US Energy Information Administration
Coal stockpiles at electric generating facilities totaled 197 million short t at the end of 2015, the highest level since June 2012 and the highest year-end inventories in at least 25 yr. More than 40 million short t of coal were added to stockpiles at electric generating facilities from September through December, the largest build during that timespan in at least 15 yr. In addition to relatively low overall electricity generation, largely attributable to the warmest winter on record, coal-fired electricity has recently been losing market share to electricity produced using natural gas and renewable resources.
Coal stockpiles typically follow a seasonal pattern in which stocks build during the lower electricity demand periods of the spring and fall and then get drawn down during periods of higher electricity demand in the summer and winter. In 2015, the stockpile build from August to December was 40 million short t, far higher than the 11 million short t average stockpile build for these months over 2001 – 14. Coal stockpiles typically decrease in December, averaging a roughly 3 million short t decline for the month over 2001 – 14. However, stockpiles this December increased by more than 8 million short t.
As stockpiles grew toward the end of 2015, shipments of coal by rail fell. Weekly coal railcar loadings averaged nearly 94,000 carloads per week from September through December 2015, 22% below average loadings for that time of year over the previous five years. Railcar loadings were even lower in the first months of 2016. Through February, weekly coal railcar loadings averaged slightly more than 75,000 carloads, 35% below the previous five-year average.
Relatively high coal stockpile levels at the end of 2015 come despite a reduction in coal-fired generation capacity. From 2010 to 2015, total U. coal generating capacity declined 10%, falling by nearly 33 GW to 285 GW. One way of measuring coal stockpiles, while accounting for the overall change in generating capacity, is to calculate days of burn. This calculation considers the current stockpile level at each generator and its estimated consumption (burn) rates in coming months, based on the average consumption rates for those months over the past three years. This measure approximates how many days the generator could run at historical levels before depleting its existing stockpile.
Sub-bituminous coal-fired generators currently average 95 days of burn, up sharply from an annual low of 65 days in June and the highest level since 2010. Bituminous coal-fired generators currently average 91 days of burn, up from an annual low of 73 days of burn in June and the highest levels since February 2013. Sub-bituminous and bituminous generators make up most of the coal fleet, with 144 GW and 124 GW of capacity, respectively, at the end of 2015.
Edited by Jonathan Rowland.
The World Coal Association (WCA) has announced the publication of the new flagship report: The Power of High Efficiency Coal. The report demonstrates the impact of deploying high-efficiency low-emission (HELE) coal technologies has on delivering affordable energy while reducing CO2 emissions.
Key findings from the report include:
- HELE coal-fired power generation mitigates more CO2 emissions than renewables per dollar of investment.
- By 2040, 1.1 billion tpy of CO2 could be avoided by deploying HELE technologies.
- Given the higher capital costs of renewable technologies and their lower load factors, in most regions, conversion to HELE technologies represents the lowest cost CO2 abatement alternative.
Launching the report, WCA Chief Executive Benjamin Sporton commented: “As we approach the signing of the Paris Agreement next month, it is important to recognise that HELE technologies are vital to its long-term success. Nationally Determined Contributions submitted by countries in the lead-up to COP21 are the foundation of the Paris Agreement and in many of those plans HELE coal technology plays a significant role. The power of HELE technology needs to be understood.”
The new report also demonstrates that HELE coal technology is one of the most affordable ways to reduce CO2 emissions while providing affordable electricity.
“Our research shows that focusing on a shift away from the least efficient coal technology to more efficient coal technology represents the lowest cost option for reducing CO2 emissions. In southeast Asia, coal can generate electricity at close to half the price of gas and deploying high-efficiency coal for power generation in southeast Asia costs a fifth less than using wind. That’s why demand for coal is forecast to grow significantly in the region in the decades to come,” Sporton said.
To support implementation of the Paris Agreement, the WCA has advocated for an international mechanism to be established to provide financial and other support necessary for countries to accelerate deployment of HELE technologies.
The vision of the WCA’s Platform for Accelerating Coal Efficiency (PACE) is to deploy the most efficient power plant technology possible.
“An international financial mechanism to help drive the deployment of high-efficiency coal would help to ensure that the Paris Agreement is a success by ensuring countries reduce emissions in a cost effective way,” Sporton concluded.
Edited from press release by Harleigh Hobbs
globalCOAL® has announced that three new metallurgical coal Market Members have joined its international trading community.
The companies include:
Dubai-based Steel Mont Trading DWC-LLC is a global trading and logistics enterprise focused on the international trade and finance of a variety of products and industries.
thyssenkrupp Steel Europe AG, Germany, is a leading supplier of high-grade flat steel and supplies high-quality steel products to a wide range of industries.
Headquartered in Pennsylvania, USA, Xcoal Energy & Resources supplies low, mid and high volatile hard coking coal to customers throughout the world.
Commenting on the announcement, globalCOAL Head of Metallurgical Coal, Phil Shawcross said: “In the five months since the launch of screen trading for metallurigcal coal, we have brought much improved price transparency to this market. The concept is gathering momentum, and in today’s announcement, we see a microcosm of our online marketplace, with producers, steel mills and traders from around the globe all represented. We look forward to delivering an alternative route to market to these new Members.”
Edited from press release by Harleigh Hobbs
Estimated imports of LNG into Europe this summer are significantly higher this year, according to the LNG team at Thomson Reuters. Exports are expected to increase by 8 billion m3 this summer – which runs from April to September – compared to the same period in 2015.
According to Thomson Reuters, strong supply growth from new Australian projects and the start-up of US exports will result in significant supply overhand on LNG markets. Coupled with further convergence of Atlantic and Asian spot LNG prices, this will make Europe an increasingly attractive destination for LNG.
The increase of LNG imports into Europe will depress gas price hubs, improving its competitiveness with coal on the continent.
According to Anne Kat Brevik, Director of LNG at Thomson Reuters, this could see some further potential coal-to-gas switching in the UK and the Netherlands where coal-fired generation is more expensive as result of the UK’s high carbon tax and a coal tax in the Netherlands.
News is better elsewhere for coal however: “For the remaining Continental Europe, we do not foresee that gas prices will fall to a level so that gas will replace coal in the power sector at the current price for EUAs or emissions allowances,” Brevik added.
Edited by Jonathan Rowland.
With 12 weeks of 2016 behind us, the dry bulk market is still looking bleak, according to a new report from BIMCO. As the current low demand for transportation of commodities continues, the market is doing what it can by scrapping old ships and restraining from ordering new ones.
With only four newbuilding orders registered in the first 12 weeks of 2016, dry bulk contracting is merely a fraction of previous year’s activity. New contracts for dry bulk ships have been on a path of decline in the last year and a half.
Currently culminating at a level that resembles a standstill. The four orders amounting to 267,000 DWT is less than a tenth of the 2.8 million DWT placed by the end of February last year.
The ordering remains low despite 12-year low newbuilding prices offered from the shipyards. The fact that shipowners have restrained from renewing or adding to their current fleet is good for the immensely challenged dry bulk market. As an increase in new orders would only worsen the oversupply of capacity in the market, further down the road.
Chief Shipping Analyst, Peter Sand, said: “The low level of new orders is a much needed development in the market. With little to no influence over demand side developments, reducing supply is the only tool owners and operators on the dry bulk market can use to improve on the market situation. The best way to do that is to limit the amount of new orders and increase scrapping.”
