Global engineering company Black & Veatch has been awarded a consultancy role at the Cirebon 2 coal-fired power project in West Java, Indonesia.
The company, which has over 40 years of experience in the Indonesian power sector, has been appointed owners engineer by PT Cirebon Energi Prasarana to help deliver the coal power plant on time.
In this role, Black & Veatch will oversee the scheduling, design, quality control of supplied equipment and construction activity for the project, which will extend capacity at the current Cirebon power plant through the addition of a 1000 MW ultra-supercritical unit.
“We are playing a critical role in helping the owner prepare the project for construction and are focusing on overseeing the contractors’ performance, as well as the quality of equipment supplies,” said Tariq Aziz, Director South Asia, Power Generation Services, at Black & Veatch.
“Our role includes review of the engineering design documents, carrying out shop inspections in person and monitoring the delivery of key components throughout the supply chain.”
The Cirebon project will provide baseload generation for Indonesia’s power gird and forms part of the Indonesian government’s plan to expand the country’s generation capacity by 35 GW over the next few years.
Edited by Jonathan Rowland.
Tlou Energy has renewed its co-operation agreement with General Electric International (GE) and IK Holdings for the delivery of a gas-to-power project in Botswana.
The agreement covers the framework for co-operation between the three companies in relation to sharing of infrastructure and technical support for the delivery of three power projects in Botswana.
This includes a new 50 MW power plant for which Tlou has received approval from the Botswana government to negotiate gas supply, construction and operation, as well as the gas supply to the existing 90 MW Orapa power plant, which is owned by Botswana Power Corp.
The co-operation agreement also covers the proposed 300 MW gas-fired power project to be developed by GE and IK Holdings.
Tlou Energy is developing the Lesedi coalbed methane (CBM) project and is currently on target to book the first company in Botswana to book certified gas reserves. The company aims to supply CBM-to-power projects to fill a current generation gap that has left Botswana reliant on expensive power imports and diesel-fired generation.
The co-operation agreement with GE and IK Holdings will expire on 30 November 2016. It does not bind any party to enter into formal commercial arrangements, but provides a framework for co-operation to finalise the respective project tender processes and approvals, as well as the roles and commercial outcomes for each party.
Edited by Jonathan Rowland.
After a successful bauma last April, MB Crusher has announced it will be attending important international trade fairs through to the end of 2016.
This year MB has been able to meet new clients, make tangible and appreciated the high quality of MB products and introduce new entries. This includes: MB-LS220, a new screening bucket for loaders and backhoe loaders from 12 t, a complete line of hydraulic drum cutters MB-R and last but not least, the third generation of bucket crusher BF90.3 and screening bucket MB-S18 MB flagships.
September will be the busiest month whit a double date in Germany, first in Neumunster from the 7 – 11 September with Nordbau fair, with a demo area to see the machines at work, and soon after Galabau, the gardening, landscaping and gree-design exhibition to be held in Nuremberg from 14 – 17 September.
All possible solutions for the mining sector will be on display at Minexpo, held in Las Vegas on 26 – 28 September. MB Crusher could not miss such an significant international appointment also on this occasion teaming up with MB America representatives.
From 28 September to 1 October, MB is back in its native soil and will be at Marmomacc, Verona’s international fair of stone industry. It is a constantly growing event, where quality and completeness of the exhibition are combined with the most advanced expertise in the processing of natural stone; this year expectance is over 70 000 visitors from all over the world.
In October, a major conference in France, the Mining Industry conference SIM 12-14 in Grenoble, an unmissable opportunity for all mining industry pros. Immediately after from 17 to 20 we will fly directly to Saudi Arabia, in Riyadh for Saudi Build.
In November there will be three different occasions to see MB: firstly at Ecomondo Rimini 8-11 November, the Italian trade show dedicated to circular economy; then comes the turn of China, where the MB Shanghai branch will represent the company at Bauma China 22 – 25, the construction sector major event of this country still in large infrastructural growth. To finish the Big5 Dubai 21 – 24 November, one of the most important industry events in the Middle East where more than 3000 exhibitors from 150 countries worldwide are expected.
December grand finale is up to India, where the Mumbai branch of MB Crusher will participate at Bc India 12 – 15 in New Delhi. This fair is an important opportunity to meet Indian companies operating in the construction sector, where the sales segment of machinery is still on the rise.
Edited from press release by Harleigh Hobbs
World crude steel production for the 66 countries reporting to the World Steel Association (worldsteel) was 133.7 million t in July 2016.
China’s crude steel production for July 2016 was 66.8 million t, an increase of 2.6% compared to July 2015. Elsewhere in Asia, Japan produced 8.9 million t of crude steel in July 2016, an increase of 0.5% compared to July 2015. India produced 8.1 million t of crude steel in July 2016, up 8.1% compared to the same month last year. South Korea’s crude steel production was 6.0 million t in July 2016.
Source: worldsteel
In the EU, Germany produced 3.4 million t of crude steel in July 2016, a y/y decrease of -6.1%. The UK produced 0.7 million t of crude steel.
Source: worldsteel
Turkey’s crude steel production for July 2016 was 2.7 million t, up by 6.5% on July 2015.
In July 2016, Russia produced 6.1 Mt of crude steel, up by 0.9% over July 2015. Ukraine produced 2.1 million t of crude steel, up by 10.5% compared to the same month in 2015.
The United States produced 6.9 million t of crude steel in July 2016, a decrease of -2.2% compared to July 2015.
Brazil’s crude steel production for July 2016 was 2.7 million t, down by -6.0% on July 2015.
The crude steel capacity utilisation ratio of the 66 countries in July 2016 was 68.3%.
Edited from press release by Angharad Lock
Singapore Exchange (SGX) has agreed terms to acquire the Baltic Exchange for £87 million. Baltic Exchange provides market information for the maritime industry, including the Baltic Dry Index (BDI).
“The proposed acquisition will accelerate the growth and development of the Baltic Exchange beyond what it could achieve on its own,” said Guy Campbell, Chairman of the Baltic Exchange.
Under the terms of the acquisition, the Baltic Exchange will maintain its headquarters in London and its multiple clearing house model. The Baltic Exchange will also continue to offer a range of membership services, including dispute resolution and social and charitable activities.
“We are delighted to have received such significant Baltic Exchange shareholder support for this transaction,” said Loh Boon Chye, CEO of SGX. “We look forward to working together with the Baltic members, SGX shareholders and the shipping community worldwide.”
Edited by Jonathan Rowland.
The West Virginia Department of Environmental Protection (DEP) has ordered a permanent halt to mining activities at the Keystone Development No. 2 mine (KD No.2).
Active mining had been suspended at the mine since early 205, after significant violations of state mining and environmental laws were uncovered at the mine – many of them from monitoring data submitted by the Kanawha Forest Coalition.
The coalition has campaigned against the mine, which sits just outside the Kanawha State Forest. The mine is also with 1500 ft of homes in Loudendale, just outside of West Virginia’s state capital, Charleston.
