Famous for jazz, Mardi Gras and gumbo, Louisiana is also endowed in coal. Lying in the southern region of the US, a large proportion of its land was formed from sediment washed down the mighty Mississippi River. Before America purchased the territory in 1803, the area had been both a French and Spanish colony. All of Louisiana’s coal is lignite and commercial production is based in the northwest part of the state. In 2013, the state produced approximately 2.8 million short t of coal.
Established for 27 yr and headquartered in Alexandria, Louisiana, Dubroc Enterprises is present throughout the state as a mass-excavating contractor, working on many projects from subdivision and recreational development to mining. It is currently working across three different areas and sites in northern Louisiana, including a large coal mine.
Specialists
Volvo Construction Equipment’s (Volvo CE) A40F-Series and A40G-Series 40 short t articulated haulers and EC380D-Series excavators are being used for excavating and hauling overburden earth in front of the coal to reclamation areas behind it. The machines move 3.2 million m3 of overburden every year to keep the coal mining operations running at full speed, helped along with 25 onsite employees.
Through the Louisiana Surface Mining and Reclamation Act and Louisiana Surface Mining Regulations, companies must certify that coal mines are operated in a way that protects citizens and the environment, ensuring that the land is restored to beneficial use and alleviate the effects of past mining through reclamation of abandoned mines. Most of the coal produced at this mine goes to a local power plant and benefits the surrounding areas.
From corn to cargo
Dubroc Enterprises started out farming corn and soybeans but then moved into the excavation, demolition, freight and cargo industries. The company has used Volvo equipment for over 15 yr, a relationship that was boosted by an investment in coal mining seven years ago. The company first rented five Volvo EC290C-Series long reach excavators, which were used to aid the cleanup process after Hurricane Katrina but have been used ever since. The machines worked on barges moving up and down the rivers, clearing out canals that were badly affected in the storm.
Mike Dubroc, owner of Dubroc Enterprises said he opted for the Volvo because he likes “the concept of the upper structure rotation, and the machine’s good lifting table”, adding: “they perform like machines with a 90-tonne tipping capacity, even if it says 80 tonnes on paper.” He also rates the heavy-duty, hydromechanical, extendable undercarriage.
“All operators that have test-driven different brands have told us they’re very comfortable in the Volvos,” continued Dubroc. “They’re also pleased with the machines’ power and smoothness, even in challenging conditions, as the dirt we move can be very wet and the ground soft and unstable.”While consuming more than 10 000 gal. of fuel each week, the company has been able to save up to 8% on fuel costs with Volvo’s fuel efficient equipment and monitoring tools.
“We need to have equipment that has good fuel consumption, especially with the amount of equipment we have,” Dubroc stated. “It can put tens of thousands of dollars back in your pocket every month. And because our fleet works 12 hours a day, seven days a week – and even sometimes at night – we participate in Volvo CE’s Fuel Efficiency Guarantee program, which means if our Volvo equipment doesn’t meet the model-rated fuel efficiency levels, Volvo reimburses us with an additional portion of fuel.”
“The guarantee program on the fuel efficiency has worked extremely well,” explained Dubroc. “It basically tells us this machine under these conditions will burn this much fuel an hour.”
Taking care of customers
Volvo monitors the Fuel Efficiency Guarantee program through CareTrack®, the telematics system, providing customers with a wide range of machine monitoring information.
“CareTrack is a wonderful feature,” Dubroc indicated. “If we’re having an issue with a piece of equipment, they can actually dial into this machine and see what we’re dealing with. It’s very important for me when we run a night shift, so we can see what the idle time was as well as production levels. It’s a great feature.”
Volvo dealer, Scott Equipment in Alexandria, LA, keep the company running on tight schedules. “They know how important it is for each one of these machines to operate and function how it should and ensure that it happens,” added Dubroc.
In extremely hot and challenging temperatures reaching 42°C (107°F), operators of the A40F’s sit comfortably in the air-conditioned Volvo Care Cab – a centrally positioned operator station that affords high visibility, a spacious work environment and increased safety. Self-compensating articulated steering provides excellent stability and steering force for outstanding control and precision.
Equipped with Automatic Traction Control, the ATC detects and engages the right drive combination as required, reducing tyre wear and fuel consumption, and increasing off-road mobility and traction.
Where the smart money goes
“Volvo articulated haulers have been one of the best investments we’ve made,” Dubroc explained. “We put up to 10 000 hours on them and get a good resale value when we’re done or trade them in – we have very minimum repair work or maintenance done during that time. At the moment, our oldest machine is three years old with 5000 hours clocked. The Volvo equipment has put more money in my pocket on my projects than any other equipment.”
