Chinese coal prices could rebound this year, according to a new market report from China Coal Resource. Prices for thermal coal could rise RMB30 – 45 per tonne this year, while metallurgical coal may climb by RMB45 – 60 per tonne.
“The anticipated turnaround is mainly due to reduced supply and potentially higher production costs as a result of the central and local governments’ efforts to cut excess capacity amid weak demand,” China Coal Resource said.
The State Council has announced plans to cut coal capacity by 1 billion t over the next five years, making RMB100 billion available to support coal and steel industry workers laid off as a result of these cuts and cuts to the country’s steelmaking capacity.
According to China Coal Resource, China produced 513.6 million t in January/February – a 6.4% y/y fall on the back of longer-than-expected production suspensions during the Lunar New Year holidays in February.
Rising prices could help boost China’s demand for imports, added China Coal Resource, which have dropped dramatically in recent years on the back of weakening demand for coal in the country.
Edited by Jonathan Rowland. Source: China Coal Resource.
Canada-focused anthracite company, Atrum Coal, has announced a loss for the half-year to 31 December 2015 of AUS$5.61 million as it continues to progress exploration and development work at its Groundhog anthracite project in British Columbia.
The Groundhog project is located in the Groundhog Coalfield in the northwestern part of the state and comprises 46 coal licences and 40 coal lease applications.
The company aims to produce high-grade and ultra-high-grade anthracite, as well as ultra-low volatile PCI for supply for supply to the export markets with a focus on Japan, South Korea, China and Europe, as well as the Americas.
In order to progress development of the project, the company is in discussions with a US fund, as well as various high-net-worth parties, regarding funding options with the aim of increasing available cash reserves.
Edited by Jonathan Rowland.
BC Anthracite has been awarded 36 coal licences in the Groundhog Coalfield of British Columbia. The area covered by the licences has been named Groundhog South.
“This is a tremendout milestone for the company and we are excited to secure such a dominant position in the world’s largest high-grade anthracite basin,” said BC Anthracites’ Gino D’Anna.
“The speed at which we have been able to navigate the regulatory process is testament to the strong support of government and community stakeholders for our economic plans for the region.”
The BC Anthracite tenements are located adjacent to coal licences held by Atrum Coal, a company founded by Gino D’Anna and BC Anthracite Chairman, Russell Moran. D’Anna and Moran were forced to resign from the board last year after a boardroom dispute but remain shareholders in the company.
The boardroom battle now appears to have been dragged in the courtroom with Atrum Coal saying in its most recent interim financial results that the company is now “engaged in litigation in the Federal Court against two former directors of the company and a former employee in relation to the formation of BC Anthracite.”
Another legal action brought by “the two former directors” – presumed to D’Anna and Moran, although Atrum Coal does not name them specifically – is also ongoing in the Supreme Court of Western Australia.
Groundhog South has been estimated to contain an exploration target of 2.3 – 3.8 billion t of anthracite. The company now aims to begin inferred and indicated resource drilling in July 2016 to further define the project’s resources. Infrastructure and marketing studies to support a scoping study are also expected to begin by the end of the year.
BC Anthracite also said it had port access agreement with Stewart World Port (SWP) under which the company will be allowed to load and ship up to 5 million tpy of anthracite through the SWP terminal starting in 2018.
SWP is a newly constructed deep-sea port located at the head of the Portland Inlet on the border between British Colombia and Alaska, US, about 150 km from the Groundhog South project.
The port is able to accommodate panamax-size vessels and is a day and half dialing slower to Asian markets that Port Metro Vancouver.
Edited by Jonathan Rowland.
TerraCom has announces a post-tax loss of AUS$71.4 million on the back of significant writedowns to its Australian and Mongolian assets, foreign exchange losses and finance costs.
The company took non-cash impairment charges of AUS$13.36 million on its non-producing Australian tenements and AUS$3.75 million on its non-producing tenements in the Mid Gobi region of Mongolia. It also wrote down its producing assets in the South Gobi region of Mongolia, which includes the BNU metallurgical coal mine, by AUS$19.7 million.
The writedowns reflect the current downturn in the coal markets – a downturn the company believes may have reached its bottom after rallies in the price of Chinese steel and global iron ore prices. “As a result of the relationship of metallurgical coal with these, it is recognized that these rebounds are positive to the metallurgical coal market,” the company said.
The company also recognised a AUS$7.9 million non-cash foreign currency exchange loss related to its US dollar denominated loans. A further AUS$16 million related to interest and finance costs.
The impairment charges have seen the value of the company’s asset base fall to negative AUS$44.95 million at the end of the half-year period from AUS$26.5 million in June 2015. Cash on hand at the end of the period was AUS$0.4 million – down from AUS$0.7 million in June 2015 and the company continues to renegotiate payment terms with creditors to manage working capital and short-term funding requirements.
The company continues to review a number of cash-production operations for acquisition to support the company’s cash flow. Negotiations over mines in Australia and Indonesia are underway, as well as options to take over producing Mongolian assets as the ‘mine operator’.
A number of financing events subsequent to the end of the reporting period have also improved the companies balance sheet including the converting of some debt to equity and the waiving of US$13.2 million (AUS$18.1 million) in interest and fees.
“Had these events occurred prior to 31 December, the Balance Sheet would have been reported in a more favourable position,” said the company.
Edited by Jonathan Rowland.
Australian underground coal contractor, Mastermyne Group, has announced improved half-year results for 2H15. The group announced a loss of AUS$0.5 million for the six months to 31 December 2015 compared to a loss of AUS$5.8 million over the same period the year before.
Revenue was up 28% to AUS$99.7 million with earnings up 73% to AUS$3.5 million. The company also reduced its debt by AUS$2.5 million over the period.
“All things considered we are pleased to have delivered a resilient performance amidst the tough conditions being experienced across the resources sector at this time,” said Tony Caruso, Mastermyne’s Managing Director. “Our Underground Division has again delivered a robust results and we are confident that we have built a solid platform, which will enable us to continue to generate cash returns.”
The mining business delivered revenue of AUS$77.4 million over the period, a 15% increase on the year before. Earnings stood at AUS5.5 million, an increase on 45%.
“The Mining division has delivered a strong financial result and continues to perform across all other key metrics,” the company said. New contracts were signed with Rio Tinto’s Kestral mine and BHP Billiton’s Appin colliery over the half-year period. It also added strata stabilisation to the list of services it can offer to mining clients.
The company has also undertaken several due diligence roles as companies explore acquisition opportunities.
“Whilst this comes at some cost to the business, it strategically places us in a strong position to become the operator of the mine if the transaction completes. We currently have in excess of AUS$355 million of opportunities in this area and will continue to focus on this as a key strategy to bring on new work through the cycle.”
