Recently, the Executive Committee of the IEA Clean Coal Centre confirmed that the Dubai Electricity and Water Authority (DEWA) has become a Sponsor of the Centre. Mr Jamal Shaheen Alhammadi, Vice President-Special Projects, received the acceptance letter from the Chairman, Professor Jürgen-Friedrich Hake, during the 64th Meeting of the Executive Committee held at the IEA Headquarters, Paris, France.
The focus of the Centre is on how to use coal more effectively, efficiently and cleanly. As a Sponsor, DEWA will benefit from access to all of the expertise at the IEA Clean Coal Centre, including the study reports, analysis, workshops, conference, and databases.
H.E. Saeed Al Tayer, M.D and CEO of DEWA, said: “To achieve our vision of becoming a sustainable world class utility, we are working to establish sustainability, which is the roadmap that secures a brighter and happier future for Dubai, by launching distinguished world-class initiatives and projects”.
At the meeting in Paris, Prof Jürgen-Friedrich Hake, added: “It is my honour as Chairman of the IEA CCC Executive Committee to welcome the Dubai Electricity and Water Authority as a new member. We look forward to sharing our expertise with DEWA and helping them to achieve clean coal power”.
DEWA has issued a letter of intent to ACWA Power / Harbin Electric consortium awarding them the second phase of 1200 MW. This will be followed by finalising the Power Purchase Agreement (PPA) for the combined capacity of 2400 MW.
The Proposed Hassyan Clean Coal Power Plant – Phase I will be 2400 MW (four units of 600 MW each with Ultra-supercritical technology) executed on an IPP basis. The first unit will be operational by 2020, second unit by 2021, third unit by 2022 and the fourth unit by 2023.
Edited from press release by Angharad Lock
Teck Resources Ltd has reported profit attributable to shareholders of CAN$94 million (CAN$0.16/share). Adjusted profit attributable to shareholders was CAN$18 million, or CAN$0.03 per share.
“Again our operations performed well by reducing our costs while maintaining production volumes,” said Don Lindsay, President and CEO. “Notwithstanding that the commodity cycle continues to be challenging, we are encouraged by the change in direction in steelmaking coal and zinc prices.”
Highlights
- Profit attributable to shareholders was CAN$94 million and EBITDA was CAN$517 million in 1Q.
- Gross profit before depreciation and amortisation was CAN$464 million in the first quarter compared with CAN$685 million in 1Q15.
- Cash flow from operations was CAN$373 million in 1Q16 compared with CAN$374 million a year ago.
- The company has reached agreements with the majority of its steelmaking coal customers for 2Q16, based on a quarterly benchmark of CAN$84/t for the highest quality product, and expects total sales in 2Q, including spot sales, to be at least 6.5 million t of steelmaking coal.
- Construction of the Fort Hills oil sands project is more than 55% complete and progressing substantially on budget and in accordance with the project schedule.
- The company continues to achieve significant reductions of its cash unit costs at our operations. Steelmaking coal unit costs, including transportation charges, decreased to CAN$77/t in 1Q, while copper cash unit costs after by-product credits declined to US$1.29 per pound.
- All operations were cash positive after sustaining capital and capitalised stripping in 1Q, with the exception of Pend Oreille.
- Union employees at Antamina ratified a new three-year labour agreement in January and union employees at Coal Mountain ratified a new four-year labour agreement in March.
Dassault Systèmes has announced the release of the latest version of GEOVIA InSite™. It is designed to help mining organisations gain control of their mine production management by increasing the confidence in mining operations’ ability to meet production targets, manage costs and improve efficiencies.
With an overhauled interactive graphical user interface, InSite 4.6 features a fully customisable dashboard that enable mining engineers to visually navigate the system in order to both see and understand all areas of variance across mining operational processes and activities. The dashboard provides an intuitive view of aggregated production data obtained from multiple sources, centralising Operations Technologies (OT), with the ability to easily drill down to understand and analyse operational performance in order to influence in-shift decision making.
By providing up-to-date information for improved visibility into production activities, InSite 4.6 enables in-shift control and support of material reconciliation across the entire mining value chain driving the business excellence and agility required to thrive in fluctuating mining and market conditions.
Edited from press release by Harleigh Hobbs
Anglo American plc has announced that the company’s Finance Director, has informed the Board of his decision to retire in 2017, in order to enable an orderly succession.
The Board is beginning the process to appoint a successor, which will include internal and external candidates. Mr Médori will continue to serve in role until the appropriate time to ensure a smooth transition.
Sir John Parker, Chairman of Anglo American, said: “On behalf of the Board of Anglo American, I would like to thank René for his dedication and tremendous contribution over more than a decade. The cyclicality of the mining industry presents the widest array of challenges and René’s professionalism has served the Company well.”
Mark Cutifani, Chief Executive of Anglo American, added: “René has served Anglo American with the utmost loyalty and we understand his decision to step back in due course. I have been personally grateful for his support following my appointment as Chief Executive and in helping to establish the roadmap to a new Anglo American.”
René Médori commented: “It has been a great privilege to serve as Finance Director of Anglo American. With a clear strategy in place and with our asset disposal programme expected to be well advanced by the time I step down, now is the right time for the Board to consider my successor.”
Edited from press release by Angharad Lock
Curtin University’s Faculty of Science and Engineering in Australia recently signed a Memorandum of Understanding (MoU) agreement with the École Nationale d’Ingénieurs Abderhamane Baba Touré in Bamko, Mali, opening up possibilities for academic links between the two countries in the field of mining engineering.
After a delegation led by the Mali Minister of Education and Scientific Research, Me Mountaga Tall, and Malian Ambassador to Australia, Mahamane Elhadji Bania Touré, initially visited Western Australia (WA) in December 2015, further talks resulted in the Curtin MoU signing this month (April 2016).
Curtin’s Deputy Vice-Chancellor of International, Professor Seth Kunin, said the MoU recognised Curtin’s ability to assist in developing a mining engineering curriculum at the École Nationale d’Ingénieurs Abderhamane Baba Touré.
“While the agreement is still in the very early stages of development, we are hoping that the Faculty of Science and Engineering at Curtin will be able to assist with the capacity building of mining engineering education in Mali through academic training opportunities at the Curtin WA School of Mines,” Professor Kunin said.
The Honorary Consul for the Republic of Mali in WA, Max de Vietri, said WA exploration and mining expertise could be adapted to suit Mali’s needs.
“Mali and WA share similar geological strata as well as climatic conditions and therefore have similar prospectivity in terms of mineral potential, as well as similarities in their surface expression,” Dr de Vietri said.
Mali is the third largest gold mining country in Africa. It also has reserves of bauxite, iron ore, manganese and precious stones such as diamonds.
“Opportunities for Malian academics to train in mining engineering at the Curtin WA School of Mines could provide invaluable opportunities and we are looking forward to exploring these possibilities with Curtin University,” Dr de Vietri continued.
Edited from press release by Harleigh Hobbs
CNX Coal Resources LP (CNXC) has reported financial and operating results for the quarter ended 31 March 2016 (1Q16).
During 1Q16, CNXC generated distributable cash flow of US$4.4 million and distribution coverage of 0.36x. The company’s cash distribution was US$0.5125 per unit and net income totalled US$2.5 million. Adjusted EBITDA was reported to be US$13.1 million.
CNXC has reported it has achieved its lowest cost of coal sales in last six years.
For its 20% undivided interest in the Pennsylvania mining complex, CNXCC sold 1.1 million short t of coal during the first quarter of 2016. Total production declined to 1.1 million short t compared to 1.3 million short t produced in the same quarter of 2015 as CNXCC aligned production with market conditions.
During the first quarter, CNXCC sold approximately 0.3 million short t of coal in export market compared to 0.4 million short t in same quarter of 2015.
The company indicated its overall sales were impacted by weak winter burn and reduced coal generation weighing on the timing of shipments. Its total unit costs for coal sold in the quarter were US$33.16/short t, compared to US$42.62/short t in the year-earlier quarter. CNXC reported that the improved cost performance was driven by improved productivity, reduced staffing levels and realignment of employee benefits, offset by lower production due to inconsistent shipment schedules.
