arnot mine. Arnot’s coal supply agreement with Eskom ended on 31 December 2015.
Production at Exxaro’s other mines is expected to jump 12% to 15.6 million t due to the inclusion of Exxaro Coal Central – previously Total Coal South Africa – in the figures, as well as higher production at Grootegeluk and North Block. This offsets lower production at Leeuwpan and the closure of the Inyanda mine.
The company also mined 993 000 t of metallurgical coal, an 8% increase on 1H15, for domestic consumption.
Looking ahead, the company expects 2H16 thermal coal production for the domestic market to remain “at current healthy levels”, while export markets “depend heavily on Indian demand for lower-quality coal products, while pricing is expected to remain flat.”
“Further market growth is expected in the African, Pakistani and Southeast Asian markets and the group is well positioned with a strong product mix to supply these markets,” the company concluded.
Edited by Jonathan Rowland.
TerraCom Ltd has appointed Cameron McRae as Executive Chairman of the company, effective immediately. The company indicated that McRae will lead TerraCom’s transformation into an independent, mid-tier global resource player.
TerraCom has also reviewed the structure of the senior management. The following appointments and changes have been made to TerraCom’s executive committee, which will take effect immediately:
Michael Avery will move to Vice President Corporate Development and will remain on the Board as an Executive Director.
David Stone will become Vice President Operations.
Karl Arnold, who is currently Mongolian Business Unit Head, will move to Chief Financial Officer.
Julien Lawrence will become Chief Development Officer.
McRae stated: “TerraCom’s group of senior executives is highly experienced. The team collectively have worked through all stages of the mining life cycle, as leaders, advisors, investors and mining contractors.”
“The average experience of the executive team is 25 years. Several have worked and lived in developing environments as well as first world countries and the team has strong cross-commodity experience.” He continued: “I will play an active and hands-on role and look forward to working with the board and management teams to build a profitable and value-enhancing business for shareholders.”
Edited from press release by Harleigh Hobbs
The Bituminous Coal Operators Association Inc. (BCOA) and the United Mine Workers of America (UMWA) have reached a Tentative Labor Agreement, which, if ratified, will run from 30 June 2016 to 31 December 2021.
Robert E. Murray, the Chief Executive Officer of Murray American and Chairman of BCOA, said: “We are pleased that the BCOA and UMWA have reached this very important tentative agreement, which will go a long way in ensuring that Murray American’s UMWA-represented employees are able to continue working, even in this very depressed coal marketplace. Indeed, over the past several years, the United States coal industry has been absolutely destroyed by policies of the Obama Administration and by the increased use of natural gas to generate electricity. Coal markets and prices have generally been cut in half. This tentative agreement provides the BCOA and UMWA with a path forward, even in these extremely difficult times.”
The tentative agreement is subject to ratification by the members of the UMWA.
Murray American subsidiary companies which are members of the BCOA, include: The Ohio County Coal Company, which operates the Ohio County mine; The Marshall County Coal Co., which operates the Marshall County mine; The Marion County Coal Co., which operates the Marion County mine; The Harrison County Coal Co., which operates the Harrison County mine; and The Monongalia County Coal Co., which operates the Monongalia County mine.
Edited from press release by Harleigh Hobbs
QIUNATONG, China — Three great rivers rush through parallel canyons in the mountains of southwest on their way to the coastal plains of Asia. At least 10 dams have been built on two of them, the Mekong and the Yangtze. The third remains wild: the remote, raging Nu, known as the Salween in Myanmar, where it empties into the Andaman Sea.
No dam stands in the path of its turquoise waters. It is the last free-flowing river in China.
Environmentalists have waged of the Nu for more than a decade, battling state hydropower firms determined to build dams to harness the river, whose name in Chinese means “angry.” It is that has veered from victory to defeat and back again several times and has recently taken on new significance:
With global temperatures rising, can China afford to protect its rivers and forgo an alternative to the coal-fired plants responsible for much of the world’s greenhouse gas emissions?
