Jonathan Rowland
Communication in underground mines has been around for about 100 yrs. As on the surface, it was the development of the telephone that kicked things off. Indeed, early mine phones were essentially the same as those you would use above ground – just enclosed in a cast-iron housing to protect them against the hostile conditions found underground, making them particularly cumbersome.
Despite this, the hard-wired nature of these phones made them easy to install and maintain – and versions of this technology are still in use today. But its no longer the only game in town: the past 10 – 15 yrs has seen a proliferation of technology developments in the underground mine communication space, according to Chris Adkins, Product Manager StrataConnect at Strata Worldwide.
Adkins’ family has been in the coal industry almost as long as those early telephones. His grandfather was a mine foreman in Penn Creek, West Virginia, while his father also worked in West Virginia’s mines, mining 28 in. coal seams, before becoming an explosives salesman – a job he did for 35 yrs and that took him around the world.
Adkins himself joined the military after graduating from high school – but ended up following in his father’s and grandfather’s footsteps. He started in the mining industry at the turn of the century. Since then, much has changed underground.
“When I started in the industry in 2000, they were still using page phones. These are still used today, just copper-wire page phones,” Adkins explained. “But it’s really branched [since then], over these past 16 yrs.” So now, as well as the ‘old faithful‘, Wi-Fi, leaky feeder systems and fibre optics have all been introduced to underground mining.
Sago mine disaster: driving technological development
Much of technological development in underground mine technology – at least in the US – was driven by the Sago mine disaster of 2006. In response, the US government passed the Mine Improvement and New Emergency Response (MINER) Act, which included a provision that mandated wireless two-way communication and electronic tracking be installed in underground mines within three years.
“Initially some mines were proactive in installing intrinsically safe (IS), post-accident communications and tracking systems,” said Adkins. “But once the mandate came out from the government for the MINER Act, people really started looking into it.”
Modern underground mine communications can be broken down into two areas: voice communication and text-based communication. Voice communication is more for your day-to-day production, but not all employees need it, as Adkins explained. Here, leaky feeder communication has been a significant development.
Text-based communication comes into its own in an emergency situation and is what Strata Worldwide specialises in. “Our company’s system is a proprietary mesh network that you can text back and forth on,” Adkins said. But why a text-based system?
“You know what you’re sending,” said Adkins. “You receive it exactly as it is sent out. One of the challenges we experienced with voice communication was misinterpreting messages. Voice communications post-accident present a number of challenges. Firstly, they may have to communicate when it’s not an advantageous time to do so and secondly, they are wearing SCSR units and have to talk through the mouth-piece.”
This is avoided with text-based systems: “Text is clear and miners can read and respond when they are ready and able, just like phone texting today,” concluded Adkins. “Since leaky-feeder has been prevalent in mines for years, there are less text-based systems utilised in day-to-day operations around the world. However, text-based systems are becoming more popular over time, as text messaging is becoming more popular just in general life.”
To that basic text-based mesh system, Strata Worldwide has started to add options that take it beyond the mine emergency into production processes. “We’ve added wireless monitoring to it,” explained Adkins. “So Strata has the only truly wireless atmospheric and CO monitoring system underground. That’s a big move for the industry. And we’ve added wireless belt monitoring, as well as bringing data off of our proximity detection system, HazardAvert®.”
“So not only are we using it for communications, we are finding other ways to help the mining companies from a production standpoint,” continued Adkins.“Strata also offers Wi-Fi systems, which include VoIP calling and high-speed data access. The Strata Wi-Fi access points create ’hotspots’ underground – much like what we have on the surface. These are compatible with any standard IEEE 802.11b/g/n Wi-Fi enabled device. Strata’s Wi-Fi system is non-IS.”
Despite this technological development, the challenges remain the same as encountered by those early telephone-based systems. “From an equipment side, reliability is probably the toughest thing because it’s such a corrosive atmosphere.”
Beyond that, there is the challenge of ensuring that communication reaches everywhere. This was a key part of the MINER Act: to make sure each person underground is able to communicate with the outside.
“Did you ever go down the road and drop a call?” Adkins asked. “This cannot happen underground. The standard for communications underground is that it has got to be consistent. We have better communications underground than we do with our cell towers on the road.”
A global adventure
Strata Worldwide – as its name indicates – is not just active in the US, however. Indeed, Adkins has been to some remote parts of the world in his career. “We’ve got systems installed worldwide. We installed a system in Svalbard in Spitsburgen.” That is the world’s most northerly mine, located within the Arctic Circle and famous for its polar bears.
Adkins was part of the team that installed the system – a job that allowed him to see the Northern Lights. “That was probably the most remote system that we put in.”
But Strata also has systems in more traditional mining locations. “We’ve installed systems in South Africa and we’re currently bidding for some jobs in Russia as well.” And of course the US, where Strata had about a hundred systems in coal mines at the peak of the industry a few years ago – although it has fallen since the downturn began.
The coal downturn has coincided with an upturn in interest from the hard rock mining sector, however. “Hard rock mines are starting to pick up a lot more interest into better communication and tracking, data retrieval. So we’re seeing a lot more interest shift over to the hard rock side as well,” concluded Adkins.
About the author: Jonathan Rowland is the editor of World Coal magazine.
US coal production has strengthened a little over recent weeks with the most recent production estimates from the Energy Information Administration showing a 4% rise in production for the week ending 4 June compared to the week previous.
And although production was 20.7% down on the same week a year before, that is significantly better than the over-30% year on year falls that were the story until recently.
Overall, US year-to-date production was 29.8% lower than the comparable production last year as 276.5 million short t. Yet this has closed the gap somewhat: for most of the year, coal production has been over a third down on 2015.
Regionally, Kentucky continues to far the worst in terms of a percentage decline – 35.8% or almost 10 million short t down on last year. West Virginian production was down 32.4% year to date – although here there is a big divide between northern and southern areas of the state.
In northern West Virginia, coal production is down just 25.1% year-to-date, while southern West Virginian production is down 39%. Meanwhile, Wyoming – home to most of the Powder River Basin production – is down 32.3% year-to-date.
Interior Region production – which includes the Illinois Basin – is the strongest performer this year, down just 23.8% on last year.
Railcar loadings remained subdued at 32.7% down year-to-date.
Edited by Jonathan Rowland.
The Barney Point Terminal at Queensland’s Port of Gladstone shipped its final coal in May after almost fifty years of handling coal, Gladstone Ports Corp. (GPC) said in a press release. The terminal will now focus on other dry bulk commodities, said Leo Zussino, Chairman of GPS.
“In 2008, as part of GPC’s commitment to a healthier environment for the Gladstone community, GPC announced that coal operations at Barney Point Terminal would cease during the first year of continuous operations at the Wiggins Island Coal Terminal (WICT),” said Zussino. “This commitment has now been fulfilled.
The Barney Point Coal Terminal was constructed in 1967 by the joint venture Thiess Peabody Mitsui with first shipment of 1600 t in August of that year. GPC purchased the facility in 1998 from BHP Mitsui Coal in 1998, extending the capacity of its bulk handling operations.
Final coal export occurred on 19 May after Barney Point received its last coal train on 7 May.
The end of coal export operations at the terminal will not impact permanent employee numbers, said GPC Acting CEO Michael Galt. Gladstone continues to handle coal through the RG Tanna Coal Terminal.
Demand for Queensland coal remains strong despite the industry downturn. According to figures from the Queensland Resources Council, the Australian state exported 19.5 million t of coal in May, an increase of 8.6% on the same period in 2015. For the 11 months to May, Queensland’s exports jumped to 202 million t, compared to 199 million over the same period in 2014 – 2015.
Edited by Jonathan Rowland.
A joint venture between Japanese shipping company, Kawasaki Kisen Kaisha (K Line), and Malaysia-based shipping company, Halim Mazmin Group (HMG) has secured a long-term contract to transport thermal coal for Tenaga Nasional Berhad (TNB), Malaysia’s largest power utility.