“The CNXCC team delivered excellent operational performance during the first quarter of 2016 and helped offset declining cash margins in the face of challenging coal markets and further deterioration in coal prices.” said Jimmy Brock, Chief Executive Officer of CNXC Coal Resources GP LLC (the General Partner).Brock continued: “Specifically, the cash cost per ton in the first quarter was the lowest since first quarter of 2009, despite the inconsistent customer shipments that we noted in January. Our performance not only highlights the ability of the Pennsylvania mining complex to adapt in a challenging commodity price environment, but also to remain competitive as the US coal market continues to reshape. As expected, the first quarter of 2016 began with abnormally low shipment volumes in January and February. However, we saw some improvements in March, which allowed us to have near-record production at some of our longwalls. Our cost structure allowed us to continue to remain profitable in spite of less than favourable pricing during the quarter.”
In January 2016, CNXC returned to running its mines on a more consistent schedule to achieve productivity improvements, even if it resulted in some lower-priced sales in the export markets. The company believe its strategy worked as expected, leading to improved mine consistency and improving margins as the quarter advanced, with exports being able to absorb surplus mine production.
During 1Q16, CNXCC also made several operational adjustments including idling of one longwall, reducing staffing levels and realigning employee benefits. The company reported that all of these steps resulted in a more consistent operating schedule at the mines, reduced labor cost and improved productivity. Productivity for the first quarter, as measured by tons per employee-hour, improved by 14% compared to the year-ago period, despite the reduced number of longwalls in operation.
Brock indicated that in terms of the safety and compliance side, there was mix results. “While we were able to reduce the severity of the incidents compared to the same period last year, there was an increase in the number of recordable incidents. We continue to remain focused on our core values of safety and compliance and continue our efforts to improve on both of these key measures.”
Outlook
For the rest of 2016, CNXC indicated it expects a gradual recovery in shipments at some of its customers as they normalise their inventories while competing with low natural gas prices. CNXC pointed towards this resulting in potentially selling some coal in the spot market, which could weigh on its realisations due to the changing customer mix.
According to the most recent estimates published by the EIA in its short-term energy outlook, US coal demand declined approximately 15%, while industry-wide coal production declined almost 31% in the first quarter of 2016 compared to year-earlier quarter. CNXC believe that given a normal summer, this decline in industry-wide production may help normalise inventory and set the stage for a recovery in coal prices. In the interim, the company intends to carry on focusing on building its contract book and running our mines as safely and efficiently as possible. To that extent and including its expectations of carryover tons from 2016, CNXCC has solid contractual sales positions for 2017 and 2018 of 70% and 52%, respectively, based on a 5.2 million short t production run rate.
Looking forward, CNXCC expects slight improvement in the coal shipments in the second quarter coupled with a slight increase in cost of coal sold, compared to the first quarter, due to four scheduled longwall moves.
Based on its current expectations, CNXCC is providing the following updated 2016 outlook for coal sales, adjusted EBITDA and maintenance capital expenditures:
- Coal sales of 4.5 – 5.1 million short t.
- Adjusted EBITDA of US$59 – US$69 million.
- Maintenance capital expenditures of US$18 – US$20 million.
BHP Billiton has released its operational review for the 9 months ending 31 March 2016.
The highlights included:
- The company is on track to deliver an average unit cost improvement of 14% across its major assets as productivity gains continue to be realised.
- Full year production guidance maintained for petroleum, copper and coal.
- Guidance at Western Australia Iron Ore (WAIO) reduced by 10 000 t to 260 000 t (100% basis).
- In petroleum, a US$640 million exploration programme is now planned for the 2016 financial year.
- Four major projects that are under development are going according to plan.
- The Escondida Biolech Pad Extension project was completed as planned during the March 2016 quarter.
BHP Billiton CEO, Andrew Mackenzie, commented: “Over the last 12 months, we have taken a number of steps to strengthen BHP Billiton, including asset sales and the deferral of investment for long-term value […] We have the potential to significantly grow the value of our company.”
Edited from press release by Angharad Lock
Academics at the University of Edinburgh, in collaboration with researchers at Yonsei University, South Korea, have announced they developed a process that improves the production rate of high purity hydrogen (H2).
This breakthrough will provide a significant step-change for a broad range of chemical engineering and industrial applications where there is significant demand for the gas, in, for example, low carbon hydrogen-based heat and power production, across large-scale industrial plants, or powering the next generation of hydrogen fuel cells used in hybrid and electric vehicles.
The University of Edinburgh is now seeking industry partners to license this technology for development into commercially viable application.Dr Hyungwoong Ahn, a Senior Lecturer in Chemical Engineering from the University of Edinburgh’s School of Engineering, revealed how, through a series of adopted processes, their research uncovered ways to produce the low carbon hydrogen from coal that improves on this ultra-pure hydrogen yield: “By integrating a coal-to-hydrogen process with carbon capture, the hydrogen yield per unit coal feed can be greatly improved using the carbon capture unit used on a synthesis gas stream generated by coal gasification. This helps to improve the hydrogen yield by greater and more efficient use of the H2 Pressure Swing Absorption (PSA) tail gas – an important separation process for gases and applied widely in gas purification and gas recovery.”
The research team found the core invention was to split the PSA tail gas into three sub-streams and use them accordingly:
- As a supplementary fuel for a carbon gas capture unit to improve its sorbent regeneration.
- As an additional feed to shift reactors to boost the hydrogen yield by converting more carbon to hydrogen.
- As fuel from drying coal instead of using synthesis gas.
John Jeffrey, ERI’s business Development Executive, commented: “This breakthrough now allows us to look for industrial and commercialisation partners who see the clear advantages in this research. The production of high-purity hydrogen and the efficiency of the process, from start to finish, will amount to an improvement in hydrogen production yield by more than 2% further to what would be expected of a solid-to-H2 process with CO2 capture and a total auxiliary power consumption reduction by around 7%. These can be viewed as significant savings depending on the output of the processing plant.”
Edited from press release by Angharad Lock
The Yangzijiang shipyard, in China, has placed an order with MacGregor, part of Cargotec, has received an order for gravity self-unloading systems for two 29 800 DWT bulk carriers (lakers).
The order was booked into the first quarter 2016 order intake.
It is expected that the vessels will be delivered late 2017 / early 2018 to Canadian Great Lakes operator, Algoma. “MacGregor enjoys a good, long-term relationship with the Yangzijiang shipyard and we are happy to see our position in the self-unloading market strengthened through this order,” commented Mikael Hägglund, Sales Manager, Selfunloaders.
The contract will see MacGregor deliver a highly-automated, efficient self-unloading system to each of the new vessels. The system is designed for a maximum unloading rate of 5450 tph for stone or iron ore and 4360 tph for coal. MacGregor is responsible for the design of the complete self-unloading system, which includes a discharge boom, full flow cargo gates, conveyor belts, cross conveyors, and a C-loop.
“MacGregor thoroughly discussed Algoma’s technical requirements during the pre-contract phase and was able to offer the most efficient solution that best suited the operator’s needs,” noted Hägglund. “Meeting the tight delivery schedule and the coordinated teamwork with the shipyard was also an important factor in securing the order.”
The new bulkers will join Algoma’s fleet of 13 domestic self-unloading vessels operating on the Great Lakes and the St Lawrence Seaway, all of which have to comply with extremely strict environmental protection legislation.
“MacGregor’s gravity self-unloading technology is well-recognised by the industry for being able to provide improved levels of cargo handling efficiency, which in turn delivers a commercially competitive advantage to shipowners,” Mr Hägglund added.
Edited from press release by Harleigh Hobbs
Kal Tire’s Mining Tire Group has established itself in the area of Muswellbrook, New South Wales, with the opening of a new mining tyre repair facility – the first of several moves the company expects to make as it expands its mining tyre management service offerings in Eastern Australia.
