US utility Duke Energy has welcomed a bill to strengthen North Carolina’s Coal Ash Management Act. The Bill – Senate Bill 71 – is currently moving through the North Carolina General Assembly and would, among other things, re-establish the Coal Ash Management Commission.
“We support this bill because it strengthens North Carolina’s Coal Ash Management Act by providing broad safeguards that protect people, pocketbooks and the environment,” the company said.
“Specifically, we support the reconstitution of the Coal Ash Management Commission and the vital role it plats in providing oversight and making recommendation on a variety of safety, environmental and cost factors for the disposal of this non-hazardous material,” the company continued.
The bill has been criticised, however, by those representing communities affected by leaking ash ponds with one lawyer calling it an attempt to “bail out” Duke Energy after North Carolina’s Department of Environmental Quality (DEQ) ordered the company to clean up its 33 coal ash ponds in the state.
“Under the existing law, after extensive public comments, DEQ was forced to conclude that Duke Energy must remove its coal ash from its dangerous and leaking pits across the state,” said Frank Hollerman, Senior Attorney at the Southern Environmental Law Centre, which is representing 12 citizen groups in lawsuits against Duke Energy.
“Now after heavy lobbying by Duke Energy, the Raleigh politicians want to re-open the process to try to find a way to Duke Energy off the hook,” Hollerman continued.
Edited by Jonathan Rowland.
According to the US Energy Information Administration, trends in carbon dioxide (CO2) emissions from electricity generation through 2040 depend significantly on whether or not the Clean Power Plan (CPP) rule issued last August by the US Environmental Protection Agency (EPA) is implemented.

Source: U.S. Energy Information Administration, Annual Energy Outlook 2016
Analysis in the EIA’s Annual Energy Outlook 2016 (AEO2016) examines what the CPP could mean for the fuels used to generate electricity, especially coal. The EIA recently released an annotated summary of two AEO2016 cases. The reference case assumes implementation of EPA’s final CPP rule, while the No CPP case assumes the rule, enforcement of which is currently on hold pending judicial review, does not ever come into effect.

Source: U.S. Energy Information Administration, Annual Energy Outlook 2016
The reference case assumes the CPP is implemented using the mass-based option (controlling the amount of CO2 emissions) rather than the rate-based option (limiting the rate of CO2 emissions per unit of electricity). The mass-based standards are modelled using allowances, with cooperation across states at the regional level and all allowance revenues rebated to ratepayers.
Other CPP-related scenarios to be released over the coming weeks will examine different implementation alternatives. Some results, such as electricity prices and the mix of fuels used to generate electricity, are likely to depend significantly on compliance strategies.
In the reference case, power-sector emissions are projected to be 28% lower than the 2005 level in 2022, when the initial mass-based standards are scheduled to begin. Final targets take effect in 2030 and remain constant thereafter, and the corresponding reduction in CO2 emissions compared with 2005 levels is about 35% from 2030 – 2040. In the No CPP case, power-sector CO2 emissions are 7% higher than in the reference case in 2022 and about 25% higher in 2030 and beyond, but these levels still remain well below the 2005 level. Currently, the power sector accounts for 36% of total energy-related CO2 emissions, but its share falls to 31% by 2030 in the reference case when power sector emissions fall below those of the transportation sector. In the No CPP case, the power sector emissions remain near 36% of total energy-related CO2 emissions throughout the projection period.

Source: U.S. Energy Information Administration, Annual Energy Outlook 2016
In the reference case, reductions in CO2 emissions to comply with the CPP are primarily achieved by switching from carbon-intensive fuels, especially coal, to less carbon-intensive natural gas and to zero-carbon renewable technologies, such as solar and wind. Energy efficiency in the residential, commercial, and industrial end-use sectors and in the power sector also contributes to lower fuel use and emissions as end-use equipment becomes more efficient and as the use of relatively energy-efficient generators increases.
In the near-term, significant coal retirements are expected regardless of CPP implementation. Coal plant retirements have been relatively high in recent years – nearly 14 GW in 2015 – because of an increase in competition from units burning low-priced natural gas and the implementation of environmental regulations. About three times the amount of coal retirements in 2015 are expected to occur in 2016 – 40 GW to 45 GW – as the final deadline for the EPA’s Mercury and Air Toxics Standards (MATS) occurred in April of this year. After 2016, another 55 GW of coal plants retire by 2040 in the reference case as the CPP is adopted. Even in the No CPP case, about 20 GW of coal-fired capacity retires from 2017 through 2040.
In the reference case, the remaining coal-fired generation capacity is also used less intensively over time as it is displaced by natural gas-fired and renewable-sourced generators. As a result of both coal unit retirements and lower utilisation of the capacity that remains, coal consumption in the electric power sector declines by 34% from 2015 to 2040 in the reference case.
With the electric power sector accounting for more than 90% of total US coal consumption and coal imports serving only a very small part of domestic coal demand, US coal production largely reflects the trend in power-sector coal consumption. Relatively inexpensive international coal supplies limit growth opportunities for US exports. US coal consumption, which fell 26% from 2008 to 2015, is expected to continue declining from 873 million short t in 2015 to 664 million short t in 2030 and to 643 million short t in 2040 in the reference case. Coal production remains relatively stable in the No CPP case through 2040.
Edited from source: EIA by Harleigh Hobbs
According to the US Energy Information Administration, renewable electricity generation in Germany increased to 194 billion kWh in 2015, representing 31% of the country’s gross electricity generation. The renewables electricity growth in 2015 was the largest in both percentage and absolute terms (19% and 32 billion kWh, respectively) in at least a decade.
Germany’s Energiewende, or energy transition policy, focuses on renewable energy and sustainable development. Energiewende goals include eliminating non-renewable energy sources from Germany’s energy portfolio, phasing out nuclear power generation, reducing dependence on energy imports and lowering carbon emissions. Official goals call for greenhouse gas reductions to 80% – 95% of 1990 levels by 2050 and a gradual phase-out of nuclear power by 2022. In 2015, 44% of Germany’s electricity production was generated from coal, 11% from other fossil fuels and 15% from nuclear energy.

Source: U.S. Energy Information Administration, based on German Statistical Office (Destatis) and AGEB- AG Energiebilanzen e.V.
Electricity generated from renewable sources has tripled in Germany over the past 10 years. Based on Energiewende goals, the share of power generated from renewable sources is set to increase to 40% – 45% by 2025 and to more than 80% by 2050. Most of Germany’s expected growth in renewable electricity comes from solar photovoltaics (PV) and wind, which currently provide 20% of Germany’s total electricity. Hydropower and other renewables, such as biomass and waste, provided 11% of Germany’s overall electricity supply in 2015, but these shares are not expected to grow significantly.
The German government has supported renewable electricity growth by promising a fixed, above-market price for every kilowatthour of energy generated by solar PV or wind and delivered to the grid, a policy known as a feed-in tariff. By law, these renewable sources have priority over traditional generation, meaning that other forms of generation must be curtailed to accommodate fluctuations in renewable electricity generation. Over the past five years, these policies have helped to double the amount of wind generation.
Wholesale electricity prices in Germany have been declining, but residential retail prices have risen and are expected to continue to increase because of higher taxes and fees charged to consumers. For instance, one surcharge for renewable electricity increased from 8.8% of the residential electricity price in 2010 to 17% in 2013. Taxes and surcharges make up about half of the average residential electricity rate, and tariffs account for the remainder. In 2014, the average sales-weighted retail price for residential consumption in Germany was about 35 cents/kWh, while the average residential retail price in the US was about 13 cents/kWh. Along with Denmark, Germany has among the highest residential electricity prices in Europe.
As a net electricity exporter, Germany’s rapid growth in electricity production has created problems for both Germany and its neighbours. Germany currently lacks the infrastructure to send surplus electricity from the north to the more populous areas in the south. A large volume of the surplus power instead flows through transmission grids to Germany’s neighbours, often creating power surges. Poland and the Czech Republic have invested in technology to avoid blackouts from power surges that originate in Germany on particularly windy days. Germany has identified the need for more than 3800 km of new transmission lines that would run from the north to the south of Germany to meet increasing growth in both electricity demand and supply, but these infrastructure proposals have been opposed by municipalities and citizens.
