Queensland’s Department of Environment and Heritage Protection has accepted the Isaac Plains coal mine’s plan of operations, according to Stanmore Coal’s recent operational update on the mine. The plan covers the operational period through to the end of March next year.
Following the decision, operational responsibilities at the site were handed over to Golding Contractors, enabling the start of mining activities at the site. Production drilling has now begun with the first blast completed on 11 February. Golding has appointed Action Drill and Blast as drilling contractors at the site.
The dragline overhaul has also been completed under budget with operations set to be ramped up over the course of February.
“We are pleased with the significant progress made by Golding to date to mobilizing to site and kicking off mining acitivities within a short timeframe,” said Nick Jorss, Managing Director at Stanmore. “The site is a hive of activity as the team gears up for first coal production in April this year as planned.”
The company noted that recent heavy rainfall in Queensland – which caw 145 cm of rainfall in the region of the mine in 24 hours – had only a moderate impact on preparations to restart the mine. Although significant flows were recorded through the creek that runs through the mine area, only surface run off settler in the pits with only minor damage to haul roads.
“Our contractor is currently pumping the collected runoff to the disused southern pits and reinstating the other areas of the site to full condition,” the company said.
Stanmore bought the shuttered Isaac Plains mine fro Vale and Sumitomo Corp. last for year AUS$1. The acquisitions included all assets related to the mine, including the dragline and coal handling and processing plant.
The mine aims to supply metallurgical coal to North Asian steelmakers with negotiations “progressing well”, according to Jorss.
Edited by Jonathan Rowland.
Ratings agency, Moody’s, has downgraded its ‘corporate family rating’ for US coal company, Murray Energy, to Ca – the second lowest rating available. The company’s ‘probability of default rating’ was also similarly dropped.
“The downgrade reflects our expectations that the company’s leverage metrics and cash flow generation will continue to be under stress due to the headwinds facing the coal industry, as well as the issues facing its affiliate, Foresight Energy GP LLC,” Moody’s said.
Foresight Energy – in which Murray holds 50% of limited partner units – was notified in December that it was default of the loan conditions of its secured credit agreement. While negotiations with lenders to resolve the alleged default events, the outcome is uncertain and the company does not hold enough liquidity to repay its debt if repayment were to be accelerated.
Meanwhile, Murray’s production levels will be under pressure in coming years due to severely reduced demand for coal from US utilities and a consequent deteriorating price environment which will put pressure on the company’s earnings as higher-priced contracts come to an end.
More positively, Moody’s notes the companies leading position in Northern Appalachia, its operational diversity, solid contract positions, low-cost longwall miners and low-cost transportation links to the power plants it serves. Yet the ratings agency still expects Murray’s liquidity to “come under pressure over the next twelve months” with its next debt maturity coming up in April 2017.
Murray Energy is currently asking West Virginia to cut its coal severance tax – a levy on coal production – from 5% to 2%, Last month, the company’s CEO, Robert Murray, told the West Virginia Coal Association Mining Symposium that a US$7.6 million tax bill at the end of last year had forced him to lay off hundreds of miners – and that continuing the tax at its current level could see Murray follow the likes of Arch Coal, Alpha Natural Resources and Patriot Coal into Chapter 11 bankruptcy.
“The very high and unfair West Virginia coal severance tax is penalising coal producers, exacerbating Mr Obama’s war on coal and destroying high paying, well-benefitted jobs in the state,” Murray said. “The proposed severance tax reduction is the difference in making a coal sale of not.”
Edited by Jonathan Rowland. Source: Moody’s Investors Service. Additional source: The Intelligencer/Wheeling New-Register.
The World Coal Association (WCA) and the Coal Preparation Society of India (CPSI) have signed a Memorandum of Understanding (MoU).It was signed by RK Sachdev, President of CPSI and Mick Buffier, President of WCA, during Buffier’s visit in New Delhi, India.
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.
The WCA indicated it pays close attention to the large coal industry in India, rapid growth in coal production and consumption and the important role coal is playing in India’s economic development.
In recognition of India’s growing importance in the global coal industry and in the related debates about energy security, economic and social development and climate change, the WCA released a report in late 2015 “The Case for Coal: India’s Energy Trilemma” looking at the increasing coal demand and the significant potential offered by high-efficiency low-emission coal technologies in reducing CO2 emissions.
Edited from press release by Harleigh Hobbs
Paringa Resources Ltd has announced the results of a scoping study on the Buck Creek No.2 mine, which is located within the Buck Creek mining complex and south of the Buck Creek No.1 mine’s proposed 3.8 million short tpa coal project.
Commenting on the completion of the Scoping Study, Paringa’s President and CEO, David Gay, said: “The results of the scoping study further illustrate that the Buck Creek mine complex is without doubt the best undeveloped coal project in the highly sought after Illinois Basin. The Scoping Study has yielded extremely positive results, and if we knew from the outset what we know now, we would have always developed the No.2 mine first. The emergence of the No.2 mine has transformed the economics of the project and we are very excited about the enhanced strategy of creating a staged multi-project development by building the low capex No.2 mine first, followed by the No.1 mine.”
Results
The scoping study confirms that the Buck Creek No.2 mine has the potential for low capital development with total initial capital cost (capex) of only US$44 million. The company reports this is due to favourable geology and shallow depth of coal seam from surface at the proposed site.
As a result of the shallow depth of the WK No.9 coal seam from the surface at the proposed mine site and coal seam access area, the construction period to access coal at Buck Creek No.2 mine is anticipated to be approximately 12 months. Construction may begin as soon as the necessary permits are secured, and the current expectations for completing the permitting process to begin mine construction is approximately 12 to 14 months. According to Paringa, this short construction period together with streamlined and proven permitting process should allow the No.2 mine to start construction by 2Q17 and production by mid-2018.
The low capex, high-margin project is expected to achieve average earnings before interest, taxes, depreciation, and amortisation (EBITDA) of US$33 million per annum (steady state) with average annual total operating costs (steady state; inclusive of royalties and severance taxes) of US$32.94/ahort t Free On Board Barge at the project’s barge load-out facility. This ‘all-in’ operating cost includes trucking costs from the project’s coal handling preparation plant to the Green River barge load-out facility totalling US$2.14/short t.
Using the Buck Creek mine complex’s coal resource estimate of 224.8 million short t of coal, the project can support production of 2.3 million short tpa ROM coal, yielding approximately 1.8 million short tpa of saleable clean coal at steady state production.
The scoping study has been prepared in accordance with JORC Code 2012 Edition (JORC Code) and National Instrument NI 43-101 ‘Standards of Disclosure for Mineral Projects’ (NI 43-101).
Outlook
Based on the scoping study results, Paringa will now develop the No.2 Mine first, followed by the ‘shovel-ready’ No.1 Mine, as part of a staged multi-project development strategy for building a new ‘mid-tier’, high margin Illinois Basin coal company.
Buck Creek Mine Complex is intended to ultimately become a strategic 5.6 million short tpa supplier of high-quality coal into the growing Eastern US power market.
Paringa has indicated it will expedite remaining technical studies at the No.2 mine, continue debt financing discussions and contract additional coal sales throughout 2016.
Edited from press release by Harleigh Hobbs
The new L45H and L50H compact wheel loaders from Volvo Construction Equipment are well-balanced machines, built for greater fuel efficiency and improved hydraulic flow for faster cycle times at reduced operating cost.