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A consortium of investors, including Taekwang Power and Aowa Power, signed an investment agreement for the Nam Dinh 1 Build-Transfer-Operation (BOT) thermal power plant in Ha Noi, Vietnam.
The US$2 billion project would use domestic coal from the Vietnam National Coal and Mineral Industries Group (Vinacomin). The plant would have two turbines with total capacity of 1200 MW in the northern Nam Dinh Province.
Minister Vu Huy Hoang said the project has a vital role in the Viet Nam’s power master plan 7.
It is intended that the project could ensure electricity supply for the province and northern localities as well as national energy security.
Speaking at the signing ceremony, Daejoo Jun, South Korean ambassador to Vietnam, said this is the first project that sees the participation of a South Korean private firm. It was the reason why the project would receive support from the Government, he said, and added that this could be an opportunity for South Korean businesses investing in Vietnam.
The province said they would assist investors in granting the investment licence, financial arrangement and land clearance for the project’s commencement by the middle of this year.
The plant is expected to become operational by 2020.
Australian rail haulage company, Aurizon, has extended its contract with existing customer, Synthech Resources, signing a new contract for the haulage of coal from the Cameby Downs coal mine to the Port of Brisbane.
The two-year performance-based agreement will see Aurizon haul up to 1.7 million tpa of coal from the beginning of February 2016 and includes the option to extend for an additional two years. It replaces a 1.4 million tpa contract between Aurizon and Syntech Resources that runs out this month.
“We have worked closely with Syntech Resources to deliver an agreement that provides operational flexibility and the opportunity to share in producticity enhancements and improvements in market conditions,” said Ausrizon Executive Vice President – Commercial and Marketing, Mauro Neves.
The Cameby coal mine is located in southeast Queensland about 360 km west of Brisbane. It is connected to the Port of Brisbane by the South-West rail corridor.
The new contract comes as Aurizon reported a fall in coal volumes in 4Q15. Its Queensland coal business was particularly hit with an 8% fall in tonnes hauled on the back of increased competition from BMA Rail, a division of coal mining company, BHP Mitsubishi Alliance, and the loss of a 2 million tpa contract with Anglo American German Creek mine.
Edited by Jonathan Rowland
Queensland Resources Council (QRC) President Michael Roche has written to state Premier Annastacia Palaszczuk asking for an urgent meeting to discuss a jobs-protection plan for the industry.
“The Queensland resources sector is facing some of the toughest conditions in decades with more than 20 000 jobs lost over the past two years,” Roche said in a press statement. “The QRC is not looking for bailouts or subsidies by our entire sector needs certainty and support in the shape of commitments to reduce red tape and unjustified government-imposed costs.”
According to the QRC, the resource sector employs 60 000 directly in Queensland with tens of thousands of indirect jobs also supported by the industry.
“Even in these most difficult of times, there are companies prepared to invest in new job-generating projects because of the strong growth in demand for resource commodities in India and southeast Asia,” continued Roche. “However, these projects are locked up in interminable court appeals by green activists. We need government action to get those projects out of the courts, instead creating thousands of construction jobs and thousands more permanent jobs.”
Edited by Jonathan Rowland.
Tomas Eliasson, currently the Chief Financia Offices (CFO) at Swedish appliance maker Electrolux, has been appointed Executive Vice President and CFO of Sandvik. Eliasson will also join the company’s Group Executive Management team.
Eliasson will replace Mats Backman, who is joining Autoliv, a maker of automotive safety systems. He will take up the role no later than July 2016.
“Tomas Eliasson has extensive experience from relevant industries and companies,” said Sandvik’s President and CEO, Björn Rosengren. “He will be a strong contributor to Sandvik in the finance areas and he will also take a leading role in driving the further progress of the Sandvik Group in general.”
Eliasson is the third change in the Group Executive Management team since Rosengren took over the company last year after the replacement of Scot Smith by Lars Engström as President of Sandvik Mining and the retirement of Olle Wijk, Head of Group R&D.
Edited by Jonathan Rowland.
T.L. Headley,
According to the latest reports from the US Energy Information Agency (EIA), coal production in the US finished 2015 off approximately 13% from 2014 totals. Meanwhile spot prices for coal continue their long-term decline and natural gas slipped back slightly from recent highs.