Green advocates across the country have argued that dams on the Nu would force the relocation of tens of thousands of people, destroy spawning grounds for fish and threaten the livelihoods of farmers and fishermen downstream, especially across the border in Myanmar and Thailand.
But China, the world’s biggest , has promised to begin scaling back its even as its power needs continue to rise. The government pledged that will come from non-fossil sources by 2030, and it intends to reach that goal in large part by building more dams. Like the United States, China considers hydropower its biggest source of clean energy.
In the latest twist in the battle over the Nu, provincial officials told Chinese reporters in March that they would suspend construction of small dams and instead establish a national park along the river. But environmentalists remain wary.
I recently spent nearly a week along a 250-mile stretch of the river, traveling from the prefecture capital of Liuku to the Tibetan border to see what was at stake in this battle and why environmental groups and local residents have fought the dams so fiercely.
This valley, in China’s southwest Yunnan Province, is home to a kaleidoscope of ethnic and religious communities unparalleled in China. Farmers tend to fields along steep, terraced valley walls. Pastors hold services in churches overlooking the waters, while Tibetan lamas perform rituals in hilltop monasteries. And guesthouse owners open their doors to tourists eager to glimpse this wild corner of their country.
Dams would result in the flooding of many of these villages and undermine the river’s role as a lifeline through the valley.
Over the years, government agencies and state firms have proposed building multiple dams along the 1,700-mile river. Most of these plans have been scrapped, and the fight is now focused on proposals for four dams on the pristine upper stretch that flows through this valley, and a fifth one in Tibet.
These dams would contribute to the 350 gigawatts of hydropower capacity that Beijing wants to have built by 2020. By comparison, the United States has more than 80 gigawatts of hydropower capacity.
Map | China Rivers
Preliminary construction work has been touch and go for years, and the four sites were abandoned when I visited. There were suspension bridges, rusted transport skiffs and small man-made caves in the valley walls, but no workers in sight.
“The dam is no good for the environment, so the government stopped it,” said Abao, a resident of Dongfeng Village, far up the valley. He recently visited the fifth site, upriver in Tibet, and said construction appeared to have halted there.
But given past swings, residents said they were worried about work resuming.
“The water flow wouldn’t be normal, and there would be less fish in the water,” said Yang Wendong, 37, an ethnic Nu resident of a mushroom-rich mountain village, Qiunatong, by the Tibet border. “The benefits from hydropower are temporary.”
In Xiaoshaba, near the proposed dam site farthest downriver, the government has already relocated residents, the start of what will be a huge resettlement effort along the entire valley if the dams are approved.
The village’s 120 households have been forced to give up their livestock and farmland and move into two-story buildings nearby. Some run small shops or lease space in the buildings.
As I stood on a road overlooking the empty village, Yu Wenxiang, 60, invited me into his sister-in-law’s house and complained that the government had yet to compensate his family with a new home. “The government promised there were a total of 10 homes they would still give out, but they haven’t handed those out,” he said. “It has been a long time.”
To the north, in the village of Laomudeng, Yu Wulin, a guesthouse owner, said the dams would have “no good benefits for the local people,” and would choke off the trickle of tourists coming to the region since 2003. That was when it was recognized as one of the world’s most ecologically diverse and fragile places and designated a Unesco World Heritage Site.
In March, officials from Yunnan Province — who along with the , one of the country’s largest state energy firms, had promoted the dams — appeared to reverse themselves and propose a national park.
Residents I spoke with applauded the idea. “My generation will not see the benefits of the national park project, but the next generation will,” said Yang Yi, a minivan driver in Gongshan, an upriver town.
But Wang Yongchen, the director of Green Earth Volunteers, a group in Beijing that has led the fight against dams on the Nu for more than a decade, expressed some skepticism. She said the officials’ statements could be interpreted to mean only that construction of smaller hydropower stations using water from the Nu’s tributaries would be suspended. More than 100 of these smaller stations have already been built in the valley.
“We want the central government to make a decision on these four dams, to cancel them,” Ms. Wang said.