The H-series wheel loaders from Volvo Construction Equipment (Volvo CE) are powerful assets on every jobsite and in every application. Equipped with Volvo’s unique Torque Parallel (TP) linkage, these machines are built to deliver high breakout torque and excellent parallel movement throughout the entire lifting range.
With a new Volvo D4J Tier 4 Final engine, both the L45H and L50H boast a 15% improvement in fuel efficiency versus previous models. The L50H also has a 20% improvement in hydraulic pump capacity, leading to 26% faster cycle times as compared to previous models.
“This is a very versatile size class that can get tough work done in confined spaces,” commented John Comrie, Product Manager for compact wheel loaders at Volvo CE, “and with a laundry list of improvements that make the H-series more fuel efficient, more powerful and more versatile, all while making the operator more comfortable – the L45H and L50H are great choices for any application.”
The L45H and L50H feature Volvo’s intelligent load-sensing hydraulic system that drives power to the hydraulic functions according to demand for fast response, shorter cycle times and reduced fuel consumption. An optional Boom Suspension System (BSS) boosts productivity by up to 20% by absorbing shock and reducing bouncing and bucket spillage.
Heavy-duty planetary axles ensure long life in the toughest conditions, and the front and rear 100% differential locks feature a dog clutch design to improve grip and maintain maximum traction on all terrain. These wheel loaders also feature a hydrostatic transmission that matches power to all operator requirements to provide excellent control in delicate work and full power for more demanding jobs.
A comfortable control centre
The new wheel loaders feature Volvo’s industry-leading cab for a comfortable, productive work shift. This certified ROPS/FOPS cab features ergonomically placed controls, a climate control system, all-around visibility and low internal noise levels. The optional comfort drive control (CDC) function gives the operator the choice to control the machine by a joystick lever mounted to the left-hand console. This improves operator comfort, reduces fatigue and ensures better productivity over long working hours. For increased safety, large, anti-slip steps and handrails ensure easy cab entry and exit.
Maintenance made easy
The new wheel loaders have been built for easy, hassle-free servicing. Ground-level service points and grouped greasing points ensure easy and quick maintenance. The oscillating rear axle is supported on maintenance-free cradles. Its bearings and bushings are lubricated for life and protected by well-proven seals, saving hours of maintenance time.
Through the Volvo CareTrack® telematics monitoring system, fleet managers are given real-time visibility into vital machine information. Everything from fuel consumption and idle times to location tracking and service reminders can be monitored to help reduce total cost of ownership and increase profitability throughout the entire life of the machine.
Fleet managers also have the option to engage their local Volvo CE dealer in the proactive monitoring and reporting of CareTrack data through the Volvo ActiveCare programme, effectively simplifying fleet management.
The L45 and L50H models are offered further support via the Volvo Lifetime Frame and Structure Warranty, which covers the frame, articulation joint and loader arm during the period of initial ownership or the full life of the machine – whichever is less.
Edited from press release by Harleigh Hobbs
Walter Energy Inc. has closed the previously-announced sale of certain US non-core assets to Seminole Coal Resources LLC, ERP Compliant Coke LLC and ERP Environmental Fund, Inc. (Seminole), all affiliates of ERP Compliant Fuels, LLC (ERP) and Virginia Conservation Legacy Fund Inc. (VCLF).
Under the terms of the agreement, Seminole has acquired Walter Energy’s assets in West Virginia, including the Gauley Eagle and Maple properties, as well as the Walter Coke facility and Taft in Alabama.
As part of the acquisition, Seminole assumes certain liabilities related to the assets it is acquiring. The agreement was previously approved by the Bankruptcy Court for the Northern District of Alabama in connection with a court-approved sale process under section 363 of the Bankruptcy Code.
On 15 July 2015, Walter Energy and its US subsidiaries filed for relief under chapter 11 of the US Bankruptcy Code in the Bankruptcy Court for the Northern District of Alabama.
With the close of this sale, Walter Energy’s remaining US assets consist of its core Alabama coal operations. The sale of those assets to its senior lender group was also approved by the Bankruptcy Court and is expected to close in the near future.
Edited from press release by Harleigh Hobbs
Outbidding competitors in an open global tender, Bharat Heavy Electricals Ltd (BHEL) has won a major order for the supply of two 800 MW steam generators (boilers) with supercritical parameters.
Valued at nearly Rs. 35 000 million, the contract has been placed on BHEL by NTPC Ltd, for setting up the 2 x 800 MW steam generator (SG) island package at Telangana super thermal power project (TnSTPP).
The project is located within NTPC’s existing Ramagundam power plant in Karimnagar district of Telangana. The power generated from this plant will help meet the state’s demand for power.
BHEL’s scope of work involves designing, engineering, manufacturing, supplying, constructing, erection, testing and commissioning and civil works for the steam generator island package. The key equipment for the contract will be manufactured at BHEL’s Trichy, Ranipet, Hyderabad, Jhansi and Bengaluru plants and the company’s power Sector division shall be responsible for civil works and erection/ commissioning of the equipment.
BHEL has a long-standing partnership with NTPC and has supplied over 30 000 MW of the coal-based power plants of NTPC and its JVs – approximately 80% of NTPC’s coal-based installed capacity.
Edited from press release by Harleigh Hobbs
Mitsubishi Hitachi Power Systems Ltd. (MHPS) has received an order to refurbish eight units at the Ulaanbaatar thermal coal-fired power plant No.4, state owned stock company, which is Mongolia’s largest coal-fired thermal power generation plant.
MHPS will carry out the refurbishment work in cooperation with MCS International LLC, Mongolia’s largest engineering company. Refurbishment work is expected to be completion in October 2018.
The project, which is financed by a Japanese ODA loan from the Japan International Corporation Agency (JICA), aims to improve the power plant’s power generation efficiency and extending the facility’s service life. The refurbishment, including addition/renewal of related equipment, will be performed on eight power generation units at the thermal power plant in Ulaanbaatar.
Core components of the coal pulverisers in units No. 5 through No. 8 will be renewed to extend their service life, while soot blowers will be added to all units from No.1 to No. 8 to prevent fall-off in heat-exchange efficiency. When completed, the refurbishment is expected to contribute to the realisation of a more stable power supply.
Through this refurbishment to improve power generation capacity, MHPS hopes to continuously contribute to the development of Mongolia’s economic expansion.
Edited from press release by Harleigh Hobbs
Outlooks on staying the Clean Power Plan
- The US Supreme Court has delivered a blow to President Obama’s flagship environmental regulation, halting enforcement of the Clean Power Plan.
- National Mining Association President and CEO, Hal Quinn, comments on the High Court’s Stay of Clean Power Plan.
- Congressman Gary Palmer (R-AL) has welcomed the Supreme Court’s decision to stay the EPA’s implementation of a Clean Power Plan.
- According to Clean Coal Technologies Inc., the temporary halting of Obama’s climate policy could hasten adoption of its proven new coal technology for US coal and energy industries.
- Utah Attorney General Sean Reyes indicates SCOTUS Decision to halt EPA Clean Power Plan recognises the dramatic impact it would have on the state.
- The American Coal Council and American Coalition for Clean Coal Electricity welcome the Supreme Court’s ruling to stay the Clean Power Plan.