Under the agreement, the joint venture will transport 1.5 million tpy of thermal coal for ten years using a dedicated panamax vessel. Coal will be sourced from Indonesia, Australia or South Africa.
TNB has total generating capacity of 11 GW, making It one of the largest generators in southeast Asia. It is currently development Project 3A – a 1 GW coal-fired power plant that will use Hitachi’s ultra-supercritical boiler technology and be located on TNB’s existing Manjung power complex.
According to BMI Research, Malaysian electricity generation is expected to expand 6.1% this year and 6.4% next year on the back of major thermal projects coming online.
Edited by Jonathan Rowland.
By THE EDITORIAL BOARD
June 10, 2016
The nation’s leading coal companies are increasingly filing for bankruptcy, leaving behind enormous tracts of scarred terrain and rising doubts that they will ever meet their legal commitments to repair the earth. Concern is growing that the companies and their debtors will use Chapter 11 bankruptcy protection to force the costs of mine reclamation onto taxpayers, despite the industry’s standing obligations to pay.
The profits of Big Coal have been plummeting in a shifting energy market. Abundant supplies of cleaner natural gas have replaced coal as the fuel of choice in an increasing number of power plants, while the industry has been disappointed in its plans to expand overseas into China and other markets. Jobs have disappeared, a major topic on the campaign trail. Also at stake in the more than three dozen bankruptcies declared in the last three years are hundreds of millions of dollars in cleanup obligations, primarily in the Appalachian coal fields.
Companies insist they will not shirk their reclamation duties. Unfortunately, their track record is not good in West Virginia, where the mining method called mountaintop removal — the systematic dynamiting of summits to get at underlying coal seams — , polluted waterways and driven entire hamlets into retreat. “Lipstick on a corpse,” was how Ken Hechler, a former West Virginia congressman, described the industry’s cosmetic repairs to the state’s mesa-like remains of mountains.
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The court fights are focusing on a loophole, called self-bonding, in the 1977 federal surface mining control law. This allowed state regulators to recklessly let companies, in profitable times, offer a mere promise to cover reclamation costs instead of requiring that they purchase bonds as insurance. The fear is the industry will use bankruptcy to see their obligations to banks and hedge funds paid first, leaving little for environmental cleanups.
“Bankruptcy courts need to hold strong and not let financial institutions pocket the money and leave a huge part of Appalachia out to dry,” Peter Morgan, a lawyer for the Sierra Club, told the reporter Michael Corkery of . Similar concerns are growing in other coal-producing regions, westward to Wyoming. The latter produces 40 percent of the nation’s coal and has $2.25 billion in company promises that supposedly will be there for extensive reclamation jobs.
The industry was shocked when , the world’s largest private-sector coal producer, . It continues to operate but carries $1.47 billion in self-bonding liabilities. Officials in Illinois are now beginning to wonder whether Peabody will carry through on its pledge to clean up at three old mines.
In West Virginia, where politicians have traditionally gone easy on the companies, the mood is hardening as Big Coal vanishes. A special assistant state attorney general has been appointed to pressure the industry’s lenders to share responsibility for the mine cleanups. Industry will make its case in court hearings scheduled next month. Taxpayers can only hope the bankruptcy courts there and elsewhere hold Big Coal to its obligations to fully pay for its decades of severe damage to the environment.
Anthony Fensom
A price rally in early 2016 has given Australia’s coal industry a much-needed boost after a wave of bad headlines over asset sales, job cuts and mine closures. While no one is celebrating yet, a belief that the worst may be over has sparked a revival in deal making, amid signs that the major miners’ divestments have opened up opportunities for smaller players.
China’s moves to stimulate production helped drive metallurgical coal prices 27% higher by the end of April compared to the start of the year, relieving the pressure on Australian coal producers and revenue-hungry governments.
According to Vivek Dhar, Commodity Analyst at CBA, the rebound in China’s “old economy” industrial sectors should further support seaborne prices in 2016. Dhar expects premium metallurgical coal prices to average US$87.50/t (FOB Australia) in 2H16, “alleviating financial pressures for a number of coking coal producers.”
Meanwhile, the modest decline in the price accepted by Australian thermal coal exporters with their Japanese buyers in the annual negotiations was also viewed as positive for the sector. April’s settlement of US$61.60/t was down only 9.1% on the previous year’s price, a result Macquarie Wealth Management analysts described as “staggering”.
“This is obviously a massive coup for Glencore and other producers selling on [Japanese financial year] terms,” Macquarie said, having predicted an even more modest US$58/t settlement price. The price agreed between Glencore and Japan’s Tohoku Electric Power was about US$10.80/t higher than the spot price, making it the largest premium to the spot price in some 15 yrs.
Although a long way from the peak prices of US$300/t for metallurgical coal and US$120/t for thermal coal set during the China boom, the revival has sparked predictions that the worst may be over for the beleaguered sector.
In a 11 March report, ANZ Research said commodity markets “are showing signs that the worst may be over. Slightly better fundamentals have seen investors reduce the probability of downside risks, which has elicited a wave of short covering. Sentiment has also picked up, with a glass half full approach being taken to weaker than expected economic data.”
BBS Capital Markets Coal Analyst Mark Levin agreed, citing the “significant” amount of Chinese coal expected to leave the market. In a bid to curb overcapacity, Beijing said it would cut around 500 million t of coal production over the next three to five years, close more than 5000 mines and relocate around a million workers, as well as suspending development of any new coal mines for the next three years.
Michael Ryan, Director at coal infrastructure consultancy Balance Advisory, said the turnaround in sentiment had been noticeable. “M&A activity has increased significantly since earlier this year, particularly the number of parties who are looking at various coal assets. We’ve seen a lot of private equity interest from both Asia and North America,” he said.
“When do you call the bottom? I guess it’s when you see a real increase in prices, and it’s got to be sustainable. But certainly the price rise will encourage M&A transactions to be completed sooner rather than later, and obviously if the Australian dollar stays low, you’ll see an uptick in activity across the board.”
Industry shakeout
Moves by major miners such as Anglo American, Peabody Energy, Rio Tinto and Vale to sell Australian coal assets have sparked a shake-up in the industry, with the emergence of a number of newer players backed by private equity.
Among recent sales in the states of New South Wales (NSW) and Queensland were Stanmore Coal’s noteworthy AUS$1 acquisition of the Isaac Plains mine in Queensland from Sumitomo and Vale; Rio Tinto’s sale of its Bengalla mine in NSW to New Hope for AUS$865 million; and a number of other transactions of undisclosed value or which had yet to be finalised to otherwise new investors, such as Sydney-based Taurus Funds Management and Indonesia’s Salim Group.Stanmore Coal Managing Director Nick Jorss said his company had looked at more than 50 opportunities in the past few years before doing its “fantastic” deal in the Bowen Basin to acquire Isaac Plains and the adjacent Isaac Plains East.
“We kissed a lot of frogs to find the right assets…The deal put together two adjacent assets, which gave us all the infrastructure of an existing mine with a significant, low-cost mine life extension to 10 yrs,” he said.
On 6 April, the Brisbane-based company announced its first metallurgical coal production at Isaac Plains, with its annual output contracted to Japanese and South Korean steel mills.
Jorss said his company had made the mine profitable by slashing production costs by 35%, cutting production from the previous 2.8 million tpy to 1.1 million tpy and benefitting from established infrastructure. Yet while Stanmore Coal’s deal has proved successful, some seven of nine other recent mine ‘sales’ had yet to reach settlement as of April 2016.
“I expect there will be more deals closed – you’re certainly seeing a lot of assets on the market at the moment. Anglo has publicly said they’re selling and there are a number of others looking to exit,” Jorss said.