Meanwhile, its Mastertec maintenance and engineering division continues to suffer from the deferral of maintenance and engineering spending. It reported negative earnings of AUS$2.2 million – down almost 30% y/y.
Mastermyne’s mining order book currently stands at AUS$159.1 million, while Mastertec has AUS$26.7 million of orders on book. Of this, about AUS$55 million will be delivered in the six months to June 2016.
Edited by Jonathan Rowland.
Graeme Booth has advised the Board of Malabar Coal Ltd that he will resign as Managing Director as of 8 April 2016.
Booth has chosen to pursue other non-resource related business interests and relinquish his Board position as Managing Director at the same time.
Malabar’s Board has thanked Booth for his contribution to the development of the Spur Hill underground metallurgical coal project.
The Board has secured Booth’s ongoing services as a consultant. Retaining the value of his extensive knowledge and industry relationships related to Malabar’s ongoing activities.
A new Managing Director has not been selected yet but the company will make this replacement soon. While this is decided, Booth’s responsibilities will be distributed across Malabar’s management team and directors.
Edited from press release by Harleigh Hobbs
Australian Pacific Coal Ltd (AQC) – the company briefly led by former coal billionaire, Nathan Tinkler, before his bankruptcy forced him to resign – has announced a loss of US$ 2.1 million for the six months to 31 December 2015.
The company, which is in the process of acquiring a majority interest in the Dartbrook coal mine from Anglo American, also reported AUS$15.1 million in net assets at the end of the period.
The Dartbrook acquisition includes an AUS$25 million cash payment and a royalty on AQC’s share of coal production set at AUS$3 per tonne up to a maximum of AUS$25 million. The company will also replace about AUS$7.7 million in financial assurances in respect of the Dartbook mining tenements.
AQC has the secured the funding for the acquisition and expects the purchase to be completed in mid-2016 – subject to the satisfaction of the outstanding conditions.
Nathan Tinkler, who made his fortune betting on the Australian coal industry at the height of the boom and who spearheaded the Dartbrook acquisition, resigned as CEO of Australian Pacific Coal in February after being declared bankrupt. Australian regulations prohibit a person who is bankrupt from holding a corporate directorship.
Edited by Jonathan Rowland.
South African-focused coal company, Universal Coal, has announced a post-tax profit of AUS$17.6 million in the six months to 31 December, according to the company’s interim financial report. This compares to an AUS$4.1 million loss over the same period in 2014.
The company’s operating profit was AUS$6.6 million, “a substantial imrovement on the corresponding interim loss of AUS$2 million,” said Universals Chairman, John Hopkins OAM. Despite this, the company was “slightly disappointed” that results were lower than anticipated “due to the lower production at the company’s Kangala Colliery, following the pit reconfiguration”.
After translating foreign operations and accounting for the effects of exchange rate difference, the company has “reflected a comprehensive loss after tax of AUS$4.5 million,” continued Hopkins. “This is after posting a negative effect of translation of foreign operations of AUS$22.2 million as a result of a 21% devaluation in the South African rand, which is the functional currency of the underlying business subsidiaries.”
The company’s focus is now on returning its Kanala mine to steady-state production, while also bringing its NCC asset into production. Both of these aims are expected to be realised in 2H16.
“While we are disappointed by delays to the re-commissioning process [at NCC], we believe that these will soon be overcome, providing a substantial boost to group production, earnings and cashflow for years to come,” said Hopkins.
Universal is currently under offer from Coal of Africa (CoAL) with 53.2% of its shareholders approving CoAL’s offer as of 3 March. The offer deadline is 15 April.
Edited by Jonathan Rowland.
Adani has successfully concluded the final landholder compensation agreement relating to the company’s planned Carmichael coal mine.
The AUS$21.7 billion Carmichael coal project lies at the heart of the company’s investments in Australia.
This agreement allows for the inclusion of land within the surface area of the mining lease.
Minister for State Development and Minister for Natural Resources and Mines, Dr Anthony Lynham, told Parliament that mine proponent Adani now had 16 permits and approvals at local, state and federal level, including six primary approvals.
The port element of the mine, rail and port project, the expansion of the Abbot Point coal port near Bowen, also had progressed, Dr Lynham told the House.
Welcoming the news, Queensland Resources Council Chief Executive Michael Roche said: “This is yet another milestone as these important projects continue to progress. And as the QRC has regularly stated, these important economic opportunities benefit all Queenslanders, not just those in the regions”.
Austmine Chief Executive Officer Christine Gibbs Stewart added: “It’s vital for the mining, equipment and technology services sector to see projects like Carmichael and its related infrastructure come to fruition – our members are the cornerstone of many communities throughout Queensland, and for that reason we’re pleased to see that the mine is now one step closer, so that the benefits of this important project can be realised.”
“These latest approvals demonstrate how the Palaszczuk Government continues to work behind the scenes to properly progress these Galilee Basin mine projects,” Lynham said.
“My department has advised that it is awaiting confirmation from Adani that the agreement can now be filed in accordance with the Mineral Resources Act.Once that occurs, I will be able to consider the application for the mining leases in the same way as for any other project.”
“The other milestone the mine, rail and port project has achieved is the last key state-based approval for dredging for the Abbot Point expansion. The next step for Abbot Point is for Adani to finalise approvals for the rail in-loading facilities, onshore stockpile yards and offshore wharves and this is now underway,” he continued.
Dr Lynham said the progress had been achieved while meeting the Palaszczuk Government’s commitment to protect the Great Barrier Reef.
“I reiterate our election commitment here again today: there will be no dredging at Abbot Point until Adani demonstrates financial closure,” he concluded. “Queensland taxpayers will not fund this infrastructure.”
Edited from press release by Harleigh Hobbs
The coal industry has reacted strongly to claims by Hilary Clinton, who is running to be the Democratic nominee in this year’s US presidential election, that should be elected “we’re going to put a lot of coal miners and coal companies out of business”. Clinton made the remarks at a town hall event in Ohio broadcast on cable news channel, CNN.
“Hillary Clinton’s callous statements about coal miners, struggling under the weight of a hostile administration, are reprehensible and will not be forgotten,” said the Ohio Coal Association in response in a statement posted on the association’s Facebook page.
“The way Secretary Clinton spoke so nonchalantly about destroying the way of life for America’s coal families was chilling”
The National Mining Association also hit out at Clinton’s comments with its President and CEO, Hal Quinn, calling the remarks “surpassing strange and deeply troubling to hear” and accused Clinton of being “completely out of touch with working Americans and the industries that employ them.
Adding its voice to the chorus of criticism, the American Coalition for Clean Coal Electricity said that coal “played a tremendous role in powering homes and developing communities.”
“By flippantly writing-off the well-being of countless coal miners, their families and all of those involved in the coal-based electric industry, Secretary Clinton is showing Ohio voters her true colors,” the ACCCE concluded.