The noticeable outlier in September 2015 stems from a large order by Nippon Steel & Sumitomo Metal Corp. (NSSMC), who ordered nine VLOCs to renew its capesize fleet.
In addition to the low level of newbuilding orders, demolition has gotten off to a good start in 2016. 144 dry bulk ships have been scrapped so far this year, equivalent to 11.9 DWT. In January and February alone, 111 dry bulk ships were scrapped, equaling 9.3 million DWT. This represents a 42% rise compared to the 6.6 million DWT scrapped in the two first months of 2015.
In 2015, 30 million DWT was scrapped as a record high level was reached in the first half of the year. In the period February – May 2015, the level of scrapping closely followed the level of deliveries, helping to limit the fleet growth. In February and April, the level of demolition actually surpassed the amount of new deliveries coming in. Entering into the second half of the year however, scrapping slowed down substantially, while deliveries carried on at the same pace.Despite the low ordering activity, there is still a large order book for future deliveries. This is evident by the fact that 13.2 million DWT of new tonnage was delivered in the first two months of 2016 a slight increase compared to last year’s 11.6 million DWT.
Sand added: “The increased demolition is taking place despite the fact that the scrap steel prices offered to owners wishing to sell their ship for demolition is run down by a low demand for scrap steel.”
“The fact that so much has been scrapped in the first two months alone supports our prediction that 2016 will be the busiest year for breaking of dry ships ever,” Sand concluded.
Edited from press release by Harleigh Hobbs
Wind, natural gas and solar made up almost all new electricity capacity in the US in 2015 with 41%, 30$ and 26% of total additions, respectively, according to the US Energy Information Administration (EIA). In contrast, “there was virtually no coal-fired generation installed last year”, April Lee an Electricity Analyst at the EIA told World Coal.
Source: EIA.
Over 8 GW of wind capacity was added in 2015, up from less than 1 GW in 2013. Texas – better known for its oil and gas industry – added the most, accounting for 41% of the total, followed by Oklahoma and three Midwestern states: Kansas, Iowa and North Dakota.
Natural gas installations fell away slightly in 2015 but still accounted for around 6 GW of new capacity. New plants in New Jersey and Texas making up half of the capacity additions. The US has seen a significant increase in gas-fired power over the last few years as a glut of natural gas born of the shale gas boom has seen prices plummet.
According to the EIA, natural gas will take the largest share of the US energy mix in 2016 – overtaking coal for the first time on an annual basis.
California, North Carolina and Nevada accounted for much of the utility solar capacity addition, adding more than 1GW, 720 MW and 236 MW respectively. Nevada also set the record for growth in installed solar capacity with 164% growth in 2015, following by New Hampshire, which saw growth of 110% and Utah, which saw growth of 94%.
Overall around 5 GW of solar capacity was added in the US split between distributed PV (2.2 GW) and industrial-scale PC (3 GW).
On a state-by-state basis, Texas installed the most new capacity in 2015, adding about 5 GW split between wind and natural gas with some solar. California came in second with around 2.5 GW (mostly solar with some wind) and New Jersey was third with just over 1.6 GW (mostly natural gas).
Turning to coal and the picture was pretty bleak. According to the EIA’s Lee, just one additional 2.2 MW generator was added at the existing RED-Rochester industrial CHP plant in New York. This compares to 13.7 GW of coal plant retirements – of over 80% of the total retired capacity.
Edited by Jonathan Rowland.
WellDog, an energy-focused technical services company that delivers practical technical and business solutions, has raised AUS$4.25 million in new debt financing from Cash Resources Australia of Sydney. The financing is secured by the company’s trade assets related to its quickly growing coalbed methane (CBM) business in Queensland.
“We are delighted to have support of this caliber to make our technology and services more widely accessible to customers in the Australia coal seam gas market,” said WellDog CFO Trenton Thornock. “The nearly singular growth and profit trajectory of WellDog continues to require increasing levels of working capital as customers fully realise the increased production and reduced operating costs possible by utilising WellDog’s practical, cost effective and data-driven solutions.”
Despite the downturn in the global hydrocarbon economy, WellDog continues to grow as a result of innovation in technology and business models, coupled with a strong customer focus.
“This new financing positions the company for significant additional equity and debt financing and commercial growth in 2016,” concluded Thornock.
Edited from press release by Harleigh Hobbs
By THE EDITORIAL BOARD
March 26, 2016
The grave environmental damage from coal-fired power plants has done nothing to deter the Senate majority leader, , from decrying a “war on coal” and orchestrating his own war against the Obama administration’s agenda. But he and other coal-state Republicans would be foolish to ignore the growing consensus on Wall Street that King Coal, for all its legendary political power, has turned into a decidedly bad investment.
that it would no longer finance new coal-fired power plants in the United States or other advanced nations, joining Bank of America, Citigroup and Morgan Stanley in retreating from a fuel that provides about one-third of the nation’s electricity and accounts for about one-quarter of the carbon emissions that feed global warming.
Cleaner and cheaper natural gas is fast becoming the preferred investment, a blunt marketplace reality that is sure to weaken coal’s grip on the planet as much as moral and environmental concerns. Last week’s by Peabody Energy, the world’s largest private-sector coal company, that it may have to seek bankruptcy protection, just as three other major coal producers have done recently, provided a dramatic confirmation of this trend.
Main Street also seems to be getting the message. Two weeks ago, Gov. Kate Brown of Oregon signed — agreed to by environmentalists, consumer groups and power producers — that requires the state’s two largest utilities to stop importing out-of-state coal-generated power by 2030 and to use renewable energy to meet half of the demand of their customers by 2040. Oregon’s only in-state coal-fired plant will close by 2020.
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Even so, Mr. McConnell persists in his campaign to block the administration’s clean power rule, the centerpiece of Mr. Obama’s plans to reduce greenhouse gas emissions by steering power producers away from dirty coal-fired plants to cleaner sources of energy. Ever ready with new and more mischievous strategies, Mr. McConnell has encouraged court challenges to the rule and has gone so far as to tell Republican-led states to ignore it, further deepening his party’s sorry retreat into science denial.
Though reeling now, the coal industry insists it will rebound by selling more to markets like China. But this is little comfort to workers who can read the markets better than Mr. McConnell can. Rather than encouraging obstruction, the senator, who received $273,850 in from the coal industry for his 2014 re-election, should be taking the lead in crafting government programs to help the industry, miners and communities as they face a hard period of inevitable transition.
Even as the administration cracks down on coal — in recent weeks it has also suspended new coal leasing on federal lands — it has called for job training and other assistance to ease the pain. These are the types of creative adjustments that Mr. McConnell and his colleagues should be tackling, instead of clinging to King Coal’s fading past.
By JOHN SCHWARTZ
March 19, 2016
READING, N.Y. — They came here to get arrested.
Nearly 60 protesters blocked the driveway of a storage plant for on March 7. Its owners want to expand the facility, which the opponents say would endanger nearby Seneca Lake. But their concerns were global, as well.
“There’s a climate emergency happening,” one of the protesters, Coby Schultz, said. “It’s a life-or-death struggle.”
The demonstration here was part of a wave of actions across the nation that combines traditional not-in-my-backyard protests against fossil-fuel projects with an overarching concern about .
Activists have been energized by successes on several fronts, including the decision last week by to block along the Atlantic Seaboard; his decision in November to reject the pipeline; and the .