The KD No. 2 mine was first proposed in 2009 with final permit approval coming in 2014, after several major changes to meet environmental concerns. Despite this, the mine has significantly impacted surrounding land, according to the Kanawha Forest Coalition.
“The lessons learned at the KD No.2 mine should be wake-up call to West Virginia residents, lawmakers and regulators that even the best engineering and closest scrutiny can’t make strip mining safe,” said Coalition Coordinator, Chad Cordell. “It should come as no surprise, to the DEP or anyone else, that strip mining pollutes water.”
According to the consent order signed by the company, “no additional mineral extraction activities may occur on this permit”. The company must also backfill and regrade the permit areas within nine months. About 100 acres of the 413 acre permit area has been mined.
The Kanawha Forest Coalition also called on the DEP and West Virginia lawmakers to reconsider all strip mining in the state.
“The campaign was never about stopping just this one mine,” Cordell concluded. “Many other communities are being hurt by strip mining and both the DEP and our state lawmakers need to acknowledge and act on the reality of strip mining’s widespread impacts.
Edited by Jonathan Rowland.
Kerry Parker has been appointed to the position of Chief Executive Officer & Managing Director for Carbon Energy Ltd.
Parker is an executive with a 20 year history of significant contribution to junior resources companies, having held Chief Financial Officer and Managing Director roles in various unlisted and ASX-listed resource companies, including those engaged in the energy business. He has had significant experience in the management of Joint Ventures through CH4 Gas, Arrow Energy, Panax Geothermal, Inova Resources, Discovery Metals and Unity Mining across Australia, India, China, Indonesia, Botswana and Vietnam.
“We are delighted to welcome Kerry to the leadership role in Carbon Energy” said Chairman, Dr Chris Rawlings. “His experience, energy and drive will propel the company to the next stage of its development.”
Parker said he was delighted to be appointed Chief Executive Officer and Managing Director of Carbon Energy and he looks “forward to leading Carbon Energy into the next stage of its development and growth through the use of its proprietary keyseam UCG technology in China and other jurisdictions.”
This appointment will be effective as of 1 September 2016.
Edited from press release by Harleigh Hobbs
Peabody Energy has reached agreement with the Illinois State Department of Natural Resources regarding financial assurances in support of coal mine restoration.
The company has reached a superpriority settlement agreement with Illinois, a state in which Peabody has self-bonding obligations. The agreement follows agreements with Wyoming, New Mexico and Indiana that were approved by the bankruptcy court on 17 August 2016.
The superpriority agreements provide the relevant state authorities with the ability to receive cash first in priority as additional assurance for Peabody’s performance before distribution to any lender or other pre-petition creditor, up to the full amount of the company’s US$200 million bonding accommodation facility.
Illinois and the three other states are entitled to a percentage of the company’s US$200 million bonding accommodation facility based on their proportion of self-bonding relative to the company’s total obligation as of 12 April 2016. The motion for the Illinois agreement is expected to be heard by the court by 15 September 2016 and is available online.
Peabody’s US$800 million Debtor-in-Possession financing facility, which includes the bonding accommodation facility, provides financing for up to 18 months during the Chapter 11 process as described further in the company’s SEC filings on Form 8-K on 13 April and 24 May 2016.
Land restoration is an essential part of the coal mining process. Over the past decade, Peabody has spent approximately US$185 million to restore 48 000 acres. As of 30 June, the company had approximately US$1.14 billion of self-bonding and US$320 million of surety bonds supporting reclamation activities outstanding.
Peabody has three opencast and underground operations in Illinois that employ approximately 500 workers and injected more than US$715 million into the region in direct and indirect economic benefits last year.
The New South Wales (NSW) government has reached a commercial agreement with BHP Billiton to buy back the Caroona exploration licence (EL) 6505 – issued in 2006 for underground coal mining covering approximately 344 km2 in the Liverpool Plains.
BHP Billiton has agreed to cease progression of the Caroona coal project and no coal mining will occur under the famous black soils of Liverpool Plains – some of the most valuable farming land in Australia.
Premier Mike Baird said: “After careful consideration, the NSW government has determined that coal mining under these highly fertile black soil plains, as proposed by Labor, poses too great a risk for the future of this food-bowl and the underground water sources that support it.
“This decision guarantees the future of the State’s most productive and fertile farming land, providing confidence for local farmers to invest in an industry that has the potential to be one of the food bowls of the world,” he continued.
BHP Billiton Minerals Australia President, Mike Henry, acknowledged the NSW government’s willingness to come to an acceptable agreement in respect of the cancellation of EL6505.
“While we believe that Caroona would have been developed responsibly, we accept the Government’s decision and appreciate its willingness to work with us to agree an acceptable financial outcome for the cancellation of our exploration licence,” Henry said. “The Caroona coal project was studied extensively and developed cautiously for almost 10 years. We carried out extensive planning to ensure there would be no mining under the black soil plains, consistent with the conditions contained in our exploration licence.”
“It was also subject to extensive scientific research, which showed the proposed project could have been developed in an environmentally sustainable manner,” he continued.
Baird said that coal mining in NSW has a long and promising future, but that the NSW government would increase its efforts to remove all coal exploration licences from the strategic agricultural land of the Liverpool Plains.
He acknowledged the constructive role BHP Billiton had played in reaching agreement to rescind its licence to protect the black soils and indicated that negotiations with Shenhua had commenced to secure the excise of the parts of its mining title that encroached onto the strategic agricultural land of the Liverpool Plains.
Henry concluded: “We would like to express our sincere appreciation to the local community for working closely with us over the past 10 years through the project’s lengthy consultation process.”
Edited by Harleigh Hobbs
Indian state-owned coal miner, Coal India, has received notice of strike by its workers planned for 2 September, the company said in a release to the Bombay Stock Exchange.
“Efforts are being made for conciliation process,” the company added, but warned that, should the strike go ahead, “it will affect production and dispatch of coal.”
The strike of coal workers forms part of a general strike called at a national convention of trade unions representing workers at companies owned by the Indian central government. It includes members of the Coal Mines Authority Limited Employees Union and Coal Mines Workers Union.
According to the unions’ charter of demands, the unions are calling for an end to privatisation of the coal industry, the end of coal imports, the raising of the status of the coal industry and various wage and benefits improvements – including equality of wagers for contract workers.
India’s domestic coal production has been hit in recent years by strikes, which limit Coal India’s ability to reach government production targets.
The government has made boosting domestic coal production a priority in order to reduce fuel import bills and enable the role out of coal-fired power to meet the country’s energy needs.
Edited by Jonathan Rowland.
Charbon Coal has been fined AUS$175 000 in the Land and Environment Court for failing to comply with their project approval at the Charbon coal mine near Kandos in the New South Wales (NSW) state’s central west.
The judgment is a result of a prosecution brought by the Department of Planning and Environment after a compliance investigation was undertaken.
