Corsa Coal reported a quarterly loss of US$8.3 million for the three months ending 31 March – but sees the chance for more positive times ahead on the back of rises to metallurgical coal prices. According to the company, prices rose 10% in 1Q16 and are up about 25% in 2016 so far.
“We have seen a significant improvement in pricing for steel and raw materials used in the steel value chain in 2016, including metallurgical coal,” said Corsa’s CEO, George Dethlefsen.
“We believe that January 2016 marked a 12-yr bottom for metallurgical coal prices and that renewed infrastructure spending and the effects of metallurgical coal production cuts will cause prices to recover to a point on the supply cost curve where producers are cash margin positive again.”
Corsa reported cost of sales of US$19.7 million against revenues of US$16.6 million t in 1Q16. Total sales were 248 000 short t. This marked a fall in sales of 111 000 short t as the company continued efforts to cut costs. Revenues fell 47% on 1Q15 as a result – but cost of sales fell by almost two-thirds – 62.6%
“We will continue to execute on our plans to reduce our controllable costs and lower our fixed cost profile in 2016,” continued Dethlefsen. The company reduced cost per ton sold at its Northern Appalachian metallurgical coal by 18.92% compared to 1Q15, while its Central Appalachian costs for thermal and industrial coal production falling by 20.8%.
Looking ahead, Corsa’s open sales positions and ability to increase production, as the year progresses will enable it to “benefit immediately from these increases in prices,” the company said. It held its full year sales guidance at 1.525 million – 1.825 million short t.
Edited by Jonathan Rowland.
Pacific American Coal (PAK) has sold its 30% equity investment in GCI for AUS$1 million after a strategic review to focus its activities on its metallurgical coal assets.The sale recovers PAK’s original US$731 250 investment in GCI and will provide funds to advance the development of its Elko metallurgical coal producer in British Columbia.
The decision to advance the Elko project “recognises the significant value potential” of the project, the company said. The board has recently authorised a number of activities to move the project further.
These include the development of exploration plans to improve JORC resource classification, the preparation of the documentation required for permitting and conceptual design for mine layout and infrastructure.
Elko currently has a JORC resource of 257.5 million t. It comprises five coal seams, of which three seams have been identified as having the potential to produce a hard coking coal product. It has the potential to support a short-term opencast mine with longer-term underground operations.
In the British Columbia coalfields, the Elko resource is second in size only to Teck’s Elkview project and ranks ahead of Coalmont’s Loop Ridge and Jameson Resources’s Crown Mountain projects. There is also the potential to identify further resources within the Elko project area, as well as immediately adjacent to it.
Edited by Jonathan Rowland.
Phase 1 of Kibo Mining’s Mbeya coal to power project’s (MCPP) environmental and social impact assessment (ESIA) was successfully completed upon receiving notice from the Tanzanian government that the ESIA studies for the Mbeya coal mine and Mbeya power plant have both been accepted and officially registered.
Environmental Certification for the MCPP requires that the Mining and Power components must be registered as separate ESIA’s, while successful registration requires the submission of a comprehensive project specific ESIA brief and official registration documentation. Successful registration is in turn dependent on the applicant’s ability to demonstrate a comprehensive understanding and insight into all the project specific and general environmental issues that will and could have an environmental impact, as per the Tanzanian EIA and Audit Regulations and guidelines.
Following a review of the submitted ESIA briefs and registration documents, the National Environmental Management Council (NEMC) reached a decision that the MCPP-application (Mining and Power) met with all the required criteria for registration and acceptance and may continue with the rest of the assessment. Phase 2 of the ESIA has already commenced, with most of the specialist studies that are required for Phase 2 nearing completion.
Louis Coetzee, CEO of Kibo Mining, stated: “We are very pleased with progress on the ESIA and particularly with the fact that the registration was accepted at the first attempt. ESIA registrations frequently fail on the first attempt and can become a significant delay factor. Our strong and cooperative relationship with the Tanzanian government coupled with our understanding of the process has enabled us to expedite this stage of the project. We have already commenced preparatory work for Phase 2 ahead of submitting the final ESIA to the NEMC. The ESIA is the third key component, alongside the mining and power definitive feasibility studies, for the integrated bankable feasibility study.”
Edited from press release by Harleigh Hobbs
Felicia Ruiz and Raymond C. Pilcher
Even as reduced coal consumption is reflected in adjustments to coal pricing throughout Asian energy markets, Mongolia continues on a path to encourage production of coal mine methane (CMM) and coalbed methane (CBM). Although Mongolia has abundant coal supply, the government of Mongolia is keen to diversify its energy mix. The potential for developing coal-associated gas resources was first publicly recognized by Chimmidorj in 1995.1 In 2004 a small publicly traded US oil and gas exploration firm, Storm Cat, negotiated a production sharing contract with the Petroleum Authority, the implementing agency of the Ministry of Mining (MOM). Storm Cat drilled several exploratory boreholes in a number of promising basins, but determined that infrastructure was an impediment that they could not tackle and ceded its licenses without developing any of the prospects.2 This work did, however, bring the potential for developing indigenous gas resources to the attention of the Mongolian government and, with it, the hope of developing valuable resources that could provide an affordable, cleaner energy supply.
Like many countries with abundant coal and methane resources, Mongolian authorities were confronted with questions that arose over gas ownership and the lack of experience dealing with the technical aspects of assessing, evaluating and producing gas from coal seams. With its desire to develop CMM and CBM resources, the Mongolian government has endeavored to adapt existing laws to regulate unconventional gas resource development. The Petroleum Law passed by the Mongolian Parliament in 1991 regulates exploration and development of hydrocarbons, but the original law focused on exploration and development of conventional oil and gas resources and did not contemplate the occurrence of oil and gas deposits associated with coal seams or organic-rich shale.
In 2008, Mongolia became the 24th country partner of the Global Methane Initiative (GMI; formerly, the Methane to Markets Partnership), an international public-private initiative that advances cost effective, near-term methane abatement and recovery and use of methane as a clean energy source. Joining the GMI indicated the Mongolian government’s awareness of the need to reduce fugitive methane emissions liberated during coal mining. The Ministry’s interest in co-development of the coal and coal mine methane resources created an opportunity for the US Environmental Protection Agency (EPA) to collaborate under the auspices of GMI.