Bound together through social media, of far-flung activists are opposing virtually all new , gas and coal infrastructure projects — a process that has been called “.”
As the climate evangelist put it in a after Paris negotiators agreed on a goal of limiting global temperature increases: “We’re damn well going to hold them to it. Every pipeline, every mine.”
Regulators almost always approve such projects, though often with modifications, said Jr., chief executive of the Interstate Natural Gas Association of America. Still, the protests are having some impact. The engineering consultants recently published a report that said the most significant barrier to building new pipeline capacity was “delay from opposition groups.”
Activists regularly protest at the headquarters of the Federal Energy Regulatory Commission in Washington, but there have also been sizable protests in places like St. Paul and across the Northeast.
In Portland, Ore., where protesters conducted a “kayaktivist” blockade in July to keep Shell’s Arctic drilling rigs from leaving port, the City Council opposing the expansion of facilities for the storage and transportation of fossil fuels.
Greg Yost, a math teacher in North Carolina who works with the group , said the activists emboldened one another.
“When we pick up the ball and run with it here in North Carolina, we’re well aware of what’s going on in Massachusetts, New York and Rhode Island,” he said. “The fight we’re doing here, it bears on what happens elsewhere — we’re all in this together, we feel like.”
The movement extends well beyond the United States. In May, a wave of protests and acts of civil disobedience, under an umbrella campaign called is scheduled around the world to urge governments and fossil fuel companies to “keep coal, oil and gas in the ground.”
This approach — think globally, protest locally — is captured in the words of Sandra Steingraber, an ecologist and a scholar in residence at Ithaca College who helped organize the demonstration at the storage plant near Seneca Lake: “This driveway is a battleground, and there are driveways like this all over the world.”
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The idea driving the protests is that can be blunted only by moving to renewable energy and capping any growth of fossil fuels.
Speaking to the crowd at Seneca Lake, Mr. McKibben, who had come from his home in Vermont, said, “Our job on behalf of the planet is to slow them down.”
He added, “If we can hold them off for two or three years, there’s no way any of this stuff can be built again.”
But the issues are not so clear cut. The protests aimed at pipelines, for example, may conflict with policies intended to fight climate change and pollution by reducing reliance on dirtier fossil fuels.
“The irony is this,” said Phil West, a spokesman for Spectra Energy, whose pipeline projects, including those in New York State, . “The shift to additional natural gas use is a key contributor to helping the U.S. reduce energy-related emissions and improve air quality.”
Those who oppose natural gas pipelines say the science is on their side.
They note that methane, the chief component of natural gas, is a powerful greenhouse gas in the short term, with more than 80 times the effect of carbon dioxide in its first 20 years in the atmosphere.
The Obama administration is to reduce leaks, but environmental opposition to fracking, and events like the huge methane plume released at a storage facility in the neighborhood near Los Angeles, have helped embolden the movement.
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Once new natural gas pipelines and plants are in place, opponents argue, they will operate for decades, blocking the shift to solar and wind power.
“It’s not a bridge to renewable energy — it’s a competitor,” said Patrick Robbins, co-director of the , which protests pipeline development and is based in New York.
Such logic does not convince , an energy expert at the Council on Foreign Relations.
“Saying no to gas doesn’t miraculously lead to the substitution of wind and solar — it may lead to the continued operation of coal-fired plants,” he said, noting that when the price of natural gas is not competitive, owners take the plants, which are relatively cheap to build, out of service.
“There is enormous uncertainty about how quickly you can build out renewable energy systems, about what the cost will be and what the consequences will be for the electricity network,” Mr. Levi said.
Even some who believe that natural gas has a continuing role to play say that not every gas project makes sense.
N. Jonathan Peress, an expert on electricity and natural gas markets at the , said that while companies push to add capacity, the long-term need might not materialize.
“There is a disconnect between the perception of the need for massive amounts of new pipeline capacity and the reality,” he said.
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Market forces, regulatory assumptions and business habits favor the building of new pipelines even though an evolving electrical grid and patterns of power use suggest that the demand for gas will, in many cases, decrease.
Even now, only 6 percent of gas-fired plants run at greater than 80 percent of their capacity, according to the United States Energy Information Administration, and nearly half of such plants run at an average load factor of just 17 percent.
“The electricity grid is evolving in a way that strongly suggests what’s necessary today won’t be necessary in another 20 years, let alone 10 or 15,” Mr. Peress said.
Back at Seneca Lake, the protesters cheered when Schuyler County sheriff’s vans showed up. The group had protested before, and so the arrests had the friendly familiarity of a contra dance. As one deputy, A.W. Yessman, placed zip-tie cuffs on Catherine Rossiter, he asked jovially, “Is this three, or four?”
She beamed. “You remember me!”
Brad Bacon, a spokesman for the owner of the plant at Seneca Lake, Crestwood Equity Partners, acknowledged that it had become more burdensome to get approval to build energy infrastructure in the Northeast even though regulatory experts have tended not to be persuaded by the protesters’ environmental arguments.
The protesters, in turn, disagree with the regulators, and forcefully. As he was being handcuffed, Mr. McKibben called the morning “a good scene.”
The actions against fossil fuels, he said, will continue. “There’s 15 places like this around the world today,” he said. “There will be 15 more tomorrow, and the day after that.”
Chinese gas distribution group, ENN Group, is to buy an 11.7% stake in Australian gas company, Santos, from Hony Capital for US$750 million. The acquisition marks the company’s first exposure to the upstream gas sector.
“The proposed acquisition is an exciting more for ENN,” said the company’s Chairman, Wang Yusuo. “This introduction to the upstream sector takes us a step forward in our aim to generate value across the entire natural gas value chain and allows up to learn and build experience.”
Over the last 15 yr, ENN Group’s natural gas sales volumes have grown by a CAGR of 47%, establishing the company as the largest private natural gas company in China. It supplies natural gas to more than 12 million households in 152 cities across China, as well as 56 000 industrial and commercial users.
The company also operates a network of 576 LNG and compresses natural gas refueling stations, distribution 1.88 million t of LNG annually – 20% of the LNG trade volume in China. It is building China’s first private LNG receiving terminal in Zhoushan, Zhejian Province, to receive imported gas.
As part of the deal, Hony Capital will become ENN’s A-share listed company through a private placement of new shares, equivalent to US$380 million.
Santos welcome the deal and the knowledge of China’s gas industry that ENN Group would bring. The Australian company is one of the most experienced coalbed methane (CBM: called coal seam gas in Australia) operators the country with operations in the Surat and Bowin Basins of Queensland.
Santos is also a partner with Malaysia’s PETRONAS and France’s Total in the Santos GLNG project, which feeds CBM to a two-train LNG plant on Curtis Island, Queensland, via a 420 km pipeline. First LNG production occurred in September 2015 with its first shipment reaching South Korea in October.
Edited by Jonathan Rowland.
Johan Kerstell has been appointed Executive Vice President, Head of Human Resources and member of Sandvik’s Group Executive Management, effective on 1 June 2016.
Johan Kerstell will succeed Anna Vikström Persson, who, as announced 18 February 2016, will leave Sandvik 1 June 2016.
Johan Kerstell has been with Sandvik since 2004. He currently holds the position as Vice President and Head of Human Resources at Sandvik Coromant. Before joining Sandvik, he worked for Cap Gemini.