According to the EIA’s 2 January 2016 weekly report, US coal production for the year totalled 886.49 million short t, down from 995.47 million short t (a decline of 11.1%). The trend appears to be steepening. According to the EIA’s 22 January report, production was only 13.32 million short t – off from 19.61 million short t for the same week a year ago (off 32%). This is mirrored in the week’s railcar loadings, which was at only 75 308 car loads, off 32.7% from the 111982 car loads. This decline in rail traffic is almost entirely due to the decline in coal production and has resulted in both major eastern rail systems announcing major restructurings. CSX last week announced it is closing its regional headquarters in Huntington, West Virginia. Norfolk Southern likewise announced it is closing the Bluefield, West Virginia offices.
Coal exports for the month of November (the most recent data available) were sharply below last year. Metallurgical coal exports are off by 39% from November 2014 and steam coal exports are off by 34%. Imports of coal into the US were down for the month by 12.1%. For the year ending 31 December, metallurgical coal exports were down 24.7% and thermal coal exports were down 21.8% compared to the same period last year. Imports of coal for the year were down 3.8% from 2014.
Electric output was down 3.9% compared to the same week last year, with 79 650 MWh of electricity produced compared to 68 519 MWh produced for the same period last year. Electric production for the year was off 3.9%, which can be attributed at least in part to the mild fall across most of the country.
Domestic steel output, however, was down from the previous week.
According to numbers from the American Iron and Steel Institute, in the week ending January 16, 2016, domestic raw steel production was 1 652 000 net short t, while the capability utilisation rate was 69.1%. Production was 1 807 000 net short t in the week ending 16 January 2015, while the capability utilisation then was 76.4%. The current week production represents a 8.6% decrease from the same period in the previous year. Production for the week ending 16 January 2016 is up 3.6% from the previous week ending 9 January 2016 when production was 1 594 000 net short t and the rate of capability utilisation was 66.7%.
Adjusted year-to-date production through 16 January 2016 was 4 686 000 net short t, at a capability utilisation rate of 65.3%. That is down 13.4% from the 5 412 000 net short t during the same period last year, when the capability utilisation rate was 76.4%.
In terms of regional coal production, all three major basins reported significant losses for the year.
The Appalachian Basin finished the year at 226.72 million short t, down from 267.70 million short t in 2014 (-15.3%). Interior Basin production also finished the year down at 167.92 million short t compared to 188.16 million short t last year (-10.8%). Western production finished the year at 491.85 million short t from 541.55 million short t last week (-9.2%). For the week ending 16 January, production was also down in two of three basins. Appalachian Basin production finished the week at just 3.24 million short t, off from 3.31 million short t last week. The Interior Basin finished the week at 2.50 million short t, off from 2.53 million short t, and the Western Basin finished slightly up at 7.58 million short t from 7.56 million short t.
According to the West Virginia Office of Miners’ Health Safety and Training (WVOMHST), coal production in the state now stands at 100.65 million short t through 15 December. Of that total, 82.19 million short t was mined by underground operations and 18.56 million short t was produced by opencast mining. Only 58 mines have reported production in December 2015. Several large operations have idled production due to financial restructuring or in response to slack demand.
However, according to WVOMHST, coal mining employment in West Virginia grew slightly to 15 774 total miners, with 12 705 working underground and 3069 working on opencast operations. The office does not report data for contract miners or preparation plant workers on a weekly basis. Final reports for 2015 are due by the end of January and will be reflected in February reports.
According to the EIA, West Virginia coal production for the year totalled 97.81 million short t – off from 111.87 million short t. This is off 12.6% from 2014. The EIA always reports lower production than state reports. Meanwhile, West Virginia production finished the week at 1.26 million short t, up slightly from 1.25 million short t the previous week, but off from 1.89 million short t last year.
Production was down in both the northern and southern coalfields of West Virginia compared to last year by 6.7% and 23.2% respectively. For the week, northern West Virginia production finished up at 644 000 short t versus 620 000 short t last week and 892 000 short t last year. Southern West Virginia, however, finished down at 618 000 short t versus 628 000 short t last week and 993 000 short t a year ago.
Coal production in Kentucky ended the year at 63.20 million short t produced, down by 18.1% from the 77.19 million short t from 2014. Eastern Kentucky coal operations finished the year at 29.52 million short t, down by 21.1% to 37.39 million short t. Meanwhile, western Kentucky coal operations finished off by 15.4%, at 33.68 million short t versus 39.39 million short t in 2014.
Wyoming coal production finished the year at 369.10 million short t versus 394.78 million short t in 2014 – off by 8.3%.