In 2009, the EPA began working with the Mongolia Nature and Environmental Consortium, a non-governmental organisation in Ulaanbaatar, to help identify and assess potential CMM recovery and use projects at active coal mines with targeted CMM pre-feasibility studies, technical and financial workshops, and via a country-wide CMM resource assessment.3 As part of this process, EPA met with government officials, who were determining how to promote the development of this unconventional gas resource. EPA evaluated the results of policies employed in various countries to encourage development of CMM. In 2014, the Mongolian government hosted a formal workshop in Ulaanbaatar and published these findings as a policy paper titled ‘Legal and Regulatory Status of CMM Ownership in Key Countries: An Overview Provided for Decision Makers in Mongolia’.4
The Mongolian Government passed an amendment to the Petroleum Law in 2014, defining unconventional petroleum resources to include those found as natural bitumen, oil shale, tar sand, gas-rich shale, gas sand and CBM. During the same parliamentary session, an amendment to the Mining Law was passed, but it was silent on methane associated with coal. Passage of the Petroleum Law amendment marked the culmination of an open debate between the MOM and Ministry of Energy (MOE). Before the passage of the 2014 amendment to the Petroleum Law, there were overlapping requirements by the two ministries. Leasing coalbed or coal mine resources would be controlled by the MOM, but the MOE claimed that any research or exploration for methane associated with coal must also be permitted through its system.
In 2014, the GOM re-organized the ministries and clarified responsibilities. Accordingly, the MOE will only be involved in CMM or CBM to the extent that it is used to generate power. The MOM’s subordinate agencies, the Petroleum Authority and the Mineral Resources Authority, are charged with the responsibility of implementing laws and regulation and enabling licensing and permitting to promote the beneficial development of mineral and petroleum resources. The Mongolian parliament passed a resolution in 2015 that further clarifies procedures for obtaining a permit to explore and exploit coal-associated gas. This resolution was crafted as a way of avoiding conflict between operators that presently have production sharing agreements for conventional oil and gas and entities seeking to apply for unconventional petroleum exploration and exploitation permits. The resolution also requires that the Petroleum Authority notify a coal mine operator holding mining licenses granted by the Mineral Resources Authority of any application to explore for CMM/CBM within the mining license block. Further, the mine operator has the opportunity to apply for a CMM exploration and exploitation license covering its license block if notified, and the obligation to formally refuse the opportunity if it does not wish to develop the resource. With these recent governmental reorganization and legislative actions, companies interested in developing CMM or CBM can follow a relatively clear procedure from discovery through to production. Nevertheless, further regulation is being contemplated to remove remaining uncertainty in the process.
GMI continues to support stakeholder engagement with the Mongolian government to encourage capture and use of methane associated with coal deposits in Mongolia. The GMI held a Global Methane Forum from 29 – 30 March this year in Washington DC to provide opportunities for networking and discussion with methane experts in the public and private sectors from around the world. Technical, finance and policy sessions covered issues relevant to capturing and using CMM. During a session on policy governing CMM project development, a representative from Mongolia reported that the Ministry of Mining will continue to work with stakeholders and recommend additional legislation to parliament, to further define procedures for exploring and developing CMM and CBM resources.5
About the authors: Felicia Ruiz works with the Coalbed Methane Outreach Program at the US Environmental Protection Agency. Raymond C. Pilcher is President of Raven Ridge Resources Inc.
Phibro LLC’s affiliate Philipp Brothers Fertilizer, together with a group of investors (The Phibro Group), have acquired SG Solutions’ Gasification Plant, a clean coal gasification plant located outside of West Terre Haute, Indiana, US.
Up until recently, the plant produced synthetic gas and steam to fuel the adjacent Wabash River Combined Cycle Plant owned by Wabash Valley Power Association.
The Phibro Group intend to repurpose the plant to produce ammonia fertilizer for use in the region. The group plans to invest approximately US$450 million into the plant to convert it to produce ammonia and is targeting a mid-2018 completion date.
Once the plant is converted, it will use petcoke sourced from Midwest refineries as a feedstock to produce ammonia. Petcoke is more economical than the natural gas that many other ammonia plants use as a feedstock and will enable the plant to offer local farmers more affordable fertilizer.
The gasification plant’s clean coal technology, which was first funded by the Department of Energy more than two decades ago, allows for repurposing it to a world-scale ammonia production plant. There are very few plants in the US with similar technology.
It is reported that the acquisition and conversion of the plant, which had been scheduled to be decommissioned, will not only save existing jobs, but also create roughly 100 permanent local manufacturing jobs.
Simon Greenshields, President and Chief Executive Officer of Phibro LLC, commented: “We are thrilled to be able to put this plant’s technology, which has outlived its viability in an era of reduced coal fired power generation, to a more productive economic use, manufacturing much needed ammonia fertilizer for the region. This transaction benefits numerous stakeholder groups as it will create and save manufacturing jobs, provide the most affordable fertilizer for farmers in the area and reduce our nation’s reliance on imported ammonia fertilizer. We would like to take this opportunity to thank Mr. Jay Bartlett, CEO of SG Solutions and Wabash Valley Power Association and his entire team for their support and assistance throughout this process. We look forward to commencing work on this project with our partner Quasar Energy Partners.”
Nalin Gupta, Managing Partner of Quasar Energy Partners LLC, added: “We are proud to partner with the State of Indiana and other local constituents to creatively repurpose and expand existing infrastructure.”
Edited from press release by Harleigh Hobbs
Bharat Heavy Electricals Ltd (BHEL) has commissioned another 250 MW thermal power plant in Maharashtra.
The unit has been commissioned at Parli Thermal Power Station (TPS), located in Beed district in the Marathwada region of Maharashtra. The project is owned by Maharashtra State Power Generation Co. Ltd (Mahagenco).
This is the eighth coal-fired unit commissioned by BHEL at Parli TPS. All of the thermal power generating units of 210/250 MW commissioned at Parli TPS, under the expansion programme of Mahagenco, commencing from the 1980s, have been set up by BHEL.
BHEL has been a major partner in the power development programme of the state and has contributed to over 16 000 MW of power generation capacity in Maharashtra – its highest in any single state. In the state government sector of Maharashtra, BHEL has contributed more than 10 000 MW, accounting for around 75% of its installed power generating capacity.
Edited from press release by Harleigh Hobbs
Australian Pacific Coal (AQC) is to acquire 100% of the Dartbrook Joint Venture (JV) after Marubeni Coal, part of Japanese trading house Marubeni Corp., said it would exercise its ‘tag-along right’ for the sale of its 16.67% interest in the JV. AQC has previously agreed to buy Anglo American’s 83.33% stake in Dartbook.
“The company welcomes Marubeni’s decision to sell its minority interest in the project,” said AQC’s CEO John Robinson. “Holding 100% of what we believe is an outstanding mining asset with existing infrastructure in place will allow the company to expedite its plans to progress the asset for the benefit of shareholders and the local community alike.”