Ms. Wang and other environmentalists acknowledge that China needs to wean itself off coal and other fossil fuels to combat , but maintain that it can do so without resorting to as much hydropower or as proposed by the government.
Some said the construction of dams could contribute to climate change because organic matter submerged by dams and reservoirs may release significant amounts of methane when they decompose. Methane is a .
There are also commercial rationales for not building the dams. Some energy analysts say much of the electricity generated by hydropower in Yunnan is wasted because the transmission system to the national electricity grid is limited and outdated. Others say the electricity does not end up on the grid because the network gives coal-fired plants over firms specializing in alternative power generation.
“Yunnan already has more hydropower capacity than it uses,” said Zhang Boting, vice chairman of the China Society for Hydropower Engineering. “Many stations in Yunnan are already letting water run free because there is no market for it.”
A spree of dam building is already underway on other major rivers of western China, which flow into neighboring countries and are critical for life across Asia. In October, China began operating the giant Zangmu Dam on the in Tibet, upsetting India and Bangladesh because the river is an important waterway in their countries. Proposed dams on the Mekong have raised similar anxieties.
But environmentalists have succeeded in persuading the central government to block some projects. In Yunnan, the proposed on the Mekong, known as the Lancang in China, was canceled because of its potential impact on a glacier. Last year, Beijing also rejected plans to build a dam on the Yangtze because of the potential effects on a protected zone for fish.
Some climate change researchers say building hydropower capacity is critical for China as it tries to move away from coal.
“Hydropower, in China’s sustainable development process, occupies a rather important role,” said Yang Fuqiang of the Natural Resources Defense Council. “But with regards to the Nu River,” he added, “I personally think the best thing for China is to preserve a perfect, untouched river. Don’t construct large-scale dams on it.”
Chen Zuyu, a prominent hydropower scientist, estimates that the country has installed less than half of 700 gigawatts of potential hydropower capacity, and said it should push ahead.
“China is still in the golden era of hydropower development,” he said. “China can keep developing hydropower for another 30 years, and then it will be done.”
Mr. Chen said the Nu was ready to be developed, but noted, “Environmental issues are political issues and are the hardest to resolve.”
Earlier this year, Loesche Energy System Ltd, UK, created a subsidiary company and created a workshop in India. The new Loesche Energy Systems India Private Ltd (LESI) workshop has been founded at Chennai City in Tamilnadu State of India.
Chennai is a major manufacturing hub in the Southern region of India and having the second largest sea port of the country, the workshop’s location facilitates smooth international logistic options in addition to national accessibility via road and rail.
The new workshop was established owing to the strict pre-qualification requirements of the National Thermal Power Corporation (formally known as NTPC). NTPC is a government of India Enterprise and is the largest power producing company of India. In terms of preferred technology & OEMs, NTPC is also treated as the trendsetter for the Indian power Industry in the market.
The Indian power production is predominantly dependent upon coal-fired power plants, which results in the ordering of a larger number of new coal-fired power plants. With the new workshop, Loesche will be ready to serve the power industry best with Loesche coal mills and services to cover this demand in the future.
The workshop is planned to begin operation in June 2016.
Edited from press release by Harleigh Hobbs
Russian coal and steel company, Mechel, produced 5.7 million t of ROM coal in 1Q16, a 3% increase on the same period last year, the company announced in its 1Q16 operational results, and 7% on 4Q15.
Sales of metallurgical coal concentrate were up 6% on 1Q15 and 7% on 4Q15, while thermal coal sales were up 21% on 1Q15 and 7% on 4Q15. Sales of PCI coal and anthracite were down, however, by 19% and 25% respectively, although PCI sales were up 16% compared to 4Q15.
“Coking coal concentrate sales in 1Q16 went up due to contract sales to Asian steelmaking,” said Oleg Korzhov, Mechel’s CEO. “Most of our exports went to South Korea and Japan, with Japan being our leading consumer in terms of volumes. Figures show that Japanese, South Korean and India’s demand for quality coking coal concentrate grows.”
Production growth at the Elga coal complex helped to boost thermal coal sales with ROM production jumping 18% year on year and 3% on the quarter.