Charbon Coal pleaded guilty for failing to comply with the project approval, specifically for constructing a coal truck haul road outside of the approved location. Construction of the haul road resulted in the clearing of an area of native vegetation and disturbed an identified Indigenous heritage site.
A Department spokesperson said the company cooperated with the Department’s compliance investigation.
“Strict conditions are placed on all approved major projects and companies must follow these rules,” a spokesperson said. “Our compliance officers work with communities across NSW to monitor major projects across industry, infrastructure, mining and quarries.”
“The team conducts audits, spot checks without warning, and works with companies to ensure they are complying.”
Edited from press release by Harleigh Hobbs
Japanese shipbuilders received only seven new orders for dry bulk carriers in July – less than half of the fifteen order received in the same month last year.
Year-to-date, Japanese shipbuilders received order to 33 dry bulk carriers at a gross tonnage of 1.4 million t compared to order of 177 bulk carriers with a gross tonnage of 6.8 million t over the first seven months of 2015.
In July 2016, orders were received for two handysize bulk carriers, three handymax bulk carriers, one post-panamax bulk carrier and one capsize bulk carrier.
At the end of July, the order book stood 659 vessels, including 181 due to delivery this financial year (to April 2016), 233 for delivery next financial year and 156 for delivery in the 2018 financial year.
Edited by Jonathan Rowland.
Increasing coastal shipment of coal in India would result in significant transportation cost savings, a new report for the Indian Ministry of Shipping and Indian Ports Association has found.
The report looks into the impact of the Sagarmala project, an ambitious port-led infrastructure development programme that aims to take advantage of India’s extensive coastline, on various sectors – including coal.
“With the right infrastructure and institutional support, the movement of coal via coastal shipping could increase nearly sixfold from the current 23 million tpy to almost 125 to 230 million tpy by 202 and around 190 – 200 million tpy by 2020,” the report concluded. “
It concludes that coal logistics costs could be reduced by INR70 billion (US$1.04 billion) per year, as well as reducing pressure on India’s already-overstretched railways and driving down the price of power at coastal coal-fired power plants.
“The coal of coal logistics contributes about 30 to 35% to the per unit cost of power generation,” the report said. “As a result, shifting coal movement from rail to coastal shipping via ports for the relevant coastal thermal and steel plants can significantly lower the per unit cost of power generation in India.”
Thermal coal shipments currently comprise half of all rail traffic and 24% of port volumes. Despite this, growth in the transportation of coal is lagging behind production growth and poses of significant bottleneck in India’s coal supply chain.
The problem is particularly acute in the rail sector, which has only grown its coal capacity by 0.7% year on year, despite production growth of 6 – 7%.
Edited by Jonathan Rowland.
Associated British Port’s(ABP) Port of Ipswich has spent over £160 000 on recent purchase of five new cargo handling grabs to meet an increase in trade of dry bulk materials at the port.
This recent purchase brings ABP’s investment into the Port of Ipswich up to £2.2 million this year.
The grabs have been ordered through pALM Bulk Solutions who have provided ABP with the five MRS grabs, increasing the capabilities of the current bulk handling equipment.
The grabs, of varying sizes, are all of a high close, clam shell design. The largest grab will have a capacity of 13.0 m3 and is designed for handling a wide range of bulk materials including fertilizer, grain, soya and animal feeds.
They have been designed to fit equipment already in operation at the port, including the dockside crane and material handlers.
The purchase of the new grabs follows a strong year of investment into the East Anglian ports. Earlier this year, seven forklift trucks were purchased and brought into operation at the Ports of Ipswich and King’s Lynn and two new loading shovels.
Director Short Sea Ports, Andrew Harston said: “The Port of Ipswich is the UK’s number one grain exporting port, and we need to ensure that we are providing our customers with the highest standard of equipment.”
“The investment in these new grabs will improve our bulk handling operations and is part of ABP’s wider ongoing equipment improvement programme,” he continued.
pALM Bulk Solutions Director, Andrew Mitchell, said: “Each of the grabs incorporate a unique design which has been developed in conjunction with ABP for previous orders. We have worked with ABP to supply grabs at their other ports including King’s Lynn, Garston, Newport and Ayr.”
“As the UK dealer for MRS Greifer GmbH, who are based in Germany, this latest order by ABP takes the number of the MRS grabs supplied in the UK to 99 which is a fantastic result,” he concluded.
Edited from press release by Harleigh Hobbs
The Queensland Parliament has supported a government proposal to establish a parliamentary inquiry into the re-emergence of coal workers’ pneumoconiosis in the state, rejecting an opposition call for a more independent inquiry.
“A focused parliamentary select committee will provide the scrutiny Queenslanders expect of an open and transparent government, without distracting from the immediate priority: fixing the issue,” said Natural Resources and Mines Minister Dr Anthony Lynham.
Leader of the Opposition Tim Nicholls, however, argued that an inquiry independent of parliament was “the best way to get to the bottom of what happened and ensure it doesn’t happen again.”
“There seems to be a blame game happening now between the industry and government departments about what happened, why it happened and whose fault it is,” said Nicholls.
At least 14 cases of coal workers pneumoconiosis have been confirmed in Queensland with mining union, the CFMEU, saying it knows of more than 30 more. The disease had thought to have been eliminated from Australia.
The select committee inquiry would be established within 30 days, Dr Lynham said, and have the standard powers to hear evidence, call witnesses, order documents and report back to parliament.
Edited by Jonathan Rowland.
The New South Wales Department of Planning & Environment has released the results of a recent audit of forest clearance activities around Whitehaven Coal’s Boggabri, Tarrawonga and Maules Creek coal mines. The Leard State Forest Coal Mines Clearing Audit was undertaken in response to community concerns.
“In general, all three projects in the precinct – Boggabri mine, Tarrawonga mine and Maules Creek mine – were found to be operating at a high-level of compliance with the clearing commitments in their biodiversity management plants (BMPs),” a department spokesperson said.
Two minor non-compliances were observed and Maules Creek and Tarrawonga.
At Maules Creek, compliance officers found an unmaintained sediment fence and inappropriate sediment controls in the clearing area. The operators were advised of this and activities were stopped until adequate controls were in place. “This non-compliance has been recorded by the department,” the spokesperson said.
The department also issued a warning letter to Tarrawonga for “failing to gain approval from the Office of Environment and Heritage for their Translocation Strategy as required by their BMP.”
“Our compliance officers will follow-up with the three mines throughout the year to ensure the minor non-compliances are addressed and any opportunities for improvement can be considered prior to next year’s clearing window,” the spokesperson concluded.
Edited by Jonathan Rowland.
Hazelwood and the County Fire Authority (CFA) personnel have quickly extinguished an electrical fire on one of the mine’s coal dredgers early on the morning of 22 August.
The fire was on dredger 24 in the coal winning area of the mine known as Northfield.