Illinois coal production finished 2015 at 59.81 million short t versus 57.96 million short t – up by 3.2% from 2014. Indiana production, however, fell significantly, finishing at 34.71 million short t versus 39.16 million short t the previous year. Ohio production finished 2015 off by 20.9% – at 17.55 million short t versus 22.19 million short t in 2014. Pennsylvania production was down by 16.3% y/y, finishing at 51.63 million short t in 2015 versus 61.66 million short t in 2014. Virginia coal production continued to fall in 2015, finishing the year down 14.5% at 13.21 million short t versus 15.45 million short t in 2014.
Coal prices on the spot market were all down this week, with all basins finishing down for the year. Central Appalachian coal finished the week at US$42.25/short t or US$1.69/million Btu. Northern Appalachian coal also finished down, coming in at US$48.60/short t or US$1.87/million Btu. Illinois Basin coal closed down at US$32.20/short t or US$1.36/million Btu, while Powder River Basin coal fell to US$9.70/short t or US$0.55/million Btu. Uinta Basin coal prices finished at US$39.95/short t or US$1.71/million Btu.
Natural gas prices on the Henry Hub continued to fall back slightly this week to finish at US$2.32/million Btu from US$2.38/million Btu last week and significantly off from US$3.08/million Btu a year ago. Natural gas producers reported a significant decline in their stored reserves – down 168 billion ft3 compared to the previous week, for a total of 3.48 trillion ft3 in storage. This week’s working natural gas rotary rig count is down by 13 from last week to 637 working rigs. And the count remains down by 996 rigs from a year ago – a decline of 36%. This number includes rigs working in both oil and gas plays.
Written By T.L. Headley. Edited by Harleigh Hobbs. This article first appeared in the WV Coal Seam blog of the West Virginia Coal Association.
Hollysys Automation Technologies, Ltd, a leading provider of automation and control technologies and applications in China, has signed a contract to provide its proprietary Distributed Control System (DCS) for 2 x 1052 MW ultra-supercritical coal-fired power generating units to Shenhua Jiujiang power plant, China.
The units are expected to commence operation at beginning of the year 2017.
The ultra-supercritical coal-fire power generating units are the highest level of generating units in coal-fire power industry. In this project, Hollysys’ DCS will control around 42 000 points, combined with its newest MACS K series products.
In a media release, Hollysys’ Management commented: “We feel honoured and pleasant of this contract win, which reflects the customer’s recognition of our leading technology, superior solution, and high-quality product and service. This is another GW level ultra-supercritical power plant DCS contract win by Hollysys, which strengthened our top place in power industry market share. Going forward, we will continue to penetrate the high-end market of power industry and other industries, strengthen customer service, improve turnkey solution customisation ability, promote our long-term DCS business growth and create value for our customers and shareholders.”
Edited from press release by Harleigh Hobbs
As recently as 2011, shares in , the world’s biggest private sector coal company, traded at the equivalent of $1,000. Today, they hover around $4 each. Over that time, investors who held the stock lost millions.
Peabody, like other coal companies, has been hammered as cheap natural gas erodes the demand for coal. But concerns about are also an issue for the company as customers and investors turn away from fossil fuels.
Peabody saw this coming. Even as the company privately projected that coal demand would slump and prices would fall, it withheld this information from investors. Instead, Peabody said in filings with the that it was not possible to know how changing attitudes toward climate change would affect its business.
Peabody’s double talk was revealed as part of a two-year investigation by the New York attorney general. In a settlement in November, Peabody that it would disclose more about climate change risks in its regular filings with the S.E.C.
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In theory, however, Peabody should have been making such disclosures all along.
In 2010, the S.E.C. told companies how it expected them to address the risks posed by climate change in their regular securities filings.
Wall Street’s top regulator was not issuing a new rule. Rather, this was “interpretive guidance” on existing disclosure requirements. The S.E.C. chairwoman at the time, Mary Schapiro, that the S.E.C. was “not opining on whether the world’s climate is changing, at what pace it might be changing, or due to what causes,” but asking companies to take stock of the risks to their businesses. Among the factors companies should address, the S.E.C. said, were legislation and regulation related to climate change, international treaties on the issue, and the physical impacts of climate change, like flood or drought.
Initially, the S.E.C. appeared to put muscle behind its guidance. In the two years after the interpretive guidance, the S.E.C. issued 49 comment letters to companies addressing the adequacy of their climate change disclosures. But it issued only three such letters in 2012 and none in 2013.
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To advocates of more robust climate change disclosure, the impression was that the S.E.C. had taken its eye off the ball.
“They did back it up in the first few years,” said Jim Coburn, senior manager of investor programs at Ceres, a nonprofit organization that advocates sustainability in business and that has lobbied the S.E.C. on the disclosure. “But the current chair hasn’t shown much interest in this issue.”