“The notable seven-percent increase in steam coal sales versus previous quarter was primarily due to the increase of sales to China during the winter period,” said Korzhov. “Steam coal from the Elga deposit is among the coals shipped to China.”
Edited by Jonathan Rowland.
Cokal has almost completed its transfer of management and administration functions to Indonesia, the ASX-listed coal junior said in a statement.
The company also announced a number of organization changes with Gerry Kielenstyn being elevated to the role of Chief Operating Officer with responsibility for the day-to-day running of the company. As a result, Cokal’s CEO, Peter Lynch, will transition to the role of Non-Executive Chairman.
In this role, Lynch will focus on the strategic direction of the company and its development, as well as the ongoing discussions on the financing alternatives, the company said.
Kielenstyn has been Indonesian Country Manager/President of PT Cokal since May 2013 and has been based in Indonesia since 1974.
In addition, the company said Moosa Fense would step down from its role as Chief Financial Officer to be replaced by Teuku Juliansyah, who is currently the Finance Manager – Indonesia at Cokal. Juliansyah is a registered accountant with the Indonesian Ministry of Finance and worked for PricewaterhouseCoopers before joining Cokal.
Edited by Jonathan Rowland.
Carbon Energy is to evaluate the development of a large-scale solar power generation plant at the company’s Bloodwood Creek underground coal gasification (UCG) demonstration site. The move comes after the Queensland government banned further UCG development in the state.
“This is a positive step for the Bloodwood Creek site and will help up realise some of the site’s potential, said Carbon Energy’s CEO, Morne Englebrecht.
“With its ideal weather conditions, connection to the grid and supportive infrastructure, the site is well positions for solar energy production, continued Engelbrecht. “The area is particularly well suited to this sort of technology, as evidenced by similar sites being planned in the area.
The agreement with Photon Energy will look into developing a 20 MW solar plant at the site. Photon Energy currently operates more than 154 MW of solar power plants in Australia.
“The project demonstrates and innovative approach that not only allows up to utilize the Bloodwood Creek site for renewable energy but also to potentially develop an innovative new energy storage technology, helping Australian meet its renewable energy target,” said Michael Gartner, Photon’s Managing Director.
“Solar power is an integral part of Queensland reaching its ambitious renewable energy target of 50% renewable energy in the state by 2030,” concluded Gartner.
There is currently only 7 MW of operating solar power generation operational in the state, according to the Queensland government’s website. But there are ambitious plans to increase this with 2807 MW of proposed solar installations in the state.
In contrast, there is 8338 MW of installed coal capacity in the state.
Edited by Jonathan Rowland.
Jacques Vandermeiren has been appointed CEO of Antwerp Port Authority, effective 1 January 2017.
He will succeed Eddy Bruyninckx, who will be reitiring on 31 December 2016 after 25 years at the head of the Port Authority.
Until January 2015, Vandermeiren held the position of Chief Executive Officer of Elia, the listed company that operates the national electricity grid in Belgium. According to the Port Authority’s media announcement, Vandermeiren can draw on extensive experience in the energy sector, which will stand him in good stead with the industrial operators in the port. He also has the necessary experience with complex stakeholder management and in dealing with a publicly-owned shareholder.
“These two aspects, combined with the necessary international experience, strong communication skills and inspiring people management, convinced the board to appoint Vandermeiren as the new CEO,” declared Port Authority Chairman Marc Van Peel.
Vandermeiren is now beginning his ‘working in’ period. “It is certainly an honour for me to face the important local and international challenges for the Port Authority, in collaboration with the board of directors, the management committee, the personnel and the many stakeholders. Assuring the rich history of the port of Antwerp in a sustainable way in future is a task which I shall assume with pride and determination,” Vandermeiren confirmed.
Vandermeiren starts on 1 November 2016 as CEO designate and will shadow Eddy Bruyninckx who retains full authority as CEO, Chairman of the management committee and Managing Director until 31 December 2016. On 1 January 2017, Eddy Bruyninckx will formally hand over to Jacques Vandermeiren.