Last year Germany signed several agreements with its neighbours to integrate power markets and to eliminate overcapacity of the grid. The electricity grid problems in Germany reflect a larger, continent-wide problem that has been elevated to the European Commission in Brussels, where policy makers advised that an integrated, renewables-focused electricity market should be a political priority for the European Union.
Germany has made several changes to its energy policies to promote renewable growth while also controlling costs. In 2014, changes were made to the feed-in tariffs. In the future, instead of fixed tariffs, electricity producers may have to compete in auctions. If renewable growth targets are exceeded in a given year, the feed-in tariff incentives for the following year would decrease to balance the growth.
Edited from source by Harleigh Hobbs
French utility, Engie, is considering the closure or sale of its Hazelwood coal-fired power plant and associated lignite mine in the Australian state of Victoria, said its CEO in a French Senate committee.
“For the Hazelwood plant, we are studying all possible scenarios, including closure or a sale if the state of Victoria tells us that is cannot meet power generating needs without this plant,” said Isabelle Kocher.

Caption: Hazelwood power plants and mine. Image: Engie.
Hazelwood is located in the Latrobe Valley, 150 km east of Melbourne, and comprises a 1542 MW power coal supplied with up to 15.3 million tpy of lignite from the adjacent mine. The power plant currently produces about 12 000 GWh of electricity, meeting up to 25% of Victoria’s energy requirements, according to Engie’s website.
Engie owns a 72% stake in Hazelwood with Japanese trading house, Mitsui & Co, holding the remaining 28%.
Kocher’s comments were downplayed by Engie’s Australian business, however. In a statement, the company said that it was not the case the Engie has decided to close Hazelwood.
“Any decisions on investment, divestment or closure are made by the Engie board, with aapproval by shareholders, Engie and Mitsui,” the statement said. “No such decision has been made regarding Hazelwood.”
Edited by Jonathan Rowland.
The GLNG Project Train 2 has begun production of LNG, marking the fifth of six LNG production trains on Queensland’s Curtis Island to go into production. The Curtis Island LNG is produced from coalbed methane (CBM: called coal seam gas in Australia).
Only one train on the Australia Pacific LNG (APLNG) project remains to be completed before the area can move to long-term operations, producing more than 25 million tpy of LNG. APLNG Train 2 is expected to begin producing LNG later this year.
The GLNG project has already produced over 2 million tpy of LNG from Train 1, which went into production last September, exporting its first cargo in October 2015. Since then, it has shipped 32 cargoes in total to customers in Asia.
GLNG is a joint venture between Australian gas company, Santos, Malaysian state-owned oil and gas giant, PETRONAS, French oil and gas major, Total, and KOGAS, a South Korean state-owned natural gas company and the largest LNG importer in the world.
All of the LNG trains on Curtis Island have been constructed by US engineering and construction company, Bechtel. “Successfully delivering LNG production units for our three customers on Curtis Island will go down among the most significant achievements in Bechtel’s 118 yr history,” said Alasdair Cathcart, General Manager of Bechtel’s LNG business line.
Edited by Jonathan Rowland.
Powerbit is the all new range of tophammer drill bits for surface drilling from Atlas Copco Secoroc.
They’re built to take on any rock, from hard to soft, and from abrasive to non-abrasive. These bits last much longer and give drillers more metres before the first regrind, and many more metres between regrinds. With Powerbit, drillers are guaranteed to get more performance from each bit.
The development engineers have looked at all aspects of drill bit technology to ensure the longest possible service life for Powerbit. The bit shape is entirely new and the bit body steel is harder and stronger. Moreover, the new button technology is so effective that it is patented many times over.
The previous semi-ballistic buttons have now been replaced with Atlas Copco Secoroc’s patented trapezoid shaped buttons – Trubbnos. In addition the patented Enduro Extra surface treatment gives significant strength in all types of rock.
So far, Powerbit has been put through more than 20 series of test at 13 test sites all over the world. A total of more than 50 km has been drilled in a great variety of rock conditions. At these sites, service life is up to 20% better than the competition and the penetration rate is up to 10% more effective than other leading bits on the market.
Extensive experience, together with thorough research, simulation and testing, have allowed Atlas Copco Secoroc to make the Powerbit range much more compact and versatile than before. There are now approximately 30% fewer bits in the range for tophammer rock drilling applications – making bit choice so much easier.
Edited from press release by Harleigh Hobbs
Wesfarmers is to writedown its Curragh coal mine by AUS$600 – AUS$850 million in its full year results, the company has said in a new release. It will also take a AUS$1.1 billion – AUS$1.3 billion impairment on its Target department stores.
“The decisions we have outlined today reflect more difficult market conditions in both Target and Curragh, but we remain confident that operationally we have the right plans to improve future performances over time,” said Wesfarmers’ Managing Director, Richard Goyder.
The Curragh writedown reflects a lower forecast recovery in long-term coal export prices, as well as higher market volatility – including exchange rates.
The non-cash impairment charges will be finalised as part of the group’s FY2016 annual accounts.
The Curragh mine is located in the Bowen Basin in Queensland and produces around 8.5 million tpy of metallurgical coal for export and around 3 million tpy of thermal coal.
Edited by Jonathan Rowland.
Vancouver-based developer of carbon capture technology, Inventys, has announced a number of leadership changes with Wayne Thomson appointed Executive Chairman, replacing CEO Andre Boulet.
Soheil Kaiavi, the co-inventor of Inventys’ flagship VeloxoTherm technology has been named to the new position of Chief Technology Officer, while company co-founders, Brett Henkel and Darryl Wolanski, join the newly appointed executive team as Vice Presidents of Commercial Development and Business Development respectively.
“This change reflects Inventys’s renewed interest in development partnerships with industry and academia, which will be critically important in advancing the company’s next generation carbon capture technology,” said Thomson.
The company’s VeloxoTherm process uses patented adsorbent structures and a rapid cycle thermal swing process to reduce the cost of carbon capture compared to other conventional processes.
“Inventys is developing technical advances that should dramatically reduce the cost of carbon capture so that it can be deployed worldwide. If successful, our technology could revolutionize carbon capture,” said Dr Steven Chu, Inventys Board Member and former US Energy Secretary.
The VeloxoTherm process also has other potential applications, explained Khiavi: “Inventys’ adsorbent structures are a technology platform that can be used in numerous gas separation processes, including carbon capture. Adsorbent structures are an enabling technology that can employ adsorbent materials of most any description and put them to use in real-world applications.”
Broadening VeloxoTherm’s application will be a part of Khiavi’s new role as Chief Technology Officer, Thomson added.
Edited by Jonathan Rowland.
The US coal industry faces over two decades of contraction according to the US Energy Information Administration’s (EIA) Annual Energy Outlook 2016 (AEO2016) Early Release, as natural gas and renewables eat into its market share – even without the Clean Power Plan (CPP).
With the CPP, however, coal production ends up around 250 million short t lower than without the CPP at around 640 million short t.
US coal-fired power
Implementation of the CPP sees coal-fired generation fall by 32% between 2015 and 2040, according to the AEO2016 Early Release, as natural gas replaces coal in the energy mix. Under the AEO2016’s Reference Case – which includes the CPP – coal’s share of the energy mix would fall to just 18% from 33% in 2015. Natural gas’s share rises to 38% in 2014, while renewables account for 27%.
Even under a No CPP Case, coal’s share of the energy mix falls to 2040, ending at 26% compared to 34% for natural gas. It does stay ahead of renewables, however, which account for 23% of the energy mix.
Under both Reference and No CPP Cases, however, little new coal-fired capacity is added, cementing a structural shift away from coal in the US energy industry.
US coal production
As a result, under the Reference Case, US coal production falls from about 870 million short t in 2015 to 830 million short t in 2022 and then to 664 million short t in 2030. In the No CPP Case, coal production rises slightly to 914 million short t to 2030 but then trends lower through to 2040.
“Even without the CPP, near-term coal plant retirements, competitive natural gas prices and renewables expansion continue to limit a recovery in the coal mining industry,” the EIA said.
Regionally, the West Region – which includes the Powder River Basin – sees most impact from implementation of the CPP, accounting for 58% of the total decline in production to 2030 as states that are significant users of Western coal see large-scale coal plant retirements.