Some shareholders and lawmakers are trying to change that. Last April, an alliance of 62 institutional investors wrote to the S.E.C. calling for greater scrutiny of climate-related disclosures from energy companies in particular.
“We are concerned that and gas companies are not disclosing sufficient information about several converging factors that, together, will profoundly affect the economics of the industry,” wrote the investors, which included Calpers, the California Public Employees’ Retirement System; the Connecticut state investment fund; and Calvert Investments.
In a coordinated sent to the S.E.C. on the same day, the New York City and New York State comptrollers called for similar accountability. Then in October, a group of Democratic lawmakers added their voices to the debate. In a to the current S.E.C. chairwoman, , 35 members of Congress asked for an update on the interpretive guidance issued in 2010, using the occasion to suggest that the S.E.C. had been asleep at the wheel.
“The S.E.C. has been underreacting in the extreme,” Senator Brian Schatz, a Democrat from Hawaii and one of the lead authors of the letter, said in an interview.
At the same time, officials in New York and California are investigating whether Exxon understood the risks posed by climate change decades ago, but withheld that information from investors. Exxon denies the allegations.
The investors, comptrollers and lawmakers think that while companies should already be addressing climate change risk as part of their regular disclosures, only a minority are telling shareholders how warming oceans and extreme weather will affect their business.
“Our markets work best when investors are provided with the necessary disclosures, and the S.E.C. needs to take action by enforcing the disclosure rules on the books,” Senator Jack Reed, a senior member of the Senate banking committee, said in an emailed statement.
The S.E.C. declined to comment for this article. But in a response to Mr. Reed reviewed by The New York Times, Ms. White said her staff members examined the adequacy of climate change disclosures as part of its routine analysis of company filings, and were looking for instances where energy companies, for example, might need to disclose more. According to people briefed on the matter, the S.E.C. has made staff members aware of the Peabody settlement, encouraging them to be more vigilant in reviewing climate change disclosure.
In her response to Senator Reed, Ms. White said that since the S.E.C. issued its interpretive guidance, “incrementally” more companies were making disclosures related to climate change. Yet many of these are vague generalizations that give investors little to work with.
Chevron, for example, wrote that “incentives to conserve or use alternative energy sources” might reduce demand for its products. Exxon noted that new laws might “reduce demand for hydrocarbons.” Neither company made clear to investors what the financial costs might be.
Evidence that climate change issues are already affecting big companies continues to mount. In December, on the first full day of trading after negotiators in Paris agreed to limit greenhouse gas emissions, Peabody shares dropped another 13 percent. This month, President Obama announced new limits on coal mining on federal lands. The next day, coal stocks, including Peabody, plunged once more.
The S.E.C. is now reviewing what it requires companies to disclose, and it could introduce new rules this year. As part of the public comments process, some groups have suggested that the S.E.C. specify that companies address issues such as climate-related legal proceedings, or so-called stranded assets — oil and gas reserves that may never be used. But for now, the S.E.C. has no plans to require companies to be more forthcoming than they are now about climate change.
At a time of upside-down weather patterns, volatile energy markets and mounting climate-related regulatory action, that is simply not enough for many lawmakers and investors, who worry that companies’ reticence is costing shareholders.
“We’re not asking for anybody to predict the weather or to become climate scientists,” Senator Schatz said. “We’re simply asking that the S.E.C. acknowledge that there is real risk for companies, and that it ought to be disclosed.”
To the Editor:
Re “” (editorial, Jan. 16):
The Obama administration’s federal coal leasing moratorium is the latest symbolic yet costly gesture to show climate leadership. Fossil fuels will supply 80 percent of the world’s energy needs through at least 2040. Real climate leadership would follow through on the president’s 2008 pledge to advance development of carbon abatement technologies for all fossil fuels.
The administration’s reasons for the moratorium rise to the “fiction peddling” the president condemned in his State of the Union address. According to the Department of Interior’s reports, coal mines in the Powder River Basin are free of off-site environmental impacts, and the carbon emissions from using the coal are already evaluated before any lease sale.
The economic case is equally contrived. The public receives 39 cents of every dollar earned on coal production from the Powder River Basin in the form of royalties, taxes and fees.
HAL QUINN
President and Chief Executive
National Mining Association
Washington
KANSAS CITY, Mo.–(BUSINESS WIRE)–Great Plains Energy (NYSE: GXP) announced today that it will release its 2015 fourth quarter and year-end earnings on Wednesday, February 24, 2016, after the market close. On Thursday, February 25, 2016, at 9:00 a.m. ET, executive officers of the Company will conduct a webcast and conference call to discuss the Company’s 2015 fourth quarter and year-end earnings and operating results. Supplemental financial information and the earnings webcast presentation will be available after the February 24 market close and after 8:30 a.m. ET on February 25, respectively, on the Great Plains Energy website at www.greatplainsenergy.com.