Jorss pointed to the 150 jobs generated by Isaac Plains’ restart as part of the benefits of the new investment.
According to the Queensland Resources Council (QRC), the state’s resource sector has shed 23 000 jobs in two years, with falling investment threatening the livelihoods of the industry’s remaining 60 000 workers.
Exploration expenditure nationwide fell by 37% to AUS$213 million in the calendar year 2015, although production is expected to have risen by 4% to 260 million t due to increased output at existing operations and the start of new mines, including Whitehaven Coal’s Maules Creek, according to the Australian government’s forecaster, the Department of Industry, Innovation and Science.
“Given the current market, growth isn’t at the top of many coal operators’ priority lists at the moment. However, the recent grant of a mining lease to Adani’s Carmichael project was the first mining lease granted for the next great Queensland mining province, the Galilee Basin, opening the door for thousands of jobs across regional Queensland,” QRC Chief Executive Michael Roche said.
Environmental and legal battles
After injecting an estimated AUS$26 billion into the NSW and Queensland state economies in fiscal 2015, along with AUS$2.7 billion into state coffers, the industry’s growth prospects have been constrained by increased environmental and legal challenges.
Despite winning Queensland government approval on 3 April, the AUS$21.7 billion Carmichael thermal coal mine and rail project in the state’s emerging Galilee Basin has been hamstrung by a six-year-long legal process that shows no sign of concluding. On 27 April, conservationists launched the eighth legal challenge to the project, arguing that its approval “ignored climate change totally.”
The legal battle is estimated to have cost the Indian giant an estimated AUS$120 million, sparking calls for an urgent review of the environmental approvals process.
Commenting on news of another legal appeal against the project on 13 April, QRC Acting Chief Executive Greg Lane said: “The announcement of another appeal lodged by an Indigenous group adds yet another delay to the vital job-generating project that regional Queenslanders are relying on after the massive downturn in the resources sector.
“Even the Minister for Natural Resources and Mines, Dr Anthony Lynham has said, ‘everyone deserves their day in court, but not four years in court,’ and even he conceded after the Adani decision that the project was likely to face further legal hurdles.”
Meanwhile in NSW, development of the Caroona and Watermark thermal coal projects on the Liverpool Plains has stalled amid environmental challenges and falling prices, despite an estimated AUS$1 billion worth of investment by BHP Billiton and China Shenhua, respectively over the past decade.
The re-emergence of coal workers’ pneumoconiosis (Black Lung) more than 30 yrs following its apparent eradication in Australia has also put the spotlight on the industry’s health and safety record, adding to the pressure from activists seeking to curb coal-fired power in favour of renewable energy.
Defending the coal industry’s environmental policy, the QRC’s Roche said: “Coal does not run away from the fact that use of coal generates carbon emissions. However, technology exists to address these emissions, allowing continued use of coal in a low-emissions future. High-efficiency, low-emissions (HELE) technologies – involving use of higher temperature and pressure steam conditions – could reduce global CO2 emissions from electricity generation by as much as 40%. These technologies are available and being deployed now in countries such as Japan, China, Korea and India.
“Complementing HELE technologies are the carbon capture and storage (CCS) technologies involving capturing CO2 emissions from power station flue gas and storing them, safely and securely, deep underground. There are 15 large-scale CCS projects currently operating around the world and a further seven under construction. CO2 capture technologies are being developed by global equipment suppliers and will be commercially available when required. In Australia, the priority is to develop geological storage opportunities.”
Brighter outlook
In its March 2016 quarterly report, Australia’s industry department predicted a brighter future ahead for the nation’s resource and energy sector, with total exports expected to reach AUS$208 billion by fiscal 2021 compared to AUS$160 billion in fiscal 2016.
Although metallurgical coal prices are seen falling to an average of US$83/t in 2016, down 19% on the previous year, the department said prices would start rising from 2018 by around 1% a year to average US$80/t in 2021. This reflected increased demand from emerging economies, such as India, which is expected to overtake Japan as the world’s largest importer within two years.
Australia’s exports of metallurgical coal are expected to grow by an average 1.6% a year to reach 200 million t by 2021, growing the nation’s share of world trade at the expense of declining North American production.
Australia is also projected to become the world’s largest thermal coal exporter “over the medium term” as lower prices, increased domestic usage and infrastructure constraints limit output from rival suppliers. The industry department forecasts Australian thermal coal exports will “increase marginally” to 216 million t by fiscal 2021, with earnings of around AUS$14 billion.
Benchmark thermal coal prices are also expected to increase in line with growing demand from India and Southeast Asia, offsetting falling demand from China and the OECD. The department said the annual contract price would decline from US$59/t in the Japanese fiscal year 2016 to around US$54 in 2018, before recovering slightly to US$56/t in 2021.
The QRC’s Roche was bullish on the outlook, saying: “While consumption of thermal coal is expected to decline in Europe, North America and perhaps China, that will be more than offset by increased demand for coal in the rest of Asia and in Africa. There are around 370 GW of new coal-fired generation capacity under construction or approved in non-OECD countries, which is almost equal to the investment across all technologies in the OECD.”
Roche concluded with a positive outlook for Queensland’s metallurgical coal sector: “Exports are forecast to increase over the medium term, supported primarily by an increase in imports from emerging economies, such as India, together with continuing strong demand from traditional customers, such as Japan, Korea and Taiwan.”
Stanmore Coal’s Jorss agreed with the positive outlook for metallurgical coal, saying recent price rises reflected the supply-demand situation drawing closer to a balance. “Coking coal is essentially a scarce resource, which is being depleted at a rate of knots, around a billion tonnes a year coming out of the ground to make steel. When the supply-demand situation switches, there will be a shortage of projects and the lead times are getting longer and longer with regulatory constraints,” he said.“The seeds of the next upswing are being sown as we speak.”
About the author
Based in Brisbane, Anthony Fensom covers the Australian and Asian coal industries for World Coal.
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The West Virginia Department of Environmental Protection (DEP) and Alpha Natural Resources have reached a US$300 million agreement that paves the way for the bonding and reclaiming of all Alpha’s legacy sites in West Virginia, as well as its continuing operations in the state.
Alpha entered bankruptcy in August 2015. In February, the company announced that it would sell its best assets – principally those in Wyoming, but including one small underground mine in West Virginia – to its secured creditors led by Citicorp North America and a group of hedge funds.
The DEP had objected to the sale in filings with the Virginia bankruptcy court on the basis that it had the potential to leave all but one of Alpha’s West Virginia mining sites with insufficient funds for reclamation and water treatment.
The US$300 million agreement between the DEP and Alpha resolves DEP’s objection to the sale and to Alpha’s bankruptcy plan. It includes the posting of US$100 million in additional penal bonds by Alpha, as well as US$39 million in letters of credit or cash bonds.
In addition, the company and its secured creditors committed to providing funding of US$209 million, comprising at least US$109 million from Alpha over the next 10 yrs at legacy sites, US$50 million from the purchaser of its Wyoming operations over the next five years, and up to US$50 million in excess cashflow from Alpha.
The agreement also allows for the continued operation of various mining sites in West Virginia with the profits from these operations expected to support reclamation and water treatment.
The agreement is subject to approval by other states in which Alpha will have continuing operations, as well as various federal agencies. It is also subject to approval by the bankruptcy court as part of Alpha’s bankruptcy plan.
Edited by Jonathan Rowland.
Hal Quinn, President and CEO, National Mining Association.
The current state of the US coal industry is a microcosm of a global market for coal still ailing from unfavourable macroeconomic trends. This year will extend a difficult period of capacity adjustments that US producers are making to align production with more modest demand scenarios. US coal production, last year, was down 10% from 2014 and is expected to decline further this year, based on preliminary data from the US Energy Information Administration (EIA). The number of active mines has fallen but the number of operating sections within the mines has fallen further.