Appalachian coal production suffers less substantial falls over the forecast period – although that may largely be because the region has already seen a substantial contraction in its coal production. By 2040, Appalachian coal production has become increasingly dependent on exports, which account for 67% of its production.
There is better news for the Interior Region – which includes the Illinois Basin – where coal production actually rises under the No CPP Case as the high-sulfur content of its coal is mitigated by increased use or emissions control equipment at power plants.
Although production drops under the Reference Case, Interior Region production overtakes Appalachian production by 2020 and it remains the second-largest producer behind the Western Region through to 2040.
A bleak outlook
The EIA’s forecast echoes comments made by Robert Murray, CEO of Murray Energy, in a recent interview with SNL Energy. Murray recently endorsed Donald Trump for president – but was skeptical of Trump’s promises to help bring the coal industry back to its former boom times.
“I don’t think it will be a thriving industry ever again,” said Murray, who expects the industry to end up about half the size that it was at its peak. “The coal mines cannot come back to where they were – or anywhere near it.”
Edited by Jonathan Rowland.
The Supervisory Board of thyssenkrupp AG has extended Dr Donatus Kaufmann’s contract by five years to 31 January 2022. Kaufmann is a member of the Executive Board responsible for Legal and Compliance and has been a member since February 2014 and is also responsible for the regions North America and Western Europe.
“The extension of Dr Kaufmann’s contract is a clear signal that compliance continues to be a top priority at thyssenkrupp,” said Professor Dr Ulrich Lehner, Chairman of the Supervisory Board. For thyssenkrupp compliance is a central element of good corporate governance and means more than abiding by the law and internal policies. Compliance is a question of mindset: reliability, honesty, credibility and integrity are part of thyssenkrupp’s values. Infringements, in particular violations of antitrust law and corruption, are met with a “zero tolerance” policy.
Edited from press release by Harleigh Hobbs
Prairie Mining is continuing to make progress on the permitting process for its Lublin coal project in Poland, according to a company news release, and is on schedule to make a formal mining concession application in 1H17.
The mining concession application process comprises a deposit development plan (DPP), and environmental social impact assessment (ESIA) and an application to rezone the land where surface infrastructure is to be located.
The DDP – which documents the proper management and extraction of resources based on the pre-feasibility study – has been completed and will be submitted to the provincial mining authority in Lublin shortly, according to the company.
An application for an environmental consent decision has also been submitted to the Regional Director for Environmental Protection in Lublin, along with documents detailing the procedure leading to the approval of the EISA.
The EISA must be obtained before a mining concession is granted and is expected to be submitted at the beginning of 3Q16. A decision is then expected in early 2017.
A motion to amend local land zoning has been also lodged by the company with the local authorities, which will allow for rezoning of land from agriculture to underground coal mining.
Prairie has also initiated various infrastructure projects, including works aimed at obtaining power grid connection to the project site. The development of a rail link to the project site has also been recognized as one of the main strategic investment plants for the Lublin region by regional authorities.
Edited by Jonathan Rowland.
Australian Pacific Coal (AQC) has announced findings of an independent assessment of the coal resource at the Dartbrook project in New South Wales, Australia. AQC is currently in the process of buying Dartbrook from Anglo American and Marubeni Coal.
According to the independent assessment, Dartbrook contains a total coal resources estimate (CRE) of 1.2 billion t, comprising 466 million t of measured resources, 448 million t of indicated resources and 294 million t of inferred resources.
Coal quality analysis indicated the potential to produce an 8% ash (air dried basis) PCI product, as well as a range of thermal coal products between 10% and 18% ash on an air dried basis.
“This CRE confirms Dartbrook as one of the largest underdeveloped coal operations in the Hunter Valley,” said AQC’s CEO John Robinson Jnr. “It reaffirms our long-held believe that Dartbrook is a tier one mining asset.”
The assessment, which was undertaken by geological consultants, JB Mining, also showed the potential for a long mine life with low stripping ratios of 5:1 vertical coal tonnes to waste BCM.
AQC have agreed to pay AUS$25 million in cash to Anglo American and a further AUS$5 million to Marubeni for complete control of the Dartbrook Project. The purchase agreements also include royalty payments of AUS$0.25 per tonne to Anglo American up to a total payment of AUS$25 million and AUS$0.05 per tonne to Marubeni up to total payments of AUS$5 million.
Edited by Jonathan Rowland.
The Queensland Resources Council (QRC) has criticised the Mineral and Other Legislation Amendment Bill (MOLA), which was passed by the state parliament on 24 May.
The legislation reinstates community objection rights around large-scale mining projects that were removed under the previous state government. Restoration of those rights formed a part of the ruling Labor Party’s election pledges in last year’s state elections.
“We agree the community should have an avenue for their concerns to be heard about mining projects,” said QRC Chief Executive, Michael Roche. “However, this should not equate to multiple years in the Land Court spent frustrating and delaying what it supports to be an administrative process only.”
Roche added that there were already multiple pathways available to object to a project. “QRC maintains that an objection right under the mining legislation is an unnecessary double-up of the environmental object under environmental legislation in Queensland,” Roche said.
The QRC has been consistently critical of the length of time it takes to receive a mine permit in the state with environmental campaigners able to hold up permitting activities with repeated legal challenges.
“The government must act to protect future investment in the resources sector for all Queenslanders as we are at a crossroads where every new project could be held up in court for several years,” Roche said.
Edited by Jonathan Rowland.
Bharat Heavy Electricals Ltd (BHEL) has successfully commissioned the first 800 MW Supercritical thermal unit in Karnataka, which is also the highest rating unit in the state.
The unit has been commissioned at the 2 x 800 MW Yeramarus thermal power plant, located in Raichur district of Karnataka. Yeramarus is being developed by Raichur Power Corp. Ltd (RPCL) – a Joint Venture of Karnataka Power Corp. Ltd (KPCL) and BHEL.
The second unit of this project is also in an advanced stage of construction and is expected to be commissioned shortly.
BHEL’s scope of work for the project envisaged design, engineering, manufacture, supply, erection and commissioning of state-of-the-art supercritical boiler and turbine generators along with associated civil works and agreed Balance of Plant (BoP) packages. The key equipment for the project has been manufactured by BHEL at its Haridwar, Bhopal, Ranipet, Hyderabad, Jhansi, Thirumayam and Bengaluru plants, while the construction of the plant has been undertaken by the company’s Power Sector- Southern Region.
BHEL has been a major partner of KPCL in the development of Karnataka’s power sector. BHEL has supplied and executed 4010 MW of coal-fired sets for KPCL & its JV, accounting for 95% of their installed coal-fired capacity.
BHEL had previously commissioned the 700 MW Bellary Stage-3 supercritical project in Karnataka. The company is also presently executing KPCL’s first gas-fired combined cycle power project of 370 MW capacity, involving a fuel-efficient advanced-class gas turbine at Yelahanka.
Edited from press release by Harleigh Hobbs
RC Inspection Group’s office and laboratory based in Ulaanbaatar recently changed its operational name to RC Inspection Asia Assayers, as a result of its services expanding from Mongolia to across Asia.
The office and laboratory staff were operating for the last 3 yrs as RC Inspection Mongolia / RCI Analytical Services Mongolia, It specialises in providing services on commodities such as ores, concentrates, precious metals and minerals. The laboratory is fully equipped with all relevant and advanced instruments to drive accelerated turnaround times and up-to-the-minute reporting through a service driven approach and innovative use of technology. These statements were acknowledged by receiving the ISO/IEC 17020 accreditation and the ISO/IEC 17025 accreditation in September last year.
They are now also expanding their inspection, sampling, sample preparation and analytical services for commodities such as solid fuels. This gives the advantage to also render services on a broader perspective for our customers and for potential customers in Asia.
RC Inspection stated in a news release: “By changing the name, nothing will change in the way that we operate, all rendered services will stay as our customers are used to: quick, reliable and of high quality. We truly hope that by expanding our possibilities in Asia and in commodities, we can respond better to our customers’ wishes, as at RC Inspection we gain energy from creating business opportunities for our customers.”
Edited from press release by Harleigh Hobbs
Stephen McIntosh has been appointed the acting Group Executive, Technology & Innovation for Rio Tinto. He will succeed Greg Lilleyman, who will leave the company after 25 years of service.