Mine operators were alerted to the electrical fault at about 0500 hours. CFA appliances attended to support onsite emergency services personnel.
Thermal imaging cameras were used to monitor the situation, tracking the heat from the affected area. The incident was declared safe at 0600 hours. The electrical fire and a small amount of smoke were contained to the dredger.
There was no risk to personnel. Coal supply and power plant operations were not affected.
ENGIE has reported it is investigating the cause of the fire.
Edited from press release by Harleigh Hobbs
ABB will demonstrate a variety of ways to manage complexity, mitigate risk, improve safety, and increase competitiveness with their solutions and expertise on display at MINExpo 2016 (26-28 September 2016) at the Las Vegas Convention Center in Las Vegas, Nevada (booth #C-8271).
Meet experts, discuss safe and reliable products and integrated operations, and view innovative solutions, including:
Oxifree Global will be exhibiting its thermoplastic coating, Oxifree TM198, at MINExpo International in Las Vegas, Nevada, (26 – 28 September 2016).
The coating protects metal components that are susceptible to corrosion and abrasion from both natural and artificial elements, extending the life of conveyor pulley and bearing systems.
The cost of contamination within the mining industry is considerable, with asset owners frequently needing to replace equipment after only a few months. TM198 has been proven to extend the life of this equipment by up to 10 times, with great success.
Managing Director at Oxifree Global, Ed Hall, commented: “We’re really looking forward to showcasing our products at MINExpo in September. One of the main challenges in the mining sector is asset lifetime, excessive production downtime, and associated maintenance costs. We are proud to offer a solution that has proven to reduce these costs not only by extending asset life but by therefore reducing the frequency of and need for operational shutdown.”
Oxifree’s Oxitape is a way to ensure maintenance of components is easier and more cost effective for asset owners.
“Oxifree’s unique TM198 coating and Oxitape offer unparalleled protection against corrosion and abrasion, while being wholly organic, reusable and environmentally friendly,” explained Ed.
Both Oxifree products can be easily removed and then reapplied, making them ideal for inspections, maintenance and small touch ups in the field.
Edited from press release by Angharad Lock
Total US coal distribution was 15.7% lower in 4Q15 that 4Q14, according to the latest US Energy Information Administration (EIA) Quarterly Coal Distribution Report. Coal shipments totaled 193.7 million short t, 36.2 million short t down on the previous year.
Of this, Wyoming accounted for 91.29 million short t of coal distribution – more than the following four coal origin states combined. Wyoming coal was delivered to 32 states. Texas accounted for the largest share of Wyoming’s destination mix, taking 13.99 million short t, followed by Illinois (11.63 million short t) and Missouri (9.59 million short t).
West Virginia, Kentucky, Illinois and Pennsylvania completed the top five coal origin states with shipments of 14.38 million short t, 11.77 million short t, 10.82 million short t and 9.23 million short t, respectively.
Texas took the highest share of coal shipments, receiving 23.51 million short t of coal in 4Q15, followed by Illinois, Kentucky, Missouri and Indiana. Electric utilities were the largest recipient of coal, receiving about 93% of the total distribution.
The vast majority of coal was distributed via railroads, accounting for 69.4% of the total. River transportation accounted for 11.5% of distribution, 9.7% was distribution by truck, while tramway, conveyor and slurry pipeline accounted for about 9.4% of shipments.
Edited by Jonathan Rowland.
In order to focus on products with the greatest growth potential, Caterpillar Inc. intends to pursue strategic alternatives, including a possible divestiture, for its room-and-pillar products, which serve a segment of underground soft-rock mining customers. The company will also discontinue production of track drills within its Resource Industries portfolio.
Cat has reported it and its dealers remain committed to existing customers and will support those room and pillar and track drill fleets currently in operation.
“These moves, which align with Caterpillar’s ongoing restructuring, will allow us to focus resources on those areas of the business that provide the highest, sustainable growth and best long-term returns,” said Denise Johnson, Group President with responsibility for Resource Industries.
The room-and-pillar underground mining products under strategic review include continuous miners, feeder breakers, coal haulage systems, highwall miners, roof bolters, utility vehicles and diesel vehicles. While under review, Caterpillar will stop taking new orders.
Production of track drills will be discontinued and no new orders will be taken.
“Caterpillar remains committed to an extensive mining product portfolio. We firmly believe mining is an attractive long-term industry, and we continue to invest in a broad range of products, both surface and underground. We are targeting our investments within the mining product portfolio to concentrate on those areas with the highest profitability potential,” said Johnson. “At the same time, we continue to manage through the longest down-cycle in our history. We know these ongoing restructuring actions are not easy on our workforce; I’m grateful for our team’s ongoing dedication.”
In conjunction with the announcement, Cat expects to take actions to reduce the workforce in Houston, Pennsylvania, where the room-and pillar products are manufactured. While the company intends to sell the room-and-pillar products, it will also assess other options, including a possible closure of the Houston facility.
Total workforce reductions of up to 155 positions associated with the room-and-pillar business are expected, with some occurring immediately. These actions will more closely align employment levels with current end-market demand.
In Denison, Texas, where track drills are produced, approximately 40 positions will be eliminated as a result of the track drill exit and other facility restructuring.
In addition to these moves, the company also continues to evaluate the most efficient and effective use of its manufacturing footprint. The company also announced it will repurpose its Winston-Salem, North Carolina, facility, transitioning it from a mining to a rail facility beginning later this year. Operations will transfer to Progress Rail, a wholly owned Caterpillar subsidiary.
As a result, the company will relocate the manufacturing of some components used in large mining trucks from its facility in Winston-Salem to its existing facility in Decatur, Illinois.
Edited from press release by Harleigh Hobbs
Felicia Ruiz, Candice L. M. Long and Raymond C. Pilcher
Over the past decade, China has taken a proactive approach to regulating and promoting development of coalbed methane (CBM) and coal mine methane (CMM) resources. Government policy has shifted from viewing methane liberated by coal mining from primarily a mine safety concern to a significant component of natural gas development in the government’s 13th Five-Year Plan. As China plans to mine 4.3 billion t of coal in 2016, the 13th Five-Year Plan calls for a renewed focus on CBM and CMM, through an increase in the quality of gas output rather than quantity, and promoting the co-extraction of coal and gas resources. The plan calls for the produced gas to be shipped to market via newly constructed pipelines and integrated into the natural gas market. On the mine safety front, the central government continues to emphasise closing small, insufficiently regulated coal mines and consolidation of the coal mining industry.