The EIA’s parsing of coal demand explains why. Demand from all sectors, last year, fell by 13%. Coal exports, for example, declined sharply in 2015, down 23 million short t from 2014 to approximately 74 million short t. In addition to the impact from Asia’s slowing economies, US shipments to the EU, traditionally a major destination for US coal, declined by 28%.
Adding significantly to the oversupply challenges has been the competition from unexpectedly low natural gas prices. Today, natural gas generates almost as much electricity as coal, even as coal remained the domestic market leader last year, generating more than 34% of the nation’s electricity.
The suddenness and steepness in the decline in demand for coal has had an indiscriminate effect on US coal producers. Many were deep into a new investment cycle, acquiring new capacity in anticipation of growing offshore demand. The resulting burden of debt service has added to the challenges of producers as they struggle with soft and shifting markets.
Further impacting coal domestically is the growing saturation of renewable generating capacity fuelled by generous tax policy that encourages solar and wind investment. Offshore, a strong dollar against world currencies has made US coal exports less competitive relative to other coal supplying regions.
US government policies have also played an outsized role in the dramatic change we see in the outlook for domestic coal. Beginning with the Mercury and Air Toxics Standards (MATS) for power plants in 2011, regulations have contributed to the loss of at least 33 GW of coal generating capacity in addition to more expected to be retired this year. For example, the administration’s Clean Power Plan, designed to reduce carbon dioxide emissions from coal-fired power plants, is expected to double the capacity already lost to fuel switching and prior regulations, while triggering double digit increases in wholesale electricity costs and adding US$216 billion to the nation’s utility bill by 2030.
Other rules aimed at coal production could render a substantial amount of US coal reserves inaccessible. A proposed three-year moratorium on coal produced from federal lands largely in the West will throttle production from the largest source (43%) of total domestic production. Higher royalties and fees on government coal leased at auction may follow.
The toll of these policies demonstrates the steep price of keeping coal in the ground. The US has lost about 40 000 coal mining jobs since 2011 and many tens of thousands more that coal supports throughout the supply chain – from mines and power plants to railroads and ports.
Fortunately, the effects of policy, like the effects of market forces, are not immutable. A presidential election year in the US offers our industry, its employees and its varied allies the opportunity to vote in a government with a more balanced energy policy and hopefully see out many of the damaging policies from this government.
Change may well be coming in the marketplace, too. The commodity cycle that didn’t stop at the top will not stop at the bottom either. Global demand for coal is likely to pick up next year, albeit at a gradual pace initially with more rapid growth in the years thereafter. World Bank President Jim Yong Kim reminded member country representatives last month that the bank expects “a marked increase of coal consumption” in coming decades.
Elsewhere we see sustainable improvements for domestic coal. The introduction of new safety technologies and practices helped US coal mining achieve a record safety year in 2015. Companies that adopt the National Mining Association’s own CORESafety™ initiative, wholly or in part, can document improved safety performance that results from following the programme’s best practices.
Similarly, the environmental performance of our industry continues to improve. Our fleet average reduction of conventional pollutants per unit of electricity – 90% since the 1970s – rivals the achievement of any industry. By 2019, the US coal-fired power industry will have invested more than US$126 billion in emission reductions, leaving a fleet that is more efficient and cleaner than ever before.
Our commitment to high-efficiency, low-emissions (HELE) technologies remains a more rational and sustainable solution for addressing climate change concerns than an approach based on ending coal’s use. Missing from this strategy, we believe, is an effective approach for addressing either the environmental issues of affluent nations or the pressing economic concerns of emerging countries seeking their rightful place among rich ones.
So, for 2016, the forecast for US coal is for continuing showers, heavy at times, with possible sun in the near future.
Written by Hal Quinn, National Mining Association. Edited by Harleigh Hobbs. This article first appeared in World Coal June. To read this and much more, register to receive a copy here.
Following the previous announcement on 4 March 2016, the has announced that the actions Mr WA (Wim) de Klerk had to complete, prior to his separation from the company, have either been completed or have progressed to a stage of finalisation and hence the board has agreed to a termination date of 30 June 2016, instead of the previously communicated date of 31 August 2016.
The board has thanked Wim for his dedicated service and commitment during his tenure and wishes him well for the future.
Mr PA (Riaan) Koppeschaar will be succeeding Wim, effective as of July 2016. The board has congratulated Riaan on his appointment and looks forward to his contribution as a Director.
In addition, the Board is further pleased to announce that Mr Peet Snyders has been appointed as an independent non-executive Director of the company, also with effect from 1 July 2016.
Peet has 30 years of experience in the mining industry, including employment at Sasol Coal, Amcoal, Iscor Mining, Kumba Coal, Anglo Platinum, Riversdale Holdings, Continental Coal, Keaton Energy, Sable Mining Africa, Mmakau Mining and most recently Submex Investment. He also has over 10 years of board experience within the industry.
Exxaro’s board has welcomed Peet to the team and indicated that it looks forward to his contribution.
Mr Jeff van Rooyen, an independent non-executive Director of the Company and member of the company’s Audit Committee, has also been appointed as a member of the company’s Remuneration and Nomination Committee with effect from 1 July 2016.
Edited from press release by Harleigh Hobbs
GE has signed a contract with Hubco to provide its digital industrial solutions for the 1292 MW Hubco coal power plant in Baluchistan, Pakistan.
Commissioned in 1997, the plant operates four 323 MW generating units. Additionally, it’s the largest independent coal plant in Pakistan and exports power to the national grid.
“GE’s digital solutions are a game changer for the energy sector, and we are happy to be working with them,” said Khalid Mansoor, CEO of Hubco. “Once implemented at the Hubco power plant, these solutions will help us to enhance the reliability of our operations.”
Powered by Predix*, GE’s cloud-based operating system built exclusively for industry, GE’s Digital Power Plant includes a suite of software solutions that can enable Hubco’s power plant operators to analyse and monitor operations across all touchpoints in real time and help identify any maintenance issues ahead of time, leading to greater asset uptime and reduced unplanned downtime.
“Energy is increasingly becoming digital, and we have been proud to support Pakistan’s energy sector for more than 50 years with both hardware and software solutions,” said Steve Bolze, President and CEO of GE Power. “This agreement with Hubco marks the sixth deployment of our advanced digital industrial solutions in the country, underscoring our commitment to provide Pakistan with our latest technology.”
“Pakistan is a leader in adopting new technologies to generate more power,” added Ganesh Bell, Chief Digital Officer at GE Power. “This deployment of GE’s digital industrial solutions marks another chapter in our relationship with the country to deliver better productivity and outcomes for our customers.”
Edited from press release by Harleigh Hobbs
Coal power generation capacity is expected to grow rapidly in Bangladesh over the next ten years, according to BMI Research, as the government seeks to take advantage of domestic coal resources and cheap imports.
Under plans to expand its power sector, the government expects generation capacity to grow to move than 30 GW. BMI Research estimates the country’s current power capacity stands at just 12 GW.
Gas will remain dominant in the energy mix – but coal power generation is also expected to surge to 24TWh in 2025 from just 3 TWh in 2016. The project pipeline for coal plants accounts for 40% of the total, behind on gas. Despite this, coal will remain behind gas, oil and nuclear power in Bangladesh’s 2025 energy mix.
Bangladesh will also see an increasingly role played in its energy mix by international firms, notable those from Japan and China.
The governments of both countries have adopted aggressive infrastructure export strategies recently and there has been growing competition between them within the infrastructure development space across Asia, BMI Research noted.
Japanese and Chinese firms are joined by others, including those from the US and India, although domestic companies will remain the dominant force in the industry with a 41% share of new power projects.
Edited by Jonathan Rowland.
The US government agency tasked with ensuring mine safety and health is seeking information on approaches to control and monitor underground miners’ exposure to diesel exhaust.