AQC will pay Marubeni AU$5 million in cash as well as a royalty of AUS$0.50 per tonne of total coal sold or otherwise disposed of up to a maximum of AUS$5 million. AQC have also revised the royalty rate agreed with Anglo American from AUS$3 per tonne to AUS$2.5 per tonne.
In late April, AQC announced that it had secured funding from Trepang Services to cover the acquisition of Marubeni’s Dartbook stake, should that be required.
The acquisition of the Dartbook JV remains subject to a number of conditions, including possible Foreign Investment Review Board approval and New South Wales government approval for the change of control of the Dartbook tenements.
The Dartbook coal mine is a thermal coal mine in New South Wales’ Hunter Valley that has been in care and maintenance since 2006. It consists of an underground mine and associated processing infrastructure. Its sale forms part of Anglo American’s stated objective to withdraw from bulk commodity markets to focus on copper, diamond and platinum group metals.
Edited by Jonathan Rowland.
Longview Power has completed a rehabilitation of its 700 MW power plant in Maidsville, West Virginia, US. The operation frequently encountered outages and poor performance, but now it has been transformed into one of the cleanest, most efficient coal-fired plants in the US.
Emerson contributed to this turnaround by providing automation technologies and services that helped Longview provide enough reliable, affordable electricity to power more than 500 000 homes.
A global team of Emerson automation experts worked around the clock to replace Longview’s existing control system with new Ovation™ technology that manages operations across the plant. The automation work was completed in 13 months, nearly twice as fast as a typical project of this scope – a feat that Emerson and Longview believe has never been done before.
“Emerson’s ability to manage this comprehensive automation project within a very aggressive timeframe was instrumental in helping us bring the plant back online and generate electricity as quickly as possible,” explained Steve Nelson, Longview’s Chief Operating Officer. “Since we began using the new Ovation controls, we’ve experienced drastically improved plant stability, enabling us to provide more reliable power to the grid – and generate more revenue.”
Availability has risen to over 98% and net generation has increased by more than a third – all while using less fuel than before and producing 15% lower carbon dioxide emissions than the average US coal-fired power plant.
Longview also expects to save US$3 million/yr by avoiding unplanned outages.
“Longview is a new generation of coal-fired plant that meets today’s needs for cleaner, more efficient and reliable power,” said Bob Yeager, Emerson’s President for Power & Water Solutions. “We appreciate this opportunity to have worked with the Longview team in achieving such impressive results.”
Edited from press release by Harleigh Hobbs
FLSmidth has signed an Engineering, Procurement and Supervision (EPS) contract, worth over €160 million, with the Russian marine export terminal owner OTEKO-Portservice LLC for the engineering, supply and supervision of material handling equipment.
The supply includes railcar unloading, screening and crushing, stockyard machines, ship loaders and associated conveyor systems – including auxiliaries such as dust suppression or sampling.
The order is part of the construction of a new cargo terminal to handle the increasing export of coal, iron ore, sulfur and fertilizers from production sites in Russia.
The equipment will be installed at the port of Taman on the Russian Black Sea Coast, approximately 1500 km south of the capital Moscow.
“FLSmidth and Oteko have worked jointly on this project for a long time and have now found a technically and commercially viable solution that allows this project to go ahead despite the headwind from the commodity market. It is a good example of how customers can benefit from engaging with FLSmidth early in the development of a project. This order includes supplies and services from various FLSmidth business units and is particularly valuable in times with low capital investments in the mining and minerals industry,” Group Executive Vice President of the Minerals Division Manfred Schaffer comments.
The order will be booked and executed by FLSmidth’s Bulk Material Handling business unit in Wadgassen and contribute beneficially to capacity utilisation and earnings until mid-2018.
Edited from press release by Harleigh Hobbs
The Ktunaxa Nation Council and Teck Resources Ltd have signed an Impact Management and Benefits agreement.
The agreement relates to production at Teck’s mwtallurical coal operations within Ktunaxa ?amak?is (Ktunaxa Nation Territory) in British Columbia’s Elk Valley region. Spanning approximately 40 yrs and all five operations, it is one of the most comprehensive agreements of its kind in place in Canada and sets out commitments for both parties in the areas of:
“As Ktunaxa, our roles as stewards and protectors of the land are vital to who we are,” said Kathryn Teneese, Ktunaxa Nation Council Chair. “This agreement affirms the commitment the Ktunaxa Nation and Teck have to protecting and rehabilitating the environment, providing economic opportunities for Ktunaxa communities and citizens and protecting Ktunaxa culture and language.”
It is intended that the agreement will create numerous long-term benefits for the Ktunaxa people and increased certainty around future sustainable mining development in the region.
“The strong relationship between the Ktunaxa Nation and Teck is fundamental to continued responsible resource development in the Elk Valley,” said Don Lindsay, President and CEO, Teck. “This agreement reflects our shared focus on ensuring the environment is protected, while also providing sustainable economic opportunities for the people and communities of the region for years to come.”
The agreement will be implemented through three joint working groups with equal representation from the Ktunaxa Nation Council and Teck: an Environmental Working Group, Cultural Working Group and Procurement and Employment Operational Working Group.
Edited from press release by Harleigh Hobbs
The Queensland Resources Council (QRC) has welcomed the official re-opening of the Isaac Plains coal mine in central Queensland. The mine – which was bought for a dollar by Stanmore Coal last year – was officially re-opened by Queensland Premier Annastacia Palaszczuk.
QRC Chief Executive Michael Roche called the restart of operation at the mine a shot in the arm for an industry that has been hit by decade-low commodity prices.
“The official opening is big news for the Bowen Basin in what have been gloomier times for the once booming sector,’ Roche said. “Since acquiring the mine in August last year, Stanmore has created more than 150 direct jobs for the community and will inject US$7 million annually into the state’s royalty revenues.”
Roche also welcomed the attendance of Premier Palaszczuk at the re-opening ceremony as acknowledgment of the value the mining sector brings to the state and its economy. According to Roche, the state government received AUS2.1 billion in royalties from the resources sector last financial year.
“The state collects zero royalties from mines that close and from projects that are cancelled. The mine that would not have otherwise produced any money for the state’s coffers, will now inject AUS$7 million every year,” Roche said.
Stanmore Coal plans to produce 1.1 million tpy of metallurgical coal from Isaac Plains for export to Asian steel mills. The company loaded its first shipment of coal at Dalrymple Bay Coal Terminal earlier this month.
Edited by Jonathan Rowland.