“Johan combines a strong business understanding with a strategic perspective and a focus on execution. He has a broad HR experience and a great network within Sandvik. He will play an important role in the further progress of Sandvik and our efforts to secure a culture of customer focus and innovation”, commented Björn Rosengren, President and CEO of Sandvik.
Edited from press release by Harleigh Hobbs
The West Virginia Coal Association (WVCA) has called on West Virginia Democratic Senator Joe Manchin to join with Republican Senators and refuse to consider President Barack Obama’s Supreme Court nominee, Marrick Garland.
In a recent op-ed for the Charleston Gazette-Mail, Manchin called on the Senate to proceed with Garland’s confirmation hearings. The Senate’s Republican leadership had said it would refuse to consider any Supreme Court nomination until after the new president takes office next January.
“We have a responsibility to the American people to fulfill our duties,” Senator Manchin wrote. “Many have argued that Garland will be bad for coal […] Let’s do our jobs and find out. Let’s hold hearings, ask tough questions and see if Merrick Garland can answer them, then let’s cast the right vote.
In response, Hamilton noted Garland’s previous rulings in support of environmental regulation and argued that President Obama would not nominate a candidate likely to overturn the Clean Power Plan – “the self-proclaimed centerpiece of his accomplishments as president”.
“Garland has a record of generally supporting contested EPA regulations since he became a judge on the DC Circuit Court of Appeals,” the WVCA’ Senor Vice President, Chris Hamilton, said in a letter to Senator Manchin.
“Clearly, Obama’s intentions are to appoint a new Supreme Court justice who will tip the balance in favour of his war on coal,” Hamilton continued. “With that backdrop in mind, coupled with all the devastation and pain already inflicted on West Virginia coal miners, their families and communities throughout our great state by this ill-conceived [Clean Power Plan], it simply begs the question: Why do you need public input to guide you in this important vote?”
Garland’s nomination comes after the death of Antonin Scalia last month, who had been a conservative bulwark of the court and part of the majority ruling that kicked out the Environmental Protection Agency’s Mercury Air Toxics Standards regulation last year.
“On behalf of West Virginia coal, our state’s coal miners, their families and our communities, we urge you to vote no on Garland,” concluded Hamilton. “Or better yet, stand with those in the US Senate who refuse to consider any Supreme Court nomination at this time.”
Edited by Jonathan Rowland.
Mongolian coal company, Mongolian Mining Corp., has missed a debt repayment to lenders, including BNP Paribas Singapore and the Industrial and Commercial Bank of China (ICBC), after failing to secure a waiver or forbearance agreement from the lenders.
Payment was due 22 March 2016 after the lenders granted an temporary waiver. Further extensions to the payment date were not secured, however, and the company has now defaulted under the agreement.
The situation also constitutes a cross-default on certain other of the company’s debt, including the US$600 million owed on senior notes due 2017.
“The company has proposed to enter forbearance agreements with both the lenders and the steering committee of the holders of the notes,” the company but could make no guarantee that any agreement would be reached.
As on 23 March, the company had not received any notice from any of its lenders demanding immediate repayment.
“The development is not surprising given the distresses state of the company, Trung Nguyen, a Credit Analysts at Lucror Analytics Pte in Singapore, told Bloomberg. “It has been burning cash rather fast when coal prices keep declining.”
In 1H15, the last period results are available for, it announced a pre-tax loss of US$86 million.
Last September, Moody’s downgraded its ratings on MMC’s debt with Dylan Yeo, Moody’s Lead Analyst for MMC noting the company’s “high risk of probability of default […] as its cash holdings and operating cash flow are inadequate to address its near-term payment obligations.”
With such a bleak background Nguyen was pessimistic about the company’s chances of persuading its lenders to grant a reprieve.
“Lenders will find it increasingly difficult to keep extending the term of the existing facilities, while there is little hope of turning the company around under the heavy debt load,” said Nguyen. “Perhaps by not extending the facilities, and forcing a debt restructuring, the company can emerge with a healthier balance sheet and can start to focus on its operation.”
MMC is the largest privately-owned coal mining company in Mongolia, owning two miners in the Gobi Desert: the Ukhaa Khudag mine, which produced 4.6 million t in 2014, and the Baruu Naran mine, which is bought in 2011.
Lorito Holdings S.à.r.l. (Lorito) and Zebra Holdings and Investments S.à.r.l (Zebra) – two companies controlled by a trust settled by the late Adolf H. Lundin – have entered into subscription agreements effective 22 March 2016 pursuant to which each will acquire by way of private placement directly from Corsa Coal Corp. 25 968 000 common shares of Corsa for a consideration of CAN$0.05 per common share.
Upon completion of these acquisitions, Lorito and Zebra will hold 127 802 667 and 120 908 666 common shares respectively of Corsa representing approximately 8% and 7.6% respectively of the issued capital of Corsa following completion of the proposed private placement announced by Corsa on 22 March 2016.
Lorito and Zebra are joint actors with respect to their holdings in Corsa and have acquired the shares for investment purposes. Each of Lorito and Zebra may from time to time increase or decrease their investment in Corsa depending upon the business and prospects of Corsa and depending upon future market conditions.
Edited from press release by Harleigh Hobbs
The board of directors of Norfolk Southern Corp. has elected Amy E. Miles to serve as chair of the board’s audit committee, effective at the corporation’s 2016 annual meeting of shareholders.
Miles succeeds Karen N. Horn, who is retiring from the board effective that same date.
“Norfolk Southern is fortunate to benefit from such dedicated and independent directors,” James A. Squires, Chairman, President and CEO, said. “We thank Karen for her expansive expertise and steady guidance, and we appreciate Amy’s many contributions as we implement our strategic plan to enhance operating efficiencies, reduce costs, drive profitability, and support long-term growth.”
Miles has served as a Norfolk Southern director since 2014 and will continue to serve as a member of the board’s finance and risk management committee. She has served as CEO of Regal Entertainment Group Inc., the largest movie theater company in the US, since 2009. Prior to that, she served as Executive Vice President, Chief Financial Officer, and Treasurer of the company. Miles joined Regal Cinemas Inc. as Senior Vice President finance in 1999 after working with Deloitte & Touche LLP and PricewaterhouseCoopers LLP. She serves as a Director of Regal Entertainment Group Inc. and Townsquare Media Inc.
Horn has served as a Norfolk Southern director since 2008. She has been a partner with Brock Capital Group since 2003. She served as President of Private Client Services and Managing Director of Marsh Inc., a subsidiary of MMC, from 1999 until her retirement in 2003. She is a former president of the Federal Reserve Bank of Cleveland. Horn serves as a director of T. Rowe Price Mutual Funds, Simon Property Group Inc., and Eli Lilly and Co. She is Vice Chairman of the US Russia Foundation, Vice Chairman of the National Bureau of Economic Research, and a member of the Council on Foreign Relations.
Edited from press release by Harleigh Hobbs
The American Petroleum Institute (API) has attacked proposed plans to regulate methane emissions in the US, saying the measures could hurt the country’s shale gas industry and lauding the natural gas industry’s role in helping to reduce US greenhouse gas emissions.
“Additional regulations on methane by the administration could discourage the shale energy revolution that has helped America lead the world in reducing emissions, while significantly lowering the costs of energy to consumers,” said the API’s Vice President of Regulatory and Economic Policy, Kyle Isakower.
Isakower also highlights the oil and gas sector’s efforts to reduce methane emissions, despite a significant increase in US oil and gas production, “thanks to industry leadership and investment in new technologies.”