“Kal Tire has been supporting the Western Australian mining industry for many years, and we were keen to bring more of our services to customers on the East Coast,” said Darren Flint, Managing Director, Kal Tire Australia, noting plans are underway to continue expanding in the region. “So, we’re very excited to now be able to offer mining tyre repair services in New South Wales.”
The Kal Tire facility is located in Muswellbrook within the Hunter Valley coalfields and will continue to repair mining tyres that were serviced there when it was formerly operated by Goodyear. The facility, which officially opened 1 April, spans nearly 10 000 metres: 8000 m2 of hardstand, 1500 m2 of workshop space, and the remaining area for office space and a carpark. Technicians can have up to eight tyre stands in operation at any time, with the capacity to handle an extensive volume of mining tyres and the capability to repair all mining tyre sizes – up to 63 in.
“This facility allows us to bring to New South Wales the same unique approach to tyre management our customers enjoy in Eastern Australia and around the world,” said Flint. “We believe in solutions that offer significant, measurable value at every stage in the mining tyre life cycle, and this is just the beginning of our plans to bring a full suite of services to the East Coast.”
Kal Tire’s Mining Tire Group, which employs 1600 team members and operates on more than 150 mine sites around the world, has spent the last 45 years investing in world-class repair and retread facilities, equipment and processes to maximise mining tyre investment and help improve mine site productivity.
Kal Tire’s exclusive and award-winning Ultra Repair™ technology for ultra-class tyres will be introduced into this facility towards the end of 2016. The Ultra Repair™ process involves replacing steel belts inside ultra-class tyres, offering an unrivalled ability to restore the original strength, integrity and performance of damaged ultra-class tyres at a fraction of the cost of new tyres.
Edited from press release by Harleigh Hobbs
By MICHAEL FORSYTHE
April 25, 2016
HONG KONG — Coal-fired power plants have propelled much of China’s economic rise for decades, helping make the nation the world’s biggest emitter of greenhouse gases. Even with economic growth slackening, and other energy sources taking hold, new coal plants have been added.
Now Beijing is trying to slow things down.
In guidelines released on Monday, China halted plans for new coal-fired power stations in many parts of the country, and construction of some approved plants will be postponed until at least 2018.
, by the National Development and Reform Commission and the National Energy Administration, means that about 200 planned coal-fired power generators — those seeking approval and those approved but not yet under construction — may not be completed, said Lauri Myllyvirta, who analyzes China’s energy production for Greenpeace.
The total of 105 gigawatts of power those plants would have been able to produce is considerably more than the electricity-generating capacity of Britain from all sources.
“That’s a big chunk of power,” said Bob Hodge, a coal specialist with IHS Energy, a consulting firm. “It’s a lot of power. It’s a heck of a lot of power.”
Interactive Feature | More Plants, but Less Coal
Electricity generated from fossil fuels like coal is the globally to the rise in carbon emissions, which scientists say is causing the earth’s temperature to rise. Leaders from 175 countries, including China, gathered in New York on Friday to sign the , which aims to halt and eventually reverse the rise in carbon emissions, keeping the increase in global temperatures below 2 degrees Celsius, or 3.6 degrees Fahrenheit.
China, by far the world’s biggest emitter of greenhouse gasses, is aiming to reach a peak in carbon emissions by 2030. A recent economic slowdown, policies to discourage coal-fired power plants near big cities, and a huge investment in wind and capacity helped reduce in China last year.
But even as coal becomes unpopular in China, the country’s biggest state-owned electricity generators are at a pace not seen in a decade, said Mr. Myllyvirta of Greenpeace, which is acknowledged as an authoritative analyst of China’s energy production. Such plants add to existing overcapacity, he said.
The announcement does not stop projects already under construction, which amount to about 190 gigawatts of new coal-fired power generation, he said.
“It’s definitely a positive step, but it’s not even enough to prevent the overcapacity from getting worse,” Mr. Myllyvirta said.
While the curbs on new coal projects, if rigorously enforced, may help China meet its long-term goals on and air pollution, the primary motivation for the move appears to be short-term economic considerations.
In the face of the slowest economic growth in a quarter-century, electricity demand has fallen so sharply in China that some coal-burning power plants are operating only 40 or 50 percent of the time. Construction of and solar panels has also eaten slightly into the market share of the coal plants.
Yet in China’s highly regulated power industry, market signals are weak, and planning and construction of new power plants had continued apace, pushed forward by local governments eager for the construction jobs and expanded tax base. With its new decrees, the central government seems to be trying to halt the development of power plants that might well be underused if they were built.
Mr. Hodge, the consultant at IHS Energy, said that as of two weeks ago, there were 1,200 new coal-fired plants on the drawing boards in 59 countries, mostly in Asia, and China was the single largest contributor.
“In my opinion, if they needed the power, they would build them,” he said of China. “I think if you are Beijing, and you don’t need the power, you can delay them until you might need them. They are not scrapping them.”
The guidelines, dated March 17, state that 13 provinces and regions, including top coal producers like Shanxi and Inner Mongolia, as well as the southern economic powerhouse of Guangdong, should “strictly control” new capacity, delaying the approval of new projects until after 2017. A slightly longer list of provinces — 15, with considerable overlap — were told to put off construction of approved projects that had not yet broken ground.
In both instances, an exception has been made for projects aimed at the “people’s livelihood,” a phrase that was not explained but may include measures like providing steam heat to homes in wintertime.
The government announcement also calls for an acceleration of the closing of outdated coal-fired plants that use older, dirtier technology. But China is adding about 1 gigawatt in coal-fired capacity a week, Mr. Myllyvirta said, as companies that have easy access to loans from state banks build new plants.
That is in stark contrast to the United States, the world’s second-biggest carbon emitter, where it has become increasingly difficult to build new coal-fired plants under the Obama administration.
Last year, almost 14 gigawatts of coal-fired capacity was in the United States, according to the Energy Information Administration in Washington. At the same time, there are only six new coal-fired plants on the drawing boards in the United States through at least the next five years, with a total capacity of less than 2 gigawatts, according to the agency.
In China, however, as coal prices drop, the big state-owned electricity generators are benefiting because highly regulated electricity prices have not fallen in tandem.
Because of the political power of the coal industry and the falling price of coal, larger percentages of wind- and solar-generated electricity are not being put on the grid, a phenomenon called curtailment. To combat this, the Chinese government has recently issued a directive for operators of coal-fired plants to pay operators of wind and solar plants whose electricity is not used, the Paulson Institute, a policy group focused on China and based in Chicago that was founded by the former Treasury secretary, Henry M. Paulson, .
Justin Gillis and Jad Mouawad contributed reporting from New York. Kiki Zhao contributed research from Beijing.
South32 has reported its latest quarterly report and as of 31 March 2016 the company’s estimate net cash position was US$18 million.
The company has indicated that it is well positioned to achieve FY16 production guidance for all its operations and remains on track to reduce controllable costs by US$300 million in FY16.
Restructuring at Worsley Alumina, South Africa Manganese and the Australia Manganese mining operation is largely complete. Restructuring at Cerro Matoso and Illawarra metallurgical coal is expected to be completed in the June 2016 quarter.
“We continue to strengthen our balance sheet by focusing on value, not volume. We are making great progress on our cost-out program across all operations and have continued to generate cash despite volatile commodity markets. We have successfully completed the Appin Area 9 project at Illawarra metallurgical coal and are close to completing the PC02 project at GEMCO. Both will be delivered below budget.” Graham Kerr, South32 CEO commented.
The recommencement of longwall mining at Dendrobium and completion of the Appin Area 9 project resulted in a 35% increase in metallurgical coal production in the March 2016 quarter. The Appin Area 9 project was completed 33% below budget and ahead of schedule. The Premium Concentrate Ore Project (PC02) at GEMCO is 98% complete and will be commissioned in the June 2016 quarter.
South32’s US$134 million reduction in net debt recorded in the quarter was achieved despite a US$30 million foreign exchange rate related increase in finance lease liabilities, which rose to US$621 million (US$595 million as at 31 December 2015), and one-off redundancy and restructuring payments5 of approximately US$23 million.