Queensland Premier Annastacia Palaszczuk has officially reopened the Isaac Plains coal mine after the mine was brought back to life by new owners, Stanmore Coal.
Stanmore bought the mine for AUS$1 last year, taking formal ownership in November. Since then, Stanmore has restarted production operations, shipping its first coal earlier this month to Asian steelmakers and creating 150 direct jobs in the process.
“We have gone against the tide in the coal sector to create value for our investors and the central Queensland community,” said Stanmore’s Managing Director. Nick Jorss. “We believe we’ve picked the right point in the cycle to shift from explorer to exporter with operating costs reduced by 35%.”
Isaac Plains is located outside of the Moranbah. It will produce 1.1 million tpy of metallurgical coal, transporting the coal on the Goonyella Rail Line to Dalrymple Bay Coal Terminal for export to Asian steel mills.
As well as the mine, Stanmore also owns the adjacent Isaac Plains East deposit, which it bought from Peabody in July 2015. The company recently updated its JORC-compliant coal resources and reserves at Isaac Plains and Isaac Plains East to 76.9 million t and 15.7 million t, respectively.
In her remarks at the opening, Premier Palaszczuk said the Isaac Plains success demonstrated that investors still had confidence in Queensland its its resources sector. “We have new faces, like Stanmore Coal, and new investors who are calling the bottom of the market, stepping up and creating jobs.”
“Our government supports the sustainable development of our resources for the jobs and economic development this offers,” added Queensland Minister for Natural Resources and Mines, Dr Anthony Lynham. “We will keep working hard to support companies like Stanmore Coal turn their plans into reality.”
Lynham pointed to the 50% exploration expenditure discount, ongoing royalties freeze and low payroll taxes as measures the Queensland government had take to support “the green shoots” in the mining sector. He also highlighted the role of the Coordinator-General in cutting red tape for support business “as has happened here at Isaac Plains.”
The company’s Isaac Plains East expansion has also been declared a ‘prescribed project’. “This will help Stanmore extend the life of their existing open-cut operation to more than 10 yrs, with further possible expansion to an underground operation,” added Dr Lynham.
Edited by Jonathan Rowland.
DMT GmbH & Co. KG, based in Essen, Germany, has agreed to a cooperation with the National Environmental Agency (NEA) in Georgia.
During a three-day trip in April, Tamar Bagratia, Head of the Environmental Agency, visited the company in Germany’s Ruhr region to find out about the possibilities of a cooperation in the field of environmental protection and safeguarding resources.
The main focus of the discussions were topics, such as the sustainable use of mineral resources, geomonitoring, environmental concerns, mine rehabilitation and groundwater monitoring.
“We managed to identify many areas for cooperation that can be developed in the future,” explained DMT Sales Manager Dr Paul Althaus. “I am very optimistic about this cooperation, as DMT offers a number of highly specialised technical solutions in all the areas mentioned.”
Furthermore, workshops and training sessions are being planned, for example, in the handling of the DMT core scan3 system, which is used to create high-resolution 360° rolling images of drill cores.
Edited from press release by Harleigh Hobbs
An eighth case of coal workers’ pneumoconiosis – or Black Lung – has been confirmed in Queensland, according to the trade union that represents coal workers in the state. The worker is in his early 40s and is the youngest coal miner to be diagnosed in the current outbreak. He had worked as a contractor at a number of mines throughout Queensland and New South Wales.
“My thoughts go out to the family of the latest coal mine worker to be diagnosed with Black Lung disease,” said Steve Smyth, District President of the CFMEU Mining and Energy Division Queensland. Smyth also said that the union was aware of at least 12 other cases of the disease.
“Diagnoses are coming in more frequently and more cases are becoming public as medical assessments are coming back from specialists in the United States,” continued Smyth. “Each diagnosis sends shockwaves through the workers and the community and we expect more to come. What we are seeing now is just the tip of the iceberg.”
According to Smyth, the diagnoses are now being made due to the application of stricter standards to x-ray reading and the use of the B-Reader process whereby x-rays are checked by experienced, trained and competent radiologists.
“Miners are still going to work every day not knowing if they have Black Lung disease and it will only be after these records are checked properly by radiologists qualified to the B-Reader level that they will have any certainty,” Smyth added.
The union leader also called on the Queensland government to do more to tackle the problem. “The time for talk is over,” concluded Smyth. “Both the National Senate Inquiry and the Sims Review have provided dozens of recommendations to government, a number of which can be acted on right now.”
Edited by Jonathan Rowland.
Japan-based Marubeni Corp. (Marubeni) has entered into a memorandum of understanding (MoU) with Korea Midland Power Co. Ltd (Komipo), Samtan Co. Ltd (Samtan), and PT Indika Energi Internasional (IMEI) to jointly develop the 1000 MW Cirebon 3 coal-fired power plant in Indonesia.
This power plant is in the area adjacent to the Cirebon coal-fired power plant project and the Cirebon 2 coal-fired power plant project, which is under construction in the district of Cirebon, located in West Java Province, Indonesia. Marubeni entered into a MoU with Komipo, Samtan, and IMEI for the development of this project on 16 May 2016.
The Government of Indonesia has set a target to provide an additional 35 GW of power capacity by 2019. As a result, there is a high expectation for overseas IPP developers to supply power to meet an increasing demand under the growing economy. Marubeni and other consortium companies will continue to contribute to stable power supply and economic development in Indonesia.
In the power project market, Marubeni has expanded its power generation assets to over 10 GW in 22 countries, including Japan. Marubeni is committed to contributing to the development of infrastructure in Asian countries by utilizing its extensive experience and expertise.
Edited from press release by Harleigh Hobbs
Solving a problem a customer experienced when drilling in abrasive rock conditions has led to a groundbreaking new design for drill bits. The resulting Sandvik top centre drill bits, which incorporate the largest upgrade to face drilling bits in decades, are now available as standard products in three sizes. Primary applications for the top centre drill bits include face drilling and bolting in both mining and tunnelling environments, where long bit life is essential in cutting costs and improving productivity.
The top priority when developing the new top centre drill bit was to increase service life. Since the main reason for discarding a drill bit is excessive wear on the diameter, the simplest way to achieve longer service life is to add more gauge buttons. However, this can prove problematic because of the minimal space available.
Furthermore, an increase in the number or size of the carbide buttons generally decreases the penetration rate: the same impact force yields a lower net force per button.
The new design solves these problems with a so-called raised front, elevating two or three front buttons – depending on diameter size – a few millimeters above the gauge buttons located on the periphery of the bit.