McIntosh has been with Rio Tinto for almost 30 years, working on projects in more than 45 countries spanning the A-Z of minerals and metals. Most recently, he was head of Exploration, leading a global team of 450 employees operating in 20 countries.
Before this, McIntosh led Rio Tinto’s Project Generation Group for six years and transformed its activities to build a world-leading team of commodity, technical and ore body knowledge experts.
Rio Tinto Chief Executive Sam Walsh said: “Stephen is a highly respected member of Rio Tinto’s senior leadership ranks and brings to his new role a breadth of experience across multiple commodities and geographies. For a long time now, our T&I function has provided a point of strategic differentiation for Rio Tinto and Stephen will spearhead the Group’s drive for further productivity improvement across the business.”
Lilleyman has made a significant contribution to the development of Rio Tinto’s Pilbara operations, where he has spent the majority of his time with the business. He also held senior operational roles in the Hunter Valley of New South Wales and Canada.
Walsh added: “Greg has had a long career with Rio Tinto and played an important role in the development of our industry leading Mine of the Future™ programme in our Pilbara iron ore operations and has led our productivity drive. We wish him well for the future.”
Edited from press release by Harleigh Hobbs
Hume Coal has ruled out seeking leave to appeal the recent decision handed down by Chief Justice Brian Preston of the New South Wales Land and Environment court (s31 Appeal Decision).
Previously on 10 May 2016, Justice Preston ruled that certain farm assets had been “significantly improved” and therefore should be off limits to miners under section 31 of the NSW Mining Act.
Greig Duncan, Project Director for Hume Coal, said that land access for exploration and mining companies has been an ongoing issue in NSW for decades. “It’s now a matter of urgency and up to the State government to take this issue seriously and implement changes to the legislation, which clarify the rights of landowners, explorers and ultimately investors in NSW” he said.
Duncan said an appeal of Chief Justice Preston’s ruling would be futile. The s31 Appeal Decision did not address an earlier decision by Sheahan J in Hume Coal Pty Limited v Alexander (No 3) [2013] NSW LEC 58 that is clearly inconsistent with the s31 Appeal Decision, leaving the NSW mining law jurisprudence in disarray.
In 2014, Bret Walker SC was commissioned by the NSW government to undertake a review on the land access. Walker SC came up with 32 recommendations, of which several pertained to ‘significant improvements’. Of note was the following:
Recommendation 23 (Walker Review 2014):
“That Mining Act … be amended to provide that a landholder cannot unreasonably withhold consent in relation to significant improvements or improvements.”
Duncan has indicated that the ball is now in the State government’s court. If government are looking for investment in NSW to continue, they must address the legislation with a matter of urgency.
While Hume Coal was disappointed by the decision, the progress of the Environmental Impact Statement is continuing, with the aim of submitting to the government later this year.
Hume Coal is continuing to seek approval of the project, which it reported would provide 300 permanent jobs, boost the local economy and benefit the state of NSW.
“We will ensure our proposed development is economically, socially and environmentally sustainable, and provides much needed economic growth for the region” he said.
Total 1Q16 seaborne cargo throughput for Port of Hamburg comes in just below last year’s figures – declining 2.5% to 34.8 million t.
The Port indicated that the economic downturn in China and Russia, both especially important markets for Hamburg, might have slowed somewhat during the 1Q16, yet Hamburg’s seaborne cargo throughput remained below the previous year’s record level.
Contributing to the total was bulk cargo throughput at 11.5 million t (down 1.9%) and general cargo throughput at 23.3 million t (down 2.7%), both segments being somewhat weaker than in the same quarter of 2015. At 2.2 million TEU (down 3.4%) container throughput for the quarter was also lower.
Bulk cargo throughput in the first quarter came in at 11.5 million t, which was just below the previous year’s record total – declining 1.9%. Contributing to the segment total were suction cargoes, down by 13.5% to 2.3 million t, grab cargoes declined by 1.5% to 5.4 million t, and liquid cargoes at 3.7 million t were up by 6.1%.
The port’s strong grain exports of the previous year’s first quarter were not repeated, causing a 13.5% fall in throughput. While imports of oilseeds were up by 51.7% at 912 000 t, these failed to offset the downturn in grain exports.
Edited from press release by Harleigh Hobbs
As stated in a recent survey by Timetric’s Mining Intelligence Centre (MIC), GEOVIA’s Surpac is the most widely used mining software across African mines. The company is followed by Datamine and Hexagon Mining’s MineSight.
Timetric’s MIC interviewed over 100 African mine managers to learn the different mining software platforms used at individual mine sites across the African continent.
The respondents were asked to nominate one or multiple software used in five main mining processes, in all of which GEOVIA’s Surpac lead nominations:
- Geological mapping and block modelling (38%).
- Surveying (38%).
- Drill and blasting (34%).
- Mine scheduling. (34%).
- Mine planning (43%).
Only two other software platforms, Datamine and MineSight, were nominated in second place across the three categories. Datamine software was the second-most used software for ‘geological mapping’ and ‘block modelling’ with 20%, and for ‘mine planning’ purposes with 12%. Whereas Hexagon Mining’s MineSight software was nominated as the second-most used surveying software with 10%.

“Depressed commodity prices continue to impact the industry, with more mining companies fighting to remain competitive. Investments in new technologies and their successful implementation on site might significantly aid in a company’s success. The survey results here show a cost effective use of single software across a broad range of commodity sectors and mining functions,” commented Nez Guevara, Senior Mining Analyst at Timetric’s MIC.
Edited from press release by Angharad Lock
Paringa Resources Ltd has successfully amended its coal sales contract with Louisville Gas and Electric Co. and Kentucky Utilities Co. (LG&E and KU) following the company’s recent change in strategy, which will see the low CAPEX Buck Creek No.2 mine developed first, ahead of the Buck Creek No.1 mine’s proposed 3.8 million tpy coal project.
In October 2015, Paringa signed a coal sales agreement with LG&E and KU to deliver coal from the No.1 mine. In February 2016, the company decided to develop the No.2 Mine first after it attained exceptional results from a scoping study, which demonstrated the No.2 mine to be a high margin 1.8 million tpy mine with low CAPEX of only US$44 million.
As a result, the amended cornerstone coal sales agreement with LG&E and KU now reflects delivery of coal from the No.2 mine. The amended contract is on substantially the same terms as the original contract. Most importantly, coal volumes and coal specifications remain unchanged. Fixed sale prices have changed slightly to reflect recent sales data, and the project development milestones and delivery schedule have been updated for the No.2 mine.
Under the amended coal sales agreement, Paringa is contracted to deliver a total of 4.75 million t of its 11 200 btu/lb product over a 5-yr period, starting in 2018. Paringa reported that 60% of No.2 mine’s annual production during the 5 yr sales agreement is now contracted with LG&E and KU, significantly de-risking the project for potential financiers.
The amended contracted fixed coal sales prices for Paringa’s 11200 btu/lb coal spec begins at US$40.50/t for the first 750 000 t of coal delivered to LG&E and KU, increasing to US$45.75/t for the final 1million t sold.
Commenting on the revised contract, Paringa’s President and CEO,David Gay, said: “We are extremely pleased to formalise the transition of our coal sales contract from the No.1 mine over to the No.2 mine. The fact that LG&E and KU are prepared to sign this major amendment to our sales contract confirms their belief that we will become a significant new source of production in the Illinois Basin and confirms the quality of the No.2 mine. We are progressing rapidly with our bankable feasibility study on the No.2 mine and have already identified significant reductions in our operating and capital costs, which have the potential to increase the value of the project considerably.”
Paringa is expected to start construction of the No.2 mine during 2Q17, begin production by mid-2018, and reach full production of 1.8 million tpy during 2019.
The amended LG&E and KU agreement includes standard project development milestones that are in line with the proposed Buck Creek No.2 mine construction programme.
Edited from press release by Harleigh Hobbs
The Chamber of Mines of South Africa participated in the Compensation Summit convened by the Ministers of Health and Labour and Deputy Minister of Mineral Resources on 19 and 20 May 2016. The Chamber has indicated it fully supports the goal of integrating the compensation systems currently governed separately by the Occupational Disease in Mines and Works Act (ODMWA) and the Compensation for Occupational Injuries and Diseases Act (COIDA).