This narrative has been challenged however by a new study from the Karlsruhe Institute of Technology (KIT), which linked the rise in US oil and gas production to an increase in atmospheric methane.
According to Professor Ralf Sussmann of KIT’s Atmospheric Environmental Research Division, who initiated the study, the report’s findings directly contradict official estimates from the US Environmental Protection Agency that report low and decreasing methane emissions from the US oil and gas sector over the past 10 yr.
This discrepancy could be a result of the EPA underestimating leak rates for the production and use of oil and gas in the US, Sussman explained. It also calls into question the environmental claims by the oil and gas industry.
“On long-term scales of several decades, natural gas generally is to be expected to have a climate advantage [over coal],” said Sussman. “On shorter time scales, however, this climate advantage already fails to take effect, if the leak rates of natural gas production exceed a relatively low threshold value of a few percent only.”
Ultimately, Sussman concludes, it will be the rate of uptake of leak reduction methods in the US oil and gas sector that will determine whether natural gas offers a greener alternative to coal.
Edited by Jonathan Rowland.
Johannesburg-listed coal producer, Wescoal, expects earnings per share to increase by around 50% y/y for the year ending 31 March 2016, the company said in a recent trading statement.
Under JSE listing rules, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for a period to be reported will differ by more than 20% from the previous corresponding period.
“Once the company has clarity on the actual range of the increase, a further trading statement will be released,” the company added.
Wescoal also used the trading update to provide an update on its black economic empowerment (BEE) shareholding.
According to the company, its BEE shareholding stood at 41% at the end of February 2016. South Africa’s state utility, Eskom, require a BEE shareholding of at least 50% for its coal suppliers – a target that Wesccoal said it was confident of meeting by the 31 December 2016 deadline.
Wescoal recently announced that Waheed Sulaiman was to take over as CEO from 1 April 2016. Sulaiman has been acting CEO since April 2015.
Wescoal owns the Elandspruit coal mine, which has achieved steady-state production of 165 000 tpm ROM. Its Itibane coal mine is also “at an advanced stage of preparation for coal production, which will suitable for sale to Eskom and other domestic customers,” the company said.
Edited by Jonathan Rowland.
A recent decision by the Queensland Land Court ruling that the awarding of costs was outside of its jurisdiction has been criticised by the Queensland Resources Council (QRC) as providing environmental activist a “free ride” to hold up applications for mining licences in lengthy legal proceedings.
The decision came in a case brought by Adani Mining against two conservation groups that had originally objected to the awarding of mining leases to Adani for its Carmichael coal project in Queensland’s Bowen Basin.
Part of the Land Court’s responsibilities includes the provision of recommendations for the grant of mining tenures. The court has, however, become an increasingly common and controversial battleground between mining companies and environmental groups aiming to hold up mining projects.
“I have no doubt that after [this] decision, the green activities and the Environmental Defenders Office will be rubbing their hands together believing they have been granted a licence to rack up costs for resources companies using the Land Court with no deterrent that, if their case is ruled against, they could be liable for the other party’s costs,” said QRC CEO, Michael Roche.
“The QRC once again calls on the [Queensland] government to urgently overhaul the Land Court so that resource projects are not subject to onerous delays that are holding up job-creating projects for Queensland,” Roche concluded.
Edited by Jonathan Rowland.
Armstrong Energy recorded a loss of US$162 million in 2015 on the back of substantially lower revenue from its coal sales.
Revenue was US$82.2 million in 4Q15 to bring annual sales to US$360.9 million – 22.2% and 18.3% lower respectively than the same periods in 2014. The fall in sales revenues comes on the back of falling sales volumes – a result of weak demand.
According to its earnings release, the company sold 7.791 million short t of coal for the year, down from 9.419 million short t in 2014.
Low natural gas prices and warm winter weather in the US hit demand for thermal coal from utilities. Meanwhile, stockpiles of coal at power plants hit record highs, further denting demand for coal from mining companies.
The company is now expecting another fall in coal sales in 2016 as the industries woes persist through the year. The US Energy Information Administration recently forecast that natural gas would overtake coal in the US energy mix for the first time on an annual basis this year.
“Due to the current economic environment, Armstrong has taken steps to rationalize its production to meet current demand levels,” the company said in its results statement. As of 1 March, the company had just 5.6 million short t committed and priced for 2016.
The company also announced steps to preserve liquidity and manage operating costs. It reported US$67.617 million in cash and cash equivalents and US$16.7 million available under its revolving credit facility at 31 December 2015 against current liabilities of US$45.945 million.
“We believe that existing cash balances, cash generated from operations and availability under our revolving credit facility will be sufficient to meet working capital requirements, anticipated capital expenditures and debt service requirements for 2016,” the company said.
The US coal industry has been hit by a swathe of bankruptcies,, including former market leaders Alpha Natural Resources and Arch Coal. Meanwhile, Peabody Energy, the country’s largest coal production, said recently that it may not be able to continue as a going concern after missing an interest payment deadline on 15 March.
Edited by Jonathan Rowland.
Last October, HEAL Utah and Sierra Club publicised a notice of intent to file a lawsuit regarding environmental compliance at Rocky Mountain Power’s Huntington power plant in Emery County, Utah.
In response, Rocky Mountain Power submitted an editorial opinion refuting the claims to The Salt Lake Tribune 30 October 2015. It was published 15 November 2015.
In a press release, Rocky Mountain Power indicated it has a long record of excellent compliance with state and federal environmental laws and is committed to maintain this record. The company has taken proactive measures at the Huntington power plant to ensure compliance with environmental regulations and has obtained the appropriate permits to undertake these actions.
The company pointed out that many of the conclusions the plaintiffs claim from company information or studies are not supported by the facts of the studies themselves.
For many years, the company has dealt with threats and lawsuits by Sierra Club and HEAL Utah.
It believes Sierra Club and HEAL Utah are on record working to immediately stop the use of coal to generate electricity.
Rocky Mountain intends to continue to operate existing coal resources to provide low-cost electricity for its customers as part of its “all of the above” generation resource portfolio.
The Huntington plant operational life currently extends beyond 2030. The gradual, prudent deployment of more natural gas, wind and other renewable resources has been underway for more than 15 years. Since 2001, all the power plants the company has built have been natural gas or wind.
Rocky Mountain Power highlighted that environmental respect is one of its core business principles, which includes compliance with environmental requirements, developing sustainable operations, and respecting its natural resources, while ensuring that it fulfils its commitment to its customers to provide safe, reliable and reasonably priced electricity.
Edited from press release by Harleigh Hobbs
Fred Palmer, the former Senior Vice President of Government Affairs at Peabody Energy and now a Partner in public affairs firm, Total Spectrum/Steve Gordon and Associates, has called on investors to revisit the idea of 21st Century Coal.
Speaking at the Platts Coal Properties and Investment Conference in Ft Lauderdale, Florida, Palmer said that coal demand was likely to increase around the world on the back of growing electricity demand and continued urbanisation.
“Embracing and investing in coal production, transportation and all parts of the coal chain is an investment opportunity of historic proportions,” Palmer said. “Robust electrification has brought untold benefits to the human environment – and 21st Century Coal will continue to fuel social development.”
21st Century Coal includes improving efficiency at existing plants and building new supercritical plants now, as well as working to develop and deploy IGCC and carbon capture, utilisation and storage, with the goal of reducing coal-based emissions to near-zero within a 20 yr timeframe.