Financial results
- Peabody Energy has announced a US$1.86 billion loss in 2015 on asset writedowns, falling coal demand.
- Glencore reports coal production for the 12 months ended 31 December 2015 was down to 131.5 million t, due to curtailed production in response to market conditions and deconsolidation of optimum coal.
- Global mining giant, Rio Tinto, recorded a loss of US$866 million in 2015 on the back of falling metals prices.
- A pre-tax impairment charge of AUS$795 million on its coalbed methane assets saw AGL record a statutory loss in 2H15.
Mining
- US mining and exploration investment spending fell by 25% in 2015, the second largest year-on-year fall since reporting began.
- Approximately 75 employees could loose jobs at River View Coal and White County Coal, as well as 200 temporary layoffs at Hamilton County Coal, as a result of reducing operational units.
- In a letter addressed to Union Minister of State for Coal, Power, New and Renewable Energy, ASSOCHAM advises on ways to boost domestic production of metallurgical coal in India.
Project updates
- The South African Competition Commission has recommended the purchase of Optimum Coal by Tegata Exploration and Resources be approved.
- THEnergy and Ripasso have released a study on the uses of renewables in mining.
- Kibo Mining completes Phase 1 of the Mbeya coal-to-power project, integrated bankable feasibility study.
- Edenville makes progress with its Rukwa coal-to-power project in southwest Tanzania with Tanesco through setting out a power purchase agreement.
- The final stages of initial construction works at the Boikarabelo project in the Waterberg region of South Africa continued despite a wholesale change in company management.
- The environmental authority for Adani’s Carmichael mega-mine has been approved by Queensland’s Department of Environment and Heritage Protection.
- Action Drill & Blast has reached a principal agreement with Golding Contractors to provide drill and blast services at Isaac Plains.
Corporate affairs
- Australian Pacific Coal’s CEO, Nathan Tinkler, has resigned following a Federal Court of Australia judgment that removes his ability to carry out his current roles.
- Martin Engineering appoints Robert Nogaj as the company’s new Chief Operating Officer.
- In order to better meet the company’s needs over the next twelve months, Leigh Creek Energy’s current CFO has been appointed to the role of CEO.
- To better focus on evaluating customers’ needs and improving product lines, McLanahan creates a product management and development team, leading to changes in its corporation structure.
UK Power
- Eggborough’s 2000 MW coal-fired power plant, UK, has announced the signing of a contract with National Grid, enabling the plant to stay open until March 2017.
- The UK will find it challenging to meet its climate change commitments without carbon capture and storage.
- Lessons need to be learned from 2015 when National Grid had to invoke special measures to prevent a blackout, comments GMB.
Not to be missed …
- A third of coal mines operating at a loss according to new report. Governments should be doing more to aid the sector in the downturn to support existing operations, according to QRC CEO Michael Roche.
- Demolition age drops as the dry bulk market enters another challenging year, according to a new report from BIMCO.
- So far this winter, natural gas consumption in the electric power sector has been higher than in any previous winter, according to a new report from the US EIA.
The company has reported unaudited annual adjusted profit attributable to shareholders of CAN$188 million (CAN$0.33 per share), compared with CAN$452 million (CAN$0.78 per share) in 2014. 4Q15 adjusted profit attributable to shareholders was CAN$16 million. Total non-cash after-tax impairment charges for 2015 amounted to CAN$2.7 billion of which CAN$536 million was taken in the fourth quarter.
“We were pleased with our operating performance in 2015, meeting our guidance, reducing our costs and raising nearly US$1 billion through two streaming transactions to strengthen our balance sheet,” commented Don Lindsay, President and CEO.
“However, the commodity cycle continues to provide us with a very challenging environment such that our near-term priorities are to keep all of our operations cash flow positive, meet our commitment to Fort Hills with internal sources of funds, evaluate options to further strengthen our liquidity and maintain a strong financial position by ending the year without drawing on our lines of credit,” continued Lindsay.
Teck reported it had reached agreements with the majority of its steelmaking coal customers for 1Q16, based on a quarterly benchmark of CAN$81 per t for the highest quality product, and the company expects total sales in the first quarter, including spot sales, to be at least 5.5 million t of metallurgical coal.
Financial results in 4Q15 were significantly affected by the decline in commodity prices. In the case of metallurgical coal, prices are approximately 40% lower in US dollar terms than those experienced during the financial crisis in 2008/2009.
Gross profit before depreciation and amortisation from Teck’s metallurigcal coal business unit decreased by US$37 million from a year ago, as the benefits of its cost reduction programme and lower diesel prices were more than offset by lower realised metallurgical coal prices.
The average realised metallurigcal coal price of US$81/t was 26% lower than for 4Q14, reflecting oversupplied steelmaking coal market conditions and a decline in spot price assessments. The favourable effect of a stronger US dollar in the fourth quarter partly offset the lower price, which resulted in the company’s Canadian dollar realised price declining by 12% compared with a year ago.
Fourth quarter production of 6.4 million t was 6% lower than the same period a year ago as the company reduced production volumes to match sales volumes which were equal to the previous year.
Teck indicated that even with the lower production volumes, unit production costs at the mines were 6% lower this quarter than a year ago as a result of our continued cost reductions, productivity improvements and lower diesel prices.
The company’s property, plant and equipment expenditures totalled CAN$28 million in the fourth quarter, of which CAN$20 million was spent on sustaining capital. Capitalised stripping costs were CAN$103 million in the fourth quarter compared with $94 million a year ago.
The company has reported that it continues to implement the water quality management measures contemplated by our Elk Valley Water Quality Plan. The water treatment facility at our Line Creek Operations continues to move through commissioning and is expected to be fully operational in early 2016.
Outlook
Metallurgical coal production in 2016 is expected to be between 25 and 26 million t. Production in the first half of 2016 is expected to be lower than the second half due to scheduled plant maintenance shutdowns and raw coal release timing. As in prior years, annual volumes produced will be adjusted if necessary to reflect market demand for our products.
Excluding transportation costs, Teck projects its annual cost of product sold to be in the range of CAN$45 – CAN$49/t (US$32 to US$35) based on its current production plans.
In 2016, the company anticipates to reduce overall mining costs from 2015 levels, but a higher proportion of these costs are expected to relate to current production and less to capitalised stripping. This results in a reduction in capitalised stripping from CAN$396 million in 2015 to an expected CAN$288 million in 2016 and an increase of CAN$4/t in operating costs.
Edited from press release by Harleigh Hobbs
The South African Competition Commission has recommended the proposed acquisition of the troubled Optimum Coal Mine (OCM) by Tegata Exploration and Resources be approved with conditions.
OCM is controlled by Optimum Coal Holdings (OCH), which is partly owned by Swiss commodities giant Glencore but has been in business rescue in August after it failed to renegotiated a coal supply agreement with state utility, Eskom.
“The Competition Commission’s recommendation that this deal is approved is good for all of Optimum’s employees,” said Nazeem Howa, CEO of Oakbay Investments, which owns Tegata. “As the commissions recommendation states, the transaction will not substantially prevent or lessen competition in the thermal coal market.”
Towa also echoed previous commitments to the mines employees, saying that “through this acquisition we have prevented a liquidation what would have seen 3000 people lose their jobs.”
Edited by Jonathan Rowland.