Furthermore, the front buttons are set at a slight angle relative to the symmetric axis of the bit. The raised front creates a somewhat recessed hole bottom pattern that alters the rock-breaking action to achieve improved performance.
In addition to the new design, the top centre bit also features a new, innovative cemented carbide grade, the GC80.
“The problem with the carbides that exist on the market today is that they are either wear-resistant or tough,” said Robert Grandin, Product Manager Top Hammer Tools at Sandvik Mining. “When developing the GC80, we wanted to combine the best of those two worlds in order to get as much as possible out of the top centre design.”
The key to this is a completely new production method, which makes it possible to produce a button that improves wear resistance on the outside, and yet combines toughness with a softer centre, pushing the service life and long grinding intervals even further.
Tool life improvements brought about by the Sandvik top centre design also provide health and safety benefits, since operators spend less time near an unreinforced face.
“The new bit design essentially delivers more drill meters per shift compared with a standard bit, thanks to less frequent bit changes,” Grandin concluded.
Edited from press release by Harleigh Hobbs
Peabody Energy has received final court approval for its US$800 million debtor-in-possession financing facility, according to a company new release. The approval allows Peabody access to capital to cover day-to-day operating expenses through its Chapter 11 bankruptcy process.
Peabody entered Chapter 11 proceedings last month on the back of a significant fall in demand for coal in the US and global markets. The company bills itself as the largest private-sector coal mining company in the world with assets in the US and Australia.
Its Australian mines are not included in the bankruptcy proceedings and continue to operate as normal, the company said.
A lender group that includes a number of secured lenders and unsecured noteholders has provided the DIP financing. It comprises a US$500 million term loan, a US$200 million bonding accommodation agreement and a cash-collateralised US$100 million letter of credit facility.
“We are pleased with the outcome of today’s hearing, including the court’s final approval of our DIP financing,” said Peabody President and CEO Glenn Kellow.
The court also approved several other motions including the planned sale of Peabody’s interest in the Prairie State Energy Campus, a 1600 MW coal-fired power plant in Illinois, to the Wabash Valley Power Association for US$57 million.
Edited by Jonathan Rowland.
Coal of Africa (CoAL) has reached agreement with Rio Tinto Minerals Development and Kwezi Mining in a dispute of payments connected with the acquisition of the Chapudi Coal assets by CoAL subsidiary, MbeuYashu.
In March, MbeuYashu has received a notice from Rio Tinto and Kwezi Mining demanding payment for the outstanding amount still to be paid of the original US$75 million price tag. Rio Tinto and Kwezi Mining claimed payment was due immediately, a claim that was disputed by CoAL.
Consequently, the companies entered a mediation process and have agreed to settle the dispute by amending the terms of the payment of the amount still owed to Rio Tinto and Kwezi. To date, US$18.8 million remains outstanding.
As a result, minimum monthly payments have been raised from US$100 000 to US$650 000 with US$1 million payable on 15 May and US$ 2 million payable on 15 September. Full settlement of the outstanding purchase price and accrued interest must then be made by 15 June 2017.
“This was the last of the historic liability issues and this agreement provides certainty of outcome, as well as providing CoAL with flexibility,” said CoAL’s CEO, David Brown, in a company statement.
The resolution now leaves CoAL able to “pursue its proposed business objectives”, the company said, including its proposed acquisition of Universal Coal.
Edited by Jonathan Rowland.
A new research paper from Australian reseachers at the ARC Centre of Excellence for Coral Reef Studies and the Australian Institute of Marine Science has raised concerns over the impact of a major shipping disaster on the Great Barrier Reef.
The researchers claim that coal dust in seawater could kill corals and slow down the growth rate of seagrasses and fish.
“Corals exposed to the highest concentrations of coal dust died within two weeks,” said report author, Kathryn Berry, who led the research. “Corals exposed to lower concentrations of coal lasted longer, but most of them also died after four weeks of exposure.”
Yet the risk to the Great Barrier Reef depends “on the probability of an accident”, as well as the potential impact on marine life, said one of the report authors, Dr Andrew Negri, who also admitted that the likelihood of such a major spill was “low”.
“The paper does not canvass the actual likelihood of a coal spill nor mentions the REEFVTS monitoring system,” said Queensland Resources Council Chief Executive, Michael Roche, in response to the report. The REEFVTS surveillance system provides continues protection of the reef using technology similar to air traffic control systems.
“The implementation of REEFVTS has seen shipping incidents reduce from one a year to just one in the REEFVTS zone in well over a decade,” Roche continued. There has never been a coal spill from a ship over the Great Barrier Reef.
Roche also pointed out the less than half of the traffic traversing shipping lanes in the reef region carried coal. “It would be worth asking the authors whether they propose to conduct similar simulation research on other products carried in ships through the reef, such as grain and sugar.”
Edited by Jonathan Rowland.
TerraCom has completed its debt restructuring after negotiations with its financiers over the past few weeks.
As a result of the negotiations, TerraCom has entered into a binding agreement to issues a five-year interest only bond with a face value of US$130 million (AUS$177.5 million). This covers all secured debt, providing the company with funding certainty over the five year period covered by the bond.
The issuance of the bond will have a “significant positive impact on the company’s free cash flow over the next five years”, it said, providing greater operational flexibility compared to previous debt facilities. All long-form documentation related to the bond needs to be agreed by mid-June with work already underway and achievable by the deadline, according to the company.
In addition, on completion of the bond documentation, AUS$149.8 million that was recorded as “current borrowings” in the 31 December half-year results will be moved to non-current liabilities, boosting the company’s’ capital position by AUS$149.8 million.
Debt holders have also agreed to waive US$21 million (AUS$28.8 million) in interest and deferral fees that had been accrued but not paid by the company.
Meanwhile, the company has secured additional funding of US$3.1 million to enable it to complete the new supply chain at its BNU metallurgical coal mine in Mongolia. This will enable the mine to recommence operations and ramp up production to 1.5 million tpy.
Edited by Jonathan Rowland.
TerraCom continues to evaluate opportunities to buy coal mines in Queensland and Indonesia in order to boost its cash flow and diversify its portfolio. The company currently owns one non-producing mine, the Baruun Noyon Uul metallurgical coal mine in South Gobi, Mongolia.
According to a recent ASX announcement, the company is currently considering the purchase of a mature mining operation currently in care and maintenance in Queensland. It is also nearing completion of its desktop due diligence on a hard coking coal operation in Indonesia.
The Indonesian mine has a production license with a 12 yr life and is located close to transportation and infrastructure links connecting it to the global seaborne coal market. It has a potential capacity of 0.5 million tpy.