Senior Executive for Health and Environment, Nikisi Lesufi, noted: “We fully support this initiative as we believe that this will enhance the lives of mining employees. The health and welfare of employees remain a key concern for the Chamber and its members. It is for this reason that we will continue to be actively involved.”
Currently, employees working in “1controlled mines” receive compensation for specified occupational lung diseases from ODMWA. Going forward, employees will be covered by COIDA, which will entitle them to higher compensation.
The process is expected to be finalised by the end of the year.
Edited from press release by Harleigh Hobbs
The US Department of Labor’s Mine Safety and Health Administration has announced that the agency is enhancing enforcement of its ‘Rules to Live By’ initiative of standards commonly cited following mining deaths, as well as nine underground coal mine exam rule standards for hazards that pose the greatest risk to miners in underground coal mines.
Addititionally, the agency announced plans to add two new standards as part of ‘Rules to Live By IV’, specifically safe lighting of surface work areas at coal mines and protection from falling materials at metal and nonmetal mines.
Effective 1 July 2016, MSHA will more extensively employ its web-based Rules to Live By and exam rule calculators to determine the number of Rules to Live By and exam rule citations and orders issued during the most recent completed inspection periods for which data are available. Inspectors will provide mine operators with a copy of the results and these results will be added to criteria for consideration of impact inspections.
In an effort to prevent mining deaths, MSHA launched its Rules to Live By outreach and enforcement initiative in 2010.
“MSHA analysed the cause of death of hundreds of US mining fatalities in a 10 yr period to identify the conditions and practices that contributed to the fatalities, safety standards violated, root causes and abatement practices,” said Joseph A. Main, Assistant Secretary of labor for mine safety and health. “With this information, we can better target the causes and take action to prevent needless mining deaths.”
The agency analysis states that fatalities associated with Rules to Live By standards have decreased by an average of 23%.
“It is absolutely imperative that mine operators conduct examinations of mines each day to assure they are in compliance with the Rules to Live By and examination standards linked to most of the mining deaths,” said Main. “While we have seen some progress, we are not where we need to be if these fatalities are to be prevented. That is why we are increasing attention on these critical standards. We urge the mining industry to do the same.”
Edited from press release by Angharad Lock
The stalking horse bid from Alpha Natural Resources creditors has emerged as the only qualified bid for the company’s coal assets, according to a court document filed by the company.
A stalking horse bid is supposed to set the lower limit for an asset sale by auction. In this case the bid was US$500 million for Alpha’s mines in Wyoming and Appalachia, as well as coal reserves in Pennsylvania. But a proposed auction for the assets was cancelled after the company rejected other bids as unviable.
“The stalking horse bid is the sole bid that the debtors [Alpha Natural Resources] deem to be a qualified bid,” the company said in its court filing. As a result the bid “is designated as the successful bidder.”
Separately, the company said that Vantage Energy Appalachia II was the successful bidder for its Pennsylvania oil and gas assets. Vantage bid US$339.5 million for the assets, beating out a stalking horse bid of US$200 million.
“While we were not surprised with the interest the PLR assets generated from operators in the region, the strategic sale of these assets will only help to maximize the value of the estate for the benefit of all stakeholders,| said Alpha’s Chairman and CEO, Kevin Crutchfield. “We continue to forge ahead toward the final phase of our restructuring.”
The failure of the company to auction its coal properties reflects the significant challenges facing the US coal industry, where coal production is down by almost a third year-to-date. Coal demand has been hit by an increase in use of natural gas for electricity generation, weak export markets and a warm winter, which reduced coal burn and left coal stockpiles at power plants high.
Edited from by Jonathan Rowland.
Economic Promises a President Trump Could (and Couldn’t) Keep
By NELSON D. SCHWARTZ
May 21, 2016
By NELSON D. SCHWARTZ
May 21, 2016
In the hills and hollows of Mingo County, W.Va., where unemployment is nearly triple the national average, it’s coal. On the southwest side of Chicago, where the landscape couldn’t be more different but the economic fears are much the same, it’s Oreo cookies. Elsewhere, it is cars, computers and air-conditioners.
And whether it is through rolling back regulations, imposing tariffs or making some none-too-discreet phone calls from the Oval Office to the C-suites, has vowed to bring back the vanishing jobs of miners, bakers and assembly-line workers, beginning on Day 1 of his administration.
“It’s going to happen fast,” Mr. Trump, the presumptive Republican nominee for president, recently told a cheering crowd in Charleston, W.Va. “This is so easy.”
[Video: FULL Event: Donald Trump’s HUGE RALLY in Charleston, WV (5-5-16) ]
FULL Event: Donald Trump’s HUGE RALLY in Charleston, WV (5-5-16)
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If only that were true.
For all of the appeal his message might have for residents there (Mr. Trump captured almost 90 percent of the vote in Mingo County), much of what he is promising to do — on his own, and through congressional legislation — couldn’t be accomplished in the first 1,000 days of a Trump administration, much less the first 100.
For example, Mr. Trump has suggested easing clean-air regulations enacted by Democrats and Republicans alike that have hurt the coal industry. But King Coal is unlikely to ever recapture market share lost in recent years to made cheap by the fracking boom, not to mention fast-growing alternative energy sources like wind and solar.
Nor could Mr. Trump, a billionaire businessman, force steel makers to buy coal from Appalachia to heat furnaces in Asia, Europe and North America that have been idled by weak demand.
“I will not say he can’t do anything, but it’s very unlikely he’ll be able to restore coal to where it was,” said John Deskins, director of the West Virginia University Bureau of Business and Economic Research. With production and employment in the mines down by about a third since 2008, Mr. Deskins said, “even in our most optimistic scenario, we don’t expect a big bounce back.”
Of course, a Trump presidency is far from certain. And any president’s sway over the national economy is debatable.
But a big part of what has gotten Mr. Trump this far are his outsize promises. And while the case of coal and clean air illustrates the limits of a president’s power in the economic arena, there are other places where Mr. Trump would have considerably more room to maneuver.
Like much of his speechifying, Mr. Trump’s economic and business agenda is a mixture of opening bids and dog-whistle messages as well as some nuts-and-bolts proposals he might be able to put in effect as president, even without congressional approval. Sorting out what’s what, though, isn’t simple or safe. Just ask the pundits who wrote off Mr. Trump’s candidacy as a sideshow even as he won one primary after another.
For his part, Mr. Trump warns it would be a mistake to underestimate his ability to change the rules of the game.
“In my whole life, I’ve gotten things done,” he said in an interview on Saturday. “Whether it’s getting a city built on the West Side of Manhattan or getting zoning board approvals, my whole life has been finding a consensus.”
But when it comes to companies moving jobs out of the United States, he said a tougher tone was in order.
“I’m not Obama, and there are stupid people in our government,” he said. “With me, there will be consequences if you move, and the consequences will be severe.”
In terms of coal and recovering all of those vanished jobs in West Virginia, Mr. Trump acknowledged that price competition from cheaper natural gas was fierce.
“But coal is still less expensive, and it has a major place in terms of energy,” he said. And regulatory relief — whether in terms of environmental rules or workplace safety — would benefit the industry, he said.
“I have become very well versed on coal,” Mr. Trump said. “The regulations are brutal, and they are sending inspectors into the mines two and three times a day. Even the miners say it’s out of control.”
In law firms, corporate boardrooms, lobbyist watering holes and think tanks in Washington and beyond, experts are quietly assessing what a Trump presidency might actually look like in practice. Or to put it more bluntly, business is business. So whether they find Mr. Trump politically abhorrent or a welcome antidote to the status quo, these insiders also want to know what he might mean for their bottom line.
National debate: “Trump would put the bully in bully pulpit.”
Perhaps the greatest opportunity for Mr. Trump lies in the extraordinary ability of any president to direct the tone and contours of the national debate, especially on issues he has highlighted, like how American companies should treat their American workers. And unlike most past Republican candidates, Mr. Trump has not been reluctant to criticize big business on that topic.
“Donald Trump would put the bully in bully pulpit,” said Seth Harris, who served as a top official in the Labor Department under Democratic presidents.
Immigration: “Where the president’s power is least restricted.”