Edited by Jonathan Rowland.
Diana Shipping Inc., global shipping company specialising in the ownership of dry bulk vessels, has reduced the aggregate purchase price of the three Panamax vessels, m/v Infinity 9 (tbr. Ismene), m/v Manzoni (tbr. Maera) and m/v Sunshine (tbr. Selina), from US$39.8 million, initially agreed in February 2016, to US$39.265 million, through the signing of two addenda.
The company also signed, through two separate wholly-owned subsidiaries, a term sheet with ABN AMRO Bank N.V. for a term loan facility of up to US$25.755 million to finance the entire acquisition cost of m/v Infinity 9 and m/v Sunshine.
The m/v Infinity 9 is chartered to Glencore Grain B.V., Rotterdam at a gross charter rate of US$7825/day minus a 5% commission paid to third parties, for a period of up to minimum 24 June 2016 to maximum 24 October 2016. This employment is anticipated to generate approximately US$0.74 million of gross revenue for the minimum scheduled period of the time charter.
The m/v Infinity 9 is a 77 901 DWT Panamax dry bulk vessel built in 2013.
Separately, Diana Shipping also announced that consummation of the purchase of m/v Manzoni is still subject to the company obtaining bank financing from the sellers’ existing lenders, for substantially all of the purchase price of the vessel.
Including the newly delivered m/v Infinity 9, Diana Shipping’s fleet currently consists of 44 dry bulk vessels (2 newcastlemax, 14 capesize, 3 post-panamax, 4 kamsarmax and 21 panamax). The company also expects to take delivery of one panamax dry bulk vessel by the end of March 2016, one panamax dry bulk vessel by the end of April 2016, one new-building newcastlemax dry bulk vessel during the third quarter of 2016, as well as one new-building newcastlemax dry bulk vessel and one new-building kamsarmax dry bulk vessel during 4Q16.
Edited from press release by Harleigh Hobbs
The Mining Association of Canada (MAC) has welcomed the new Liberal government’s investment in key priorities that facilitate the responsible growth of mining in Canada.
“Budget 2016 makes appropriate investments to enable the continued sustainable development of Canada’s mining sector,” stated Pierre Gratton, MAC’s President and CEO. “Canada’s mining industry, a world leader in sustainability standards and practices, supports the Government of Canada’s priorities of a clean growth economy and reconciliation with Indigenous peoples.”
The budget addresses a number of issues that MAC has raised with the new government, including:
- Investments in key regulatory agencies, such as the Canadian Environmental Assessment Agency (CEAA) and Fisheries and Oceans Canada, that will help ensure sufficient capacity exists to carry out efficient regulatory reviews of major mining projects.
- Funding to support CEAA’s capacity to undertake meaningful consultations with Indigenous groups.
- New, long overdue investment in Natural Resources Canada’s science laboratories that promises to support new partnerships in clean technology and innovation with the mining sector.
- Support for the Canadian Northern Economic Development Agency to continue its role in supporting northern regulatory efficiencies.
- Renewal of the Mineral Exploration Tax Credit at a critical time for Canada’s junior exploration sector.
- Resolving a tax irritant of double taxation of Greenhouse gas emission allowances.
MAC also indicated that the Liberal government’s first budget also makes historic investments towards reconciliation with Indigenous peoples, including significant investments in education, skills training and in social and economic infrastructure. These investments are important building blocks for accelerating the participation of Indigenous Canadians in the mining industry.
“Mining is proportionally the largest private sector employer of Indigenous Canadians and is actively implementing over 265 agreements with Indigenous communities across Canada,” stated Gratton. “MAC members recognise that Canada’s Indigenous peoples are key partners. Today’s investments will increase the ability of Indigenous Canadians to participate in, and benefit from, the opportunities offered by mineral exploration and mining development.”
MAC welcomes the government’s proposed CAN$1 billion commitment over four years, starting in 2017 – 2018, to support clean technology and innovation in the natural resources sectors, as well as the CAN$800 million to support innovation networks and clusters.
MAC and its partner, the Canada Mining Innovation Council, looks forward to working with the government to implement its Innovation Agenda in the mining sector.
Budget 2016 also allocates significant funding to support infrastructure investments. The mining sector is hopeful that future infrastructure planning will include a focus on improving Canada’s trade corridors and investing in northern infrastructure to encourage new mineral development and improve the economic opportunities for northern communities.
Edited from press release by Harleigh Hobbs
Hallador Energy Co.’s wholly owned subsidiary, Sunrise Coal LLC (Sunrise), completed the purchase of certain underground coal reserves and a coal sales agreement associated with Triad Mining, LLC’s (Triad) Freelandville mining complex. Triad is a wholly owned subsidiary of Blackhawk Mining LLC based in Lexington, Kentucky.
The Freelandville complex is located in Sullivan and Knox Counties, Indiana, US. As part of the transaction, Sunrise is purchasing more than 14 million short t of proven and probable leased and owned coal reserves and associated advanced royalties in addition to rights under a coal sales agreement that extends through 2017. In consideration for the sale, Triad will receive US$18.25 million.
All reserves purchased in the transaction are contiguous to the Oaktown 1 mine reserve and will be mined from the Oaktown 1 mine portal. The purchase of the Freelandville reserves grants Sunrise access to tons they already controlled but did not previously include in their reserve base.
Hallador’s President and CEO, Brent Bilsland, stated: “This transaction increases our reserve base at our lowest cost mine and creates a solid foundation of sales going forward. We feel this investment ensures the low-cost position of the Oaktown mine and solidifies the employment of our dedicated miners.”
Edited from press release by Harleigh Hobbs
The New South Wales (NSW) Department of Planning and Environment has approved a plan to expand underground mining operations at Glencore’s Ulan coal mine in the western coalfields of NSW.
According to a press release from the Department of Planning and Environment, the key assessment issues included “potential subsidence impacts, groundwater and surface water impacts and the effects of Aboriginal heritage sites and biodiversity values.”
“The department has closely assessed all issues raised during consultation and addressed these concerns in its assessment and conditions of approval,” the press release continued.
“The company is required to meet strict subsidence performance measures and update all approved management plans to reflect the changes to the mine, including the water, biodiversity and heritage management plans.”
The changes to the mine plan will allow the mine to extract a further 13 million t of coal and increase the project area by 275 ha. It also extends the life of the operation by two years until 2033.
The department received seven submission regarding the proposed mine expansion, including one public objection. Five submissions were received from the state government agencies with no objections.
Ulan coal mine is a joint venture between Glencore, which owns a 90% stake, and Mitsubishi Development.
Edited by Jonathan Rowland.
New Hope Corp’s oil and gas business continued to weight heavily on the company’s results. The company recorded a AUS$15.988 million loss in its oil and gas business on an AUS$10.52 million writedown fn its oil producing and exploration assets.
Overall, the company recorded a profit of AUS2.723 million for the six months ending 31 January 2016 compared to a loss of AUS$23.139 million over the same period in 2015 when its oil and gas losses had been significantly higher at AUS$41.079 million.
Since the oil price decline began in Sep/Oct 2014, the oil price has dropped from circa AUS$110/bbl to AUS$51/bbl in January 2016, an overall drop of 54% in Australian dollar terms,” the company said, more than offsetting the increase in production at its Bridgeport Energy subsidiary.