In addition, the company is also developing two thermal coal projects in Queensland: the Northern Galilee project and the Springsure project.
TerraCom is currently listed on the ASX but is reviewing a potential listing – dual or sole – on an Asian stock exchange following a strategic review of the company completed last year.
Edited by Jonathan Rowland.
The moratorium on new coal lease sales from federal land is a “political fix” that will reduce tax revenues and hit local communities, according to National Mining Association President and CEO, Hal Quinn.
In a statement released as a series of public comment meetings on the federal coal leasing programme got underway in Wyoming, Quinn was scathing in his criticism of the Department of the Interior.
“There is no compelling need for a moratorium for ‘fix’ a programme that isn’t broken,” said Quinn. “The current programme is more than fair to taxpayers. In fact, the 12.5% royalty paid on coal leased from federal land is approximately 40% higher than royalty rates paid by coal mined on private land in coal states.”
Quinn also pointed out that coal companies mining coal on federal land also pay bonus bids and additional fees that provide 39 cents of every dollar of coal sales.
“Keeping federal coal in the ground is a political fix that will deny taxpayers any revenue from this valuable resource,” continued Quinn, “while forcing state and local communities to suffer the loss of additional high-wage jobs and sharp budget shortfalls that will require either higher taxes, lower services or both.
Edited by Jonathan Rowland.
The administrators of Australian coal company, Cockatoo Coal Ltd, have announced that Cockatoo CEO, Peter Kane, has been provided notice of termination. He will leave the company on 27 May.
Brian Wyatt, currently the General Manager of the Baralaba mine, will act as interim CEO following Kane’s departure.
“The deed administrators express their sincere appreciation to Peter Kane for his valuable contribution during the period of the voluntary administration,” the company said in a statement.
Cockatoo and three related companies (Baralaba Coal, Wonbindi Coal and Cockatiel Coal) went into voluntary administration last November. In February, its Baralaba mine was put into care and maintenance with administrators blaming an “unsustainable level of cash outflows”.
Edited by Jonathan Rowland.
RungePincockMinarco (RPM) is to buy iSolutions, a provider of asset management, life cycle costing and budgeting software solutions to the mining industry. The acquisition will bring iSolutions maintenance and repair management software with RPM’s suite of planning, production and financial planning products.
“Mining is a very capital intensive business and mobile mining equipment that moves material makes up a large proportion of the capital and operational spend for every mining company,” said RPM’s CEO and Managing Director, Richard Mathews. “Today as companies push to drive capital and operating costs down, it’s this area that presents the best opportunity for additional savings.”
Headquartered in Sydney, Australia, and with offices in Brisbane, Santiago and Johannesburg, iSolutions flagship AMT product tracks and/or manages that repair and maintenance of over 50% of the world’s large mining equipment for the world’s largest original equipment manufacturers, including Caterpillar, Komatsu, Hitachi, Michelin and Atlas Copco.
Mining companies and mining contractors also use AMT to extend the functionality of their Enterprise Resource Planning asset management systems. At its heart is the Dynamic Lifecycle Costing engine, which forecasts in real time every maintenance event for an asset to the end of its useful life. This enable asset managers to identify potential issues and take action early.
“We have always wanted our products to be integrated with the industry’s leading production, costing and simulation systems and this transaction does exactly that,” said iSolutions Cofounder and Managing Director, Graeme Elgie. “We are convinced that the iSolutions product suite will benefit from increased investment and the sales and marketing support which RPM can offer it right around the world.”
“The founders of iSolutions have taken the same enterprise software path as RPM – except that whilst we have been focused on production, that have focused on maintenance,” continued RPM’s Mathews. “The bringing together of these to enterprise solutions to a company’s ERP is exactly what managers and executive are striving to achieve.”
Edited by Jonathan Rowland.
Cokal has entered into discussions with Indonesian company Blackspace to provide funding to the development of Cokal’s Bumi Barito Mineral Coal Project (BBM), a metallurgical coal project in Central Kalimantan, Indonesia.
Blackspace is focused on building a mining and natural resources processing business in Southeast Asia and has recently spent over US$500 million to acquire a number of projects.
A Blackspace-controlled company has recently acquired a number of Cokal’s non-core tenements including Cokal’s 75.2% stake in PT Silangkop Nusa Raya and PT Kenungau Nusa Raya ad 75% stake in PT Anugerah Alam Manuhing.
The sale of these non-core tenements, along with the potential for additional development funding, may allow Cokal to restructure its balance sheet and begin construction on BBM. The discussions with Blackspace have the support of Cokal’s largest shareholder and debt provider, Platinum Partners.
Edited by Jonathan Rowland.
Balamara Resources is on track to publish an upgraded JORC Mineral Resource estimate for its Sawin Coal Project in southeast Poland after receiving results from recent in-fill resources drilling.
The company has now completed the first four holes of the in-fill programme with results outlining a zone of 2 m thick coal – which is considerably thicker and more consistent than previously identified or modelled.
Historical drilling by the Polish Geological Institute allowed Balamara to announced initial inferred resources of 1.2 billion t last year. The subsequent in-fill drilling started in last 2015 and aims to provide a more complete picture of the deposit.
“The results is important as the delineation of this significant thick coal seam will allow Balamara to focus its production strategy within this zone during the first decade of Sawin production, allowing for greater tonnages of coal to be produced at lower unit costs than previously anticipated,” said the company.
Sawin is the company’s flagship project within its portfolio of Polish assets. The company is expected to announce a revised prefeasibility study based on the new data in the near term. The Sawin producet is located in Southwest Poland next to Prairie Mining’s Lublin Coal Project and the Bogdanka coal mine.
Bogdanka is the lowest-cost coal mine in Poland, while Prairie’s prefeasibility study for its Lublin project also shows very low operating costs.
The recent results at Sawin “will significantly enhance the project,” said Balamara’s Managing Director, Mike Ralston. “We now have the opportunity to deliver a substantially improved Net Present Value with a revised PFS for Sawin.”
“Balamara’s strategy has also been to identify the highest-quality advanced coal assets in Poland that can be brought into production relatively quickly and relatively low capital cost,” continued Ralston. “Savin is undoubtedly our flagship assets but the overall portfolio is fast emerging into what we consider to be the next substantial low-cost producer in Europe, at exactly the time when incumbent state-owned coal operations in Poland are struggling to remain in production due to their higher costs.”
Edited by Jonathan Rowland.
According to Natural Resources and Mines Minister Anthony Lynham, green shoots are starting to appear on the Queensland’s battered resources industry landscape.
Dr Lynham said although commodity prices globally were low, investment activity was continuing in Queensland.