Since the remarks were made, Clinton’s campaign has tried to undo some of the damage with Brian Fallon accusing Clinton’s detractors of taking the words out of context.
“Obviously she was making the exact opposite point: that we have to take proactive steps to make sure coal workers, their families and their communities get not just the benefits they’ve earned, but also the future they deserve,” Fallon told CNN.
Coal is a key issues in Ohio – a key swing state in this year’s presidential election – and Clinton will be keen to do well in the state’s primary today. Polls show she holds a double-digit lead over her rival for the Democratic nomination, Bernie Sanders.
Edited by Jonathan Rowland.
Queensland’s Parliament has supported the approval of Adani’s Carmichael coal project in the Galilee Basin after a motion supporting the approval of all state government approvals was passed with cross party support.
The motion was tabled by Lawrence Springborg, Leader of the Liberal National Party Opposition, and called on the Labor government to “immediately provide all state government approvals necessary for Adani’s Carmichael mine to proceed to help drive the creation of thousands of jobs for central and northern Queensland.”
The Carmichael project includes a 60 million tpy opencast coal mine with an associated rail link to an expanded Abbot Point port, through which coal would be exported to India.
Speaking in Parliament, the Minister for State Development and Natural Resources and Mines, Anthony Lynham, said that the government “strongly supports the sustainable development of the Galilee Basin for the jobs and economic development it could provide for regional Queensland.”
Defending the government’s record, Dr Lynham also noted that the government and the independent Coordinator General were working with Adani to “facilitate their approvals in accordance with statutory obligations” but that the projects mining leases could only be approved when compensation agreements had been reached.
“My focus is to do this thoroughly. Statutory assessments and decision-making process must be robust and comprehensive to minimise any risk of legal challenge,” concluded Dr Lynham, acknowledging the significant legal opposition the project has already and would continue to face.
Dr Lynham also appeared to rule out any attempt to fast track project approval, saying: “I can assure the people of Queensland, particularly those who want the jobs and economic development that this project could offer: I will only make decisions armed with all of the relevant facts, and with careful and detailed consideration.”
The Queensland government has already said the approval of the project would be subject to its election commitments to protect the Galilee Basin’s Caley Valley Wetlands and the Great Barrier Reef World Heritage Area from damage associated with the construction of the mine, railway and Abbot Point port. This includes a prohibition on dredge work at Abbot Point, which lies close to the Great Barrier Reef, until funding has been put in place to support all elements of the project.
The government has also said that it would not provide public money to fund infrastructure development for the project.
Edited by Jonathan Rowland.
Mongolia-focused coal company, Aspire Mining, has released its 2H15 results, announcing an after-tax loss of US$1.27 million for the six months to 31 December.
This compares to an US$11.8 million loss over the same period in 2014 – a result that was impacted by a US$10.2 million writedown on its Northern Railways subsidiary.
Aspire Mining holds stakes in various metallurgical coal projects in Mongolia, as well as a rail project in northern Mongolia though Northern Railways. It is the largest coal tenement holders in the Orkhon-Selenge Coal Basin in northern Mongolia, were its fully-owned Ovoot project and 50%-owned Nuurstei project are located.
At the end of 2H15, Aspire had US$1.4 million in cash and cash equivalents compared to US$4.0 million at the end of June 2015.
Edited by Jonathan Rowland.
The CEO and Managing Director of Delta SBD Ltd, Stephen Bizzaca, has decided to step down from his role.
The board has announced that Neville McAlary will take over as CEO in April 2016.
Bizzaca will continue as Managing Director for an interim period and afterwards will remain as a Director and assist McAlary as required on special tasks.
McAlary joins Delta with extensive experience in underground coal operations and business management. In his 35 yrs in the mining industry, Neville has held a number of senior and executive positions with Glencore (Xstrata Coal) and Peabody in Australia. His experience includes operational management of an Australian mining contracting company in the 1990’s and work with a number of international mining groups across the US and South Africa.
He has demonstrated a core focus on safety and has implemented significant safety improvement programs aimed at improving workforce education and awareness.
Delta’s Chairman, Gordon Galt, commented: “We look forward to Neville joining the Delta team. He has the experience and the drive needed to make sure that Delta will progress strongly into the future. The board thanks and is most grateful to Mr Bizzaca for his leadership and dedication to the company over many years, through both good and difficult times. We are very pleased that Mr Bizzaca will remain with us as a Director and major shareholder of the company for the long term.”
Anglo American has published its 15th annual sustainability report alongside its 2015 annual report, entitled Driving Change, Defining Our Future.
Both reports outline the group’s plans to focus on a core portfolio of assets as it continues to emphasise the central role of sustainability in creating value for all stakeholders during a transformative period.
Anglo American’s materially streamlined portfolio will focus on its diamond, platinum group metals (PGMs) and copper assets. According to the group, the core portfolio of competitive, long-life assets offers considerable organic growth potential and is positioned to deliver robust profitability and cash flows through the price cycle. It also offers greater exposure to the fast-growing consumer demand sectors as the global economy evolves, within which lie a number of next-generation clean energy and other environmental technologies.
Sir John Parker, Chairman of Anglo American, commented: “The need for extractive companies to make a positive, sustainable contribution to society is perhaps greater than ever. We will only be able to do this effectively, however, so long as we can maintain trusting and effective relationships with our wide-ranging and often-conflicting stakeholder base. It is only by being ‘partners in the future’ that mining companies will be able to secure and maintain their licences to operate, thus laying the foundation for prosperity that endures beyond the lives of their operations.”
Mark Cutifani, Chief Executive of Anglo American, added: “Anglo American is taking the appropriate steps to ensure it builds a more resilient business and that it continues to play its wider role in society by creating real and sustainable value. As a business, we can only deliver that value to shareholders and society at large if we ourselves are profitable and in a position of financial strength. I firmly believe the path we have taken will provide us with that more robust foundation, for the benefit of all our stakeholders.”
Anglo American’s sustainability report highlighted progress and ambitions in a number of areas, such as safety, health, water & energy and socio-economic development.
In 2015, three employees and three contractors lost their lives in work-related activities at operations managed by Anglo American. Whilst this is the lowest number of workplace deaths in a full production year, the company believes any loss of life is unacceptable. The second half of the year saw a fatality-free final quarter, representing an encouraging step forward and a reminder that zero harm can be achieved.
The number of new cases of occupational diseases reported in 2015 was 163, down 7% from 175 reported in 2014, and down 35% since 2010.
For the third consecutive year, Anglo American exceeded its 2020 water savings target of 14%, achieving an estimated 16% water saving against projected water usage.
Anglo American reduced its greenhouse gas emissions by 22% in relation to 2015’s ‘business as usual’ consumption, cutting 4.5 million t of CO2.
64% of the company’s total operational water requirement was met by recycling/re-using water. Anglo’s long-term goal is to increase this level to more than 80%.