Consider immigration, . He might well be able to deliver on one of his central campaign promises: handing out fewer green cards to foreign workers, or denying a place to H-1B visa holders unless their American employers agree to pay them more.
“There’s a reason why so many of Trump’s proposals revolve around the idea of denying visas to people,” said William A. Stock, a lawyer in Philadelphia who is the president-elect of the American Immigration Lawyers Association. “That’s where the president’s power is least restricted, if he asserts it.”
The Immigration and Nationality Act of 1952, Mr. Stock said, gives the president “the ability to suspend the entry of foreign nationals whose entry is deemed to be detrimental to the interests of the U.S.”
Noting that recent administrations have invoked the law to forbid entry to individuals from the former Yugoslavia accused of human rights violations, as well as to Cuban and Iranian government officials, Mr. Stock said, “This is a tool that is pretty powerful, but it’s usually been used in more limited instances.”
Financial reform: “When it comes to regulation, people are policy.”
And what about “” the 2010 Dodd-Frank financial law, as Mr. Trump promised this month?
Repealing the law might be difficult, but experts who helped draft the regulations agreed that Mr. Trump could defang them through selective enforcement — appointing different officials to the Federal Reserve and the Securities and Exchange Commission — and by issuing new executive orders.
A President Trump would have wide latitude to name his own people to oversee less conspicuous but powerful agencies like the Commodity Futures Trading Commission, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency, and to seed Treasury and other government departments with like-minded officials.
“When it comes to regulation, people are policy,” said Aaron Klein, a top official at the Treasury Department from 2009 to 2012 and helped draft the Dodd-Frank bill. “Regulators who don’t want to regulate can thwart the will of Congress.”
But the president’s reach isn’t unlimited. Nor is it speedy. And however stupendous Mr. Trump’s deal-making skills may be, the forces of gridlock in the nation’s capital are no less awesome.
“The system doesn’t change,” said Tom Korologos, a longtime Republican strategist and an adviser at the law firm DLA Piper in Washington. “Trump can say, ‘I’m going to repeal this or I’m going to repeal that,’ but it’s going to take longer than 100 days.”
Mr. Korologos, who served on the transition teams of President Ronald Reagan and President George W. Bush, isn’t supporting Mr. Trump this year. He added that while the presumptive Republican nominee’s promises might make “for nice talking points, it will be harder than he thinks.”
Tax cuts: A Republican Congress is unlikely to accept a $10 trillion deficit over 10 years.
That’s especially true when it comes to the macroeconomic picture. Mr. Trump claims his proposal for sweeping tax cuts for individuals and businesses wouldn’t bust the budget and could lift the economy’s annual growth rate to 6 percent.
More sober-minded experts say that’s magical thinking, a 2016 version of “voodoo economics,” as President George H. W. Bush famously described what came to be known as Reaganomics in the 1980s. They estimate Mr. Trump’s tax plan could create a $10 trillion shortfall at the Treasury over the next decade, and note that annual economic growth has topped 5 percent only once in the last 35 years.
“I have a hard time believing that even a Republican Congress would enact his tax plan, because it would create enormous deficits,” said William G. Gale, an economist under the first President Bush who is now co-director of the Tax Policy Center in Washington.
Mr. Trump responded that “those tax cuts go hand in hand with many other things.”
As a result of getting tough on trade policy and what he considers currency manipulation by China, Mr. Trump argues that more jobs would return to the United States, which in turn would spur economic growth and therefore tax revenues.
Whether or not that’s realistic, any significant alteration in trade or tax policy means winning over the House Ways and Means Committee and the Senate Finance Committee, both of which zealously guard their turf. “This is what makes them tick,” Mr. Korologos said. “It’s going to take more than just a bunch of rhetoric to change things.”
Labor: An ebb and flow when administrations change hands in Washington.
Like Mr. Korologos, Mr. Harris, the former Labor Department official, has seen the ebb and flow when administrations change hands in Washington. Except he was on the opposite side of the aisle, having served on the Democratic transition teams after President Bill Clinton was elected in 1992 and after President Obama’s victory in 2008.
At Labor, where he was a top adviser under Mr. Clinton, and then as deputy secretary in the Obama administration, Mr. Harris saw firsthand just how much influence the president could have.
Tasked with enforcing regulations on whether companies are abiding by minimum wage requirements, restrictions, affirmative action guidelines, workplace safety rules and a web of other laws, Mr. Harris said, the Labor Department has never been very popular with big business or the Republican candidates it supports.
And when George W. Bush succeeded Bill Clinton, the change was swift, Mr. Harris said. Budgets were cut, and travel to inspect factories and mines decreased. There was less emphasis on enforcement, going into workplaces and punishing violations, he said, and more on educating employers about potential infractions.
After Mr. Harris returned to the Labor Department in 2009, budgets were increased, and surprise workplace inspections were resumed.
“We investigated more deeply, enforced procedures, and were more likely to find violations,” he said. “There was no executive order or action by Congress or the White House. We just did it. The laws existed — it was a matter of whether you were going to solve the problem aggressively or be more passive.”
Republicans, including Mr. Trump, have long argued that regulatory zeal kills jobs and undermines economic growth. Democrats maintain it is necessary to protect employees from abuses and risks, while imposing checks on the power of big companies.
Both arguments contain elements of truth. But Mr. Harris said that what was critical was that rank-and-file civil servants quickly adapted to the message coming down from the Oval Office.
“The president sets the tone for how our government is going to relate to our country,” said Mr. Harris, who is now a lawyer in private practice in Washington. “How the laws are implemented and enforced, how the money is spent and how motivated people are to do their job.”
Health care: “Selling insurance isn’t like selling credit cards.”
Dodd-Frank isn’t the only big Obama-era law Mr. Trump has talked about repealing. The other prominent target of Mr. Trump’s ire — the Affordable Care Act — would be trickier to dispose of.
Even if Republicans controlled the White House and both houses of Congress, simply repealing the Affordable Care Act, known as Obamacare, could bring on a political backlash from the who are directly covered under the law, not to mention millions more who benefit from provisions like those that allow young adults to be covered under their parents’ policy and those that prevent insurers from dropping coverage for pre-existing conditions.
Moreover, Mr. Trump displays a lack of understanding of how health insurance works. For example, one specific change in the A.C.A. that Mr. Trump, along with other Republican candidates, has called for — allowing insurers to sell — is permitted under the law now.
The problem, said Nicholas Bagley, a professor of law at the University of Michigan, is that insurers don’t want to do it because it’s not practical. “Selling insurance isn’t like selling credit cards,” Mr. Bagley said. “Out-of-state health insurers don’t have networks of doctors and hospitals in place. The problem isn’t legal restraints, and it’s not a solution to what ails the health care economy.”
Mr. Trump responded that deregulation is still the answer, despite the skepticism of experts like Mr. Bagley.
“The problem is rules, regulations and restrictions,” he said. “You’re going to have rate increases that are catastrophic, and the deductibles are so high people can’t even use the health care. If it was really open and you got competition going, amazing things will happen.”
Environment: Sending “a chill down the spine” of people who enforce the laws.
Environmental regulation offers a more promising target for Mr. Trump, who has called the Environmental Protection Agency a laughingstock and a disgrace, and has promised to cut its budget.
In fact, in the absence of congressional action, the Trump administration could target many other environmental regulations by simply going after the people who enforce them, said Don Barry, who spent two decades at the Interior Department and directed the United States Fish and Wildlife Service under President Clinton.
Decades later, Mr. Barry still recalls how a round of firings in the Interior Department at the dawn of the Reagan administration signaled a turnabout in policy. “The single biggest thing they can do is send a chill down the spine of career survivors in the bureaucracy and bring things to a halt,” he said.
Similarly, a Trump administration might be willing to approve state environmental plans that are more friendly to fossil fuels, said Kevin Book, head of research at ClearView Energy Partners. Proposed, but not completed, clean-water regulations aimed at restricting mountaintop-removal mining for coal in West Virginia could be eased, he said.
Trade: Trump can punish countries, but jobs are unlikely to return.
Still, even if Mr. Trump were to win in November and roll back some environmental regulations, it wouldn’t significantly alter the fate of Mingo County and much of the nation’s depressed coal industry.