Stockholders, analysts and other interested parties may access the earnings call by dialing (888) 353-7071 (U.S./Canada) or (724) 498-4416 (international) using pass code 23886160. A replay of the webcast will be available on Great Plains Energy’s website and telephonically through March 3, 2016, at (855) 859-2056 (U.S./Canada) or (404) 537-3406 (international), pass code 23886160.
ABOUT GREAT PLAINS ENERGY
Headquartered in Kansas City, Mo., Great Plains Energy Incorporated (NYSE: GXP) is the holding company of Kansas City Power & Light Company and KCP&L Greater Missouri Operations Company, two of the leading regulated providers of electricity in the Midwest. Kansas City Power & Light Company and KCP&L Greater Missouri Operations Company use KCP&L as a brand name. More information about the companies is available on the Internet at: www.greatplainsenergy.com or www.kcpl.com.
Reactions to US governments’ plan to stop new coal leases
- The US government halting new coal leases on federal land while it undertakes a comprehensive review of the federal coal programme has been met with discontent.
- Institute of Energy Research President, Thomas Pyle, has released a scathing attack on the Obama administration’s decision to halt the grating of new coal leases on federal land.
- US Rep. Ed Whitfield, Chairman of the Energy and Power Subcommittee, criticises the US Department of Interior’s regulation on federal coal leasing and management.
- The American Coal Council has attacked the federal coal lease moratorium as another slice in the Obama administrations “death-by-a-thousand-cuts’ policy towards coal.
Coal mine updates
- Peabody’s North Antelope Rochelle mine reaches a major production milestone by shipping its 2 billionth short ton of coal.
- Kibo Mining has received results from Geotechnical Drill Programme for the Mbeya Definitive Mining Feasibility Study.
- A mine wall collapse at Warkworth and a dam overflow at Bengalla makes it three spills in a month from Hunter Valley coal mines.
- Peabody’s Wambo coal mine in New South Wales has reported a dam breach resulting in a discharge of sediment-laden water into the environment.
- CoAL awards Optimisation Study and Front End Engineering and Design package to DRA Global’s South African company DRA Projects SA.
Project sales
- Peabody Energy enters definitive agreement to sell it interest in Prairie State Energy Campus: a 1600 MW coal-fired plant and adjacent coal mine in Illinois, USA.
- Anglo American enters into a Share Sale Agreement with Batchfire Resources Pty to sell its 100% interest in the Callide thermal coal mine in Queensland, Australia.
Latest shipping and ports news
- A fall in coal throughput at Port of Amsterdam helped to drag total transshipment down at the four North Seam Canal Area ports.
- The Indian Ministry of Shipping has launched a campaign to clean and green India’s thirteen major ports.
- The major Indian ports recorded an 11.75% increase in thermal coal imports and 2.5% increase in metallurgical coal imports between April and November 2015.
- US LNG exports have been vaunted by the US coal industry as cause for rising US gas prices and therefore rising US coal demand. But this hope may be misplaced.
- Port of Rotterdam saw coal throughput rise 1% in 2015 despite a fall in German thermal coal demand.
Recently released 2015 results
- BHP Billiton has reported 3% falls in its metallurgical and thermal coal production as operations were hit by geological difficulties and heavy rain in Australia, while draught hit the company in Colombia.
- Rio Tinto announces 4Q15 results: hard coking and thermal coal production was in line with 2015 guidance, while semi-soft coking coal production was above the top end of the guidance range.
- South32’s coal production fell in the six months to December 2015 on the back of challenging geology at two of its Australian mines.
- Australian rail freight operator, Aurizon, reported a fall in coal volumes in 4Q15 on the back of increased competition and falling production volumes.
Not to be missed …
- A report, Scottish CO2 Hub – A unique opportunity for the UK, published by Scottish Carbon Capture & Storage has detailed a concept that could lead the way for deployment of CCS in the UK and Europe.
- Miners and mining equipment suppliers have made RobecoSAM’s “The Sustainability Yearbook” – although on one in the Coal & Consumable Fuels category.