Anglo American held its first Open Forum event in June 2015 as part of its FutureSmart™ innovation programme with a focus on water.
Through its Socio-Economic Assessment Toolbox (SEAT), the company partners with local institutions to strengthen supply chain capacity and maximise the socio-economic benefits in the regions in which it operates.
In 2015, Anglo American’s corporate social investment expenditure totalled more than $124 million.
Edited from press release by Harleigh Hobbs
White Energy has announced the resignation of company director, Hans Mende, effective 31 March.
“Due to his other business commitments, his ability to attend board meetings has reduced and therefore he feels it best if he resigns,” said Brian Flannery in a statement. “I have known Hans for many years and appreciate his contribution to the White Energy board.”
Mende’s company, AMCI Worldwide Ltd, remains a top 20 shareholder in White Energy.
White Energy markets technology to upgrade high-moisture low-value sub-bituminous and lignite coals. The BCB technology was development by a consortia led by the Commonwealth Scientific and Industrial Research Centre (CSIRO) and can also be applied to thermal and metallurgical coal fines.
The company operates businesses in Australia, Indonesia, the US, South Africa and China. In addition to its coal-upgrading activities, it also operates a number of coal mining assets in Australia and the US.
Edited by Jonathan Rowland.
Northern Railways, a subsidiary of Mongolian metallurgical coal development company, Aspire Mining, is currently working with its nominated EPC contractor and consortium partner, China Railways Construction Bureau 20 Group (CRCB20G), to source bridge funding from a Chinese bank to fund predevelopment activities for the Erdenet-to-Ovoot railway.
The railway, which will connect Aspire’s Ovoot metallurgical coal project to the Mongolian Rail network, forms part of Mongolia’s national rail policy to provide rail access to its northern provinces. The 547 km line will also connect into the Russian railway network at Kyzyl with a border crossing at Arts Suuri, allowing freight to travel between Russia and China through Mongolia.
At full capacity it will be able to move 30 million tpy of bulk commodities, agricultural and general goods and passengers, including transit freight between Russia and China. The funding will enable the completion of a rail bankable feasibility study, environmental permitting and a number of commercial agreements, including the EPC and debt refinance.
“It should be noted that there is no guarantee that the bridge funding negotiations will be successful and that Northern Railways will gain access to this funding facility,” the company noted in a statement.
Separately, Northern Railways has agreed with Mongolia’s Ulaanbaatat Railway Corp. (UBTZ), to establish a working group to work through the technical and commercial issues relating to the connection of the Erdenet-to-Ovoot railway into the country’s existing rail network, which is operated by UBTZ.
“With the continued support of the Mongolian government, CRCB20G and now with the support of UBTZ, the Erdenet-to-Ovoot-to-Arts-Suuri railway continues to progress as a viable inclusion in Mongolia’s Economic Corridor between China and Russia,” said Aspire’s Managing Director, David Paull.
ASX-listed Aspire Mining is the largest coal tenement holder in Mongolia’s northern provinces. In addition to its Ovoot metallurgical coal project, it owns a 50% interest in the Ekhgoviin Chuluu Joint Venture, which owns a 90% stake in the Nuurstei metallurgical coal project. A road-based production operation could start at Nuurstei this year.
Edited by Jonathan Rowland.
The latest figures from the US Energy Information Administration (EIA) show an 18 million short t fall in US coal production compared to February 2015 and 4 million short t fall on January 2016’s output. The EIA forecasts an annual production fall of 111 million short t (12%) this year – the largest annual percentage decline since 1958.
The figures, which are reported in the latest Short-Term Energy Outlook (STEO), show annual coal production of 784.1 million short in 2016, down from 895.4 million short t in 2015. The Western region – which includes the Powder River Basin – is expected to be hit hardest with production falling 17% in 2016. In comparison, Appalachian production will fall 9% and Interior region production – which includes the Illinois Basin – will fall only 4%.
US coal production.
The Interior region is expected to account for 21% of production in 2016 and 2017 up from just 13% in 2006, reflecting its growing competitive advantages compared to Appalachian and Western coals. These advantages include higher heat content, closer proximity to markets compared to Western coal and lower mining costs than Appalachian coal – a result of high-productivity longwall operations.
Interior coal has also benefited from the roll-out of sulfur dioxide scrubbers at coal-fired plants, a result of compliance with the Mercury and Air Toxics Standards (MATS), which mitigate the high sulfur content of Interior coal.
The sharp fall in coal production comes in response to falling consumption in the electric power sector, which the EIA estimates will fall by 4% (29 million short t) in 2016 after a 13% drop in 2015, exacerbated by high utility stockpiles. These stood at 197 million short t in December 2015 – significantly above the 10 yr average for December coal inventories of 158 million short t.
US coal consumption.
Exports will also continue their downward slide as a glut in global coal supply push prices lower, while lower costs and favourable exchange rates continue to benefit other coal-exporting countries. EIA estimates US coal exports fell 23 million short t (24%) in 2015 to 74 million short t. That decline will continue through 2016 and into 2017.
Edited by Jonathan Rowland.
Coal stockpiles at Indian coal-fired power plants stood at a high of 37.2 million t on 10 March, according to figures from the Central Electricity Authority (CEA), a 14.7 million t (65.6%) increase on the same date last year. Stockpiles would now cover 26 days of coal burn, compared to just 16 last year.
Last years, India’s coal-fired power plants faced a critical shortage of coal with 10 plants reporting stockpiles were down to less than 3 days coal burn and a further 12 reporting they had just 4 – 6 days of coal burn left. This year, no plants reported similar shortages, according to the CEA data.
The importance of coal imports seems to have dropped, however, with foreign coal accounting for 2.6 million t of the total stockpile compared to 2.9 million t last year. This comes as the Indian government has pushed to rapidly expand domestic production with a goal of 1.5 billion t annual production by 2020.
To achieve this, it is opening up the coal sector to the private sector and targeting production of 925 million t from state-owned coal mining company, Coal India, by 2020.
That may be optimistic but Indian coal production will achieve strong growth over the next few years, according to BMI Research, which forecasts output will total 1.01 billion in 2020 compared to 703.73 million tin 2015.
The 27 coal-fired power plants in the north of the country – which includes the capital, Delhi – reported the highest stockpiles with enough coal to cover an average of 30 days coal burn. This compares to 16 days last year. The western region (32 plants) reported average stocks of 25 days – the lowest – with plants in the south (26 plants) and east (16 plants) reporting an average of 26 days.
The 101 plants covered by the CEA data have a combined capacity of 122.8 GW and daily coal requirement of 1.4 million t.
Edited by Jonathan Rowland.
The Coal Preparation Society of India (CPSI) joined the World Coal Association (WCA) as its newest Associate Member following the signing of a Memorandum of Understanding in India in February.