“It’s certainly tough, but it’s not all gloom and doom,” he said, pointing to QGC and its two-year AUS$1.7 billion Charlie 1 project, which intends to develop its natural gas tenements at Wandoan. He also indicated that Rio Tinto is set to develop one of the world’s largest bauxite deposits at Weipa with an AUS$2.6 billion investment and average construction workforce of 600 people over three years, as well as Adani having its mining leases for the AUS$21.7 billion Carmichael coal mine, rail and port project.
“Stanmore Coal is reviving the former Isaac Plains coal mine near Moranbah in central Queensland,” he further added. QCoal has the first of seven mining lease applications for its Byerwen coal project.
“MMG has prescribed project status to cut red tape and hopes to get its AUS$1.4 billion Dugald River Zinc project into production mid-year up in the north-west,” Dr Lynham continued.
“And in more good news for the northwest, Korella phosphate mine is ready to move to commercial production of up to 600 000 t of phosphate per annum.“
Dr Lynham said the Palaszczuk government recognised the impact of low international commodity prices on the industry.
“International markets are beyond the control of any individual government, but there are things we can and are doing to assist the industry and the communities it supports,” Dr Lynham explained. “We are fulfilling our election commitment for a royalties freeze … We have the lowest payroll tax in the country and we are investing heavily in innovation … We have given explorers a 50%reduction in the expenditure that they have to commit to their mineral exploration permit.”
Dr Lynham believes this will provide some “relief while the market recovers”, and keep investments going into Queensland, which he indicated is “vital for the long-term health of the mineral sector.”
Dr Lynham said the industry continued to have a direct line to government through the resources ministerial roundtable he chaired, with representatives from the coal, petroleum and mineral sectors.
Edited from press release by Harleigh Hobbs
Environmental activists from Greenpeace Indnonesia have stopped operations of two grab-type ship unloaders at the Cirebon coal-fired power plants in Indonesia, blocking the supply of coal to the plant. The protest was part of a wave of recent actions, which included a “mass trespass event” at a German lignite mine owned by Vatenfall.
The Cirebon plant in West Java is to be expanded as part of the Indonesian government’s plans to add 35 GW of power generation capacity over the next five years. Of that, about 60% is expected to come from coal-fired plants, while 20% will come from renewable energy sources.
The actions at Cirebon followed a mass protect against Indonesia’s increased use of coal in Jakarta on 11 May and formed part of the so-called ‘Break Free’ movement that demands government keep fossil fuels in the ground.
Following an international competitive bidding process, Bharat Heavy Electricals Ltd (BHEL) has won an order for setting up a coal-fired thermal power project in Odisha.
The 1 x 250 MW coal-fired thermal unit will be set up at Rourkela power project on Engineering, Procurement & Construction (EPC) basis. NTPC-SAIL Power Co. Private Ltd (NSPCL), a joint venture of NTPC & SAIL, placed the order – valued at over Rs 16 000 million – for the Stage-III of the brownfield power project, located in Rourkela district of Odisha.
BHEL’s scope of work in the project includes design, engineering, manufacture, supply, construction, erection, testing and commissioning of the 1 x 250 thermal power plant on EPC basis. The key equipment for the contract will be manufactured at BHEL’s Trichy, Haridwar, Bhopal, Ranipet, Hyderabad, Jhansi, Thirumayam and Bengaluru plants while the company’s Power Sector division shall be responsible for civil works and erection/ commissioning of the equipment.
BHEL had previously executed the coal-fired 2 x 250 MW Bhilai Expansion power plant for NSPCL. It is the leading supplier of power plant equipment to NTPC and its joint ventures, having contributed more than 80% share of their coal-fired installed capacity.
Edited from press release by Harleigh Hobbs
According to the US Energy Information Administration (EIA), carbon dioxide (CO2) emissions from US electricity generation totalled 1.925 million t in 2015 – the lowest since 1993 and 21% below their 2005 level. A shift on the electricity generation mix, with generation from natural gas and renewables displacing coal-fired power, drove the reductions in emissions.
Total CO2 emissions from the electric power sector declined even as demand for electricity remained relatively flat over the previous decade. In both 2013 and 2014, total electricity sales and electricity-related CO2 emissions increased. But in 2015, both sales and emissions fell. In 2015, warm winter temperatures reduced the demand for electricity, lessened the need to bring marginal generators online, and lowered natural gas prices. During seven months of 2015, electricity generated from natural gas exceeded coal generation.
Electricity generation and its resulting emissions are primarily determined by the available capacity and relative operating costs of the different technologies. Recent capacity additions have favoured natural gas and renewable energy, while retirements have been mostly coal units. In recent years, the drop in natural gas prices, coupled with highly efficient natural gas-fired combined-cycle technology, made natural gas an attractive choice to serve baseload demand previously met by coal-fired generation. Coal-fired generation has decreased because of both the economics driven by cost/KWh compared to that of natural gas and because of the effects of increased regulation on air emissions.
Recent shifts in the electricity generation mix have implications for both total energy consumption and energy-related CO2 emissions. Coal plants tend to have relatively low thermal efficiency compared to plants using combined-cycle technology fuelled by natural gas. Although there is some variation across individual plants, in general a coal plant consumes more energy than a combined-cycle natural gas plant to produce the same amount of electricity. Also, coal’s carbon content per unit of energy is nearly twice that of natural gas. Considering both the higher thermal efficiency of generators and lower carbon content of fuels, electricity generation using natural gas emits roughly 40% of the carbon dioxide that would be emitted from a coal-fired unit producing the same amount of electricity.
Other changes in the electric generating mix have also worked to reduce CO2 emissions. Renewable energy sources are gaining an increasing share of generation, driven primarily by increases in wind and solar capacity. Nuclear generation was relatively flat over the past decade but remains the single largest source of generation without CO2 emissions. Together, renewables and nuclear provided about 33% of overall US electricity production in 2015, the highest share on record.
Edited from source: EIA by Harleigh Hobbs
A long-running quarterly Queensland Resources Council survey of resource company CEOs has found that confidence in the regulatory environment in Queensland is at a near-five year low.
QRC Chief Executive Michael Roche said that in comparison to a year ago, the latest findings revealed a stark change in the confidence of the CEOs confidence about regulation and doing business in Queensland.
“This time a year ago after a change of government in Queensland, our sector deemed it business as usual for the resources sector, but in the space of 12 months a lot has changed,” Roche said. “While the Labour Government’s commitment to royalty stability for its first term of government is welcome there has been anything but stability elsewhere in the regulation of the sector.”