Following the US Supreme Court’s decision to stay the Obama Administration’s Clean Power Plan, while litigation continues in the D.C. circuit court, Utah Attorney General Sean Reyes has lauded the decision as a major victory for the bipartisan coalition of 29 states and state agencies:
“While the stay is no guarantee that the Supreme Court will eventually rule against the EPA, I believe the decision recognises the dramatic impact the rule would have on our state,” said Reyes. “We all want better air quality and a healthy environment for our families and future generations, but not by bypassing Congress, violating the Clean Air Act and ignoring meaningful input by the states.”
The coalition challenged the EPA’s power plan on 23 October 2015 – the day it was published. The states argue the EPA exceeded its authority by double regulating coal-fired power plants and forcing states to fundamentally shift their energy resources away from coal-fired generation.
Reyes added: “The EPA rule is complex but what it represents is simple: a power grab of epic proportions. This is one of the largest overreaches ever by the agency and, if left in place, would drastically expand its jurisdiction beyond the fence line and outside the scope of the Clean Air Act. It may be touted as cooperative federalism, but there is nothing cooperative about it. It is coercive, offensive to notions of federalism and will drastically increase energy costs and put thousands of already suffering Americans out of work. We can embrace a future that includes robust alternative clean energy sources without killing the coal industry.”
Edited from press release by Harleigh Hobbs
US Energy Information Administration
Mining and exploration investment declined 35% in 2015, the second largest year-over-year decline since the US Bureau of Economic Analysis (BEA) began reporting the series in 1948. Most mining and exploration investment reflects petroleum exploration and development, but the category also includes natural gas, coal and other minerals.
Mining and exploration investment declined from US$135 billion in 2014 to US$87.7 billion in 2015, weighing down investment growth more than any other segment of non-residential investment. Total private fixed investment, of which mining and exploration is a small subset, grew 4% in 2015 to US$2.7 trillion. Low commodity prices remain a significant factor in US firms’ investment decisions.

US gross domestic product (GDP) grew 2.4% in 2015, according to 4Q15 and annual 2015 advance estimates by BEA, the same rate as in 2014. Gross private domestic investment contributed 0.8% to the 2.4% GDP growth in 2015. BEA tracks several types of private investment, broadly split into residential and non-residential.
Within non-residential are three categories: equipment (such as industrial and transportation equipment), intellectual property products (such as software and entertainment) and structures (which includes mining and exploration but also commercial, manufacturing, power, and communication structures).

Mining and exploration investment as a share of total private investment declined from 5.2% in 2014 to slightly more than 3% in 2015. Low oil prices remain a major factor in oil exploration and production firms’ decisions to reduce capital expenditure. 4Q15 earnings statements from US oil companies indicate plans to further reduce CAPEX to balance spending with lower cash flows until crude oil prices increase enough to make investments economic. These oil-company reductions could continue to put downward pressure on investment spending in the broader US energy sector.

Edited by Jonathan Rowland. Source: US EIA Today in Energy (10 February 2016).
Industry groups continue to react to the Supreme Court’s decision to stay implementation of the Clean Power Plan in the US, while the regulation is reviewed by federal court.
“We are pleased the Supreme Court took this unprecedented step to protect the states from further economic harm while the courts are deciding whether the administration’s Power Plan is unlawful and unconstitutional,” said Mike Duncan, President and CEO of American Coalition for Clean Coal Electricity. “The stay is a signal the Supreme Court has serious concerns with the Power Plan. We’re optimistic the Power Plan will ultimately be rejected.”
Led by West Virginia’s Attorney General, 29 states and state agencies had petitioned the Supreme Court to stop the US Environmental Protection Agency (EPA) from enforcing implementation of the rule before legal challenges had completed. States had been expected to submit their compliance plans in September – a deadline that is now likely to be moved back.
“This Supreme Court decision recognises the irreparable harm that would occur in the absence of such a decision,” said the American Coal Council (ACC), who were among many to point to the enforced implementation of the EPA’s mercury (MATS) regulations before judicial review of the rule had been completed. That rule was ultimately rejected by the Supreme Court but not before utilities had permanently retired a number of coal-fired power plants as part of compliance plans.
“The court’s decision yesterday gives a clear indication – as it did with its June 2015 rejection of the EPA MATS rule – that the EPA has likely overstepped its legal authority and that the nation’s most senior legal authorities have serious concerns with the rule,” concluded the ACC. “Together with the earlier decision by the DC Circuit Court to grant an expedited hearing of the legal challenge of the merits of the case against the Clean Power Plan, the courts are appropriately responding to widespread concerns about the structure, timing, and costly impacts of this EPA rule.”
Edited by Jonathan Rowland.
The House Energy and Power Subcommittee recently discussed a bill, the Satisfying Energy Needs and Saving the Environment (SENSE) Act, which seeks to lessen the impact of Environmental Protection Agency (EPA) regulations.
“The SENSE Act represents a common-sense compromise between the legitimate goals of controlling pollutants emitted from coal refuse-to-energy facilities and ensuring regulations imposed on the industry are fair and allow vital remediation work to continue,” U.S. Rep. Keith Rothfus (R-PA), who introduced the legislation, explained. “The industrious men and women at the power plants, on the coal refuse piles and throughout the supply chain are counting on us to protect their livelihoods.”
The SENSE Act would adjust the EPA’s regulations to allow for the continuance of the coal refuse-to-energy industry, which serves the dual purpose of remediating polluted sites and creating affordable energy.
Edited from press release by Harleigh Hobbs
Robert Nogaj has been named Chief Operating Officer (COO) of Martin Engineering, a global leader in bulk material handling solutions.
Nogaj will be responsible for all facets of the company’s business, including R&D, manufacturing, sales, marketing and finance.
He has 22 yrs of experience in bulk materials handling and was previously served Martin Engineering as Vice President of Operations from 2001 – 2015.
“Our mission for the coming years will be to keep streamlining our business for continued growth, building on the international expansion that has led us to become a truly global company able to supply and service customers virtually anywhere in the world,” he said. “We are developing a wide range of new products and strategies to address the industry’s most difficult issues and compete in the challenging markets that are forecast for 2016 and beyond.”
Nogaj added that Martin Engineering continues to expand its focus into new regions and target industries to assure the company’s profitable growth and long-term stability.
A key component of the company’s strategy will be to continue its role as an industry resource and innovator of products and services to improve the efficiency, safety and productivity of bulk materials handling operations. The firm’s emphasis will include further development of safety training programs and active participation in key industry organisations, such as the Conveyor Equipment Manufacturers Association (CEMA).
Edited from press release by Harleigh Hobbs
Eggborough’s 2000 MW coal-fired power plant, UK, has announced the signing of a contract with National Grid, enabling the plant to stay open until March 2017. The contract comes under the Supplemental Balancing Reserve (SBR) scheme, which is in place in order to provide back up power next winter.
Eggborough is able to provide approximately 4% of the UK’s total energy. In 2015, the plant was deemed unsustainable and closure was expected. This contract safeguards more than 200 jobs at the Yorkshire power plant for the next year.
Edited from press release by Angharad Lock
Sources: Insider Media, Reuters
Clean Coal Technologies, Inc., an emerging cleaner-energy company utilising patented technology to convert untreated coal into a cleaner burning and more efficient fuel, has recognised the Supreme Court’s decision to freeze the Obama Climate Policy, believing it could lead to wider adoption of their newly proven technology.