The CPSI is a non-government and non-profit body of coal washing, coal mining and allied industries dedicatedly promoting beneficiation of high-ash Indian coal in order to make it clean and environmentally acceptable energy resource. CPSI head office is located in New Delhi.
WCA’s Chief Executive Benjamin Sporton said: “We are proud to have the CPSI join the WCA as we believe it strongly demonstrates the role coal can play in the economic development of India. CPSI joining the WCA highlights India’s growing role in the international coal market. WCA is committed to engaging more deeply with the Indian coal industry and national stakeholders”.
At present, the CPSI has 47 large companies both public sector and private companies as its corporate members, and a significant number of individual members. On the global front, the CPSI provides an opportunity to the members to join business delegations of different countries to explore possibilities for enhancing bilateral trade and joint ventures.
Raj Sachdev, President of the CPSI said: “We are very happy to be part of the WCA and we support their role as strong international advocates for coal and cleaner coal technologies. The CPSI believes that WCA should engage more in India and towards this, we will assist in any way we can”.
“India has made it very clear that coal will be critical to delivering its economic development and energy access objectives. India is working hard to reduce emissions from coal and we need to be taking an approach that helps deploy the most efficient coal in place of the least efficient coal technology,” Benjamin Sporton concluded.
The WCA has recognised the important role coal plays in India’s economic development, particularly with the publication of its flagship report “India’s Energy Trilemma” looking at the growing coal demand and the significant potential offered by high-efficiency low-emission (HELE) coal technologies in reducing CO2 emissions to meet climate objectives.
Edited from press release by Harleigh Hobbs
A new report from the US Geological Survey (USGS) has presented a map of coal deposits in Antarctica.1 The report compiles information on Antarctica’s coal-bearing geologic units found in the literature and is “intended to be used in small-scale spatial geographic information system (GIS) investigations and as a visual aid in the discussion of Antarctica’s coal resources or in other coal-based geologic investigations.”
Map of coal-bearing areas in Antarctica. Colours represent coal age.
The British Antarctic Expedition between 1907 and 1909 first discovered coal in Antarctica but detailed reports and studies of the continent’s coal resources only began to emerge in the second half of the last century.
Exploitation of Antarctica’s mineral resources is prohibited under Article 7 of the Protocol on Environmental Protections to the Antarctic Treaty. Beside this legal barrier, a 1987 study from Australia’s Department of Resources and Energy concluded that coal mining in Antarctica would be economically unviable for a number of reasons “including a lack of information, high startup costs, environmental considerations, practical difficulties and competition within the global market.”1
A federal judge ruled that a landowner who leased mineral rights to a coal company is due US$2 million in royalty payments under the terms of the contract governing the agreement.
US District Judge Irene Berger of the Southern District of West Virginia found that Thomas K. Lampert was owed the royalty money immediately since Tams Management Inc., failed to secure permits to mine the leased coal in the 90-day period spelled out by the contract.
In 2013, Lampert and Tams signed a contract transferring Lampert’s interest in the Three Marie mine in Raleigh County, West Virginia, in exchange for an overriding royalty. Southern Coal, also a defendant in this lawsuit, agreed to “irrevocably and unconditionally guarantee” Tams’ performance in the contract.
The contract included an acceleration provision: if Tams did not obtain the necessary mining permits within 90 days, the company would immediately pay the first US$2 million in royalties to Lampert.
Tams did not obtain the permits within 90 days. Bailey & Glasser attorneys representing Lampert filed a complaint in May 2015, then moved for a summary judgment. The defendants countered with their own motion for summary judgment.
Judge Berger, in her order granting summary judgment for Lampert and denying defendants’ motion for summary judgment, found the law was on Lampert’s side. Despite defense arguments to the contrary, the judge found no ambiguity in the contract and no West Virginia law or precedent that would bar enforcement of the contract.
“Here, the parties negotiated a straightforward royalty provision as part of a mining contract,” Judge Berger wrote, “and Tams agreed that if it was unable to obtain certain essential permits within 90 days of the execution of the agreement, it would be immediately liable to the Plaintiff for a significant percentage of the total royalty amount: $2,000,000. Southern Coal agreed to guarantee Tams’ adherence to these provisions. Tams breached this obligation by failing to obtain the permits within 90 days.”
Edited from press release by Harleigh Hobbs
Tanzania focused mineral exploration and development company, Kibo Mining, has published an interactive process description and timeline for the Mbeya coal to power project (MCPP).
According to the company, the interactive process description and timeline, details and clarifies all work streams critical to the project, and should be used as a reference point for future updates provided by the company. In this regard, Kibo indicated it is important to note the following:
Linc Energy has been committed to stand trial in the District Court at Dalby in Queensland, Australia, on charges relating to its underground coal gasification (UCG) operations near Chinchilla. Magistrate Kay Ryan made the ruling in the Dalby Magistrates Court on 11 March following 12 days of hearings in Dalby and Toowoomba in October and November last year.
The company faces five charges of willfully causing serious environmental harm in contravention of the Environmental Protection Act 1994. The charges allege that contaminants were allowed to escape as a result of the operation. If found guilty, the company could face a fine of up AUS$32.5 million.
In a statement, the company said it was disappointed by the ruling, noting that the prosecution had admitted in court that the evidence against it was circumstantial.
“Linc Energy reiterates its innocence and is steadfast in its belief that the evidence put before the court by the [EHP] had glaring holes and suffered from inconsistencies and, as a result, it fell well short of the standard required,’’ a company spokesperson said.
“Should the Director of Public Prosecutions decide to proceed further and take the company to trial, Linc Energy will be seeking a court hearing at the earliest opportunity in order to present its evidence, which so far has not been heard,” the company concluded.
The Queensland Department of Environment and Heritage Protection, which filed the complaints against Linc Energy, did not comment on the ruling but did say that it retained the excavation caution zone around the Chinchilla operations. Landholders in this zone are asked to contact the EHP if they intend to excavate to a depth of 2 m or more.
Edited by Jonathan Rowland.
The mining industry has been a main beneficiary of the decline in oil prices with operating costs falling as a result of lower diesel prices, according to new analysis from Moody’s Investors Service. And with the global oversupply of oil not likely to ease soon, the upside will continue with the potential for a further 4 – 5% fall in operating costs.
“For miners, expectations for low oil prices through 2017 are moderate positive, still far from sufficient to offset low prices for base metals, iron ore and coal tied to the slowdown in Chinese consumption,” said Carol Cowan, Senior Vice President and Moody’s.
“Mining is energy-intensive, with energy accounting for 20 – 25% of operating costs. Assuming oil-based fuels are half of that, and using our oil price estimate of US$33/bbl for 2015, operating costs could fall by as much as 4 – 5% from 2015 levels,” Cowan continued.