Thus far, China’s achievements in CMM development can be seen through the rapid growth of CMM drainage. In 2015, CMM drainage in China reached 13.6 billion m3, an increase of approximately 517% between 2005 and 2015. During the same period, China’s utilisation also increased by 496%, reaching 4.8 billion m3.1
In support of the Global Methane Initiative (GMI), an international voluntary partnership to promote recovery, use and reductions of methane, and to promote sustainable development of coal-associated methane resources, the United States Environmental Protection Agency’s (EPA) Coalbed Methane Outreach Program (CMOP) published an updated version of the China Energy Market Report entitled, ‘Energy Markets in China and the Outlook for CMM Project Development in Anhui, Chongqing, Henan, Inner Mongolia, and Guizhou Provinces’ in April of 2015.2 This paper presents a high-level summary of that report, which encapsulates energy market analyses of coal, electricity and CMM within five coal producing provinces – Anhui, Hunan, Guizhou, Inner Mongolia, and Chongqing Municipality (a provincial level city). These energy-producing provinces could prove to be attractive to investors seeking potential avenues to investing in the integrated development of coal and methane resources.
Nationally, coal provides an estimated 69% of China’s energy needs. Although coal’s share of total energy is projected to drop to 63% by 2020 and 55% by 2040, the total consumption of coal will still rise, reflecting an overall projected increase in energy consumption. The projected drop in reliance on coal to generate electricity can be attributed to increased efficiency and China’s goal to increase environmental sustainability. Consumption still outpaces production, however, and China continues to be a net coal importer, importing 204.1 million tons in 2015.3 The top two consumers are thermal power generators, using half of all resources, and steel and cement manufacturers, which use one quarter of resources.
Despite the national trend of increased coal consumption, coal production in certain provinces performed independently of that trend. Due to the deceleration of economic growth throughout China, many coal mines have no longer been able to sell their production. For example, Guizhou Province continued to see growth in coal exports, bolstered by its favourable coal quality, yet Inner Mongolia has been impacted quite differently. Inner Mongolia produces nearly 30% of the coal market share in China, fuelled by the Chinese government’s financing support for development of these deposits. The national economic slowdown has affected Inner Mongolia’s coal mines severely, with many mines reducing production or shutting down part time.
Nationally, growth of China’s electricity market continued, with consumption rising 9.7% between 2007 and 2012, surpassing overall economic growth by an average margin of 19% on the national level. This growth has primarily been driven by industry, which accounted for 73% of total electricity consumption in 2012. Electricity generated domestically has provided for the increase in demand, with a generating capacity of 1500 GW, and output of 5618 TWh in 2015.4 However, with the recent downtrend of steel production, the primary driver for industrial use, national power generation showed a slight decline.
Provincially, electricity demand is more tightly controlled by its regional setting. As an example, national and regional planning authorities established a programme to transform Anhui, a relatively rural province, into a power supplier to the Yangtze Delta provinces, as it is the largest coal producer in the east China region. In Chongqing, the momentum towards urbanisation in the municipality continues to support electricity growth, despite a slump in industrial use. Henan, one of China’s most populous provinces, consumes the overwhelming majority of the power generated in the province. Although Guizhou is one of China’s smallest, poorest, and least urbanised provinces, its grid interconnections to the rest of the country led to increased annual power generation of 5.4% between 2009 and 2012. In spite of the recent economic downturn, Inner Mongolia remains as a significant net supplier of electricity to other provinces based on its abundant coal resources, sparse population and modest internal demand, and relative proximity to the Beijing-Tianjin load centre.
The Chinese government has expressed its intent to promote natural gas as an important resource. Despite years of double digit growth in the natural gas market, natural gas fuelled power generation accounted for only approximately 2.2% (116.4 TWh5) of the nation’s electricity supply in 2013, primarily because it is more expensive to produce than coal-fired power. To increase the gas market, the government has made investments in production facilities, long distance pipelines, as well as liquefied natural gas terminals. To date, the primary demand for natural gas is driven by residential and commercial use, and for industrial purposes.
The provincial markets show varying degrees of gas supply and utilisation. High prices for electricity at mine sites make onsite CMM power projects look attractive. Even with areas of well-developed natural gas distribution infrastructures, supply of natural gas has been the most important constraint to more rapid growth in consumption and will likely continue for the rest of the decade. Currently, in some rural parts of Guizhou, natural gas supply is limited to LNG trucked in and used for a small number of residential and automotive customers. Guizhou’s pipeline network is expanding, creating additional potential to increase the viability of different kinds of CMM projects.
In Inner Mongolia, low sales prices at the wellhead, gas transmission and retail levels sales prices prevail in the region surrounding the Chongqing gas field, presenting barriers to the sale of purified CMM to either China National Petroleum Corp. for pipeline injection or for sale to local distribution companies. Given the relative abundance of available conventional gas, it is unlikely that a pipeline would be extended dozens of kilometers to absorb small volumes from producers. LNG presents a much more feasible prospect for CMM producers in southwest China.
CBM and CMM producers in China have benefited from government incentives established since the implementation of the Clean Development Mechanism (CDM) in 2005. The promise of carbon credit revenue spurred utilisation of CMM; 92 CMM projects in China were developed and registered under CDM. Current government incentives established include monetary support, preferential tax regulations, and financial subsidies. However, CMM consumption still lags behind production due to the lack of utilisation infrastructure and the subsequent failure to penetrate the mainstream natural gas market.
In addition, despite the incentives, power grid companies are not eager to manage the complexities of dispatch, namely the fluctuating output from small CMM plants and the lack of policies to pass on any additional costs to consumers. Despite its slow growth, CMM supports 1600 MW of power production through CMM drainage. Through annual government subsidies of 36.8 million Chinese yuan (US$ 5.5 million), Chinese mines have produced 182 million m3/year of CMM and CBM, equivalent to replacing 291 000 thousand t of coal.1
Increased national attention to the potential of utilising methane liberated by coal mining as a significant component of natural gas development, including a proactive approach to promoting and regulating development of CBM and CMM resources, provides a unique opportunity for CMM project developers in China. However, the push for ongoing development of CMM resources nationally and the different impacts at the provincial level must be understood within the context of provincial markets in China. Knowledge of these differences is critical for project developers to determine the most effective approach for the development of successful projects that produce energy, yield economic benefits and reduce methane emissions. International collaboration under the framework of the Global Methane Initiative continues to advance methane capture and use projects that bring more gas to market, and reduce methane emissions associated with coal mining.
For more information on the EPA’s Coalbed Methane Outreach Program and its activities in China under the auspices of GMI, or to download the China Energy Markets Report, please visit the EPA website or the GMI website.
Felicia Ruiz, Coalbed Methane Outreach Program, US EPA; Candice L. M. Long, Geoscientist, Raven Ridge Resources; and Raymond C. Pilcher, President, Raven Ridge Resources.
Superior Industries Inc. has announced the appointment of Michael Dunne to its international sales team to develop business partnerships throughout Europe, the Middle East, and Africa (EMEA). Dunne possesses over twenty years of experience in the construction aggregates and mining industries.
Dunne’s responsibilities will include working with the manufacturer’s product development team establishing and evolving Superior’s crushing, screening, washing and conveying related products to serve bulk processing and handling needs in the EMEA markets. He will cultivate distribution partnerships and share Superior’s product portfolio with material producing companies.