“The court’s decision to temporarily freeze President Obama’s climate policy clearly opens the door for CCTI to aggressively move forward in deploying our proven new technology throughout the US, to help a wide range of industries continue to use coal for their energy needs,” commented CCTI CEO, Robin Eves.
“By removing the moisture, reducing the volatiles, and increasing the BTUs through CCTI’s Pristine-M process, a more efficient coal can be burned thereby lowering the carbon footprint for those using coal,” Eves added.
“CCTI is dedicated to finding a solution and supporting the coal and power industries throughout the US and internationally. The continued negative sentiment on the coal industry is unfounded and unwarranted. This decision by the Supreme Court gives us the opportunity to show the world that coal can be used more efficiently, and sustained as a major contributor to the global energy slate by the introduction of proven and economically viable technology,” concluded Eves.
Edited from press release by Harleigh Hobbs
A study by THEnergy and Ripasso entitled “A hybrid solution with concentrated solar power (CSP) and fuel for baseload mining operations” analyses the fit of Stirling Hybrid solutions for the mining industry. The Stirling engine based solution uses in an integrated system solar with gas or diesel as an energy source.
Transport costs and “losses” increase the fuel costs largely, whereas the CSP plant is installed once and then provides energy. New built off-grid mines face often choices of paying for expensive grid-connection or generating the power onsite. On-site power stations often consist of diesel gensets. Stirling Hybrid solutions are an alternative to diesel gensets. If the solar irradiation is high the CSP plant can generate the total output power, and if the solar irradiation is not at its maximum the heat that is needed for the highly efficient Stirling engine can also be produced by various secondary fuel types.
This makes the fully integrated system ready for baseload applications found in mining. A variety of fuels can be used, including natural gas, CNG, LNG, LPG, biogas, industrial off gas, coal methane gas or even diesel. A combination of CSP and biogas is 100% renewable energy generation.
In combined mining and metal processing plants off-gas that otherwise would be flared can be used in the Ripasso Stirling Hybrid solutions. The Stirling engine itself is combustion free. The modular design allows for scalability in 33 kW steps and ensures a robust power generation. The modularity of the Stirling Hybrid solution reduces the probability of production losses due to power outages to an absolute minimum. The study also found advantages regarding the use of land and water. Both can be very critical for mining operations at remote locations.
“The Ripasso Stirling Hybrid solution fits very well to the requirement of mining companies whenever reliable baseload power is needed in sunny regions”, said Gunnar Larsson, CEO of Ripasso Energy. “We are frequently contacted by industrial consumers who suffer from production losses due to power outages.”
The Stirling solution is proven in naval applications and units of the Ripasso CSP system are currently installed in Southern Africa.
“It is important to indicate that Ripasso Energy belongs to Ahlström Capital, a family investment company that continues the heritage of the renowned Ahlström corporation”, stated Dr. Thomas Hillig, CEO of THEnergy. “A strong owner in dynamic environments is an important factor for long-term investments.”
Edited from press release by Angharad Lock
Australian drill and blast contractor, Action Drill & Blast (ADB), has reached a principle agreement with Golding Contractors for the provision of drill and blast services at Isaac Plains metallurgical coal mine in Queensland.
Golding was appointed to undertake contract mining at Isaac Plains by Stanmore Coal, who bought the mine from Vale and Sumitomo Corp. last year. The contractor took over operational responsibility of the site this month.
The mine is currently being brought back into operation after a period of care and maintenance with production expected to restart in April 2016.
“We have a strong performance track record at Isaac Plains having delivered blasting services on a previous contract,” said ADB General Manager Warren Fair. “We look forward to leveraging this experience, demonstrating our ongoing commitment to best-for-project and establishing a close working relationship with the client to deliver maximum value.”
ADB is currently operating on site under agreed terms pending finalisation of the contract details. The proposed contract will have a 36 month term and has an estimated value of approximately AUS$40 million.
Edited by Jonathan Rowland.
Peabody Energy – one of the few large US coal miners to so far have avoided bankruptcy – has announced a US$1.86 billion loss from its continuous operations on the back of US$1.28 billion of asset writedowns.
The company, which has been hit by significantly lower coal demand from the US power sector and weak prices on the international market, recorded impairment charges of US$969.2 million on its Australian metallurgical coal assets and US$308.6 million on non-producing reserve and non-mining assets in the US.
The company’s liquidity totaled US$902.6 million on 9 February – down from US$2.85 billion at the end of December 2015 – in cash and through the company’s revolving credit facility, which was fully drawn down at the end of last year.
The company also said it has US$823.7 million in letters of credit.
Looking ahead, the company lowered its outlook for US utility demand for coal by 40 – 60 million short t on projected plant retirements and lower natural gas prices. Coupled with an expected reduction in utility stockpiles and lower exports, the company projects a 150 – 170 million short t fall in US coal shipments.
In Australia, Peabody is lowering its metallurgical coal production to reflect operational changes made in 2015. It is also planning to place the Burton mine into care and maintenance by the end of the year.
“Against a brutal industry backdrop, the Peabody team delivered a strong operating performance as we improved safety, achieved over US$620 million in lower costs, further reduced capital, streamlined the organization and advanced multiple work streams to address our portfolio and financial objects,” said Peabody CEO, Glenn Kellow.
“It is clear that more must be done,” Kellow continued. “We are taking further steps to confront the prolonged industry downturn by targeting additional cost reductions, advancing non-core asset sales and pursuing aggressive actions to preserve liquidity and delever our balance sheet.”
Edited by Jonathan Rowland.
A group of Alpha Natural Resouces’ existing lenders has agreed a US$500 million stalking-horse bid for the coal producers core assets, including the company’s three biggest mines: Eagle Butter and Bell Ayr in Wyoming and Cumberland in Pennsylvania.
The deal, which aims to set a floor for an auction process, also includes mining assets in West Virginia, as well as the company’s Marcellus Shale natural gas business.
“As part of our overall restructuring effort, we believe this process will provide the best chance of preserving jobs and maximizing the value of the broader enterprise for all stakeholders,” Alpha said in a statement.
The deadline for submitting competing offers is 28 March and any deal would need approval of the Bankruptcy Court. Should a deal be completed, Alpha said it hoped to emerge from Chapter 11 protection in the summer.
A previous sales process for its Central Appalachian mines ended without a buyer after management declined to complete any sale based on the value of the bids. Those assets remain up for sale.
Over the past month, Alpha has announced hundreds of job losses and the closure of a number of mines in West Virginia.
Edited by Jonathan Rowland.
AGL’s exit from the Australian coalbed methane (CBM: called coal seam gas in Australia) sector saw the company dip into the red in the six months to December 2015 as the company recorded a pre-tax impairment charge of AUS$795 million on its gas assets.
The company took a statutory loss of AUS$449 million in 2H15 – although underlying profit, which doesn’t include the writedown, remained a healthy AUS$375 million.
AGL announced in early February that it would quit the CBM exploration and production business after a strategic review of the company’s business, stopping development of the Gloucester Gas Project and ending production at the Camden Gas Project in New South Wales.
“AGL […] has taken a strategic decision that exploration and production of natural gas assets will no longer be a core business for the company due to the volatility of commodity prices and long development lead times,” the company said in a statement.