Australian rail freight operator, Aurizon, saw a 5% fall in coal volumes in the last three months of last year compared to the same period in 2014. Total tonnage handled was 51.8 million t compared to 54.8 million t in 4Q14. Queensland coal volumes – which comprise the majority of the companies coal business – were particularly hit, falling 8% in 4Q15 to 40.3 million t with the company blaming increased competition from BMA Rail and the loss of a 2 million tpa contract with Anglo American’s German Creek mine. BMA Rail is a division of BHP Mitsubishi Alliance, the world’s largest suppliers or seaborne metallurgical coal, and runs trains from the BMA mines in the Bowen Basin through the Goonyella rail system to the BMA export terminal at Hay Point. BMA followed Glencore in operating its own trains, a strategy that increases a mining company’s flexibility to cut production without being penalised under traditional take-or-pay contracts with a third-party rail operator. In contrast, Aurizon’s New South Wales coal volumes were up 6% to 11.5 million t compared to 10.9 million t in 4Q14 on the back of new contract with Whitehaven coal. Overall, the company lowered its coal guidance to 202 – 212 million t for the financial year to June 2016 from 210 – 220 million t. In the financial year to June 2015, the company hauled 211.2 million t of coal. The company’s net tonne kilometers (NTKs) faired better, however, as lower volumes were offset by longer haulage distances in both Queenland (GAPE and Blackwater corridors) and in New South Wales on the back of the Whitehaven contract, which hauls coal from the Gunnedah Basin. Total NTKs for Aurizon’s coal business were down just 1% to 12.4 billion for the quarter on the back of a 26% increase in New South Wales NTKs to 21 billion mitigating a 6% in Queensland.
Edited by Jonathan Rowland.
The US Chamber of Commerce’s Institute for 21st Century Energy has released a new analysis, What’s in a Target, on the US Environmental Protection Agency’s (EPA) Clean Power Plan (CPP).
It analyses the regulation’s subjectivity and fairness in regards to coal, gas and renewables.
“EPA’s power plant regulations are flawed at their very core,” Institute for 21st Century Energy President and CEO Karen Harbert stated. “Our analysis reveals how the EPA relied on tactics buried deep in the rule’s complex regulatory formulas to make the rule at least 28% more stringent, which will increase compliance costs on states, utilities, and consumers by billions of dollars.”
As one example, the report highlights how the EPA’s use of 2012, which saw higher-than-usual wind energy instalments due to an expiring production tax credit, as the basis for its wind energy figures that caused an increase in the CPP’s stringency.
“EPA’s treatment of wind power illustrates how a single faulty assumption can increase compliance costs by billions of dollars,” Institute for 21st Century Energy Senior Director of Policy, Dan Byers, indicated. “The regulatory basis of the CPP has almost nothing to do with the operation of coal and natural gas plants, and it is disingenuous for EPA to suggest otherwise. This report quantifies the role of highly questionable renewable energy generation assumptions as a central driver of the rule’s stringency.”
Edited from press release by Harleigh Hobbs
South32 recorded a fall in coal production from its South African and Australian coal assets in the six months to December 2015. The company also lowered its full year production forecast for its Illawarra Metallurgical Coal business in Australia for the full year to June 2016
In South Africa, the company recorded coal production down 1% to 16.4 million t in the half year to December and down 5% in the December quarter to 8.1 million t on the back of the Khutala opencast mine closure. Domestic sales were also down 1% at 9.1 million t for the half year, while export sales increased by 1% to 8 million t.
Operational efficiencies at the Khutala underground mine and Wolvekrans Middelburg Complex partially mitigated the impact of the Khutala opencase mine closure. Full year production guidance remained unchanged at 31.95 million t with 16.65 million t domestic sales and 15.3 million t for exports.
Illawarra Metallurgical Coal – which operates the companies Australian coal assets – recorded a steeper decline in coal production on the back of challenging geological conditions at the Appin and Dendrobium mines and a planned longwall move. With another two longwall moves schedule for 1Q16, the company has lowered its production forecast by 7% to 8.25 million t.
The company’s Illawarra metallurgical coal production fell 15% to 3.3 million t in 2H15 and by 40% in 4Q15, while thermal coal production fell by a quarter in 2H15 and by 34% in 4Q15.
On the financial side, the company achieved a reduction in net debt of US$300 million in 2H15 on the back of a “relentless focus on safety, volume, costs and capital expenditure,” said South32’s CEO, Graham Kerr. Its current estimate for net debt at the end of 2015 is US$115 million.
Kerr also highlighted to potential for further production cuts at its Souther African manganese and aluminium operations. “Further decisive action will be taken as we seek to maximize short-term cash flow, while preserving longer-term value,” said Kerr.
Edited by Jonathan Rowland.
Bulk material handling specialists, Transmin and Flexco, have announced a global project partnership agreement to deliver mutual customers Transmin’s engineered equipment and suppliers with the support of Flexco’s belt conveyor products.