The effects will be seen particularly in opencast mine, which will spend les on fuel for trucks and machinery. “However, deeper, wider pits and declining ore grades can result in longer hauling distances, so cost benefits will vary by company and won’t necessarily be proportional to the fall in oil prices,” Cowan concluded.
Moody’s recently lowered its oil price forecasts for Brent crude and West Texas Intermediate crude to US$33/bbl through this year, rising to US$38/BBl in 2017 and US$43/bbl in 2018.
Price trends for oil and natural gas 2006 – 2018 (as of January 2017).
According to Terry Marshall, Senor Vice President at Moody’s, the revision reflects the continued global oversupply, very high inventory levels and additional Iranian production coming online, offsetting the expected reduction in US shale production.
“Oil prices have fallen dramatically since historically strong levels of mid-2014, when the increase in worldwide oil demand began slowing as non-OPEC supply, especially from the US, continued growing,” said Marshall.
“Meanwhile, Saudi Arabia in late 2014 signaled that it would no longer act as OPEC’s (and therefore the world’s) swing producer, and since then the world’s biggest oil-producing country has not intervened to prop up global prices, but has continued to compete for market share. These conditions persist today and the prospects for higher oil prices appear distant.”
Edited by Jonathan Rowland.
Aurizon has secured a long-term contract extension with BHP Billiton for its Mt Arthur coal mine in the Hunter Valley, Australia, to June 2028.
The Mt Arthur coal opencast thermal coal mine is located near the town of Muswellbrook in New South Wales’ Hunter Valley coal region, approximately 130 km northwest of Newcastle.
The contract allows for a potential increase in Aurizon’s coal haulage volumes from the current 18 million tpa up to a maximum of 26 million tpa. The varied contract delivers a modern and flexible agreement for both BHP Billiton and Aurizon.
Aurizon EVP Commercial & Marketing Mauro Neves said: “Aurizon is delighted to extend its long-term relationship with BHP Billiton in New South Wales. BHP Billiton was Aurizon’s foundation customer in the Hunter Valley when we commenced operations in the region in 2005.”
“The recent opening of our AUS$180 million Hexham Train Support Facility in Newcastle is a signal of our commitment and confidence in the local coal industry. The facility has strengthened our business to support the growth and future success of our customers,” Neves continued.
Aurizon has experienced significant growth since commencing operations in the Hunter Valley in 2005, hauling 42.9 million t of coal during FY 2015 with a workforce of approximately 330 employees.
Edited from press release by Harleigh Hobbs
The second half of 2015 was a busy period for Australian coal company, Stanmore Coal, as it completed the acquisition of the shuttered Isaac Plains coal mine and adjacent Isaac Plains East development project and focused on bringing the mine back into production.
In December 2015, the company appointed Golding Contractors as the head contractor at Isaac Plains with a scope of services including overburden removal, coal mining and operation of the coal preparation plant. Meanwhile, the bulk of recommissioning work was undertaken in November and December with the dragline overhaul completed in January under budget.
The company is on schedule for first coal production in April 2016 with mining starting at a target rate of 1.1 million tpy of most metallurgical product coal with some thermal coal byproduct.
Beyond the recommissioning of Isaac Plains, the company also focused on exploration delineation activities at Isaac Plains East. Since October 2015, core drilling, 2D seismic and line-of-oxidation drilling within the target mine area has been underway.
“It is anticipated that the program will enable the company to place a maiden JORD Resource within Isaac Plains East with mining studies to follow,” the company said in its financial report for 2H15. “Long lead items, such as environmental monitoring, relating to the approval process for the project, have also commenced.”
The company anticipates that Isaac Plains East will benefit from its proximity to Isaac Plains mine and the equipment there, including the Bucyrus 1370W dragline, coal handling facility, train load-out and rail spur facilities, as well as administration buildings and workshops.
Unsurprisingly, Isaac Plains took up most of the company’s focus in 2H15 – with the exception of continued exploration at the Clifford project in the Surat Basin undertaken with funding partner, JOGMEC, a state-owned Japanese company tasked with securing the supply of commodities into Japan.
This work resulted in a maiden JORC Reserve of 370 million t with 80 million t indicated resource and 290 inferred resource. Further onsite exploration activities and quality analysis began in 1Q16.
For the half year to 31 December, the company reported an operating loss of AU$6.4 million, reflecting significant due diligence and transaction costs related to the purchase of Isaac Plains. Despite this, the company remains “well funded with significant value enhancing opportunities ahead given the transition to coal producer through the acquisition of Isaac Plains.”
Botswana-focused coalbed methane (CBM) company, Tlou Energy, has achieved a range of milestones towards the delivered of a 10 MW gas-to-power pilot plant, according to the company’s latest six-month report. Highlights include the completion of an expanded drilling programme and dewatering at the company’s Lesedi CBM project, the start of gas flow testing and progressing with environmental permitting.
“It has been a very busy few months for the company with significant progress made at the Lesedi CBM project specifically, developing the gas field, progressing our environmental approvals and continuing negotiations with potential offtake partners,” said Gabaake Gabaake, Tlou’s Managing Director.
According to the Gabaake, the company is now “well positioned to achieve its planned near-term goals”, which include achieving sustained economic gas flows at Lesedi and obtaining independently certified gas reserves. These will allow the company to move from exploration and appraisal to development.
In order to help fund the next stage in the development of Lesedi, Tlou also successfully listed on London’s AIM, “opening up the company to the UK market, which has a strong appetite for African focused projects like Tlou’s,” Gabaake said. “This has set the foundation for further growth.”
“Tlou has a long-term vision to become a mid-tier energy provider in southern Africa,” said Nathan Mitchell, the company’s Chairman. “Our Lesedi project provides us with an ideal platform from which to commence this progress. Over the next 12 – 24 months, we will be making steps towards the successful commissioning of a 10 MW pilot plant at Lesedi. The project, once commissioned, will allow the company to generate revenue and importantly will demonstrate the commerciality of producing power from locally-produced CBM.”
The company announced a loss of AU$1.99 million, compared to a loss of AU$1.14 million the previous year, with a substantial portion of this expenditure resulting from Tlou’s admission onto the AIM. Net spend on exploration activities during the six month period was AU$4 million.
Edited by Jonathan Rowland.
Canada-focused coal development company, Atrum Coal, will hold an extraordinary general meeting (EGM) on 1 April to consider resolutions from company co-founder and third largest shareholder, Gino D’Anno, to dismiss two company board members: Cameron Varias and Steven Boulton.
The EGM is the latest stage in the boardroom ructions at the company that saw D’Anno and co-founder, Russall Moran, forced out last year after a dispute centered on loans taken out against the pairs stakes in the company. D’Anno and Russel still own about a quarter of Atrum between them.
Vorias and Boulton now have the chance to put their case through written statements to be circulated to shareholders before the EGM and at the EGM itself.