Excluding non-regular items, the company made a pre-tax profit of AUS$20.2 million on earnings of AUS$49.2 million with net cash generation of AUS$33.6 million.
New Hope’s coal mining operations produced s.53 million t of coal over the six month period, 11.9% lower that the previous year on the back of bad weather at both its Jeebropilly and Acland sites, as well as changing geological conditions at Acland.
Coal production is expected to jump significantly in the second six month of the financial year on the inclusion of output from the company’s newly-acquired stake in the Bengalla mine.
“Market conditions for Australian coal producers are challenging at present,” said New Hope’s Managing Director, Shane Stephen. “However, New Hope has efficient operations and is in a robust financial position, so we are well placed to see out the current downturn and take advantage of these conditions to grow the business in the future.”
Looking forward, the company said that it was seeing signs that Asian seaborne thermal coal markets were stabilising with demand for high-quality Australian thermal coal remaining firm from traditional importers such as Japan, South Korea and Taiwan.
However, it noted that there remained “no consensus regarding the future direction of thermal coal prices with a great divergence of views”.
Edited by Jonathan Rowland.
Wescoal Holdings Ltd has appointed Waheed Sulaiman as the company’s new CEO.
Sulaiman joined the coal mining and trading group in 2014 as Commercial and Strategy Director responsible for the development and implementation of the long-term strategies while heading up the risk, compliance and business development portfolios of the mining and trading divisions.
Early in 2015, he was appointed group Executive Director and acting CEO. Before his appointment, he worked in various roles at BHP Billiton, including assignments in South Africa, Chile, Turkey and Australia.
“In the past year, we have stabilised the group and moved towards meeting the expectations of all stakeholders, while holding transformation goals firmly in our sights. I continue to be excited about the prospects of adding value to Wescoal’s growth path and welcome the challenge of heading up an experienced team of professionals.”
Edited from press release by Harleigh Hobbs
As of 1 May 2016, Mikko Puolakka, M.Sc. (Econ.), (b. 1969) will take on the role of Cargotec’s Chief Financial Officer (CFO). He will be a member of the Executive Board and report to CEO Mika Vehviläinen.
Cargotec’s current CFO Eeva Sipilä is to take up the position of CFO at Metso Corp. in the beginning of August.
Puolakka previously held the positions of CFO at Outotec Oyj and CFO at Elcoteq SE, as well as several financial management positions in Elcoteq and in the Huhtamaki Group.
“I warmly welcome Mikko to Cargotec. He brings with him a solid experience in wide-scale financial leadership and development. I expect a strong contribution from him to the company strategy execution and to further development of our financial processes,” said Cargotec’s CEO Mika Vehviläinen.
“Cargotec’s global business, the further development of financial management and the possibility to participate in a central role to the realisation of company targets will make my work particularly interesting. I am excited to join Cargotec, a company that is a recognised leader in its field,” commented Puolakka.
Edited from press release by Harleigh Hobbs
Royal Energy Resources has purchased additional equity in Rhino Resource Partners, bringing its stake in the US coal company to 86.9%.
According to a Rhino press release, Royal was issues 60 million common units in the partnership for an initial payment of US$2 million and a promissory note payable to the partnership of US$7 million payable in three installments.
The purchase was designed to meet certain demands from Rhino’s senior secured lenders, as well as to bring Rhino back into compliance with the New York Stock Exchange’s (NYSE) continued listing requirements.
Rhino will seek relisting on the NYSE at a hearing before the NYSE Regulatory Oversight Committee on 20 April.
“Royal’s agreement to purchase additional Rhino equity demonstrates their commitment to the long-term stability and growth of the partnership,” said Joe Funk, President and CEO of Rhino’s general partner, Rhino GP LLC.
“This equity transaction also displays Rhino and Royal’s commitment to regain compliance with meeting the NYSE continued listing standards so that Rhino’s units can resume trading on the NYSE,” Funk concluded.
Under the terms of the agreement, the second and third installments of Royal’s equity purchase may be rescinded by the board of Rhino GP LLC should it determine that Rhino Resource Partners no longer need the capital. Under such circumstances, Royal would then not acquire the 13.3 million common units associated with each installment.
Rhino Resource Partners owns coal and energy-related assets in the US. It produces both metallurgical and thermal coal in a number of US coal basins, as well as leasing coal through its Elk Horn subsidiary.
Edited by Jonathan Rowland.
The Senate Majority Leader Senator Mitch McConneell of Kentucky has written to the National Governors Association urging them to take a “wait-and-see” approach to implementing the Environmental Protection Agency’s (EPA) Clean Power Plant (CPP).
“Given the Supreme Court’s recent stay of the CPP and the painful lesson of MATS, “wait-and-see” remains the most responsible approach today,” Senator McConnell said.
Under the Mercury and Air Toxics Standards (MATS) utilities were forced to comply with regulation before legislation against it had run its course – resulting in the closure of many coal-fired power plants despite the Supreme Court eventually ruling against the regulation.
The regulation is currently being reviewed by the DC Circuit Court of Appeals but it likely to end up before the Supreme Court for a final decision.
“Moving forward, I hope that each of you will consider taking advantage of the relief granted by the Supreme Court and keep in mind that many of us in Congress stand ready to help you as you fight for the best interests of your states,” Senator McConnell concludes.
Edited by Jonathan Rowland.
Ann A. Adams has been named Vice President Human Resources at US transportation company, Norfolk Southern Corp., effective 1 April 2016.She succeeds Juan K. Cunningham, who retired earlier this year.
Adams will be responsible for all employment planning and staffing, employee development, employee benefits, compensation, Equal Employment Opportunity compliance, and employee assistance programs and medical services. Her office is in Norfolk.
Adams joined Norfolk Southern in 2001 as a Human Resources Manager and subsequently served in a number of HR roles, including recruiting, employee development, planning, and human capital management relating to SAP implementation. Since 2012, she has served as assistant vice president human resources.
Cunningham joined a Norfolk Southern predecessor railroad in 1973 and served in a wide variety of HR roles, retiring as Vice President on 31 January 2016. His service included an assignment as Assistant Vice President Executive Office, where he coordinated administration of the chairman’s office.
Edited from press release by Harleigh Hobbs
By EDWARD WONG
March 22, 2016
BEIJING — China’s consumption of coal, a major contributor to and the country’s horrific air pollution, is worsening a severe water shortage in the northern part of the country, said in a released Tuesday.
’s coal-fired power plants consume more water where water is scarce than plants in any other country, according to the report, which assessed global water depletion from coal use.
A decades-long drought in northern China — home to the bulk of the country’s coal production and consumption — is worsening, and the central and local governments are grappling with massive desertification. Officials have relocated millions of people. Beijing, the capital, where more than 20 million people live, has extremely low water levels.
The problem is so severe in the north that China has built an enormous series of canals, the , to transport water hundreds of miles from the Yangtze River.
Greenpeace said the continuing burning of coal for power plants and factories in northern China, along with the growth of the coal-to-chemicals industry, is exacerbating the water crisis. In much of northern China, people are using water faster than it can be regenerated, Greenpeace said, “posing a serious threat to local ecology.”
At the end of 2013, China had 45 percent of the world’s coal-fired power plants, with a total installed capacity of 358 gigawatts, according to a summary of findings in the 60-page report, “The Great Water Grab.” Nearly half of the plants were in water-scarce areas, and those had a total annual water consumption of 3.4 billion cubic meters, enough to meet the basic needs of about 186 million people, the researchers found.