“Michael’s technical expertise, along with a history of satisfied customers who improved their operations with innovative processing solutions, fits well with Superior’s desire to build our presence in Europe, Africa, and the Middle East,” said John Garrison, Superior’s Vice President of Sales.
Dunne was previously employed at Wehr Minerals as a process and applications specialist.
Edited from press release by Angharad Lock
Australian mining contractor NRW Holdings sees potential for more work opening up in the coal mining sector.
“Our mining business has ongoing contracts with Middlemount Coal and Rio Tinto, which extend beyond the end of the new financial year and several opportunities particularly in coal, gold and the emerging lithium market to secure additional work,” the company said.
“The drill and blast business has won several key long-term projects in gold and coal during the year and has a number of identified opportunities together with the capacity to grow revenues in FY17.”
The company reported revenue of AUS$277 million for the financial year to June 2016 (FY2016) with a post tax profit of AUS$21.5 million. It also reported that it had already secured AUS$325 million of additional work to be delivered in FY2017 with a forward order book now standing at around AUS$1 billion.
Edited by Jonathan Rowland.
Amended development applications for the linked Rocky Hill Coal Project and Stratford Extension Project in New South Wales (NSW) have gone on public display for community consultation.
The Rocky Hill project involves the development of an opencast coal mine with a production capacity of up to 2 million tpy of coal for up to 21 years. Key changes to the 2013 application include a reduction in the number of pits from four to three and a commitment to no overnight work.
The proposal also includes the construction of a private haul road to the nearby Stratford coal mine, where coal from Rocky Hill would be stockpiled and processed through the existing Stratford coal handling and preparation plant. Rocky Hill coal would also be dispatched from Stratford’s existing rail loop and coal loadout.
As a result, the Rocky Hill project would not require a separate coal handling and preparation plant, a rail loop and train loadout or a coal conveyor.
The Rocky Hill project is being developed by Brisbane-based Gloucester Resources. Stratford coal mine is owned by Yancoal.
Edited by Jonathan Rowland.
South African coal company has announced a improved half-year profit of ZAR 2.2 billion on the back of higher coal sales, a 34% year-on-year increase, on coal revenues up 18% at ZAR 9.7 billion.
Coal sales hit 22 million t for the six months to June, a year-on-year increase of 9% on the back of 2 million t of production from the former Total Coal South Africa mines – now known as Exxaro Coal Central (ECC).
Profit from the company’s sales of coal from its “commercial operations” – as opposed to its “tied” mines that supply South Africa state utility – was ZAR 2.1 billion. That is up 35% on the previous year. Profits from coal sales to Eskom grew 10% but from a much lower base, totaling ZAR 122 million.
Looking ahead, the company said it expected to see a continued improvement in its coal units performance on the back of more stable trading conditions in domestic markets, the positive impact of ECC operations on coal output, improving thermal coal price outlook and an increase in sales from the Grootegeluk and Matla mines.
“We expect that 2H16 domestic thermal volumes will remain at current healthy levels,” the company said. “Export markets depend heavily on demand from India for lower-quality coal products, while pricing is expected to remain flat. Further growth is expected in the African, Pakistani and southeast Asian markets and the company is well positioned with a strong product mix to supply these markets.”
Edited by Jonathan Rowland.
Over the past few months, as part of its investment programme, SUEK launched a complete range of equipment and machinery to increase the quality of repairs and minimise maintenance time at Borodinsky opencast mine.
Most notably, new plasma cutting equipment was installed at Borodinsky to produce and provide custom spare parts for the site’s mining equipment. The use of the latest CNC machines not only reduces the time required to manufacture spare parts, but also improves their quality. As well, a new hydraulic puller for the dismounting of large pieces is expected to be operational soon at the mining equipment maintenance machine shop.
A new MPT-6 rail crane is already operational on the mine railway section. The MPT-6 track maintenance vehicle comes with an extended boom, lifting magnet and a 10 t platform to haul heavy loads.
An inductive heater unit was launched at Borodinsky repair and engineering plant to remove and repair locomotive wheel sets. With up to 250 wheel sets repaired every year, the new unit improves maintenance processes and quality, while excluding the possibility of manual errors.
One of the priorities of the SUEK is to install new equipment and modern technology at its operations. Each year, the company’s investment programme in the Krasnoyarsk region represents up to billion of roubles. In addition to the upgrade of mining operations, investments seek to introduce energy-saving technologies, establish environmental projects and improve living and working conditions at the SUEK’s sites.
Edited from press release by Harleigh Hobbs
Allison Transmission has indicated its support of new standards issued by the US Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) regarding fuel efficiency and greenhouse gas (GHG) emissions for medium and heavy-duty vehicles.
“Given the complexity of the medium- and heavy-duty commercial vehicle manufacturing sector, we embraced the opportunity to work with the EPA and NHTSA to review technical issues and conduct additional testing in developing the new standards,” said Deborah Gordon, Vice President of mobile source emissions regulatory activities for Allison Transmission.
The Phase 2 program is expected to lower carbon dioxide emissions by approximately 1.1 billion t, save vehicle owners fuel costs of about US$170 billion, and reduce oil consumption by up to 2 billion bbl over the lifetime of the vehicles sold under the program. Phase 2 will also use emerging technologies that are not yet in widespread use.
“With the ability to recognise fuel-saving features in our transmissions, we support use of the Greenhouse Gas Emissions Model (GEM) as the program’s primary certification tool,” said Gordon. “Our latest technologies are already enabling our customers to reduce fuel consumption and emissions without sacrificing performance.”
Allison’s newest products include FuelSense® and xFE technologies, and the TC10® transmission. FuelSense is the next generation in fuel-savings technology, for any vocational vehicle, which uses a unique set of software and electronic controls to improve fuel economy up to 20%.
A broad range of advanced technologies for safer and more productive bulk handling will be on display at MINExpo INTERNATIONAL® 2016, as Martin Engineering unveils new and improved component designs for conveyor belt cleaning, dust management, load containment, risk reduction and improved material flow. Visitors to indoor booth #4015 will find interactive product displays and demonstrations, Foundations™ Safety Seminars on the upper deck and even a unique game for attendees to test their abilities for a chance to win a variety of valuable prizes.
A highlight of the company’s exhibition will be the industry’s first-ever reference book dedicated to reducing conveyor risk and injuries. A collaboration of experts with vast experience in bulk material handling from around the world, Foundations™ for Conveyor Safety was written and published with the simple mission of improving conveyor safety. It’s designed to educate readers by identifying hazards, danger zones and unsafe work practices around conveyors, helping raise awareness and provide guidance to management, operators and maintenance personnel. The content provides a detailed overview of hardware solutions, global best practices, risk assessment and safer conveyor construction, with a summary discussion of the return on safety investment and how to measure the payback.