The Mine Safety and Health Administration (MHSA) said in a news release that it was time to review existing standards and determine “whether they adequately protect miner’s health”.
Existing regulations limiting miners’ exposure to diesel particulate matter came into effect in 2001 for underground coal mines and 2006 for other types of underground mines. Coal mines are also required to limit diesel particulate emissions overall – not just exposure.
Technology currently used to reduce exposure include ventilation, diesel equipment maintenance, ultra-low-sulfur fuel, diesel oxidation catalysts and new EPA-approved engines.
Mines can also limit the number of engines within a particular area at any one time and limit idling time of diesel-powered equipment.
MSHA has set a 90-day comment, closing 6 September 2016.
Edited by Jonathan Rowland.
The US National Mining Association (NMA) has urged states to “put pencils down” on their Clean Power Plan (CPP) implementation plans.
“There are many good reasons why states should suspend any effort to implement the administration’s costly power plan,” said Hal Quinn, President and CEO of the NMA.
According to Quinn, the main reason to halt work on CPP implementation is the recent Supreme Court decision to stay the rule until a lower court has ruled on its legality.
“The Supreme Court has relieved the nation’s governors of any obligation to begin to implement a costly rule that will raise their state’s power prices, lower the living standards of their citizens and weaken the fuel diversity and reliability of their power grid,” said Quinn.
According to Quinn, 29 states has already stopped work on their implementation plans with Indiana Governor Mike Pence saying he would use “any legal means available to block the rule from being implemented”.
Quinn concluded by urging other governors to follow suit and “spare their citizens the cost of another bad regulation that lacks the force of law.”
Edited by Jonathan Rowland.
Atrum Coal is finalising an updated pre-feasibility study (PFS) for its Groundhog North anthracite project in British Columbia, Canada, which will take a staged approach to mine development.
Under the new development plan, the company will begin with a smaller “starter” underground mine with production of up to 880 000 tpy of ultra-high-grade anthracite. The updated PFS will then include subsequent development stages for larger underground operations.
“The staged approach to the development of the Groundhog North Complex importantly provides the company with early cash flows,” the company said in an ASX release.
The starter mine included in the revised PFS is located in the so-called Western Domain of the Groundhog North Complex and will require a total CAPEX investment of US$142 million.
From the starter mine, “numerous development paths can be selected”, the company said, from a staged ramp up to a 1.6 million tpy continuous miner operations or larger ‘mini-wall’ operation.
The updated PFS and recently awarded bulk sample permit “demonstrates the economic viability of the Groundhog North project and accelerated Atrum’s plans to achieving commercial production,” said Atrum’s Executive Chairman, Robert Bell.
Edited by Jonathan Rowland.
Martin Abbott is to join globalCOAL’s board as Independent Non-Executive Director.
Abbott has an extensive career in the commodities space. As Chief Executive of the London Metal Exchange from 2006 and 2013, he transformed the business into a world-class commercially-driven exchange, boosting profit from £2 milling to £50 million per annum. In this and other roles – including running commodity trading businesses – he gained a deep understanding of the regulatory environment in which companies like globalCOAL operate.
globalCOAL Chairman, Craig Wiggill, commented: “Martin will bring a valuable measure of independence to the globalCOAL board and play a critical role in helping to steer globalCOAL through the current regulatory environment. His appointment is a key aspect of globalCOAL’s drive to strengthen its governance. We are proud to have someone of Martin’s calibre on our board.”
In addition to joining the globalCOAL board of directors as Independent Non-Executive Director, Abbott will take on the chairmanship of globalCOAL’s Compliance Committee, which, amongst other area of responsibilities, oversees the processes and procedures which define globalCOAL’s conduct with regards to the administration of its benchmarks, such as the globalCOAL NEWC Index.
Edited from press release by Harleigh Hobbs
Ingenio Magdalena has opened a 62 MW biomass and coal-fired power plant in Guatemala. The San Isidro plant in Retalheleu in southwest Guatemala has been designed to “comply with environmental standards of the World Bank.”
The energy produced at the plant will be sold to electricity distribution companies in the are, as well as to industrial companies.
According to Luis Fernando Leal, General Manager of Ingenio Magdelena, the company contributed 10.4% of total power generation in Guatemala in 2015 – and 26% of electricity exports from the country to the regional electricity market.
Edited by Jonathan Rowland.
New mining equipment was successfully put into operation at SUEK’s Vostochno-Beisky opencast coal mine in Khakasia in the third week of May.
The new equipment includes three new 130 t BelAZ dump trucks and a new Komatsu PC 1250 excavator.
“The commissioning of new equipment is another step taken to increase production at the Vostochno-Beisky open pit,” commented SUEK-Khakasia Acting General Director Vladimir Azev, “experienced drivers, with impressive track-records in production and skills competitions will ensure the safe and efficient use of this new equipment at the mine.”
The SUEK Group has invested over 3 billion roubles in the Vostochno-Beisky opencast operations. Since 2011, the mining site has received large hydraulic excavators with 7 to 15 m3 buckets and 130 t dump trucks. Over the last five years, performance at the Vostochno-Beisky opencast increased almost 1.5 times – with monthly output increasing from 400 to 600 t per employee.
In 2015, coal output at the Vostochno-Beisky opencast reached 3.2 million t, an increase of more than 13% on 2014 production levels.
Edited from press release by Harleigh Hobbs
The Japan Bank for International Cooperation (JBIC) has agreed to provide US$2.052 billion to fund the construction of a 2 GW coal-fired power plants in Indonesia.
The plant in Batang Regency, Central Java, will be built and operated by Bhimasena Power Indonesia (BPI), a joint venture comprising Indonesian coal company, Adaro Energy, and Japanese companies, Electric Power Development Co. and Itouchu Corp.
According to JBIC, the loan is “in line with the Japanese government’s strategy of promoting Japanese involvement in projects including the design, construction, operation, and management of infrastructure.”
The electricity generated at the plant will be sold to Indonesia’s state-owned utility, PLN. The project is Indonesia’s first IPP project of an ultra-supercritical coal-fired power plants and forms part of the Indonesian government strategy to increase power generation capacity in the country by 35 GW between 2015 and 2019.
Several other Japanese banks and two Singapore-based companies will co-finance the project, including Sumitomo Mitsui Banking Corp. and Bank of Tokyo-Mitsubishi UFJ. Co-financing will amount of US$3.421 billion.
Edited by Jonathan Rowland.
Dubai Electricity and Water Authority (DEWA) signed a power purchase agreement (PPA) and a shareholders agreement (SHA) with ACWA Power and the ACWA Power and Harbin Electric consortium.
HE Saeed Mohammed Al Tayer, MD and CEO of DEWA and HE Mohammad Abdullah Abunayyan, Chairman of ACWA Power and representative of the ACWA Power and Harbin Electric consortium signed the agreement.
The agreement intends to implement a project that would produce 2400 MW of electricity using clean coal.
The Hassyan clean coal power project uses the Independent Power Producer (IPP) procurement model on a Build Own Operate (BOO) basis.
This follows the sending of a letter of intent to ACWA Power and Harbin Electric consortium on 19 January 2016 in which DEWA selected the best bidder. The signing was attended by DEWA’s Executive Vice Presidents, and senior officials from both ACWA Power and Harbin Electric.
The project will be supported by a 25 year PPA with DEWA and the bidder has been required to put in place a secure delivery of coal to the project over the 25 year life of the PPA.
The first 2400 MW phase of the project comprises four x 600 MW units. The second 1200 MW phase of the project includes two x 600MW units with ultra-supercritical technology. The project has a planned commercial operation date of March 2023.
HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, commented: “DEWA’s Hassyan clean coal power project shows our commitment to achieving the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to diversify the energy mix. It also reflects DEWA’s commitment to its goals of energy diversification and sustainability of resources, and achieving the Dubai Clean Energy Strategy 2050, which focuses on producing electricity from clean coal as part of Dubai’s energy mix.”