“Taking a more lenient stance on clean-air or clean-water rules would do nothing to help coal demand,” Mr. Book said. “Coal-fired power plants have been mothballed and are being disassembled, and that capacity is gone. It’s not even close to something you could reverse by administrative fiat.”
If Washington’s ability to gridlock even the most ambitious of presidential agendas were to block Mr. Trump’s White House plans, he would still have the bully pulpit, of course. And unlike Theodore Roosevelt, who coined that term, Mr. Trump probably wouldn’t speak softly.
Still, that might not be enough to keep Oreos baking in Chicago. Nabisco’s bakery there isn’t shuttering completely as Mr. Trump has suggested, but some Oreo production will begin shifting to Salinas, Mexico — where Mondelez, Nabisco’s corporate parent, has invested to build new lines. Oreos will also continue to be produced at Nabisco bakeries in Virginia, New Jersey and Oregon.
Announced in July 2015, the Nabisco layoffs in Chicago continued during the Illinois primary in March, despite jabs from Mr. Trump and both Democratic presidential contenders, Hillary Clinton and Senator Bernie Sanders.
United Technologies is similarly unlikely to rethink Carrier’s move out of Indianapolis. And in an era when Apple is willing to fight the Obama administration’s efforts to unlock an iPhone on national security grounds, more corporate defiance may become the norm.
Blanketing countries from China to Mexico with import duties would be a tall order without congressional approval. The White House, though, does retain plenty of leeway to punish countries it thinks are engaged in currency manipulation, dumping of products below the cost of production and other free-trade abuses.
The problem for Mr. Trump — or any president who wants to get tough on trade violators — is that, in the global economy, imposing tariffs on competitors abroad could have serious economic consequences at home by sharply raising prices on imported goods.
Cheaper flat-screen televisions, computers, clothes, furniture and other products from Walmart, Amazon and elsewhere have been a rare bright spot for struggling working- and middle-class Americans. And trade wars cut both ways: Retaliatory tariffs on American-made products from countries like China would prompt howls of pain at still strong domestic manufacturers like Caterpillar and Boeing.
But for all the uncertainty around what might happen after Jan. 20, 2017, the lawyers and lobbyists who are now trying to gauge a Trump presidency are already emerging as winners. Mr. Trump’s much-talked-about unpredictability, Mr. Korologos said, is proving to be a boon for Washington’s legions of lobbyists.
“Corporate America hates the unknown,” he said. “God only knows what the hell Trump is for. And corporate America is going to want someone to save them.”
Terex and Konecranes have called off their proposed merger after Chinese equipment manufacturer, Zoomlion, increased its bid for Terex to US$31 per share. Konecranes has instead agreed to buy Terex’s Material Handling and Port Solutions (MHPS) business for a total consideration of US$1.3 billion/€1.126 billion.
Terex MHPS is a supplier of industrial cranes, crane components and services under the Demag brand. It also suppliers port technology under several brands, including Gottwald. The business generated US$1.542 billion/€1.391 billion in sales in 2015 with earnings of US$111 million/€100 million.
“For Konecranes, this acquisition is a milestone in building our future,” said Konecranes Chairman, Christoph Vitzthum. “The acquisition makes it possible for us to realize a long list of synergies and we expect it to create substantial value for our customers and shareholders.”
Konecranes will pay US$825 million/€723 million in cash and issue Terex with 19.6 million new non-voting shares to cover the acquisition. Terex will own 25% of Konecranes following completion of the transaction.
“The sale of the MHPS business to Konecranes is good for our customers, team members and shareholders,” said John L. Garrison, Terex President and CEO. “It will significantly reduce Terex’s debt levels, improves out balance sheet and gives us better longer-term financial flexibility.”
The agreement also allows Terex to continue its negotiations with Zoomlion and includes a clause providing Terex the right to terminate the agreement before the end of May for a fee of US$37 million if Terex and Zoomlion agree on a sale of Terex as a whole.
“This new transaction structure offers other substantial benefits to Terex shareholder,” continued Garrison. “Importantly, the transaction locks in the benefits of the MHPS sale while preserving the ability for Terex to continue discussions with Zoomlion on a potential sale of the company.”
The transaction is subject to customary regulatory approvals and the approval of Konecranes’ shareholders. It is expected to close in January 2017.
Edited by Jonathan Rowland.
Clean Coal Solutions (CCS), a joint venture between ADA-ES and NextGen Resources, has leased an additional refined coal (RC) facility to an RC investor. The newly leased RC facility is located at a coal-fired electric generating plant that has historically burned 5.8 million tpy.
The new-lease RC facility will replace an existing lease facility at a coal-fired power plant that historically burned 1.7 million tpy of coal. That lease will end at the end of July 2016 because the tonnes of coal burned at the plant has been significantly reduced due to natural gas power generation.
As a result, the number of RC facilities under lease will remain the same – although the power plants at which RC facilities will be located will burn 4 million short tpy more coal, based on historical averages.
“The value of our refined coal platform is clear and we are pleased with this recent transaction,” said L. Heath Sampson, President and CEO of ADA-ES’ parent company ADES. “Additionally, we plan to move the facility that will come back to CCS in July to a larger plant and will begin operation once CCE secures a tax-equity investor.”
Edited by Jonathan Rowland.
German-based Rema Tip Top continues to pursue its global growth strategy and gain further ground to become the industry’s leader in the Australian market through its latest acquisition of a majority interest in the Australian company ConvaTech.
Rema Tip Top is a globally operating system provider of services and products in the field of conveying and treatment technology as well as in the automotive sector.
Subsequent to this acquisition, Rema will increase its customer base and be present across Australia. Together, Rema Tip Top and ConvaTech will form one of the largest conveyor service organisations on the resource-rich continent.
“We want to become the service provider number one for the Australian mining industry,” said Thorsten Wach, CEO of Rema Tip Top. “By acquiring the majority interest in ConvaTech, we have taken a significant step to become the market leader in Australia and we have found an ideal partner to further pursue this path. We now have a strong presence in Eastern and Western Australia.”
In almost 100 years of corporate history, Rema has gained strong expertise in material development and industrial services in the field of conveying and treatment technology as well as in the automotive sector and thereby reached a strong position in the global market.
The company’s focus is on increasing system availability with long service lifetimes – goals that are ideally aligned with those of ConvaTech. ConvaTech is well known as one of the premier conveyor maintenance businesses in Australia and generated sales of AUD 90 million in the past financial year. According to REMA, the joint organisation is perfectly positioned to meet the rising expectations of its customers.
“We knew Rema Tip Top as a strong competitor, and we also recognise our own mentality in their high quality standards,” explained ConvaTech CEO Gav Houston, who, together with Rema Tip Top, will drive the strategic development of the Australian business. “Together we are well positioned for the future and ready to have an even stronger market presence.”
Following the acquisition of the majority interest, ConvaTech will continue to exist as an independent company. It is expected that existing customers will benefit from the new and strong capabilities of the joint and growing business.
Edited from press release by Harleigh Hobbs
The Victorian Division of the Minerals Council of Australia (MCA) has criticised the findings of an independent inquiry into the state’s Environmental Protection Authority (EPA). The inquiry found that “the mining industry [does not] face the same level of environmental regulation as other industries with a similar risk profile or scale.”
“This is clearly inaccurate,” said Megan Davison, Executive Director – Victoria and the MCA. “The minerals industry is one of the most highly regulated industries and must abide by all state and relevant Commonwealth environmental laws.”
The inquiry was undertaken on the instruction of the Victorian Minister for Environment, Climate Change and Water to examine the Environmental Protection Authority’s role, power, governance and funding, and tools.
In its submission to the independent inquiry, the MCA argued that the EPA “does not possess the technical ability to advise on the range of complex issues considered in licensing the minerals industry.”
As a result, inaccurate or inconsistent advice and a lack of decision-making capability causes significant delays and impacts the operability of sites, continued Davision, citing an example of a project that was delayed by 11 months while the EPA considered whether it required an EPA works approval or license.
Davison also argued that everything recommended by the independent inquiry as related to the minerals industry was already being regulated by one or more state regulators.
“Rather than an efficient, whole-of-government regulatory regime, the industry is experiencing a further fracturing of the approval process with each regulatory not only protecting their ‘patch’ but expanding it,” concluded Davison. “Unless a true one-stop-shop for regulation of the minerals industry is established via the EPA, these recommendations cannot be agreed to by government.”