“Cameron Vorias and Steven Boulton both provide Atrum with significant and positive contributions to Board oversight,” said Atrum’s Executive Chairman, Robert Bell, in the Notice of Extraordinary General Meeting send to shareholders.
“The Company’s management team regularly benefits from their insights and advice. I am highly supportive of their continued membership on our board of directors.”
Atrum Coal is currently developing the Groundhog anthracite project in British Columbia, Canada. At the end of February, it announced encouraging anthracite quality results from the Duke E seam, one of the primary target seams for underground mining in the Groundhog northern mining complex.
The results took average yields of premium 10% ash ultra-high-grade anthracite to from 60% to above 80%, which would reduce total cost of production significantly as less ROM coal production is required to produce the same amount of premium product.
“As we gain a greater understanding of the Groundhog resource base, we increase the likelihood of designing mines with both reduced operating and capital costs,” said Bell at the time of the announcement. “Moving the yield from 60% to 80% has potential to reduce the ex-mine cost by 20% – 25%, and the FOB cash cost by 10% – 15% for our primary export product, a low-ash, ultra-high grade anthracite, which is in short supply on global markets.”
Edited by Jonathan Rowland.
West Virginia lawmakers have kicked proposed tax cuts for the state’s coal and gas industries into the long grass, according to local press reports. Despite passing in the state Senate, the House Finance Committee decided to move the bill into an interim study rather that put it forward for vote.
“Every member of this body, both chambers, without a doubt, realizes the concern we have with out job losses in the coal sector and the negative effects even in the gas sector,” said House Finance Chairman, Eric Nelson. “At the same time, I think everybody realizes the fiscal constraint were in right not and we’re structurally imbalanced; it’s very difficult times right now.”
The move will come as a disappointment to West Virginia’s coal industry, which had lobbied hard for the tax cuts. A spokesperson for Murray Energy, the state’s largest coal producer, accused the lawmakers of abandoning coal miners. In January, Robert Murray, President and CEO of Murray Energy, has blamed the tax for the decision to layoff over 600 miners at the end of 2015.
Last month, a study from PwC found that reducing the tax could also boost state GDP as well as creating 1864 direct and indirect jobs. West Virginia’s coal severance tax currently stands at 5% – one of the highest rates in the country. The proposed legislation would have brought that down to 2%.
“Our industry’s in crisis right now,” Bill Raney, president of the West Virginia Coal Association told the Charleston Gazette-Mail. “We’re terrifically disappointed, because we need some assurance that we’re going to be able to get our costs down so we can compete, keep the miners working, keep the mines open.”
West Virginia has been worst hit by the downturn in the US coal industry with its higher-cost mines unable to compete with the low-cost high-efficiency longwall mines of the Illinois Basin or the huge opencast mines of the Powder River Basin. Numerous mines have already closed in the state with the loss of hundreds of jobs.
The price of coal in Europe will play a key role in determining the success of US LNG exports, according to a new study from Wood Mackenzie, which argues the picture is much more complex than the current focus on Russia suggests.
“With European LNG imports, including from the US, set to grow over the next five years, there is much speculation about Russia’s likely response,” explained Stephen O’Rourke, Research Director of Global Gas Supply for Wood Mackenzie. “Will Russia’s gas strategy mimic that of Saudi Arabia’s oil strategy, will it seek to retain market share in Europe, pushing European gas prices to levels that force the shut-in of US LNG exports?”
This focus on Russia, however, misses the bigger picture: “Our analysis shows that while Russia’s export strategy is important, ultimately US LNG export utilisation will be influenced more by the price of other commodities: of US gas, oil and, particularly, of coal, which will determine European spot prices through coal-gas switching in the power sector,” said Noel Tomnay, Head of Global Gas & LNG Research for Wood Mackenzie.
With the price of coal determining the European gas spot prices, the US LNG industry will be watching the coal market hard. Higher coal prices should be more positive for US LNG exports, which need a certain price level to remain profitable. Should the price of coal continue to fall, however, taking gas with it, the chances that large sections of US LNG capacity could be shut-in will increase.
At the other end of the process, were US gas prices to increase, the cost of US LNG production would go with them, requiring a higher spot price in Europe for LNG imports to be viable. The price of oil – to which the price of Russian contract gas exports is linked – will also play a key role with lower oil prices increasing Europe’s appetite to offtake Russian contract gas.
But it is the price of coal that could make or ruin US LNG’s day: “Average utilization of US LNG export capacity between 2017 – 2020 could vary from 54 – 100%,” concluded O’Rourke. “For US LNG exporters, the best thing to happen would be for global coal prices to rise or for US gas prices to stay low.”
Edited by Jonathan Rowland.
Dominion Virginia Power and the James River Association, represented by the Southern Environmental Law Center (SELC), have reached a settlement agreement on discharges of treated water from coal ash ponds at the company’s Bremo power plant in Fluvanna County, Virginia, US. The discharges are regulated by a permit issued in January by the State Water Control Board and Virginia Department of Environmental Quality, requiring Dominion to build and operate a wastewater treatment system at the facility.
Under the settlement agreement, Dominion has committed to enhanced treatment of the pond water and to fish tissue monitoring, and the James River Association and SELC will not appeal the wastewater permit issued for the Bremo power plant. The terms of this agreement only apply to the wastewater permit at Bremo power plant and do not apply to any other Dominion sites.
“We thank Dominion for engaging with us in a cooperative manner to address our concerns about the dewatering of Dominion’s coal ash ponds at the Bremo Power Station,” said Bill Street, James River Association CEO. “Through our agreement today, Dominion will install enhanced treatment for the wastewater that is designed to better protect all uses of the James River.”
Dominion must submit a plan that must be reviewed by the Virginia Department of Environmental Quality (DEQ). The power company has also committed to enhanced testing of fish in the James River throughout the dewatering project. The results of the testing will be made publicly available by both Dominion and DEQ.
“Dominion will always be committed to keeping the James River safe for fishing, boating, swimming and all the activities we Virginians love to do. We are pleased that this agreement with the James River Association allows us to move ahead with this important environmental project,” commented Pam Faggert, Chief Environmental Officer for Dominion. “The James River Association has helped us create a plan that reflects the commitment of both of our organisations to maintain the quality of the James River.”
The US Environmental Protection Agency issued its Coal Combustion Residual Rules in the spring of 2015 calling for the closure of inactive ash ponds across the country. Dominion is closing 11 ash ponds at four power plants across the state. As part of closing the ash ponds at Bremo, Dominion must first remove water that has accumulated in the ponds.
Edited from press release by Harleigh Hobbs
Arch Coal is suspending efforts to secure a mining permit for the Otter Creek coal reserves near Ashland in southeastern Montana, due to capital constraints, near-term weakness in coal markets and an extended and uncertain permitting outlook.