“DEWA works to achieve the fifth pillar of the Dubai Clean Energy Strategy 2050, which focuses on creating an environmentally-friendly energy mix, with 25% coming from solar energy, 7% from nuclear power, 7% from clean coal, and 61% from gas by 2030,” added Al Tayer.
“Signing this agreement exemplifies the success of Public Private Partnerships and the importance of involving the private sector in enhancing efficiency, productivity and cost reduction, in addition to optimising resources, transferring the technology, and training and developing local skills in the energy industry. Moreover, signing a PPA with DEWA brings us closer to the completion of the financial close of the project to start its construction as per the stated timeframe,” said Abunayyan.
Edited from press release by Harleigh Hobbs
Caterpillar is to supply a complete longwall mining system to the Moorlarben Coal Complex in the western coalfields of New South Wales, including roof support, shearer, armoured face conveyor and advanced automation control.
Moorlarben is operated by Moorlarben Coal Operations, a joint venture between Yancoal Australia and Korean companies, Kores Australia Moorlarben Coal and Sojitz Moorlarben Resources. Yancoal already operates Cat longwall mining systems at its Austar and Ashton coal mines in New South Wales and Goonyella mine in central Queensland.
The Moorlarben site includes an underground thermal coal development project, as well as an opencast mine that produces thermal coal for export.
The Cat longwall system will be supported by WesTrac, the Cat dealer in the region, and will include 148 Cat roof supports with operating height ranging from 1.9 to 3.8 m (6.2 to 12.5 ft) and with support capacity of 1,329 t (1,465 short t). A Cat EL3000 shearer with total installed power of 1875 kW will deliver production capacity in excess of 5000 tph (5512 short tph). Coal will be transported from the face with a Cat PF6 armored face conveyor, 302 m (910 ft) in length, including a beam stage loader and belt tailpiece, with total installed power of 2400 kW.
An advanced automation control package will manage shearer operation. This package features Longwall Navigator, which integrates software in the gate ends and shield controllers to improve production efficiency and accuracy, while minimising wear life, according to Caterpillar.
The control system incorporates algorithms that enable full 3D navigation, as well as advanced floor profile calculations and precision sensing technologies. This combination of technologies enables three features: horizon control, which guides the shearer over undulating seams; extraction control, which directs the machine to follow defined floor and roof profiles to optimize production; and face alignment, which keeps the face straight for consistent production with less wear of the conveyor system.
The complete system will be tested by WesTrac in New South Wales in early 2017. It is expected to be fully operational at the Moolarben mine in 4Q17.
Edited by Jonathan Rowland.
Mitsui Matsushima is to form a joint venture with Japan Oil, Gas and Metals National Corp. (JOGMEC) to fund exploration of the Eastern Coal project in Queensland, Australia.
The Eastern Coal project is situated in the southern part of the Bowen Basin in southeast Queensland. It consists of five exploration tenements in which some coal seams have already been identified.
Location of Eastern Coal project (Source: JOGMEC).
“Although the coal bearing sequence that is the exploration target for this project is different from the conventional target horizons in the Bowen Basin, this new target layer contains good quality coal seams and further discoveries of economical thermal coal resources are anticipated,” JOGMEC said in a press release.
Under the agreement, JOGMEC will earn up to 42.1% of Mitsui Matsushima’s 41.7% stake in the Eastern Coal project. The Eastern Coal project is a joint venture between Matsui Matsushima’s Australian subsidiary, Mitsui Matsushima International (MMI) and Australian company, Square Eastern (SQE).
MMI already co-owns the Liddell coal mine in the Hunter Valley of New South Wales with Glencore. SQE is a privately-held coal trading, marketing, exploration, development and investment company based in Brisbane.
The joint venture between JOGMEC, a state-owned company, and Mitsui Matsushima is the first created under JOGMEC’s Nikkei JV Scheme, which aims to assist Japanese companies to explore international coal properties.
Mitsui Matsushima’s participation in the scheme will help secure high-quality coal supply for domestic Japanese consumption.
“This was a landmark deal,” said Ian Williams, a partner at international law firm Herbert Smith Freehills, which advised Mitsui Matsushima on the deal. “It demonstrates the commitment of Japanese companies to the Australian coal industry, even in the midst of an industry downturn.”
Edited by Jonathan Rowland.
Maptek has announced it will offer Aegis underground drill-and-blast design and analysis software.
“Aegis brings proven value to an underground operation’s drill-and-blast process, intelligently creating editable drill-and-blast patterns for an entire stope in seconds,” said Maptek Managing Director Peter Johnson. “State-of-the-art blast analysis tools and a fully customisable reporting system allow engineers to design, refine and optimise their drill-and-blast process more effectively and reduce overall material handling costs.”
Users of Maptek Vulcan at underground mines will welcome the next-generation, intelligent rapid ring design functionality and advanced blast analysis tools available in Aegis that complement mine planning functionality in Vulcan. Maptek BlastLogic similarly offers powerful analysis and quality management tools for opencast drill-and-blast.
“Maptek customers will benefit immediately from the Aegis partnership and I am confident that we can collaborate on developing extra functionality that answers particular needs,” commented Johnson.
“While the partnership is in the early stages, we are already envisioning the development roadmap for integration to include data exchange routines, with the ultimate goal of full integration with the Maptek Workbench, which was delivered alongside Vulcan 10 this year,” Johnson continued.
Mark Sherry, President of Aegis developer iRing Inc. said that the company is very excited about the possibilities of the partnership. “Maptek brings an excellent global market presence and expertise as one of the leading software developers in the mining industry. Through this partnership we will be able to increase sales of Aegis globally, which solidifies our niche as the top underground drill & blast program in the world.”
Aegis is already available in English, Spanish and Russian and strong interest is expected in all regions where Maptek operates.
With the addition of Aegis to its product line, Maptek becomes the only mining software supplier to offer a complete end-to-end solution for underground mining operations covering geology, mine planning, scheduling, stope optimisation, advanced underground drill and blast and analysis, and mine survey.
“Integration throughout the mine planning and production cycle provides better information that can be used to make better decisions,” added Johnson. “For instance, engineers can optimise their stope designs using Vulcan Stope Optimiser, design the blast using Aegis, rapidly model the cavity monitoring survey data using I-Site Studio and then feed that data back into Vulcan and Aegis for reconciliation and blast analysis.”
Edited from press release by Harleigh Hobbs
In another sign of China’s demand for LNG as a cleaner alternative fuel source to coal, Gaztransport & Technigas (GTT), a designer of containment systems used to transport and store LNG, has set up offices in Shanghai.
China’s market for LNG is growing fast as the government tries to limit pollutions caused by coal-fired power plants – a central aim of the country’s 13th Five-Year Plan.
“GTT wants to contribute to the development of LNG as a fuel in the country,” said Philippe Berterottière, Chairman and CEO of GTT. “This is why the company is opening an office in Shanghai.”
Adnan Ezzarhouni, Director of GTT China, officially opened its Shanghai office on 3 June with several officials from Chinese companies in the transport and LNG industries in attendance.
Edited by Jonathan Rowland.
Japan Oil, Gas and Metals National Corp. (JOGMAC) and the Canadian province of British Columbia will work together to develop the province’s natural resources, according to a memorandum of understanding (MOU) signed at the end of May.
Under the MOU, JOGMEC and British Colombia will exchange information, examine market opportunities and collaborate on technologies to develop the province’s LNG and coal resources. It extends an existing MOU signed in 2012 that focused on implementation on gas-to-liquids technologies.
“JOGMEC believes that this MOU will further strengthen JOGMEC’s collaborative relations with the Province of British Columbia, which holds abundant unconventional gas and coal resources,” the Japanese state-owned company said in a press release.
DTE Energy will retire eight coal-fired energy generating units at three sites in Michigan within the next seven years.