Edited by Jonathan Rowland.
It will be “challenging” to meet the UK’s climate change commitments with carbon capture and storage (CCS), according to a new parliamentary report into the future of CCS in the UK.
“Without CCS it may be necessary to find large and potentially more expensive carbon savings to meet the legally binding targets set out in the Climate Change Act, as well as more recent challenging ambitions set out at the Paris climate summit,” the report from the Energy and Climate Change Committee said.
Funding for the UK’s CCS commercialisation competition was unexpectedly withdrawn last November just weeks before the final bids were due to be submitted to much criticism from industry groups and investors. “Pulling the plug on the competition without warning in this way was damaging both to the relationship between government and the industry and to investment in the UK,” the committee report concluded.
The report also calls for the UK government to “promptly devise a new strategy for CCS,” noting that, without such a framework, knowledge, investment, assets and expertise would be lost.
Dr Luke Warren, CEO of the UK Carbon Capture and Storage Association (CCSA) CEO, welcomed the committee’s report, adding that the CCSA “look forward to working with the government to deliver a successful CCS strategy that can ensure the decarbonisation of the UK’s power sector at least cost.”
In response, a Department of Energy and Climate Change (DECC) spokesperson said tin an emailed statement that the government hadn’t “closed the door to CCS technology in the UK”, but defended the decision to pull funding last year.
“As part of our ongoing work to get Britain’s finances back on track, we have had to take difficult decisions to control government spending,” the statement continued. “CCS should come down in cost and we are considering the role that it could play in the long-term decarbonisation on the UK.”
But the government’s economic argument came under fire from Prof. Stuart Hazeldine, Director of Scottish CCS. According to Prof. Hazeldine figures used by the government were misleading because they included the cost of infrastructure – costs that would only apply to “first-phase projects”.
“We have argued, along with others, that CO2 capture should therefore be unbuckled from the infrastructure to give a more accurate reflection of cost,” Hazeldine said.
“On 8 February, the UK opened its Shetland gas terminal, one of the largest hydrocarbon production sites in northwest Europe, until at least 2045. Government also intends to build ten new gas-fuelled power plants. It is simply not possible to continue to exploit fossil fuels in this way unless CCS is part of the equation,” Hazeldine concluded.
Edited by Jonathan Rowland.
Glencore has reported coal production for the 12 months ended 31 December 2015.
The company has indicated that coal production was down 10% to 131.5 million t primarily due to curtailed production in response to market conditions and deconsolidation of optimum coal since its August 2015 placement into business rescue proceedings.
Australian metallurgical production came in at 5.9 million t, which was in line with 2014. Australian thermal and semi-soft Production of 59.9 million t was 3.6 million t (6%) below 2014, reflecting that, in the face of weaker prices, production was curtailed.
At Glencores South African operations, thermal production of 37 million t was 9.1 million t (20%) below the prior year, mainly due to optimum being placed into business rescue proceedings, with associated production deconsolidated from August 2015.
The company’s Prodeco operations produced 17.6 million t, which was 1.9 million t (10%) lower than 2014, which reflected a scaling back as railing capacity was constrained by night time rail restrictions, which have now been lifted.
In Cerrejón, Glencore’s share of production was 11.1 million t – in line with the prior year.
Edited from press release by Harleigh Hobbs
Mining giant, Rio Tinto, recorded a loss of US$866 million in 2015 on earnings that more than halved to US$4.5 billion. Earnings from the company’s coal assets were up, however, at US$492 million from US$349 million in 2014.
That saw coal end the year back in the black with net earnings of US$45 million compared to a net loss of US$83 million in 2014. The real damage came as metals prices plunged with the company’s flagship iron ore business recording a fall in net earnings of US$4.2 billion (51%) to just under US$4 billion.
Meanwhile, net earnings from the company’s copper assets – which are grouped in the same division as coal – fell from US$951 million to just US$237 million.
“Weaker Chinese demand led to a further deepening of the cyclical downturn in most commodity markets in 2015,” the company said in its results statement. “The iron ore price dropped below US$40/t […] representing an 80% fall from the peak of the market in 2011 […] Prices for several other commodities, such as aliminium, thermal and metallurgical coals are at levels preceding the China boom or only seem briefly in the depth of the Global Financial Crisis.”
In response, the company said it would start a new round of cost cutting with the aim of slashing operating costs by a further US$1 billion in 2016 and another US$1 billion in 2017. The company also cut its CAPEX to US$4 billion in 2016 and US$5 billion in 2017 – a reduction of US$3 billion on previous guidance.
Rio’s dividend policy has also been updated with the board deciding to axe the company’s progressive dividend policy, under which it promises never to cut its dividend, in favour of a more flexible approach that “will allow the distribution of return to reflect better the company’s position and outlook”, said Rio’s Chairman, Jan du Plessis.
Edited by Jonathan Rowland.
The 2640 MW South Brindisi power plant is one of the biggest coal-fired power plants in the country and is operated by Enel Produzione S.p.a.
Enel project is a turnkey solution, which includes the engineering, construction, complete supply of materials, commissioning and starting up of the equipment to develop the 2640 MW coal plant.
The plant will use coal sourced from Indonesia and South Africa.
The project has taken environmental concerns into consideration and will aim to take the place of the current outdoor longitudinal coal storage at the power plant. This will involve the implementation of two new domes with a wooden covering structure and an environmental impact almost equal to zero.
In December 2013, Bedeschi started the erection phase of the first dome, while the second one started in April.
At the end of 2015, both installations have been positively tested and accepted by end user.
Edited from press release by Harleigh Hobbs
According to a new report from the US Energy Information Administration (EIA), so far this winter, natural gas consumption in the electric power sector (gas burn) has been higher than in any previous winter. According to Bentek Energy, gas burn in the electric power sector has averaged 25.0 billion ft3/day so far this winter (1 November through 8 February), up 17% from last year’s average of 21.4 ft3/day during the same period and significantly higher than the 18.8 ft3/day average of the past five years. Low natural gas prices have been the primary driver of increasing natural gas use for power generation, although reductions in coal capacity and the availability of efficient gas-fired generating units have also played a role.
On an annual average basis, the electric power sector is the largest consumer of natural gas, using more than the industrial sector and each of the buildings sectors (residential and commercial). Although consumption of natural gas in the power sector peaks during the summer – when electricity demand is highest – the power sector’s natural gas consumption during the winter has been increasing as more generation switches to gas and more households rely on electricity as a main heating source.
Spot natural gas prices at the Henry Hub in Louisiana, a national benchmark, averaged US$2.61 million/Btu in 2015 – the lowest annual average level since 1999. Prices began the year relatively low and continued to fall throughout 2015 – the December average was US$1.93million/Btu, the lowest monthly price since March 1999. Relatively low natural gas prices encouraged the increased use of natural gas to generate electricity. The EIA’s Short-Term Energy Outlook expects natural gas prices to increase over the next two years, leading to a slight reduction in the consumption of natural gas for power generation. However, the power sector consumption of natural gas would still be near historically high levels.

Source: U.S. Energy Information Administration, based on Bentek.
Capacity factors of natural gas-fired plants have been rising for years, and over the past several months, capacity factors for natural gas-fired combined-cycle plants have finally eclipsed coal-fired plants as natural gas is increasingly used to generate electricity. Capacity factors reflect a generator’s actual output compared with its capacity, and they are a measure of how much a fleet of generators is actually run.