The company’s exploration expenditure for the nine months ended March 2016 totalled US$9 million, of which US$3 million will be capitalised. Exploration activities were conducted at South32’s existing operations and were focussed on metallurgical coal and silver in Australia, and nickel in Colombia.
Coal production update
South Africa Energy Coal saleable production declined by 7% (or 1.7 million t) to 24.1 million t in the nine months ended March 2016. Lower production resulted from the planned closure of the opencast mine at Khutala, and a reduction in contractor activity at the Wolvekrans Middelburg Complex, consistent with the company’s focus on value over volume. Underground development at Khutala contributed to a 5% reduction in production for the quarter.
FY16 saleable production guidance remains unchanged at 31.95 million t (16.65 million t domestic, 15.30 million t export).
Illawarra metallurgical coal total saleable production decreased by 11% (or 701 kt) to 5.8 million t in the nine months ended March 2016 due to encountering challenging geological conditions in the first half of FY16 at the Appin and Dendrobium mines and three planned longwall moves were completed during the period. A 35% increase in metallurgical coal production in the March 2016 quarter was underpinned by the recommencement of longwall mining at Dendrobium and the ramp-up of the new Appin Area 9 longwall following project completion ahead of schedule and below budget.
The final cost of the Appin Area 9 project is expected to be US$565 million, representing a 33% saving on the original budget. The West Cliff coal mine has now been closed. As previously revised, FY16 coal production is expected to be 8.25 million t (metallurgical coal 6.9 million t, energy coal 1.35 million t).
Edited from press release by Harleigh Hobbs
The annual recognition for mining companies using simulation for operator training and business improvement from Immersive Technologies was awarded to Australia’s Rio Tinto Marandoo. The award recognises the achievements of mine sites focused on improving operational safety, efficiency and productivity through simulator based training initiatives.
The global finalists for the 2015 award included Kinross Fort Knox (North America), Anglo American Los Bronces (Chile) and KPC (Indoensia).
The introduction of a new truck type presented operator adaptability and mixed fleet operation risks but the team at Marandoo followed a six sigma methodology to address the integration. As part of the approach simulators from Immersive Technologies were used to measure and improve operator skill and behaviour.
Within three months the site reported:
- 31% reduction in operator induced machine reliability events.
- 60% savings in training resources (trainer hours).
- 11% improvement in truck mean time between failure specific to operator induced machine reliability components (6 month period).
- 5% cycle time improvement.
“The project captured and refined practices, conducted trials, adjusted the processes and validated theoretical benefits in a safe environment with minimal interruptions to mining activity,” said Project Leader, Tony Maurice, Marandoo – Supervisor Training Mine Operations.
Rio Tinto Marandoo was chosen from more than 265 global mining operations in 39 countries. They join the ranks of prominent past winners including Kiewit Mining Group, PT Pamapersada Nusantara, Cipta Kridatama, Cliffs Natural Resources, Syncrude, Kinross and Peabody.
Edited from press release by Angharad Lock
Brazilian mining company Vale has reported its production results for its coal operations in Australia and Moatize.
The mining giant has reported that coal production reached 1.7 million t in 1Q16, 4.9% higher than in 4Q15. This was reported to be a result of metallurgical coal production in Australia and 1.9% lower than in 1Q15 due to lower production in Moatize.
Australian operations
Vale’s Carborough Downs in Australia reached its second highest quarterly production mark of 763 000 t in 1Q16, 105.7% and 41.1% higher than in 4Q15 and 1Q15 respectively. Vale indicated this was due to excellent operational performance at the mine, after longwall moves, which occurred in March, October and November of 2015, impacting production in 1Q15 and 4Q15.
Moatize operations
Production at Moatize however came in at 900 000 t in 1Q16, with a decline in both metallurgical and thermal coal production, due to the prioritisation of waste movement of around 7.6 million t in order to prepare the mine for the start-up of the coal handling facility scheduled for May and an unscheduled six-day maintenance stoppage at the plant in January to increase its availability.
Since the maintenance stoppage, the plant has been operating at appropriate levels.
Production of metallurgical coal was 31% and 17.1% lower than in 4Q15 and 1Q15, respectively, and production of thermal coal was 12.8% and 30.4% lower compared to the same quarters.
The ramp-up of the Nacala Logistics Corridor continued as planned, transporting 747 000 t on the railway in 1Q16 against 241 000 t in 4Q15 and concluding thirteen shipments in 1Q16 compared with one shipment in 4Q15.
Edited from press release by Harleigh Hobbs
Metso is launching a new generation of upgrades that aim to increase the productivity of old crusher models, while also reducing maintenance costs and bringing equipment into line with enhanced safety practices.
The new upgrades are available for Symons and Nordberg cone crushers, and Superior gyratory crushers. They are offered in packages that are easy to take into use; every kit includes clear installation instructions or alternatively Metso can provide the customer with a field service team for support or for the complete installation.
“Metso understands the tough nature of the current mining market for our customers, so we made it our goal to design a new generation of crusher upgrades that would enable them to generate more ROI without the need for expensive capital investments. The close collaboration with our customers allowed us to develop these great products that not only will help them to bolster their bottom line, but also lead to a safer job site” explained Jaakko Huhtapelto, Sales Development Director for Metso’s Spare Parts.
The new offering
The new generation of upgrades can be fitted to several of Metso’s heritage branded crusher models. The complete range has been specifically designed for the mining market and includes:
Symons cone crushers
- Advanced bowl adjustment control
- Hydraulic motor bowl adjustment system
- Hydraulic tramp release and clearing system
Nordberg HP800 and MP cone crushers
- Jack screw locking nut
- Top mount clamp cylinder
- Heavy duty head
- MP1250 retrofit kit
- Head maintenance stand
Superior gyratory crushers
- Super spider
- Arched spider
- Shimmed spider bushing
- Hydraulic shell separators
- Dual balance cylinder
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For users that implement the upgrades, productivity can be improved through increased product rate capability, easier setting adjustments, better crusher reliability and reduced bridging from oversized materials. Maintenance can be reduced through the improved lifetime of components, more reliable crushing and easier maintenance procedures. Safety can be heightened through better maintenance practices, reduced stoppages from bridging, and the usage of automatic or remote settings.
Edited from press release by Harleigh Hobbs
Bowie Resource Partners has announced that Manie Dreyer, CEO of BRP, is to step down, effective end of April 2016.
Whilst Manie has been CEO of BRP, the company has achieved milestones in Safety and Risk Management with significant reductions in reportable injuries and best-in-class recognition for safety performance including the 2014 Sentinel Safety Award at Skyline.
John Siegel, Executive Chairman, said in a statement: “I want to thank Manie for his leadership and commitment to BRP over the past two years and I want to wish him and his family well for this next chapter of their lives.”
Siegel also said that he did not plan to fill the role at present.
Edited from press release by Angharad Lock
Bold policy commitments from political leaders are the only route to achieving the ambitious targets of the Paris Climate Agreement, according to Brad Page, Chief Executive Officer of the Global CCS Institute. Mr Page has called for urgent action to address carbon dioxide emissions through proven carbon capture and storage (CCS) technology.
“In order to meet these demanding climate targets in the real world, we’ve got to reduce emissions from every possible sector of the global economy, and we’ve got to do it urgently and without bias,” said Mr Page. “All low carbon technologies must be part of the conversation – including renewables, nuclear power, energy efficiency, and CCS. Achieving these ambitious targets will require many acts of political courage over the next three decades, and an unwavering commitment to deep international collaboration on technological advancement, policy design, and funding.”
“Globally, more than 2400 new coal-fired power stations are already planned for construction by the year 2030. This says nothing of the hundreds of existing facilities that will still be in operation for the coming decades ahead. CCS is vital to limiting the emissions that are effectively already locked in by these facilities. Even replacing unabated coal power with gas is insufficient for the world to limit greenhouse gas emissions sufficiently to meet its own nominated targets. Gas-fired power plants still require CCS in order to realise their full emissions reduction potential,” Page continued. “In light of these realities, it’s important to acknowledge that global CCS investment since 2007 has been less than US$20billion. For the sake of comparison, renewable power generation technologies have benefitted from investment of around 100 times that amount over the same period, due to policy disparity.”