Edited from press release by Harleigh Hobbs
Aspire Mining Ltd has entered into a memorandum of understanding (MoU) with Erdenes Tavan Tolgoi JSC (ETT), a Mongolian Government controlled entity that owns the Tavan Tolgoi coal mine, to cooperate on further technical and commercial assessments of blending Aspire’s Ovoot metallurgical coal with various coals from the Tavan Tolgoi deposit.
In 2014, Aspire conducted a number of blending tests with various coals, including non-coking coal from the Tavan Tolgoi mine that demonstrated the capacity to blend Ovoot coking coal and upgrade the coking ability of other coals. It is expected that, over the current life of mine plans, there are very significant quantities of non-coking coal to be produced at Tavan Tolgoi without a current viable market to sell into. The test work showed that blending relatively low proportions of Ovoot metallurgical coal (as low as 25% in the blend) resulted in a blended primary coking coal product under the Chinese system.
Under the MoU, Aspire and ETT have agreed to share data and samples for further evaluation, as well as establish a technical and commercial working group to prepare a feasibility study into the blending of Ovoot coking coal, Tavan Tolgoi non-coking coals and potentially other suitable Mongolia coals in a coal blending facility with a capacity of 8 –10 million tpy. In the event that the feasibility study is positive to jointly enter into commercial negotiations to establish a blending joint venture and to work together to attract necessary funding.
Aspire’s Managing Director, David Paull, welcomed this cooperation with ETT to add material value to Mongolian coking coal. He said: “Tavan Tolgoi is by far the largest coking {metallurgical] coal deposit in Mongolia with Ovoot being the second largest by reserves and it appears that there are numerous technical and commercial synergies in working together to improve the value of exported Mongolian coking coals”.
Edited from press release by Harleigh Hobbs
The US National Mining Association (NMA) has accused the White House Council of Economic Advisors of “political malpractice” over a report that criticises the current structure of federal coal leasing programme.
According to the White House report, the current coal leasing programme is “structured in a way that misaligns incentives going back decades.”
As a result, the US coal market has been distorted by an “artificially low price for most federal coal and unnecessarily low government revenue from the leasing programme.”
According to the NMA, however, the report simply highlights the “collaboration between the Obama administration and extreme environmental interests” and “demonstrates the White House working overtime to advance more job crushing and market distorting policies.”
In January the US Department of the Interior froze the granting of coal leases on federal land and announced it would begin a review of the leasing programme.
“There is no legitimate rationale for freezing coal leases and raising royalty rates on federal coal leases that are already valued above market,” said the NMA. “Discouraging production from federal lands and from further investment in this valuable energy resource will put at risk American’s most reliable, abundant and affordable source of energy.”
Edited by Jonathan Rowland.
The Queensland state government has granted an additional mining lease for Cockatoo Coal’s Baralaba North mine. The lease covers an areas of 1446 ha. and has been granted for a 25 yr term.
The new lease extends the life of the Baralaba North mine and – in conjunction with the environmental authority approved in February – will allow Cockatoo to continue to produce ROM coal at a rate of up to 4.1 million tpy.
Cockatoo now expects to complete an updated reserve update over the new lease and two other lease areas associated with the Baralaba North mine as part of the development of new mine plans for the restart of the mine.
Edited by Jonathan Rowland.
TerraCom is in the final stages of negotiations to acquire a shuttered coal mining operation in Queensland, according to a recent announcement to the Australian Stock Exchange, as part of its strategy to diversify its operations.
The company currently owns the Baruun Noyon Uul (BNU) metallurgical coal mine in the South Gobi region of Mongolia, as well as developing two projects in Queensland.
“In order to support the growth and expansion of the company and to de-risk from single mine and single country operator, TerraCom continues to evaluate cash generative assets for potential acquisition,” the company said.
In addition to the Queensland mine, the company is also continuing due diligence on a metallurgical coal mining operation in Indonesia with the capability of delivering 0.5 million tpy of hard coking coal.
Edited by Jonathan Rowland.