In addition to lower natural gas prices, improvements in the efficiency of new natural gas plants are helping to increase the economic attractiveness of dispatching gas-fired generation. In 2015, about 40% – 6200 MW – of all new utility-scale plants of 1 MW or greater were natural gas-fired plants. Another factor in the increasing gas burn is the growing number of coal plant retirements. Preliminary reports indicate that nearly 15 000 MW of coal-fired capacity was retired during 2015.

Source: U.S. Energy Information Administration, Electric Power Monthly.
Gas burn has increased in almost all regions in the US this winter, but the reasons for the increase vary regionally. The Pacific Northwest region had the largest percentage increase in natural gas burn because of lower-than-normal hydro generation in 2015. The Southeast and Northeast regions use the most natural gas on a regional basis, and their gas burn has increased by 17% and 15%, respectively, thus far this winter compared with the same period last winter. In the Southeast, both declining utilisation rates for coal plants and continuing coal plant retirements drove the increase in natural gas burn. States in the South Census Region alone accounted for more than half of total coal retirements in 2015. In the Marcellus region of the Northeast, natural gas has consistently been priced below gas at the Henry Hub, making it even more economic in that region. Additionally, infrastructure additions have made it easier to move natural gas to users.
Congressman Gary Palmer (R-AL), a member of the House Science, Space, and Technology Committee, has welcomed the Supreme Court’s decision to stay the EPA’s implementation of an overreaching Clean Power Plan designed to cut carbon dioxide emissions from power plants.
In a statement, Palmer said: “Implementing the Clean Power Plan would have far reaching impacts and profoundly negative consequences for American families and the economy … It would cause power plant closures, which will result in lost jobs and higher electricity costs. In addition, according to an analysis from the Heritage Foundation, the Clean Power Plan would result in 300 thousand in annual job losses by 2030, a loss of US$2.5 trillion in aggregate gross domestic product, and would reduce individual income by US$7000, while having no measurable impact on climate change. According to the EPA’s own estimates, the plan would limit global temperature rise by less than 0.02% of a degree.”
Palmer said he applauds the recent decision and indicated it was a “victory for individuals and families” as it (at least temporarily) removes the harmful consequences they could face from implementing the plan, while challenges to it are put forward through a judicial process.
Edited from press release by Harleigh Hobbs
The US Supreme Court has recently granted the applications of National Mining Association (NMA), Murray Energy, states and other parties to stay the Environmental Protection Agency’s Clean Power Plan pending judicial review of the rule by the US Court of Appeals for the District of Columbia Circuit.
NMA President and CEO, Hal Quinn, has released a statement on the decision.
Quinn is pleased with the decision and indicated that it is “a powerful assertion of judicial restraint on this administration’s unbridled use of executive authority to regulate an industry out of existence.”
“The decision adds to the growing recognition – by Congress and by more than half the states that are challenging EPA in court – that the Clean Power Plan is already creating economic havoc in the nation’s power grid. The costs it imposes will ultimately be paid by households, businesses and industries across the country,” continued Quinn.
He concluded: “The high court’s decision should give confidence to the nation’s governors that they needn’t bow to EPA’s determination to impose these costs on their states. And it gives our industry further confidence that a final ruling on the merits of this regulation will vindicate our belief that EPA has acted unlawfully.”
The stay will remain in effect until the case reaches the Supreme Court.
Edited from press release by Harleigh Hobbs
WASHINGTON — The ’s surprise decision Tuesday to could weaken or even imperil the international accord reached with great ceremony in Paris less than two months ago, climate diplomats said.
, the first accord to commit every country to combating climate change, had as a cornerstone Mr. Obama’s assurance that the United States would carry out strong, legally sound policies to significantly cut carbon emissions. Over history, the United States is the largest greenhouse gas polluter, although its annual emissions have been overtaken by China’s.
But in the capitals of India and China, two of the world’s largest polluters, climate change policy experts said the Supreme Court decision threw the American commitment into question, and possibly New Delhi’s and Beijing’s, too.
“If the U.S. Supreme Court actually declares the coal power plant rules stillborn, the chances of nurturing trust between countries would all but vanish,” said Navroz K. Dubash, a senior fellow at the . “This could be the proverbial string which causes Paris to unravel. The Paris agreement was a fragile and hard-fought consensus.”
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The court’s verdict does not block the climate change rule permanently but halts its enactment until legal challenges against it have been decided, a process that could take a year or more. Legal experts said the justices’ unprecedented decision to stop work on the rule before any court had decided against it appears to signal that the regulation could ultimately be overturned.
“If the American clean energy plan is overturned, we’ll need to reassess whether the United States can meet its commitments,” said Zou Ji, the deputy director of the National Center for Climate Strategy and International Cooperation, a government policy think tank in Beijing.
“It had seemed that with the American commitments, it was possible to get on the right emissions path globally,” said Mr. Zou, who was an adviser to the Chinese delegation at the Paris negotiations, by telephone. “But without those commitments, that could be a blow to confidence in low-carbon development. In China domestically there is also resistance to low-carbon policies, and they would be able to say, ‘Look, the United States doesn’t keep its word. Why make so many demands on us?’”
Inaction by the United States has long been the chief obstacle to meaningful global climate change agreements. India and China in particular resisted action absent a climate change policy in the United States.
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Mr. Obama sought to change that by putting in place a set of aggressive but politically controversial rules to cut planet-warming greenhouse gas emissions from coal-fired power plants. On the basis of those rules, Mr. Obama won agreements from China and India to enact their own pollution reduction plans, and helped push other countries into signing on to the Paris measure. Visiting Beijing in 2014, Mr. Obama made a joint announcement that both countries would enact concrete domestic policies to cut emissions.
Over the past year, Mr. Obama worked closely with the Indian prime minister, Narendra Modi, to bring India to the table for the Paris deal. Mr. Modi and many within India were resistant; the prime minister’s top priority is to make cheap electricity available to the 300 million Indians who live without power. If the United States reneges on its commitments, “it really would strengthen the hand of those who say Paris was ineffective and a bad deal for India,” Mr. Dubash said.
American policy experts agreed that the Supreme Court decision might be the first of many fractures in the deal. “The honeymoon for Paris is now definitely over,” said John Sterman, a professor of management at the Massachusetts Institute of Technology who attended the Paris talks.
“This pushback is not something that’s unique to the United States,” he added. “It’s happening all over the developed world.”
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In the European Union, Poland and some other coal-reliant countries have resisted signing on to the bloc’s commitment under the agreement to more stringently reducing emissions across member states.
While the Paris deal was completed in December, it has not yet been signed. Secretary General Ban Ki-moon has invited world leaders to a signing ceremony in New York on April 22, . Those who do not attend the gathering will have several months to add their signatures to the formal document.
Already, some people deeply familiar with the climate negotiations worry that the events in the United States could lead to a repeat of what happened after the signing of the 1997 Kyoto Protocol, the first major climate change treaty. Vice President Al Gore, a staunch environmentalist, negotiated the treaty with other world leaders. But in Washington, the Senate voted against ratifying it. Then George W. Bush pulled the United States out entirely.