“Outside of the power sector, one quarter (25 percent) of the world’s CO2 emissions result from industrial sectors such as iron and steel, cement, petrochemicals refining, and chemicals and fertiliser manufacturing. CCS is the only technology that can achieve large reductions in emissions from these industrial processes. As we have seen from the success of the COP21 negotiations, the only way the world will achieve effective action on climate change is through a determined long-term commitment to international collaboration,” Page concluded.
Edited from press release by Angharad Lock
The Port of Rotterdam handled approximately the same volume of cargo in 1Q16 as in the same period last year. An increase in the volume of, mainly, crude oil and oil products put through the port was offset by a more or less equivalent decrease in the volume of dry bulk and containers. The total volume of cargo handled in the port increased to 116.9 million t (0.2% increase).
Port of Rotterdam Authority CEO, Allard Castelein, said: “The port’s throughput grew by 4.9% in 2015. Our ambition is to match this high throughput volume in the present year. So far we are on course – but we still have three quarters to go.”
The key cargo types within the dry bulk category are iron ore, scrap metal and coal. There was a 6.1% decrease in the throughput of iron ore & scrap metal (7.8 million t).
The volume of coal put through Rotterdam increased by 2.9% (7.9 million t).
A 18.6% decrease in the import of raw materials for the metal industry and the construction sector, combined with a decrease in the export of fly ash, resulted in lower throughput volumes for other dry bulk (2.7 million t).
There was a 1.2% increase in the volume of agri-bulk handled in the port (2.5 million t). All in all, the throughput of dry bulk decreased by 4% to 21.0 million t.
The volume of containers handled via the port decreased by 3.1%, to 31.0 million t, and by 3.9% to 3.0 million TEU (standard container capacity unit).
Edited from press release by Angharad Lock
To help customers with servicing, ContiTech has developed the mobile inspection system Conti SurfaceInspect. Using ultra-modern line laser technology, this system scans the entire conveyor belt surface creating a digital belt map on which all cover plate damage is recorded and can therefore be examined more closely. In an automatically generated report, ContiTech provides all relevant information about the damage.
“These analyses result in a detailed picture of the condition of the conveyor belt surface. It offers an ideal basis for systematically recording surface damage, preparing cover plate repairs, and making predictions about the conveyor belt’s service life,” declared Application Engineer, Patrick Raffler.
Conti Inspect: reliable forecasts increase service life
The mobile inspection systems, to which the surface scanner belongs, allow conveyor belts to be serviced while still in operation, and help to detect at an early stage damage caused by the material conveyed or by wear. The systems provide the relevant data for more effective planning of servicing jobs on conveyor belt systems. The offering is rounded off by two further Conti Inspect systems. By means of triangulation sensors, Conti WearInspect measures the cover plate thickness over the entire belt length. It records the position of the belt surface on the pulley and carrying side, and calculates the conveyor belt’s actual thickness by means of a large number of measuring points.
If damage occurs inside the carcass of the steel cord conveyor belt, it can be detected with Conti CordInspect. By means of magnetic induction procedures, it detects the smallest of damage to the steel cable tension members. All pieces of damage are detected, classified, and documented in a report with information about size, severity, and position.
Conti Protect: providing protection from total failures
Larger pieces of damage such as longitudinal slitting and splice faults on the conveyor belt can have serious consequences for system operation, and lead to total failures in a worst-case scenario. Conti Protect monitoring systems help to detect such damage at an early stage during operation, and automatically stop the system if necessary.
Conti SpliceProtect monitors the length and stretch of the conveyor belt splices in systems that are exposed to heavy tensile forces due to long centre distances or large height differences. The system uses magnetic strips vulcanised into the conveyor belt to make precise measurements during operation. As soon as a splice has reached a critical length, the danger of a splice failure becomes too great and the system stops the conveyor before the splice tears.
Conti RipProtect provides protection against longitudinal slitting that causes long downtime and high costs. Thanks to conductor loops vulcanised into the conveyor belt, it detects the dangerous longitudinal slitting at an early stage. The metal loops carry a high-frequency signal between a transmitter and receiver. If a loop is damaged, the signal will break down on the receiver end. The system control then automatically stops the conveyor belt.
Conti CordProtect allows customers to look inside the carcass of steel cord conveyor belts. The system magnetises the tensile members and detects magnetic fields that arise at the ends of the cords or if defects occur. This means that even very minor cord damage in the intact belt area can be detected and monitored, as can the state of the splices.
Conti MultiProtect expands the functions of Conti CordProtect. Rip inserts implanted into the conveyor belt are checked for longitudinal slitting by means of their characteristic magnetic fields. By means of a special sensor application, the rip insert function can also monitor the rotation of tube conveyors.
Conti TotalProtect makes a detailed examination of steel cord conveyor belts possible by means of x-ray technology. The system detects and monitors all types of defects, from the tiniest pieces of surface damage and all manner of effects caused by foreign bodies, right up to cord and splice damage.
Edited from press release by Angharad Lock
US rail operator, Union Pacific, has reported net quarterly income on nearly US$1 billion in 1Q16 – down from about US$1.2 billion in 1Q15 – as coal freight revenues collapsed.
Coal revenues were down 43% y/y of coal demand for utilities slumped on the back of warm winter weather, continued competition for low-price natural gas and high utility stockpiles.
“This year has brought a continuation of many of the same trends we experienced throughout most of 2015,” said Lance Fritz, Chairman, President and CEO of Union Pacific.
“An energy market recession, low commodity prices, the strength of the U.S. dollar in a soft global economy, and muted domestic retail demand all contributed to market weakness across many of our business lines.”
Volumes also fell for industrial products, agricultural products and intermodal, while chemicals volumes were flat on declines of crude oil and fertilizer shipments. Operating revenue fell to US$4.8 billion in 1Q16, 14% down on 1Q15.
Edited by Jonathan Rowland.
Tlou Energy Ltd has provided an update on the gas production testing at the Selemo pilot wells, which are located at its 100% owned Lesedi CBM Project. The aim of the gas testing programme is to provide evidence of a sustainable gas production rate.
Highlights
- Testing procedures have been expanded to include the Selemo 2 and Selemo 4 wells in addition to Selemo 1 which commenced flow testing in 1Q16.
- Pressure drops at the wells have been increased in recent days and encouragingly further communication between the wells is being observed. Water production, increased due to the flow testing of the additional wells, is being easily managed and is in line with expectations.
- A decision on a gas-to-power pilot project has progressed through various levels of government and management is confident of a favourable response in the near term.
Tlou Acting Managing Director Gabaake Gabaake said: “Excellent progress is being made in the field. The decision to expand the testing to include three wells rather than the initial one well was taken following the results observed while flowing gas from Selemo 1 only and the excellent communication being observed between all the Selemo wells. The initial plan was to flow sustained gas from Selemo 1 and then proceed to build flows from Selemo 2 and 4. This method was chosen by our production consultants based on knowledge gained from other reservoirs and also to reduce any potential risk of damaging the reservoir with a more aggressive strategy.”
“The production data has since indicated however, that it is possible to bring on all three wells concurrently without significant risk of damaging the formation or jeopardising the chances of flowing gas at economic levels from Selemo. Although still at an early stage, the data gathered to date is very promising and is some of the best we have seen since we commenced flow testing. As a result we remain excited and confident of delivering a sustained gas flow shortly. I have had discussions with relevant Government parties in relation to our application for a gas-to-power pilot project in Botswana. We are awaiting feedback and remain extremely confident of a positive response in the near term. Our team [is] working very hard and we remain on target to deliver on our goals. I look forward to providing further updates in the near term,” continued Gabaake Gabaake.
Gas production testing operations update
In 2015, the original Selemo 1 lateral production pod (a vertical well called Selemo 1P and an intersecting horizontal well designated 1A) had two new shielding pods (Selemo 2 and 4) drilled either side of it, to assist with dewatering and ultimately, enhance gas deliverability. Following the successful drilling program, each new vertical production well was completed with down-hole equipment to enable water level reduction and allow the gas to flow from the coal seam.