He continued: “Our sector has been the target of a raft of regulatory changes – some enacted and many more proposed – therefore it’s little wonder the resource leaders’ sentiment has substantially changed.”
The survey also reveals that 44% of CEOs said that costs such as infrastructure charges, royalties and other taxes and charges were somewhat of significantly more expensive in Queensland than in other jurisdictions.
Roche confirmed this by indicating that in recent years, local government rates have increased for the sector and this was reflected in comments from sector bosses.
Roche said the majority of respondents to the survey did reveal that if the state government were able to reduce industry costs, such as royalties, this would improve the business outlook.
“While the QRC is getting a good hearing from Treasurer Curtis Pitt and Mines Minister Anthony Lynham, elsewhere our government continues to deliver nasty surprises and poor policy,” Roche said. “I have written to Premier Annastacia Palaszczuk in the wake of the results from our latest survey in the hope that the government will recognise the damage being done to industry confidence due to the uncertainty.”
Roche said that the so-called Chain of Responsibility law enacted just over three weeks ago is causing enormous angst and uncertainty in the business community. He stated it had “gone too far” and is doing “serious damage” to investor confidence.
In responding to the QRC survey, one CEO put: “Recent state government proposals and regulatory changes appear reactionary and populist.”
“The QRC is working with companies and the government to make this a great state to do business in, but if the government’s approach towards policy and regulatory stability does not change then investor confidence could keep spiralling down further, leaving taxpayers out of pocket.”
“The resources sector contributes directly and indirectly one in every AUS$5 of the State’s economy and is responsible for one in six jobs, while also contributing AUS$2.1 billion in royalties to the government in the last financial year.”
“That AUS$2.1 billion was the equivalent of funding the salaries of 35 000 teachers, 30 000 nurses or about 32 000 police officers.”
“The state collects zero royalties from mines that close and from projects that are cancelled.”
Edited from press release by Harleigh Hobbs
Environmental activists shut down the Welzow-Süd lignite mine and significantly impacted operations at the associated Schwarze Pumpe power plant in Lusatia, east Germany. The protests were organised by a group called Ende Gelände and included protestors from a number of countries.
Protestors arrived at the mine on Friday afternoon and occupied the site, with some chaining themselves to a coal excavator, forcing the mine to shut down operations, Peter Stedt, Vattenfall Press Officer, told World Coal. The rail transport link between the mine and power plant and coal storage area was also occupied.
At around 4:30 PM on Saturday afternoon, protestors also broke through the entrance gate at the Schwarze Pumpe plant, Stedt said, although they were quickly removed by police with 120 activists arrested. Those arrested were later released.
As a result of the protests, the company was forced to reduce operations at the power plant, prioritising heat supply to the nearby villages of Spremberg and Hoyerswerda.
The occupation lasted until around 3PM on Sunday afternoon, Stedt continued, when most of the protestors left the site, although those chained to the excavator remained until early Monday morning. Mine operations had resumed by 6AM this morning, despite damage to the mine excavator and coal storage area.
“I want to thank our employees for their considerate behaviour in these difficult circumstances,” said the Head of Vattenfall Europe Mining and Vattenfall Europe generation, Dr Hartmuth Zeiss, in a statement. “Thanks to this, further escalation could be avoided.”
The protests took place despite warnings that the planned actions would expose protestors and Vatenfall employees to “immense risks”.
“These are heavy industry premises, which imply heavy vehicles, electrical equipment and other dangers,” said Anne Gynnerstedt, Vattenfall’s General Counsellor responsible for security ahead of the protests. “Activists who intrude into the area take immense risks and expose themselves and our employees to serious dangers.”
The Welzow-Süd mine and Schwarze Pumpe power plant are part of the sale of Vattenfall’s lignite assets to the Czech company, Energetický a prumyslový, agreed as part of Vattenfall’s strategy to convert to renewable and other low-carbon energy production. The deal is still pending approval by the Swedish state. Vattenfall’s lignite operations currently employ almost 8000 people.
Written by Jonathan Rowland.
Stanmore Coal has loaded its first metallurgical coal shipment at Dalrymple Bay Coal Terminal, according to a company announcement. The loading marks the first coal sales from Isaac Plains after the company restarted the mine following its acquisition last November.
“We are very proud to have joined the ranks of coal producers from Queensland’s premier Bowen Basin, which supplies some of the highest-quality coking coal in the world as an essential raw ingredient to the steel industry,” said Nick Jorss, Managing Director of Stanmore Coal.
“We are also very pleased to be contributing significant direct and indirect employments opportunities, as well as kicking off the flow of millions of dollars in royalties each year to the state of Queensland.”
Stanmore bought the shuttered Isaac Plains mine from Vale and Sumitomo Corp. last year for AUS$1. The mine will supply steel mills in East Asia with metallurgical coal.
Edited by Jonathan Rowland.
Bharat Heavy Electricals Ltd (BHEL) has successfully commissioned a 660 MW supercritical thermal unit in Maharashtra at Mouda Super Thermal Power Station (STPS) at Mouda in Nagpur district of Maharashtra.
NTPC Ltd placed the order to BHEL for setting up two coal-fired thermal units of 660 MW. While the first unit has been commissioned, work on the other 660 MW unit is also in an advanced stage.
Previously, BHEL had set up two units of 500 MW each at Mouda STPS, which are in operation.
In the supercritical segment, BHEL has manufactured and executed 660 MW, 700 MW and 800 MW sets. The unit commissioned at Mouda is the first to be commissioned out of the 11 units ordered under bulk tendering to different manufacturers.
BHEL has a long-standing partnership with NTPC and has supplied over 30 000 MW of NTPC coal-fired power plants of and its JVs, which accounts for around 80% of their coal-fired installed capacity. In FY 2015-2016, all of NTPC’s 2255 MW projects and its JVs were executed by BHEL.
BHEL has also been a major partner in the development of Maharashtra’s power sector. BHEL has supplied and executed more than 16 000 MW of sets in the state so far.
Edited from press release by Harleigh Hobbs
Coal of Africa (CoAL) has extended its offer period for Universal Coal for a fifth time. The closing date has now been set at 24 June 2016.
The extension will allow CoAL to finalise two new subscription agreements that will provide US$15 million in financing for the takeover.
The new subscription agreements with Hengshun Shongsheng Group and Summer Trees PTE replace US$15 million in funding – initially a loan and then via a subscription agreement – with YBI. Full terms of the subscription agreements will be disclosed when the agreements are signed.
Universal shareholders representing 93.23% of Universal’s shares on issue have now accepted CoAL’s offer.
Edited by Jonathan Rowland.