Among the featured products will be the Martin® Roll Gen™ system, a patent-pending design to create a self-contained mini power station that allows operators to run a wide variety of electrical systems, including monitoring devices, safety mechanisms and pneumatic belt cleaner tensioners. The Roll Gen system can also be used to power tracking devices, industrial lighting and solenoids for air cannons or dust control in areas without convenient access to an electrical source. Able to be retrofitted on existing idler support structures, the device is considered a first step toward eliminating power production obstacles, as conveyors move into the next generation of “smart systems” that are predicted to be more sustainable and autonomous.
The company’s outdoor booth #12440 will be dedicated solely to Martin Engineering’s new Mr Blade® service, a new factory-direct replacement program for belt cleaners, delivering fresh polyurethane blades, specified and custom-fitted on-site and installed free of charge. Customers are assured of accurately-sized, professionally installed and properly tensioned replacement blades that are matched to their specific applications, providing optimum cleaning performance and service life. Mr Blade® guarantees perfect pressure for the life of any blade installed by Martin Engineering technicians, providing continuous optimal cleaning performance. The company will have one of its custom-designed vans on site doing live demonstrations of cutting and preparing belt cleaner blades.
A variety of new belt cleaners will also be on display indoors, including the patented CleanScrape™ design. The system has been recognised by the Australian Bulk Handling Award in the ‘Innovative Technology’ category for its engineering and potential benefits, which include low belt wear, extended service life, reduced maintenance and low cost of ownership.
Visitors will also be able to view Martin Engineering’s safe-to-service primary belt cleaner and the patented Martin® QB1™ Cleaner HD, manufactured with the firm’s unique CARP (constant angle radial pressure) technology to maintain the most efficient cleaning angle throughout its service life. The QB1™ HD features a no-tool replacement process that can be performed safely by one person in less than five minutes.
A selection of dust management and load zone technologies will be on exhibit, including customisable suppression systems, high-speed impact cradles and Martin® ApronSeal™ Double Skirting, which provides two wear surfaces on a single elastomer sealing strip installed along the bottom of the skirtboard in a belt conveyor loading zone. The Martin® High-Speed Impact Cradle will be in the spotlight – a unique, patent-pending design that’s able to absorb greater impacts than conventional impact cradles, without sacrificing its sealing ability. Engineered to withstand the severe conditions, heavy loads and faster speeds of today’s mining conveyors, the new cradle features a modular, slide-out design that allows safe and easy service with a minimum of downtime.
Among the flow aids featured at the event will be the company’s heavy-duty electric vibrators to facilitate material movement, including factory-direct replacement motors for shakers, screening equipment and material separation. Built specifically to withstand the rigors of heavy industrial applications and continuous use, the designs are finding utility in high frequency vibratory screens, sizing equipment, dewatering operations and other vibratory equipment for the mining industry. The indoor booth will also feature a variety of air cannon technologies and nozzle designs to prevent clogs and break up accumulation in storage vessels, chutes and loading equipment.
Edited from press release by Harleigh Hobbs
Aspire Mining Ltd has commenced the first stage of the rail feasibility study for the Erdenet to Ovoot railway (first stage rail feasibility study). The Erdenet to Ovoot Railway forms part of the new Northern Rail Economic Corridor linking China with Russia through Mongolia.
The first stage rail feasibility study is expected to be completed by December 2016.
With inclusion in the new Northern Rail Economic Corridor, the Erdenet to Ovoot railway becomes a priority funding project for China’s banks and other funding institutions established to support the infrastructure build out for China’s One Belt One Road Policy. While the first stage rail feasibility study progresses, Aspire and Northern Railways LLC will be working to complete funding arrangements for both the final feasibility study work and EPC funding for construction of the Erdenet to Ovoot railway.
Quam Capital Ltd (the corporate finance arm of Quam Ltd) has secured interim short-term funding of US$2 million from a group of investors, including large shareholders in Aspire, to progress time critical rail pre-development activities on the ground in Mongolia. Funding will enable Aspire’s rail subsidiary, Northern Railways LLC (NR), to complete the first stage rail feasibility study and environmental surveys.
NR has activated an environmental consulting team in Mongolia to commence and complete by October 2016 the collection of flora and fauna data across the alignment. This is important for the completion of the Detailed Environmental Impact Assessment in early 2017.
From the loan proceeds, NR will make a US$800 000 payment to China Rail Construction Corp. subsidiary, First Survey & Design Institute Group Co. Ltd (FSDI), towards the first stage rail feasibility study. China Railways Construction Corp. Bureau 20 Group (CRC) will also provide FSDI with a US$1.05 million contribution to complete the first stage rail feasibility study. The first stage rail feasibility study will amongst other things, provide a confirmed construction schedule, Bill of Quantities and a CAPEX estimate of between -10% to + 20%. This will then provide a basis for discussions to continue with Chinese banks for funding for the rail project itself.
After receiving the first stage rail feasibility study, and should NR not proceed with the final rail feasibility study, all source data, engineering drawings and other materials will be provided to NR on the repayment to CRC of their US$1.05 million contribution.
The US$2 million in funding will allow Aspire and NR the time to identify and complete funding for the balance of rail pre-development activities without diluting the existing shareholder base. NR has budgeted a total of US$15 million in pre-development expenditure and owner’s costs to bring the Northern Rail Project to completion as an EPC funding transaction.
The loan facility is for 12 months, will carry an interest rate of 9% per annum and will be drawn down in three tranches in August, October and December 2016. In the event that the loan is repaid, the lenders will receive 110% of the face value of the loan. In the event that the loan is not repaid in 12 months, the loan may be converted at the lenders’ option to a royalty of US$1.25t of metallurgical coal sold from the first 10 million t of production.
There is also the potential to commence the development of the Nuurstei Coking Coal Project after around 50% of the Erdenet to Ovoot railway has been constructed.
The company’s Managing Director, David Paull, noted: “the Erdenet to Ovoot Railway is the first stage of the new Northern Rail Corridor linking China, Mongolia and Russia to new markets (a key initiative for the three countries). The corridor is designed to facilitate growing trade between Asia and Europe and given Aspire’s strategic location along this corridor, the value for Aspire’s rail and metallurgical coal assets have been significantly enhanced.”
Coal is an important global resource and likely to remain so for many years to come, but the pressure is on to reduce transportation costs by improving the efficiency of coal handling operations.
Handling and transportation of coal is a major consideration. Coal conveyors are heavy-duty electro-mechanical systems that start and stop under heavy load. They are prone to ingress from harsh coal dust and related debris, and their working conditions can be far from ideal as well with dramatic swings in temperature plus driving rain, sleet and snow, ice build-up etc.
Sensor Technology of Banbury has been developing technologies that can help operators to boost long-term reliability, increase availability, and reduce unscheduled maintenance. Sensor Technology’s offering to the coal handling and transportation industry is built around its non-contact digital torque monitoring technology. Applied to the control systems for conveyors, it can transform these processes into accurately monitored and optimally managed systems.