The dewatering and testing process includes:

Dewatering operations commenced in mid-September 2015 in a controlled manner with all three pods reaching critical desorption pressure (CDP) and steadily building wellhead pressure.
The current phase involves establishing a consistent gas flow rate from the production pilot pods. Long term testing on Selemo 1P commenced on 8 February 2016, with Selemo 2 and 4 wells maintaining static fluid levels at the desorption point and shielding water from Selemo 1P, the central and main producing well where initial gas has been flared.
Following shielding of 1P from water influx and gaining better understanding of the water producing capacity of the coal, Tlou has commenced drawdown on all wells, thereby expediting the process of achieving a sustainable gas production rate from the production pilot pods.
The aim of the gas testing programme is to provide evidence of a sustainable gas production rate achievable from the field. This data will be incorporated into field development plans and provide data for independent reserve certification.
Edited from press release by Angharad Lock
WellDog has announced that it has inked exclusive, multi-year contracts worth about AUS$35 million through its Artificial Lift business unit based in Toowoomba, Queensland, Australia. The contracts commit the company to providing downhole progressing cavity pumping (PCP) system equipment, as well as technologies to extend pump lifetime, to coalbed methane (CBM) operators active in the Surat and Bowen basins.
“Frequent workovers caused by heavy solids production and pump failure have plagued CSG since it started,” said WellDog CEO, John M. Pope. “Our solids management technical products have been proven over the past few years to provide a step change increase in pump lifetime.”
“The pump, which was developed by Baker Hughes and features an elastomer designed for Queensland coal seam gas applications, should further increase pump performance and reliability substantially. We’re pleased to see these advanced technical solutions being adopted by the CSG industry.”
The contracts were awarded by multiple operators. WellDog submitted the winning bids in partnership with Baker Hughes, its key artificial lift provider. Baker Hughes is a global leader in artificial lift systems and services for the oil, gas, and water production markets.
WellDog’s Artificial Lift business unit was launched in 2014 and was promptly followed by the opening of its Artificial Lift Technology Centre in Toowoomba, QLD.
Edited from press release by Angharad Lock
Rhino Resource Partners LP has announced that it has completed a 1-for-10 reverse split on its common units and subordinated units. As is required for reverse equity splits, Rhino’s common units will trade under the ticker symbol RHNOD on the OTCQB for a period of 20 trading days. Following the end of this period, Rhino’s common unit ticker symbol will revert to RHNO.
Edited from press release by Angharad Lock
PSG has announced that new models of its Abaque™ Series Peristaltic (Hose) Pumps have been designed to meet the challenging requirements of the mining industry, due to its stronger and more durable rotor design and patented hose holding system.
Features include a seal-less design that eliminates leaks and product contamination. Abaque pumps are suited for a wide variety of mining applications, including wastewater, slurry transfer, thickener underflow, recirculation, reagent dosing, froth flotation, cyanide processing and filter press. The pumps have no moving parts that come into contact with the product and they have the ability to handle slurries that contain up to 80% solids with ease. These self-priming pumps can run in forward or reverse and offer suction-lift capabilities to 25.5 ft (9 m), as well as the ability to run dry without adversely affecting performance, pressure and accuracy (no slip). Abaque pumps are constructed of ductile iron and stainless steel, allowing higher discharge pressure to 217 psi (15 bar).
The Abaque Series’ pumping action is achieved by compression of a circular loop of elastomeric hose with two diametrically opposed rotating shoes. This motion forces the fluid in the hose to move ahead of each shoe. Upon reaching the end of the loop, the reinforced hose immediately returns to its original shape. This results in a pump that can handle the toughest pumping challenges, including extremely abrasive and aggressive fluids.
The hoses are available in natural rubber, Buna-N, EPDM and Hypalon®. Abaque pumps are available in 13 different sizes, with flow rates ranging from 15 to 77 000 L/hr (.07 to 339 gpm).
Edited from press release by Angharad Lock
Natural Resources and Mines Minister, Dr Anthony Lynham, has announced that coal dust reforms have begun as a government priority to protect the health and safety of coal workers.
Dr Lynham told Parliament that action was underway on changes to the regulation of coal dust, which causes coal workers’ pneumoconiosis.
He said the Coal Mining Safety and Health Advisory Committee of union, employer and departmental representatives was working as a priority on measures to tackle the re-emergence of coal workers’ pneumoconiosis (CWP).
“The advisory committee is already working on a number of important actions, including regulatory changes to the dust monitoring system. It will develop minimum training and experience standards for nominated medical advisers. Further, I am very keen to see more transparency on dust monitoring, and I want the committee to look very carefully at how this can be achieved. I encourage all the advisory committee members, including the CFMEU, to continue to examine all of the evidence, and work together to provide me with full, frank and considered advice. I commit to act swiftly, in consultation with all parties, and to take whatever action is required to protect the health and safety of our coal miners,” he said.
Highlights:
- Departmental inspectors were taking “firm action” with a mine that recently exceeded regulated dust limits.
- Coal Mine Workers’ Health Scheme records have been cross-checked against Queensland hospital admission data to identify any possible unreported cases of coal workers’ pneumoconiosis.
- Any coal mine worker who has any concerns that they may have this condition should contact their local doctor.
- Any coal mine worker with a CWP diagnosis or a suspected CWP diagnosis should contact mines inspectors on 13QGOV (13 74 68).
- Queensland has six confirmed cases of CWP.
-
Dr Lynham announced a five-point action plan in January to help identify and prevent coal workers’ pneumoconiosis.
Edited from press release by Angharad Lock
MSHA has notified underground coal mine operators of an interference problem between proximity detection systems (PDS) and respirable dust sampling devices when both devices are in use at the same time. MSHA has observed that dust sampling devices function properly. Mine operators who do not have proximity detection systems are not affected by this notice.
MSHA’s final rule on Proximity Detection Systems for Continuous Mining Machines in Underground Coal Mines requires that proximity detection systems be installed to prevent interference that adversely affects performance of any electrical system. 30 C.F.R § 75.1732(b)(5).
While investigating reports of interference between PDS and respirable coal mine dust sampling devices, MSHA found that other devices or equipment may also cause electromagnetic interference that adversely affects the performance of the PDS. Devices, other than respirable coal mine dust sampling devices, that can cause interference with a PDS include gas detectors, hand-held radios, and trailing cables. Interference occurs when these devices are placed within several inches of the miner-wearable component of the PDS. This interference can disable the protections designed to stop the machine before a miner is contacted. MSHA is working with mine operators, manufacturers, and the National Institute for Occupational Safety and Health (NIOSH) to identify solutions.
Due to this additional information and to assure maximum protection for miners, MSHA is notifying mine operators with a PDS installed on any equipment that they should identify sources of any electromagnetic interference that adversely affect the performance of the PDS. In making this determination, mine operators should place the miner-wearable component immediately adjacent or as near as possible to electrical devices or equipment used or worn by miners which may include, but are not limited to:
- Gas detectors
- Communication devices
- Respirable dust sampling devices
- Laser range finders
- Trailing cables
- Variable Frequency Drives
If a mine operator finds that any device or equipment interferes with the proper functioning of the PDS, the mine operator should notify the PDS manufacturer and follow the manufacturer’s best practices to address the interference problem. The PDS should not be used until the interference problem is corrected. In addition, mine operators must continue to comply with existing requirements necessary to protect the safety and health of miners such as respirable dust sampling, communication and tracking, methane monitoring, and other relevant standards while the interference problem is corrected.
Mine operators must assure that miners are trained to follow safe work practices around mining equipment, including staying out of the red zone and being alert to the possibility of any interference issues. Training should reinforce the safety principle that, as with any technology, a PDS is intended to provide an added margin of safety for miners and does not replace longstanding safe work practices. Operating equipment with a PDS that is affected by interferences can give a miner a false sense of security. MSHA is continuing to work with its stakeholders to address the interference issue and will provide further communications as appropriate.