The retirements are part of DTE’s energy production transformation for Michigan.
Facilities set for retirement, between 2020 and 2023, include the River Rouge facility, the St Clair facility in East China Township and the Trenton facility. Combined, these three plants generated approximately 25% of the electricity produced by DTE in 2015 – enough to power 900 000 homes.
Earlier this year, DTE retired three coal generating units due to age and projected future costs. With today’s announcement, the company will retire eleven of its 17 coal-fired units by 2023.
“The way DTE generates electricity will change as much in the next ten years as any other period in our history. We will replace eleven ageing coal-fired generating units at three facilities built in the 1950s and 1960s with a mix of newer, more modern and cleaner sources of energy generation such as wind, natural gas and solar,” said DTE Energy Chairman and CEO Gerry Anderson. “DTE Energy will work with the state of Michigan on a plan that ensures electric reliability for our 2.2 million customers, places a premium on affordability, and is seamless for our employees and the communities that are home to these plants.”
DTE is also working on legislation to ensure the state has adequate generating capacity as power plant closures continue in Michigan and across the broader region, as well as working with communities and employees affected by the retirements and will transition employees into new roles at other facilities.
Edited from press release by Harleigh Hobbs
PPG’s protective and marine coatings business has unveiled a new protective system for dry bulk carrier cargo holds at Posidonia 2016 in Athens.
The PPG SIGMASHIELD™ MTC system is built on a unique coating technology that comprises a PPG SIGMASHIELD Prime undercoat and PPG SIGMASHIELD MTC topcoat.
Designed specifically for the cargo holds of dry bulk carriers, the system features a unique chemistry that maximises technical performance and offers a commercially sound solution for spot and full repairs, as well as for application at newbuild. Its robust properties make it the ideal coating for premium performance in the demanding dry bulk cargo environment.
“The chemistry within the PPG SIGMASHIELDMTC system includes a pre-reacted amine hardener in the coating,” said Christophe Cheikh, PPG global Product Support Manager. “This effectively provides a ‘kick-start’ for the curing reaction, which results in shorter curing time and return to service that is among the fastest in the industry. After just two coats of 100 microns, a vessel can resume service in only two days when transporting iron ore and five days when carrying hot coal.”
The careful selection of inert raw materials in the formulation of the PPG SIGMASHIELD MTC system ensures that any unwanted chemical reactions at the surface are avoided and the system delivers excellent chemical resistance, allowing safe operation with all International Maritime Solid Bulk Cargoes (IMSBC) Code cargoes.
In addition to super-fast curing, the system’s anti-abrasive and anti-corrosive properties extend the service life of vessels and are effective across a wide range of operating temperatures due to the high glass transition epoxy matrix. As a result, damage commonly caused by cargo settlement during vessel operation is minimised.
“The PPG SIGMASHIELD MTC system has undergone extensive tests in controlled situations designed to replicate actual loading and cargo carriage conditions,” Cheikh said.
While the PPGSIGMASHIELD MTC topcoat is designed to be applied on top of aged epoxies and to withstand mechanical, thermal and chemical impacts from a wide range of traded cargoes, he said, the PPGSIGMASHIELD Prime undercoat has been optimised to provide excellent steel protection with excellent mechanical, thermal and corrosion properties.
“The surface wetting properties built into the hardener provides excellent adhesion, anti-corrosion and creep resistance. So when inevitable mechanical damage eventually does occur, the area affected remains limited and so extends the service life of the coating,” he added.When applied in enclosed environments containing various chemically-active cargoes and subjected to temperature cycles in the presence of moisture, it was found that the PPGSIGMASHIELD MTC system offered best-in-class performance, exhibiting the smallest amount of undercreep (similar to that of a water ballast tank coating system).
Nicholas Hobson, CEO of Fenner Dunlop, is to leave the company for medical reasons, the company has announced.
Hobson has been on leave to receive medical treatment since the beginning of the year but has now stepped down from the board with immediate effect and will leave the group after serving his notice period.
During the notice period, he will be on garden leave to allow continued medical treatment.
Mark Abrahams, who has led the company at executive chairman since January and previously served as CEO, has agreed to step back into the role of CEO.
Consequently, he will relinquish his role as Chairman of the Board, with Vanda Murray agreeing to step in as acting Non-Executive Chair.
Edited by Jonathan Rowland.
Flexco recently introduced the PTEZ™ Belt Trainer – another high-performance tracking idler – to its robust line of belt trainers. Designed with the Flexco ‘Pivot and Tilt’ feature, the new PTEZ Belt Trainer may be used in any application that requires tracking to prevent damage to the belt or conveyor structure, including single-direction and reversing belts.
The ‘Pivot and Tilt’ feature ensures that the belt stays away from the structure and the material stays on the belt without the use of sensor or edge rollers. The tapered ends on the roller drive the pivot and tilt mechanism, allowing the two forces to quickly move the belt back to centre.
“The PTEZ Belt Trainer is an advanced solution over typical low-cost wobblers or pivot-only trainers,” said Kevin Fales, BCP Marketing Specialist for Flexco. “With our unique Pivot and Tilt technology, the PTEZ will pivot away from and increase tension on the mistracked side in order to quickly guide the belt back to centre.”
The PTEZ belt trainer can be used on vulcanised or mechanically fastened belts on almost any medium-duty application, including wet and dry conditions, belts with edge damage or wear, and belts that are mistracking to one or both sides.
Available for belt widths 18 in. to 48 in. (450 mm to 1200 mm), the PTEZ belt trainer can be mounted as a standard ‘pull-up’ mounting or on the clean side of the return side of a cupped belt. The simple, adjustable mounting brackets ensure quick and accurate installation.
The economical PTEZ Belt Trainer also features a polyurethane roller cover, which ensures lasting performance in even the toughest conditions.
Edited from press release by Harleigh Hobbs
The Global CCS Institute has appointed Alex Zapantis as the General Manager – Asia Pacific for the institute.
“Alex brings to the role a deep passion and long-abiding interest in CCS, from both a technology and policy perspective. He will bring a wealth of commercial and government knowledge to the Institute on energy and sustainability matters,” said Brad Page, CEO of the Global CCS Institute.
Carbon capture and storage (CCS) technology has been a key focus for several countries across the Asia Pacific region, with projects at various stages of development and scale in Australia, China, Japan and Korea.
“Fast-growing economies, such as China and India, really are the engine room of the global economy, and effective strategies to decarbonise these important nations are essential to global efforts to limit the impact of climate change. Nations with such ambitious growth aspirations for their people have recognised the importance of developing affordable, low-carbon solutions to their energy demands,” added Page. “CCS is a vital technology for meeting the world’s targets for mitigating global warming at least cost – the very objective is simply impossible without CCS.”
“Nations such as Japan have a long history of technological innovation and excellence, and that expertise is making invaluable contributions to the global progress of CCS,” he continued. “The Tomakomai CCS Demonstration project that became operational earlier this year is a clear example of the technological developments underway in this important region of the world.”
Before joining the institute, Mr Zapantis held a number of roles at Rio Tinto Energy and Rio Tinto Coal Australia, with a focus on energy and climate policy, energy efficiency, greenhouse gas management and product stewardship as applied to coal and uranium. He has served on the boards of the Energy Policy Institute of Australia, Australian Coal Association Low Emissions Technology Ltd, the World Coal Association and the Coal Industry Advisory Board to the International Energy Agency.
Edited from press release by Harleigh Hobbs
Carbon Energy and its Chief Executive Officer, Mr Englebrecht, have agreed to extend his Executive Service Agreement, currently expiring on the 17 June 2016, to the 12 August 2016, to ensure an orderly leadership transition.
Carbon Energy Chairman, Dr Chris Rawlings, commented: “After nearly five years with the company, Morné is moving on to pursue an opportunity in the oil and gas sector. On behalf of the Board and Shareholders, I thank Morné for his valuable contribution during some very challenging times.”