The Supreme Court’s decision — particularly if it ultimately strikes down the rule — will put United States climate policy, and its participation in the Paris agreement, largely in the hands of the next president. While the Democratic candidates Hillary Clinton and Bernie Sanders have pledged to continue and strengthen Mr. Obama’s climate change agenda, the Republican contenders, including Donald Trump, Ted Cruz and Marco Rubio, have questioned or denied the science of human-caused climate change and have sharply criticized the Paris Agreement.
“Who can we negotiate with if the White House can’t be sure if it can keep its promises?” Mr. Zou asked. “Not the Congress. Not the court. The division of powers creates a very complicated situation.”
The final stages of initial construction works at Resource Generation’s Boikarabelo project continued in the final quarter of 2015, despite turmoil in the company’s management. The Boikarabelo project in the Waterberg region of South Africa has probable reserves of 744.8 million t of coal; stage one of the mine development targets saleable production of 6 million tpy.
Construction of the bulk transformer yard and substation was successfully commissioned and connection into the Eskom power grid is now scheduled for July 2016. In addition, work on the initial rail connection was commissioned, providing construction access for the rest of the railway link to the mine.
“Focus on the mine has now shifted from construction to operational readiness as the early works construction comes to an end,” the company said in its Quarterly Report for the three months to 31 December 2015.
Progress at the mine was overshadowed however by a tumultuous three months in the boardroom, which saw the election of an entirely new board of directors at a general meeting in November and the following appointment of an interim CEO in Rob Lowe, who is also the CEO of Altius, one the company’s major South African shareholders and primary mover behind the motion to dismiss the previous management.
Lowe had been appointed by the previous board to develop a funding plan for the project – activities he continues to undertake in his new role, meeting with potential financiers at the end of last year with further discussions expected in January.
Lowe “has the benefit of detailed project knowledge and enjoys eary access to all of the stakeholders on which [the Boikarabelo] project will ultimately rely, including the development funding institutions, rail utility and electricity generator,” said Danis Gately, the new Chairman of the Board of Directors in his mid-December report to shareholders.
The day before the general meeting, the former Managing Director has approved the sacking of all Sydney office staff – including himself – with the payment of over AUS$2.3 million in termination benefits.
“The new board is seeking legal advice in relation to the termination benefits,” the company said.
Edited by Jonathan Rowland.
A steep rise in coal imports helped boost bulk cargo throughput at Port of Hamburg in 2015. Coal imports finished the year 27.3% higher at 7.7 million t with the steelworks of northern and eastern Germany, industrial plants and power plants providing the demand.
Overall, grab cargoes – such as coal – dominated bulk shipments through Hamburg, comprising 22.3 million t of the total, an increase of 9.2%. Suction cargoes – such as grain – grew by 12.4% to finish at 9.2 million t, although grain exports grew by almost 28.8% to 4.2 million t.
A fall in container handling however saw the port’s total throughput fall 5.4% to 137.8 million t. Container handling fell 9.3% to 8.8 million TEU, offsetting a rise in bulk cargo handling of 5.8% to 45.5 million t.
Edited by Jonathan Rowland.
The world’s largest mining company, BHP Billiton, has signed an agreement with SaskPower, the Canadian utility that pioneered the first commercial-scale carbon capture and storage (CCS) project at a coal-fired power plant, to establish the BHP Billiton SaskPower Carbon Capture Knowledge Centre. The centre will aim to help advance CCS as a means of managing greenhouse gas emissions.
As part of the agreement, BHP Billiton will contribute CAN$4 billion per year for five years – a total of CAN$20 million – while SaskPower will “contribute its CCS expertise and experience gained through its various CCS initiative”, the utility said in a press release. The centre will operate as a not-for-profit Canadian corporation based in Regina, Saskatchewan.
“By enhancing global access to the data, information and lessens learned from SaskPower’s unique Boundary Dam facility – the first power project to successfully integrate CCS – we aim to stimulate deployment of the technology,,” said Dean Dalla Valle, Chief Commercial Officer and BHP Billiton.
According to SaskPower, the deployment of CCS is at a crucial juncture with China expecting to add 40 GW of coal-fired generation this year alone, to add to the 90 GW of capacity added over the past two years. Meanwhile India’s coal-fired fleet is forecast to grow by 250% by 2040, according to the International Energy Agency, with Japan, the Philippines, Indonesia, Turkey and South Africa also planning or construction new coal-fired power plants.
“CCS is especially important because the fastest growing countries in the world are expected to rely on coal to power their economies for some time to come,” said Saskatchewan Premier, Brad Wall. “SaskPower’s partnership with BHP Billiton will allow us to share the benefits of CCS with the world while continuing to reduce carbon emissions here at home.”
The centre will be staffed primarily by seconded SaskPower and BHP Billiton employees and will be led a board of directors comprising representatives of both SaskPower and BHP Billiton, as well as independent nominees.
“We are very pleased to have BHP Billiton as a partner in this centre,” SaskPower President and CEO Mike Marsh said. “Talks between our two companies began at a United Nations climate change conference in Peru in late 2014. Just over one year later, we are celebrating a ground-breaking knowledge centre that will offer the world a vehicle to advance the technology and commercial viability of CCS.”
Edited by Jonathan Rowland.
The US Supreme Court has blocked enforcement of the Clean Power Plan while a US federal appeals court considers the regulations, putting the future of President Obama’s climate change agenda in doubt.
“We are thrilled that the Supreme Court realized the rule’s immediate impact and froze its implementation, protecting workers and saving countless dollars as our fight against its legality continues,” said Patrick Morrisey, the Attorney General of West Virginia, who led the legal challenge to the regulations.
Implementation of the rule will now be stayed until the US Court of Appeals for the DC Circuit issues its review of the Clean Power Plan. The three-justice appeals court panel had refused a stay but granted an expedited hearing, which will take place in June.
Whatever the verdict there, the CPP will likely end up before the Supreme Court for a final decision – and this latest ruling may indicate a degree of judicial skepticism from the country’s highest court. It also places the issue firmly on the agenda during this year’s presidential election, due in November.
The ruling was welcomed by a broad range of industry groups that had supported states’ legal challenge.
“We welcome the US Supreme Court’s decision to stay the EPA’s unlawful greenhouse gas rule for the power sector,” said President and CEO of the US Chamber of Commerce, Thomas J. Donohue, arguing that the CPP would drive up energy costs and reduce the US’s global competitiveness. “Staying this rule is the right decision,” Donohue added.
Opponents of the regulation were keen to avoid repeating the circumstances surrounding the EPA’s mercury regulations when utilities were forced into making implementation decisions before judicial review was complete. This forced the closure of a number of coal-fired power plants before the Supreme Court rejected the regulations last year.
“The Supreme Court’s stay of this rule and the DC Circuits’ order to hear the case quickly will ensure that America will not be forced to make costly and irreversible implementation decisions based upon unprecedented regulation until judicial review is complete,” Donohue concluded.
That point was picked up by Bill Raney, President of the West Virginia Coal Association: “Attorney General Morrisey and the other states opposed to these job-killing regulations can now arguer the merits of the case without worrying that the damage will be done before they can make their arguments.”
Compliance with the CPP was not required until 2022 but states had needed to submit their compliance plans by September. This is now likely to be delayed while the judicial proceedings run their course.
Edited by Jonathan Rowland.