Across all of China, coal-fired power plants consume 7.4 billion cubic meters of water each year, enough to meet the needs of 406 million people, or about 30 percent of the nation’s population, according to the report.
Plants proposed for construction would worsen the problem, the report found. Half of those plants, which would have a total installed capacity of 237 gigawatts, would be built in water-scarce areas. They would consume 1.8 billion cubic meters of water, equal to the annual needs of 100 million people, the report said.
“In China, an overlapping of rich coal reserves, water scarcity and fragile ecosystems makes the problem especially pronounced,” Harri Lammi, a Greenpeace senior global campaigner on coal, said in a written statement. “Yet China continues to expand coal power plants in these regions. This must be halted.”
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On a global scale, the study found that based on 2013 data, the world’s 8,359 existing coal-fired power plants consumed 19 billion cubic meters of fresh water per year, enough to meet the needs of more than one billion people — one-seventh of the world’s population. Adding in water used for coal extraction and washing, about 23 million cubic meters of fresh water are consumed each year.
Globally, about a quarter of existing and proposed plants are in areas with high water stress, the report said.
For months, Greenpeace the Chinese government to stop construction of all coal-fired power plants. Greenpeace East Asia, based in Beijing, recently that said Chinese officials last year granted environmental permits for 210 new and proposed coal-fired power plants. The plants would cost about $100 billion to build, and they would worsen the country’s huge overcapacity in coal-fired power plants.
China’s economic growth is slowing, coal use in the last two years, and the country’s coal-fired plants are, on average, operating below half-capacity. Chinese representatives of nonfossil-fuel energy sectors have criticized the glut of such plants and the proposals to build more.
The burning of industrial coal is the biggest source of air pollution and carbon dioxide emissions, the greatest contributor to climate change. China accounts for half of global coal consumption each year and is the largest emitter of carbon dioxide and other greenhouse gases; the United States is second.
To fight air pollution in cities, the government has ordered limits on coal use in eastern population centers. The government is establishing 14 large coal “bases” around the country where coal use will be concentrated. Nine of these bases are expected to produce energy for the eastern regions. Three of the bases are in the upper and middle reaches of the Yellow River in northern China, where water is already scarce.
“All of these industries are extremely water-intensive and a high source of water pollution,” the new Greenpeace report said.
China has said it plans to at 4.2 billion metric tons by 2020. The Greenpeace report said “a more ambitious coal consumption cap would be needed to avoid a deepening water crisis in the driest coal bases of China.”
After China, the top countries with the highest water consumption by coal-fired plants in water-scarce areas were India, the United States, Kazakhstan and Canada. China also tops the list for proposed coal-fired plants in water-scarce areas, followed by India, Turkey, United States and Kazakhstan.
The Greenpeace report was based on modeling done by a Dutch engineering firm, . Data on existing and proposed coal-fired power plants at the end of 2013 was drawn mainly from .
Shape smarter change with today’s release of Atlas 3.0, Hexagon Mining’s complete package for activity scheduling and stockpile management. Atlas provides a resource-based, true calendar approach to scheduling and handles material movement and reclaim.
Using the Destination Optimization functionality in Atlas, set grade, volume or tonnage constraints for destinations to optimise reclaim parcels routed from stockpiles. The optimisation results can be manually modified to allow more control over the reclaimed material and generate more practical schedules.
Flexible and powerful, Version 3.0 of Atlas allows users to exploit a combination of manual and optimised routing solutions in a single setup to generate more practical schedules.
“Atlas embodies Hexagon Mining’s vision of integration,” said Glenn Wylde, EVP of Technology and Innovation. “It’s a powerful, easy-to-use scheduler that connects seamlessly with haulage calculations, reserves, and visualizations. It quickly delivers scheduling scenarios via MineSight 3D.
“Our Planning suite continues to push technology and integration boundaries. The future of mining depends on companies harnessing emerging technologies and connecting previously isolated information. Atlas demonstrates this clearly by seamlessly integrating with longer horizon schedules, drill and blast designs, grade control, ERP data, and plan execution.”
Wylde added that Atlas bridges the gap with operations, driving the schedule with real productivities directly from Hexagon Mining’s fleet management system. “We have leveraged IBM’s ILOG CPLEX® for many years with MineSight Schedule Optimizer, and now Atlas delivers the same optimising power to short-term and underground schedules.”
Version 3.0 introduces a new license for Atlas integrated with CPLEX.
Use the engine to achieve optimised solutions for stockpile blending challenges and meet the quantity and quality requirements at target destination(s), such as processing plants.
Production scheduling focuses on extracting mining blocks, but stockpiled materials must also be blended before concentration. Blending challenges pervade medium and short-term scheduling, where mining engineers must reduce grade fluctuations in the materials reclaimed from stockpiles and the quantity of the reclaimed material to satisfy demands in tonnage, volume, and composition.
Edited by Jonathan Rowland.
The House recently advanced the Satisfying Energy Needs and Saving the Environment (SENSE) Act, H.R. 3797, which would prevent the Environmental Protection Agency (EPA) regulations from blocking operations at the 19 coal refuse-to-energy facilities in the US.
The Act advanced with a vote of 231 to 183.
Coal refuse-to-energy facilities recycle coal refuse to create affordable and reliable electricity, and in this process help clean up the communities in which they are located. Two EPA regulations that denote emissions limits currently apply to these facilities and therefore could threaten their operations. The SENSE Act is thus seeking to protect these facilities.
“Through American ingenuity, coal refuse-to-energy plants have been developed that actually use this harmful waste product to generate electricity,” US Rep. Fred Upton (R-MI), who chairs the Energy and Commerce Committee, said. “Unfortunately, there are two EPA rules targeting all coal-fired power plants that are causing some problems. The SENSE Act would allow these coal refuse-to-energy plants to continue operating, to the great benefit to the communities where these facilities are located.”
The Sense Act is sponsored by US Rep. Keith Rothfus (R-PA).
Edited from press release by Harleigh Hobbs
Flexicon has released a new TIP-TITE® mobile drum tipper that allows dust-free transfer of bulk materials from drums into process equipment and storage vessels.
Ready to plug in and run, it is mounted on a mobile frame with quick-action floor jacks for stable operation anywhere in the plant.
A hydraulic cylinder raises the drum carriage, which seals the drum rim against a discharge cone, after which a second hydraulic cylinder tips the carriage-hood assembly and drum, stopping at a predetermined dump angle of either 45, 60 or 90 degrees with a motion-dampening feature.
As the assembly approaches its fully-tipped position, the outlet of the discharge cone mates with a gasketed receiving-ring inlet fitted to existing process equipment or to the lid of an optional hopper with integral pneumatic, tubular cable or flexible screw conveyor, creating a dust-tight seal.
Once the discharge cone is seated against the gasket, a pneumatically-actuated slide gate valve opens, allowing material to enter the receiving vessel.
The unit accommodates drums from 114 to 208 litres weighing up to 340 kg and measuring 91 to 122 cm in height.
An optional pneumatically-actuated vibrator on the discharge cone promotes complete evacuation of non-free-flowing materials.
The drum tipper is available constructed of mild steel with durable industrial finishes, with material contact surfaces of stainless steel, or in all-stainless steel finished to food, dairy, pharmaceutical or industrial standards.
Edited from press release by Harleigh Hobbs