Arch secured lease rights to approximately 8300 acres of state-owned minerals in the Otter Creek area in 2010. Since that time, the company has engaged state regulators through the permitting process in order to obtain the approval to mine. That process has taken longer than anticipated, and further deterioration in coal markets has led to the decision to suspend the permitting effort.
Arch Coal indicated that the Powder River Basin remains an important coal supply region for domestic and international power generators. However, given current conditions, the company can no longer devote the time, capital and resources required to develop a coal mine on the Otter Creek reserve block.
According to the company, it will remain committed to navigating a challenging market environment, executing upon its prudent capital allocation strategy and preserving liquidity. This step will allow Arch to further intensify its focus on operating safe, responsible and low-cost mines.
Edited from press release by Harleigh Hobbs
A former horse dentist turned dragline operator has been named Queensland’s top Tradeswoman/Operator/Technician at the Queensland Resources Council (QRC) and Women in Mining and Resources in Queensland (WIMARQ) awards for women. Marianne Finch was the first female dragline operator to be trained at BHP Billiton Mitsubishi Alliance’s Saraji coal mine.
“It’s overwhelming to be an integral part of the progression of women in the resources sector,” said Finch, whose duties now include training and assessment, as well as operating some of the largest machinery in Queensland’s mining industry.
When Finch started in the mining industry, there were only a few women operators in a crew of about 50 – and they all operated trucks. “I was not well considered at first as a woman and I pushed through abuse, bullying, isolation and pressure to quit; however, I remained focused. After proving my ability consistently it finally become accepted that a woman was capable of operating more than a truck.”
The awards aim to celebrate and showcase the depth of female talent in the Queensland resources sector, as well as providing ambassadors and mentors for female colleagues and students thinking of entering the business.
“The long-term future of our sector relies on attracting and retaining the best people to keep us at the forefront of innovations as we compete in a global market,” said Michael Roche, CEO of the QRC. “A workforce with people from diverse background, including a better gender balance, is critical to supplying the workforce of the future.”
The Queensland resources sector has committed to a goal of at least 20% women in non-traditional roles by 2020 and the awards, which were presented by the Minister for Employment and Industrial Relations, Grace Grace, QRC President, Stewart Butel, and WIMARQ Chair, Heather Parry, are a key part of that commitment, concluded Roche.
“The attendance of about 800 people across the state today at breakfasts to witness the presentation of these awards is a clear demonstration of our sector’s continued commitment to its goal of at least 20% women in non-traditional roles by 2020,” Roche said.
Edited by Jonathan Rowland.
The New South Wales (NSW) Minerals Council has welcomed proposals to toughen deterrents for protesters that break the law when protesting at mine and coalbed methane (CBM: called coal seam gas in Australia) sites in the state.
A bill introduced to Parliament this week by the NSW government proposes search and seizure powers for police and an increase to the fine for trespass to AUS$5500. Energy Minister, Anthony Roberts, said the aim was to prevent illegal and unsafe activity, particularly the practice of using ‘lock-on’ devices, which protesters use to chain themselves to heavy equipment.
According to Roberts, the bill “improves the ability of the police to search and seize objects before they are used to interfere with or cause damage to a business and most importantly help minimize the likelihood of situations where people’s lives, includes the rescuers, are placed at risk.”
Calling the government’s proposals “measured and responsible”, NSW Minerals Council CEO, Stephen Galilee, said the measures would be welcomed by mining workers.
“Everyone has the right to protest within the law. However in recent years we’ve seen an escalation of protests to include illegal and unsafe activities that are putting people at risk of serious injury or worse,” Galilee said in a statement. “Protesters have regularly trespassed onto mine sites, heavy equipment has been interfered with, access gates have been sabotaged or blocked, explosive charges have been tampered with, and in one case a security vehicle was rammed.”
Such activities put protesters, mine workers and emergency services personnel at risk, concluded Galilee, saying the NSE Minerals Council hoped parliament would support the proposals.
Greens Mining Spokesperson, Jeremy Buckingham, criticised the proposals, however, saying that there had been “no incident that should warrant these laws.”
“This is about [Queensland Premier] Mike Baird and the Minister doing the bidding of their mining mates,” Buckingham said.
Edited by Jonathan Rowland.
The World Coal Association (WCA)’s Chief Executive Benjamin Sporton has called for policy parity for all low emission technologies in Kazakhstan.
Speaking at the Kazakhstan Green Bridge Initiative Conference 2016, Sporton said: “Coal has fuelled the 21st century so far and remains an important part of the global energy mix. According to the International Energy Agency (IEA), global electricity from coal is expected to grow by around 24% to 2040. We cannot wish coal out of the energy mix. Instead, we should focus on fast-tracking the use of all low emission technologies, particularly high efficiency, low emission (HELE) coal and carbon capture and storage (CCS).”
Around 80% of Kazakhstan’s electricity is produced by coal. While the government of Kazakhstan realises the environmental implications it also understands that, for the first half of the 21st century at least, power generation from coal will be predominant. Kazakhstan has therefore requested the United Nations Economic Commission for Europe (UNECE) and the United Nations Development Programme (UNDP) to provide them with technical assistance for decisions on clean coal energy policies.
HELE technologies with rates of efficiency of around 40% are in existence and available ‘off-the-shelf’. They are currently being installed and used in many countries where they have shown proven efficiency gains and financial viability.
“Raising the average global efficiency of coal plants from 33% to 40% with off-the-shelf technology available today would save 2 gigatonnes of CO2 emissions. This is equivalent to running the Kyoto Protocol three times over” Sporton added during his speech.
CCS is ready for scale-up and many believe it should be treated equally along with all other low-carbon technologies. Recent research by the Intergovernmental Panel on Climate Change (IPCC) noted that failing to deploy CCS causes the cost of climate action to rise by about 140%, but the most likely outcome is that the 2°C target could not be reached at all.
“We need all sources of energy to meet growing energy needs and all low-emission technologies to reduce emissions from our energy consumption. WCA welcomes Kazakhstan’s efforts to strengthen its capacities to introduce cleaner coal technologies in the context of climate change mitigation and sustainable development,” Sporton said.
The Kazakhstan Green Bridge Initiative conference brought together government representatives, international energy experts and members of the global community, to discuss coal policies and the practical applications of cleaner coal technology.
“Many countries around the world, particularly in Asia, are looking to coal to fuel their growing economies. That means that it is critical to help them use coal in the cleanest way possible. Without international support for cleaner coal technologies, it will be all the more difficult to achieve global climate ambitions. ” Sporton concluded.
The World Coal Association has recently launched a concept paper for an international Platform to Accelerate Coal Efficiency (PACE). The PACE platform aims to support developing and emerging economies toward modern high-efficiency low-emission coal plants.
Edited from press release by Harleigh Hobbs