Edited from press release by Angharad Lock
South African mining company has said that it plans to restructure the group, including potential job losses among its 7300 workforce.
In a statement, the company said that it intended the restructure to “improve productivity and efficiency”, as well as streamlining its corporate and support services. Job losses could be as high 565 from these operations.
The company has informed the relevant trade unions and has begun a process of consultation with affected employees.
“We are doing everything possible to avoid and limit the impact on our employees and the consultation process will examine all options, ”said Mxolisi Mgojo, Exxaro’s CEO.
“The future sustainability of the group remains a pressing need in the context of the challenging business environment in which we operate and we must ensure we have a streamlined and competitive business.”
Edited by Jonathan Rowland.
Demand for steel in China continues to strengthen, according to Macquarie’s April steel survey of Chinese steel mills, on increase infrastructure and construction activity.
“Sentiment among steel mills rose sharply and is now at its highest level since early 2013,” Macquarie said in a recent note. “With profitability also rising to the highest level in history, capacity utilization has further recovered but still [remains] below the level seen in 1H14.”
The strong positive sentiment among respondent mills also carried over into demand for raw materials. With profitability running at a historical level, expectations of further production ramp up were strong among mills, which means mills should continue to have good appetite for raw material restocking.”
According to Macquarie’s survey, the willingness of Chinese steel mills to buy metallurgical coal and iron ore climbed to its highest level in history – although a concurrent restart in iron ore supply will cap the upside to prices in the near term.
Seaborne supply of iron ore into China picked up from Sierre Leone – which re-appeared in China’s iron ore import data in January for the first time since May last year – and India, according to Chinese customs data through February, while Australian exports picked up in March with Port Hedland shipping 39.5 million t in March – a record high.
Edited by Jonathan Rowland.
Advanced Emissions Solutions (AES) is to assess the market value of its emissions control products and patents, the company said in a corporate update, as it remains focused on its refined coal (RC) business.
The review would be performed using a “parallel path strategy”, said AES CEO, L. Heath Sampson, as the company would continue to seek to market and expand the opportunities to sell chemical additives covered by its patented M-Prove technology for emissions control at coal-fired power plants.
“However, the time frame to maximise the value of these assets remains hard to predict and we believe it’s prudent to assess the value they might have to an entity that could more quickly capitalise on opportunities within the US and internationally,” Sampson said.
The company added that it did expect sales of its chemical additives to improve this year with a large US utility selecting the M-Prove technology to reduce mercury emissions at its coal-fired plants.
Sampson also said that the company has adjusted its approach to its RC business sales process and that its investor pipeline was now the largest it had ever been. RC remained the company’s “most valuable, yet currently undervalued, asset,” added Sampson.
On the financial side, the company said it has become SEC compliant again with the filing of its 2015 financial statements.
It would also continue to reduce its costs, Sampson said, including cutting its headcount by about 30%, in an effort to reduce its operating costs by between US$12 and US$14 million by 2H16. The company also expected its liquidity to grow through the 2016 financial year “as our RC business continues to lease and sell RC facilities to tax-equity investors,” added Sampson.
“We remain excited about our opportunities to further improve our business in 2016 and to position the company for future success,” concluded Sampson.
Edited by Jonathan Rowland.
There is a digital transformation occurring in the power sector, according to Peter Bolick, Head of Software Solutions and Product Development at GE Power, who gave the keynote presentation at this year’s ELECTRIC POWER conference. And it is bringing with it huge opportunities for the sector, Bolick told World Coal in an interview, pointing to a recent paper from GE and Accenture that estimated cost savings of up to US$1.3 trillion.
With its Predix platform, GE is at the forefront of that change to the digital industrial world. Predix is a cloud platform for the industrial internet. In the power sector it can be used to create digital clones of equipment – be it wind turbines or coal pulverizers – which can then be used to understand what the operational potential of that equipment really is.
And with its recent acquisition of NeuCo – also announced at ELECTRIC POWER – it is bringing that change to the coal-fired power sector.
Boston-based NeuCo began 15 yrs ago with a system that allowed power plants to reduce NOx emissions by optimising combustion, David Kirk, NeuCo’s President and CEO, explained to World Coal at the same interview. Since then it has added a number of other products, including ProcessOpt – which includes MaintenanceOpt and PerformanceOpt – and applies advanced process analytics to monitor for plant process issues most likely to cause performance issues.
Dealing with disruption
“When we look at where we’re going with Predix and our solutions, as an example, on our combined cycle gas turbine (CCGT) plant, we just saw this natural fit [for NeuCo] to mirror what we’re going on the CCGT side,” Bolick explained. “And I think whether you’re CCGT or whether you’re coal, you’ve got to be more efficient and that efficiency helps you on emissions and efficiency is both the heat rate, it’s also how you operate the plant to include the start-ups. And then I think that when you look at CCGT and coal, increasingly it’s about what’s your flexibility to chase the market demand.”
The ability to operate flexibly is a growing issue for coal-fired plants coping with intermittent renewable feed-in and is a particular area that NeuCo’s technology can help boost plant performance, as Kirk explained, referencing a number of NeuCo clients in Texas wind country.
“It’s important to remember that coal plants – even though they are cycling or ramping up and down a lot more than they used to – they are still subject to the same environmental regulation and they’re still the most prone to be polluting assets,” Kirk said. “So we help our customers both with ramping and with maintaining emissions compliance during ramp”
NeuCo can also help with “more idiosyncratic things”, as Kirk put it. For example, back in Texas, at night when the wind is blowing, the coal units aren’t economical – but it would be even less economical to shut them down. “Because we manage the distribution and heat in the boiler process, we’re able to push some of that heat into the flue exit gas before it enters the SCR, so that they’re able to turn down an extra 20 – 30 MW overnight – and so therefore not be losing so much money.”
Indeed, the disruption that renewables are bringing to the current market mirrors the disruption that NOx regulation caused that allowed NeuCo to enter the market 15 yrs ago.
Going global
And now it’s part of GE, NeuCo is broadening its geographic horizons.
“We are seeing increased activity in Europe,” Kirk said. “And that’s following a pattern that I think I’ve seen in a slightly different regulatory context here in the US. 2016 has come; there is now a NOx standard. A lot of hardware was put in place and a lot of guarantees were met on that hardware to enable compliance with a pretty rigid emissions rule. But coal assets are big and noisy and they degrade rather quickly. And we will see that some of the projects that met their guarantee, over time are not ultimately able to meet the regulation. And that’s a real opportunity for us. We traditionally provide a 10 – 20% NOx reduction by optimising the boiler. We see other benefits as well in terms of fewer tube leaks; we see efficiency improvements. But when attention is focused on NOx, that 10 – 20% [reduction] is what will get you over the hump. That’s when we see a lot of interest in our product and I think that is something that will develop in Europe.”
“In another geography, in India, NOx regulations have just been announced,” Kirk continued/ “That’s traditionally been a really good driver for us. And I think with the reach and the commercial flexibility that GE affords us, that’s a market that we can start to address strongly and quickly and they have real drivers.”
“And finally the one that I’m waiting on is China. We’ve seen a couple of summers in a row where smog is a headline on the New York Times. They will have to do something about that. One of the primary drives of smog is NOx. And there is no cheaper way to make a reduction in NOx emissions than applying optimisation to coal-fired boilers. “
Indeed, according to Bolick, GE is already seeing demand for the solutions that NeuCo offer in these coal-heavy economies: “When we were talking to our customers in India and China, we saw nothing but demand for more software, for more digital solutions to help them optimise the plants on emissions, as well as efficiency. So we’re definitely looking forward to getting Peter on a plane and flying him out to India and China because we’ve got customers who are already waiting for this solution.”
Beyond efficiency and emissions control, NeuCo’s technology can also bring advantages in regions with a young and inexperienced workforce, such as South Africa and Southeast Asia, where installed coal-fired generation is expected to grow dramatically over the next few years.
“In economies like South Africa, southeast Asia, you have a very young workforce,” Kirk said. “In some cases, the plants are all new so you have operators who are learning how to operate these plants for the first time. The optimiser can really help new operators. We take certain things that are highly nuanced out of their hands and we actually see very rapid acceptance by younger operators because we are able to do that.”