Accurate monitoring of torque is a key indicator of impending mechanical problems. The data can also be used to ensure conveyors are being run at optimum speeds, and that mechanical shocks are being minimised. As coal is added and the conveyor load increases, so more power is needed. Similarly, if the conveyor is run at a higher speed, more power is needed. Controlling conveyor speed accurately helps to minimise shock loads, and so leads to both increased reliability and increased efficiency.
Traditionally torque data has been hard to collect, with wired technologies vulnerable to the challenging environmental conditions. Wireless technology presents an important alternative that is being recognised as a real enabler for monitoring torque in even the most demanding applications.
The company’s TorqSense transducer is based on the patented technology of measuring the resonant frequency change of surface acoustic wave (SAW) devices. TorqSense torque sensors use two tiny SAW devices or SAWs made of ceramic piezoelectric material containing frequency resonating combs. These are glued onto the drive shaft at 90 degrees to one another. As the torque increases the combs expand or contract proportionally to the torque being applied. In effect the combs act similarly to strain gauges but measure changes in resonant frequency.
The adjacent RF (radio frequency) device transmits radio waves towards the SAWs, which are then reflected back and picked up by the device. The change in frequency of the reflected waves identifies the current torque. This arrangement means there is no need to supply power to the SAWs, so the sensor is non-contact and wireless.
This innovative method of measuring torque can bring distinct advantages to coal conveying, whether in extracting coal from the mine, or transporting it for processing, or as part of subsequent shipping operations. A process that was once regarded as very difficult to monitor can now reap the same benefits as many other industrial processes.
TorqSense technology can also improve on the torque limiters that are traditionally relied on to prevent mechanical damage in the event of a coal conveyor jam. Continually monitoring the torque, the transducer can identify the gradual increases that are indicative of an impending jam condition, so enabling preventive maintenance.
TorqSense has seen widespread adoption in torque monitoring applications across a host of industries.
Edited from press release by Angharad Lock
Australian coal company Yancoal announced a half-year loss of AUS$180.4 million, compared to a loss of ASU$145.4 million in 1H15. The loss comes on the back of reduced production and limited price improvements across thermal and metallurgical coal markets, the company said.
The company equity share of ROM coal production fell to 9.5 million t in 1H15 with 7.1 million t of saleable coal production. The compares to 10.6 million t of ROM coal production and 7.7 million t of saleable coal in 1H15.
“Production for the half year reporting period was in accordance with expectations, following the cessation of mining at the Donaldson operations, continued challenges with the geology at the Stratford Duralie open cut and scheduled longwall moves at the Aston and Austar underground mines,” the company said in a statement.
The company has recently implemented a new debt-funding arrangement to up to US$950 million through the issuing of nine-year secured debt bonds by a newly established Yancoal subsidiary, Watagan Mining Co. Watagan includes the underground mining assets at Austra, Ashton and Donaldson.
The new debt funding and company structure will support Yancoal’s “long term strategy for continued growth and investment within the Australian resources sector,” Yancoal’s CEO Reinhold Schmidt. “With the ongoing support of our major shareholders, we continue to maintain operational flexibility and experience required to respond quickly, safely and efficiently to new market opportunities.”
Edited by Jonathan Rowland.
The recent introduction of a duty on imported coal in Turkey will do little to reduce reliance on imports in the Turkish power sector, according to analysis from BMI Research.
In early August, the Turkish government set an import tariff of US$15 per tonne of coal that was to be used in power generation. This followed a decision by the operator of the Turkish wholesale electricity market, Tetas, to implement a guaranteed tariff for lignite-fired power plants that source coal domestically.
Although both actions were intended to stimulate domestic production of coal and reduce the country’s coal import bill, structural hurdles – including security risks and a lack of infrastructure – will effectively prevent a substantial rise in Turkey’s domestic coal output, said BMI Research.
While unlikely to stimulate domestic coal production, the import tariff will increase the risk that some planned power projects that were to rely on imported coal may be delayed or cancelled.
Pointing to a recently approved 1200 MW coal-fired plant that was set to run on 3 million tpy of imported coal as an example, BMI Research noted that “as the cost of such imports increases with the duty, there is a risk the plant will appear less attractive to its investors.”
Edited by Jonathan Rowland.
US coal production for the week ending 6 August was 15.6 million short t, according to initial estimates from the US Energy Information Administration (EIA). This is down slightly on last week’s but still above the year-to-date average of 12.7 million short t as coal demand remains high on warm summer weather and rising natural gas prices.
Regionally, coal production in the Western Region (which includes the Powder River Basin (PRB) remained over 2 million short t above the weekly year-to-date average at 9.3 million short – only slightly down on the previous week.
Wyoming – the largest coal producing state in the US and at the heart of the PRB – accounted for a significant chunk of that increase, recording weekly production of 6.8 million short t compared to a year-to-date average of 5.4 million t.
Production in Appalachia and the Interior Region also remained well above their year-to-date averages at 3.6 million short t and 3.0 million short t, respectively. This compares to average production this year of 3.0 million short t in Appalachia and 2.4 million short t in the Interior Region.
US year-to-date production totalled 405.8 million short t at the end of the week, 25.4% lower than the previous week, an improvement on the 30.9% fall in year-to-date production registered in early April.
Looking ahead, US coal companies are increasingly positive that demand will strengthen through the back-end of the year.
“Increasing natural gas prices and a warm start to the summer are beginning to improve the overall outlook towards the coal industry,” said Cloud Peak’s President and CEO, Colin Marshall, in a recent earnings release. “After very low shipments in April and May, we started to see improved shipments in June and are optimistic this trend will continue during the second half of the year.
Edited by Jonathan Rowland.
Tanzania focused mineral exploration and development company, Kibo Mining plc has signed an Engagement Letter with global law firm Norton Rose Fulbright to provide it with legal services in regard to the development of its Mbeya coal-to-power project (MCPP) in Tanzania.
The letter outlines the terms and conditions under which Norton Rose Fulbright will assist Kibo with the preparation and negotiation of commercial arrangements and agreements pertaining to the MCPP power purchase agreement (PPA), with the Tanzanian government and TANESCO (Tanzania’s parastatal power distribution company).
Norton Rose Fulbright is a global law firm with offices in over 50 cities across Europe, the US, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia. Its clients include major global corporations and financial institutions and it has a strong reputation and experience across energy infrastructure, mining and commodities. The firm advises on major energy projects in Africa and is ideally placed to assist Kibo at this critical stage in the development of the MCPP.
Louis Coetzee, CEO of Kibo Mining, said: “The signing of the engagement letter with Norton Rose Fulbright is a critical appointment in this advanced development stage of the MCPP, where we seek to negotiate and finalise a PPA with the Tanzanian government. Significant progress has been made in this area and the appointment of Norton Rose Fulbright will add critical momentum to our initiatives in this regard.”
Edited from press release by Harleigh Hobbs