While the company continues to expand into other regions of the world, the Board will be seeking a new leader with appropriate skills, aligned to conducting international business, particularly in Asia, to take it forward during its next stage of growth.
Edited from press release by Harleigh Hobbs
Jacobs Engineering Group Inc. has been awarded a contract to provide analysis and consulting services regarding the US Environmental Protection Agency’s (EPA) finalised regulations on coal combustion residuals (CCR) to City Utilities of Springfield, Missouri, US.
Jacobs Senior Vice President Aerospace and Technology, Ward Johnson, stated: “Jacobs has been providing environmental services to clients worldwide for the past 35 years, and we have grown to become one of the leading experts in the US in implementing the EPA’s CCR regulations.
The contract, with a maximum value of approximately US$4.9 million, has a base period of three years followed by two three-year options.
Under the terms of the contract, Jacobs is expected to support a comprehensive compliance approach to address landfills and surface impoundments impacted by the new EPA rule. Professional services include site planning, geophysical and environmental investigations, compliance recommendations and development of control plans.
“In addition to evaluating, designing and constructing CCR facilities, we have expertise in evaluating the beneficial reuse of CCRs, including opportunities to recycle materials and minimise environmental impacts,” Johnson added.
“We look forward to building a strong relationship with City Utilities and to contributing significant value through this contract based on our extensive CCR knowledge and experience,” he concluded.
Edited from press release by Harleigh Hobbs
PwC has published its annual Mine report, which outlines the many new records set by the world’s 40 largest mining companies.
The report outlines a first ever collective net loss (US$27 billion) for the Top 40 miners with market capitalisation falling by 37%, effectively wiping out all the gains made during the commodity super cycle.
Michal Kotzé, Mining Industry Leader for PwC Africa, said: “Last year was undoubtedly challenging for the mining sector. The Top 40 experienced their first ever collective net loss, their lowest return on capital employed, a significant drop in market capitalisation, and an overall decline in liquidity with the result that the Top 40 were more vulnerable and carrying heavier debt loads than in prior years.”
“We are also seeing shareholders persist with a short term focus, impacting the capital available for investment and, as a result, constraining options for growth. But this is a hardy industry, and while many miners may be down they are certainly not out.”
With a further $53 billion of impairments in 2015, miners have now collectively wiped out the equivalent of 32% of their actual capex since 2010. This also represents a hefty 77% of this year’s capital expenditure. “While it is unfair to focus on the charges incurred this year as price assumptions were adjusted down, a longer-term perspective indicates a lack of capital discipline. In fact, from 2010 to 2015, the Top 40 have impaired the equivalent of a staggering 32% of their capex incurred,” added Andries Rossouw, Assurance Partner, PwC.
While China is still critical to the success of the mining industry, accounting for about 40% of overall commodity demand, it can no longer be relied on to supercharge returns. The number of Chinese mining companies in the Top 40 continued to increase from nine to 12.
Debt management has moved to the top of the business agenda for many of the Top 40 miners. Leverage is at an all-time high and cash used to repay debt was broadly equal to cash from borrowings. It’s no surprise that the ratings agencies responded with widespread ratings downgrades.
Adds Rossouw, remarked: “The response of the Top 40 miners has been twofold: an even greater focus on cutting expenditure, whether operational or expansionary, and an acceleration in asset sales. It will be interesting to see if these efforts can continue and the subsequent knock-on effects.”
While the mining industry continues to face significant challenges and constraints, Rossouw maintains there is still a long-term positive outlook. “Many of the Top 40 appreciate what is required for the marathon of mining and have their eyes firmly fixed on the long-term rewards.”
Edited from press release by Angharad Lock
Wollongong Coal is dependent on financial support from Indian owners to continue as a going concern, according to its financial results for the year ending 31 March 2016 (financial year).
According to the results statement, Wollongong lost AUS181.9 million over its financial year on a net impairment charge of AUS$ 125.5 million and an increase in operating expenses to AUS$40.0 million. Meanwhile, revenues were down 35.4% to AUS$12.4 million.
The company blamed its “adverse performance” on low production from its Russell Vale coal mine, which is waiting for approval from the New South Wales Planning Assessment Commission (PAC) for its Underground Expansion Project (UEP). The delay in approval for the UEP resulted in the mine being put into care and maintenance from 1 September 2015.
The PAC’s objections come despite Queensland’s Department of Planning (DOP) recommendation to approve the UEP, after confirming Wollongong had satisfied concerns raised by the PAC after an initial public hearing.
Despite this, “the PAC has raised further concerns after its second public hearing in February 2016, resulting in further delays in commencing longwall operations at Russell Vale,” the company said, adding that it “remained committed to resolve those issues and obtain the required approval”.
The company’s Wongawilli coal mine also remained on care and maintenance through the course of the financial year – although it has now begun a progressive restart programme, which has seen the mine starting to process underground inventories.
Developmental activities and recommissioning of mining equipment will see the start of room-and-pillar mining in the near future, the company said.
Given the company’s performance, the company will remain dependent on funding from its immediate parent company, Jindal Steel and Power (Mauritius) (JSPML) to continue operating, its directors said.
JSPML injected AUS$95.3 million into the company during the last financial year and a further AUS$6.5 million to the date of the report. It has also provided a letter of support, stating that it will continue its financial support for at least 12 months.
Edited by Jonathan Rowland.
BHP Billiton has entered into an agreement to sell its 75 per cent interest in IndoMet Coal to its equity partner PT Alam Tri Abadi (Adaro).
James Palmer, IndoMet Coal Asset President, said: “After a detailed review of IndoMet Coal, we concluded that although the project could support a larger scale development, BHP Billiton has a range of other growth options in the portfolio that are more attractive for future investment.”
IndoMet Coal comprises seven coal contracts of Work, which are located in Central and Eastern Kalimantan, Indonesia. The Haju mine, which is located within the Lahai coal contract of work, has a production capacity of 1 million tpy of coal and has been in production since 2015.
The completion of the sale is conditional upon the fulfilment of customary regulatory approvals. During the approval period BHP Billiton and Adaro will work together to facilitate a smooth transfer of ownership.
Edited from press release by Harleigh Hobbs
The global port infrastructure construction market will see significant activity over the next ten years, according to BMI Research, despite slowdowns in the economies of major trading nations and continued weakness in key metrics, such as the Baltic Dry Index.
“We are forecasting a continued increase in the value of global trade volumes, which will support demand for increased port capacity,” said BMI Research, part of Fitch Group. Construction activity will be driven by greenfield port projects in emerging markets, as well as major port upgrades in developed markets to accommodate larger vessels.
Latin America and Asia account for the majority of projects with 322 of the 522 port projects tracked by the BMI Infrastructure Key Projects Database, which logs port projects valued at UAS$50 million or more, located in these two regions.
“In India and Indonesia, governments are prioritising the development of port infrastructure as a means of boosting economic growth and relieving bottlenecks at existing ports through the Sagar Mala project and MP3EI blueprint, respectively,” BMI Research said.
“Furthermore, China’s One Belt One Road initiative, as well as benefitting ports across Europe, Middle East and Africa, will see those countries on the maritime route benefit from port investment, boosting ports infrastructure in countries such as Sri Lanka, Bangladesh and Vietnam.”
In Latin America, BMI Research expects Brazilian port project pipeline to more forward on pressure from significant bottlenecks at existing infrastructure, despite weak economic conditions in the country. Mexico, as well as smaller markets, such as Colombia, Peru and Panama, are also investing in their port infrastructure.
Beyond Asia and Latin America, Sub-Saharan Africa and MENA account for a further 107 projects, with Emerging Europe hosting another 50. ‘Developed states’ only account for less than 10% of the total, with just 43 projects.
Edited by Jonathan Rowland.