Edited by Jonathan Rowland.
As part of the new organisational structure for Sandvik, ZZ Zhang, currently Executive Vice President and Head of Emerging Markets, will leave his assignment as member of the Group Executive Management team.
Sandvik has indicated that this change reflects its intention to have all markets represented through the Business Areas and Product Areas, and not through country.
ZZ Zhang, who has been a member of the management team since 2014, will continue in his role as Country Manager for Sandvik China Holding Co. Ltd and Group Management Representative for the Asia Pacific countries, reporting to Björn Rosengren, President and CEO for Sandvik.
“I would like to thank ZZ Zhang for his dedicated work in the Group Executive Management and at the same time underline that our focus on China and the region will remain strong. To maintain and develop our customer relations and offerings for the Chinese market through our Business Areas and Product Areas will be a key priority”, said Björn Rosengren, President and CEO for Sandvik.
The change will be effective 1 July, 2016.
Edited from press release by Harleigh Hobbs
Peabody Energy, the world’s largest private-sector coal company and a Fortune 500 company, announced has completed the sale of its 5.06% participation interest in the Prairie State Energy Campus, to the Wabash Valley Power Association for US$57 million, subject to certain customary post-closing adjustments.
Peabody expects to use the transaction proceeds for general corporate purposes. Peabody previously announced the sale in January 2016 following a competitive bidding process as part of the company’s emphasis on portfolio optimisation and sale of non-core assets.
Prairie State is a 1,600 MW coal-fired, electrical power plant with an adjacent coal mine in Washington, St Clair and Randolph counties in Illinois, US. The plant began operations in 2012. It is among the cleanest coal-fired plants in the nation and the lowest fuel cost coal plant in the US.
Peabody serves metallurgical and thermal coal customers in 25 countries on six continents.
Edited from press release by Harleigh Hobbs
ASGCO has released its Retractable Razor-Back ™ System with Split Block Spring-Shoc™, which allows for safe access and service from outside the chute.
This innovative patent pending design prevents the dangers of working inside the conveyor or breaking the plane of the conveyor – keeping workers out of harm’s way. This greatly reduces downtime and eliminates the need for confined space permits.
The company’s engineering department has listened to the feedback from its customers and has delivered a product with all of the cleaning efficiency of our patented Razor-Back® cleaners, while allowing for safe, access and ease of maintenance.
Key features include:
- Resilient blade support absorbs the shock in the most severe material handling applications.
- Blades move independently to maintain constant contact with the belt.
- Durable, 3 – ½ in. thick square tubing for extreme environments.
- Universal mounting for easy installation.
- Retractable design allows for ease of blade change out and maintenance, from one side of the conveyor.
- Heavy-duty Tungsten Carbide or AR400 blades available.
- Compact design requires less than 9” of clearance to be installed and maintained.
- Safe for mechanical splices and belts speeds up to 1000 fpm (5.0 m/sec.).
The new system eliminates material build-up. It has long-wearing abrasion resistance with tungsten carbide blades that provide and maintain a maximum effective cleaning edge against the conveyor belt.

The system has retractable mounting system, enabling quick change times. The tensioner adjustments can be made from side of operation. It also includes impact absorbing cushions, which allow controlled and effective conveyor belt cleaning across the entire width of the belt.
The system is suitable for applications such as coal-fired power plants, hard-rock mining, steel mills, iron ore, aggregate and mineral (phosphate, potash, salt) mining.
ASGCO has ensured customer satisfaction through putting a total satisfaction guarantee (TSG) on the system.
Edited from press release by Harleigh Hobbs
Port of Tyne has announced the start of construction works on new biomass handling facilities, reflecting the UK’s shift away from coal in its power mix.
The port has won the contract to handle, store and transport up to 1.8 million tpy of wood pellets for Lynemouth Power (LPL), which is currently converting its Northumberland power plant from coal to biomass.
Construction on the 75 000 t storage facility, three enclosed conveyors and transfer towers, three silos, a rail loading silo and other works has begun. Port of Tyne is investing £13 million in the project with the remaining investment being made by LPL.
“The fast approaching end of coal imports has been challenging for all UK ports that have been handling this cargo, but the strategy of diversification at the port ensures that we are not reliant on any one sector.” said Port of Tyne’s CEO, Andrew Moffat.
“We have been at the forefront of developing expertise and facilities to handle the renewable fuel, wood pellet, and I am delights that LPL have choosing the Port of Tyne as a key partner in this significant development.”
Port of Tyne reported turnover of £58.8 million in 2015, down 18% on 2014, mainly due to falling volumes of coal. Turnover from its conventional and bulk cargo business area fell by 35% from £38.4 million to £25.1 million.
Edited by Jonathan Rowland.
Emerson’s CSI 2140 Machinery Health Analyzer has been certified for Class II, Division 2, Groups (F, G). As a result, it is the only portable vibration analyser on the market today that can be used in hazardous combustible dust environments.
Emerson’s CSI 2140, which is already ATEX and IECEx Zone 2, and Class I, Division 2 Groups (A, B, C, D) certified, is approved for use in most industrial hazardous areas in the US and Canada.
The CSI 2140 provides an early indication of bearing and gearbox defects before they can lead to machine outages. Its PeakVue™ signal processing methodology cuts through the complexity of machinery analysis to provide a simple, reliable indication of equipment health.
“Emerson is committed to helping our customers with safety concerns,” said Tom Nelson, Emerson’s CSI 2140 Senior Technology Manager. “With all of its safety certifications, customers can be confident using the CSI 2140 with most types of equipment in hazardous environments.”
Class II, Division 2 certification covers a range of industries from grain processing, food production, chemical manufacturing, recycling facilities and coal-fired power plants.
Edited by Jonathan Rowland.
Superior Industries, Inc., a US-based manufacturer and global supplier of bulk material processing and handling systems, recently completed a major expansion at its manufacturing plant in Columbus, Nebraska.
The expansion creates space and adds capabilities for building newly launched Guardian horizontal screens and portable processing plants for crushing, screening, washing and feeding, in addition to the wet processing equipment already manufactured at the plant.
“Although we incorporated the existing facility into our expansion, it’s like working in a brand new plant,” said Michael Monaghan, General Manager of Superior’s operations in Nebraska. “We integrated the best principals of lean manufacturing and were able to achieve a straight line process. Product comes in as raw steel at one end and exits one of the two lines as finished, ready to ship equipment.”
In addition, the company doubled the engineering staff dedicated to developing the screens, washers and portable plants manufactured and shipped from Nebraska.
“As our industry optimistically looks to the future, we are excited to expand our product offering to support the growth,” said Vice President of Sales, John Garrison. “Best of all, the growth and development of our products and people is happening right here in the US.”
Edited by Jonathan Rowland.
January 2016 marked the bottom of metallurgical coal prices, according to Corsa Coal’s CEO, George Dethlefsen, with renewed infrastructure spending boosting demand at the same time as production is continuing to be cut.
In its quarterly report for the three months to the end of March 2016, Corsa noted that spot prices for metallurgical coal had risen by 25% on a year-to-date basis on the back of higher steel prices, the end of inventory destocking, higher blastfurnace utilisation rates and higher imports into Asia.
Despite this strengthening of the metallurgical coal price, it remains at a level where a substantial amount of global production is uneconomic – driving further production cuts and disincentivising investment in new production.
On the supply side, Corsa notes that 48 million short t of metallurgical coal production has been taken offline over the past 2 yrs – or about 16% of the annual seaborne metallurgical coal trade.
In the US, the supply situation has the potential to tighten further on the back of industry bankruptcies and little CAPEX activity in development or maintaining mines, leaving supply vulnerable to disruption.
As a result, the company believes that the US domestic market is poised to rebound faster than the seaborne market. Corsa expects metallurgical coal sales of 600 000 – 700 000 short t in 2016, although the company has the ability to produce and sell significantly more should market conditions continue to improve.
“We believe that Q1 2016 pricing will represent the lowest period of realized prices for the company in 2016,” Dethlefsen concluded. “Corsa’s advantages position on the mining cost curve, access to coal processing infrastructure and logistical advantages will enable us to expand volumes as the price environment recovers.”
Edited by Jonathan Rowland.