It is, then, an exciting time for the power sector as disruption to the traditional power generators from renewables, from emissions regulations, drives innovation.
Scaling new efficiency heights
“We’ve reached the limit where purely human intervention and human action can drive more efficiency,” Bolick concluded. “And that’s really what we’re about in terms of the industrial internet and bringing the industrial internet into power. It’s to drive a new level of efficiency. It’s going to be a convergence of the IT/OT world that people have been talking about for years. And it’s going to happen much faster than anyone can anticipate because we’ve got lots of challenges but we know that if we really transform our industry digitally that we can meet these challenges.”
Edited by Jonathan Rowland.
Jameson Resources continued to focus exclusively on the environmental assessment (EA) for its Crown Mountain metallurgical coal project in British Columbia, Canada, as the company strove to conserve its cash reserves in 1Q16.
Project related spending was AUS$93 000 – a multi-year low – as the company also reduced administrative costs by 20% on the same quarter in 2015. In contrast, the company spent AUS$330 000 on exploration and evaluation work in 1Q15.
Project spending for the nine months to the end of March now totals AUS$629 000 compared to AUS$2.2 million over the same period a year ago.
The Crown Mountain project continues in the pre-application stage of the EA process. To government agencies are involved in the process: the federal-level Canada Environmental Assessment Agency Office and the state-level British Columbia Environmental Assessment Office.
No work was undertaken at the company’s Dunlevy project during the quarter, although Jameson said it intended to retain the project and would resume exploration and evaluation work “when market forces warrant such action.”
Meanwhile, the company’s coal applications for its Graham River, Carbon East and Peace Reach projects in northern British Columbia were revoked by the state government after the government agreed with three First Nation bands to create additional Coal Land Reserves – areas on land in which future coal mining in prohibited. The company will receive a full refund of its pre-paid rent for the affected applications.
As at 31 March, the company said it had AUS$2.1 million in cash and equivalents with no debt – unchanged from the previous quarter.
“Management continues to position the Crown Mountain project to be ready to take advantage of a market recovery,” the company said. “This activity is balanced against the need to minimise spending and conserve cash. The board diligently monitors Jameson’s cash activities in light of market conditions and will from time-to-time act to adjust the current strategy as it deems appropriate.”
The company also said that further cost reductions should be expected through the current quarter and for the rest of the year.
Edited by Jonathan Rowland.
A University of Queensland researcher working on modelling and visualisation technologies for use in coalbed methane (CBM; called coal seam gas in Australia) extraction and hydraulic fracturing has been awarded part of AUS$540 000 in research funding aimed at promoting innovation in the mining sector from the Queensland state government.
“Accurate simulation tools for these problems will maximise their outputs and minimise the potential hazardous effects, as well as improve our current understanding,” the Queensland government said in a statement. “Queensland will benefit from this research in the short term by introducing state-of-the-art-simulation capabilities for these key economic sectors and, in the long term, by contributing to the training of future engineers and scientists working in these areas.”
Dr Sergio-Andres Galindo Torres of the University of Queensland’s (UQ) School of Civil Engineering is undertaking the work in collaboration with Golder Associates. He shares the money with two other researchers: Dr Hong Peng of UQ’s School of Engineering for his work on bauxite processing and the Dr Pradeep Shukla, also of UQ’s School of Chemical Engineering, for his work on technology to produce cyanide onsire for gold and base metals mines.
The funding is part of more than AUS$10 million awarded under the Queensland government’s first round of Advance Queensland Research Fellowship and PhD Scholarship programme.
“These Advance Queensland Research Fellowships will assist the mining industry with addressing current challenges and developing innovative solutions to help Queensland remain internationally competitive,” said Leeanne Enoch, Minister for Innovation, Science and the Digital Economy.
Edited by Jonathan Rowland.
Rio Tinto’s 2Q16 hard coking coal production was steady y/y and 4% higher than 4Q15, according to the company’s latest quarterly production report.
The company’s produces hard coking coal from two mines in the Bowen Basin, Queensland: the Hail Creek opencast mine and Kestral underground mine. Rio Tinto owns 82% of Hail Creek with joint venture partners Nippon Steel Australia, Marubeni Coal and Sumisho Coal Development. It owns Kestral mine with Mitsui Ketral Coal Investment, a subsidiary of Japanese trading house, Mitsui.
Hail Creek produced 1.22 million t of hard coking coal in 1Q16 – up from 1.13 million t in the previous quarter and 1.18 million t in 1Q15. Overall, the mine produced 5.01 million t of hard coking last year for Rio Tinto.
Kestral mine production of hard coking coal fell slightly to 758 000 t in 1Q16 – down from 766 000 t in 4Q15 and 813 000 t in 1Q15. Overall, hard coking coal production for the quarter stood at 1.98 million t – up on the previous quarter’s 1.90 million t but down slightly from 2.00 million t y/y.
Production of semi-soft coking, however, jumped by 31% y/y and 47% on 4Q15, however, as a result of mine production sequencing at Hunter Valley Operations and Mount Thorley Warkworth. Rio Tinto produces semi-soft coking coal from operations in New South Wales.
The company also completed the restructuring of its ownership of its New South Wales assets, taking full ownership of Coal & Allied from its joint-venture partner, Mitsubishi. The Japanese company took a direct 32.4% direct stake in Hunter Valley operations as part of the restructuring, leaving Rio Tinto’s stake in Hunter Valley Operations, Mount Thorley and Warkworth at 67.6%, 80% and 55.57% respectively.
Looking ahead, the company’s share of production is unchanged and is expected to be 7 – 8 million t of hard coking coal and 3.3 – 3.9 million t of semi-soft coking coal.
Edited by Jonathan Rowland.
Sandvik has stated it has been reconfirmed as a constituent of the Ethibel Sustainability Index (ESI) Excellence Europe, effective 15 April 2016. The selection by Forum Ethibel indicates that the company performs better than average in our industry in terms of sustainability.
Being included in the Ethibel Sustainability Index (ESI) Excellence Europe confirms the company as a sustainable partner to its customers. Additionally, it confirms Sandvik as an interesting investment for a wide range of international investors.
The reconfirmation acknowledges Sandvik’s strengthened focus on fulfilling the ambition to remain in the forefront in this area.
Edited from press release by Angharad Lock
Rio Tinto’s thermal coal production fell by 16% on the quarter and 9% y/y as wet weather hit output at the Hunter Valley Operations in New South Wales. The fall also reflects the changed ownership structure at its Coal & Allied operations, as well as the sale of its stake in the Bengalla joint venture. Last year, Bengalla produced 2.662 million t of thermal coal for Rio Tinto.
On 3 February, Rio Tinto took full ownership of Coal & Allied from its partner, Mitsubishi. Coal & Allied includes the three opencast operations at Hunter Valley Operations and Mount Thorley Warkworth.
At the same time, Mitsubishi took a direct 32.4% stake in Hunter Valley Operations bringing Rio Tinto’s interest in New South Wales coal to 67.6% at Hunter Valley, 80% at Mount Thorley and 55.57% at Warkworth.
The change of ownership structure, combined with adverse weather, saw Rio Tinto’s share of Hunter Valley Operations production fall to 1.36 million t in 1Q16 from 2.18 million t in 1Q15 and 2.35 million t in 4Q15. Last year, Rio Tinto’s share of Hunter Valley Coal production stood at 8.04 million t of total thermal coal production of 18.64 million t.
Rio Tinto produces thermal coal from the Coal & Allied mines, as well as the Hail Creek and Kestral mines in Queensland.
The company also completed the sale its 40% stake in the Bengalla joint venture for AUS$616.7 million on 1 March and announced an agreement to sell its Mount Pleasant thermal coal assets to MACH Energy Australia for AUS$224 million plus royalties on 27 January. That agreement is expected to close this year.
Looking ahead, Rio Tinto’s share of production is unchanged and is expected to be 16 – 17 million t of thermal coal.
Edited by Jonathan Rowland.