“The global project partnership is valuable as it maximises the already extensive product range and support we can supply our customers,” said Matthew Brooks, Suppliers Manager of Transmin. “Using the combined capabilities of the businesses, we can offer comprehensive solutions to belt conveyors issues with the ongoing support of Flexco projects for global projects.”
Transmin and Flexco have a history of collaboration in the resources and bulk materials handling industries, both in Australia and internationally. Their most recent project saw the companies work together on a successful tender bid for the supply of custom designed primary belt cleaners for belt widths of 4000 mm at a coal terminal on Canada’s West Coast.
Flexco engineers designed two HXF Super RHS extra heavy-duty primary belt cleaners with a tip width of 3600 mm and overall length of 4800 mm for these belst. Transmin have since successfully tendered for the ongoing supply of four more 4000 mm width extra heavy-duty belt cleaners over the next two years.
Based in Perth in Western Australia and with offices in South Africa and Brazil, Transmin provides engineered solutions to the bulk materials handling industry, mining and minerals processing industries.
Flexco is headquartered in Downers Grove, Illinois, US, and manufactures conveyor support equipment, including belt cleaning and repair equipment and transfer point solutions. As well as its US locations, it has offices in Australia, South American, China, India, South Africa and Europe. Its Downers Grove and Grand Rapids locations were recently names on the National Association for Business Resources list of the Best and Brightest Companies to Work For in the US.
“The partnership between Transmin and Flexco combines two global leaders in the bulk materials handling industries that are dedicated top providing project customers with a holistic approach to increasing productivity onsite,” the companies concluded in a press statement.
Edited by Jonathan Rowland.
Capstone Turbine Corp. has announced that it received an additional follow-on order for a large Australian CBM company.
The initial order was placed in July 2008 and was for the supply of 112 C30 microturbines, which was then increased to 154 C30s in 2009. The first follow-on contract was for 44 C30 microturbines in September 2012, and in January 2013 they ordered 36 additional units, followed by another 14 units in December 2013. This most recent order is for another 8 units, bringing the total number of microturbines sold to date to 256. These orders are part of a periodical supply contract for the life of the CBM development project.
“The coal seam gas market continues to develop as coal seam operators convert this gas into clean on-site power generation,” said Darren Jamison, Capstone’s President and CEO. “It’s rewarding to see satisfied repeat customers continue to come back and add to their already large fleets of operating microturbines. In addition, Australia has been a key geographical focus for Capstone, similar to Latin America, Africa and the Middle East,” added Mr. Jamison.
Optimal Group, Capstone’s Australian distributor, secured the latest follow-on order, which is currently scheduled to be commissioned in mid-2016.
“Optimal Group’s business in Australia continues to expand in oil and gas, coal seam gas and the combined heat and power markets. In fact, they are currently our second largest distributor in terms of revenue generation over the trailing four quarters,” said Jim Crouse, Capstone’s Executive Vice President of Sales and Marketing. “I am confident that Australia will deliver substantial growth year-over-year and help offset slowdowns in other geographies,” added Mr. Crouse.
Edited from press release by Angharad Lock
On 21 January 2016, TerraSource Global announced the addition of a new warehousing facility and field service hub in the Ural region of Russia. This is in line with the company’s decision to enhance sales and service processes across its global footprint in order to stay ahead of customer’s evolving needs in existing and key emerging markets, which was announced late last year.
This placement of field service personnel and OEM parts closer to its customers marks a key step in the company’s plan to minimise response times and maximise service quality.
The facility, located in Perm, Russia, is 6000 sq. ft. and began receiving inventory a few months ago. The warehouse stocks the main components and consumable parts for the company’s Gundlach Crushers and Pennsylvania Crusher brand size reduction equipment. Additionally, the facility stocks large screening equipment parts for Rotex.
The new warehouse’s inventory is neatly organised on industrial grade shelving for quick parts fulfillment. Components are vacuum-packed to ensure that they do not corrode during storage. The facility also serves as a hub for TerraSource Global’s field service operation within the region.
Maxim Liapin, aftermarket manager for TerraSource Global CIS, manages the facility. Liapin noted that future plans may include establishing a painting zone within the facility as well as a lab zone incorporating one or more pieces of operable crushing machinery to allow equipment demonstrations and on-site materials testing for prospective and existing customers.
Yury Stepunin, director of the TerraSource Global CIS operation headquartered in Moscow, said: “The opening of this facility is an important element in providing customer-focused solutions within Russia and nearby countries. It will definitely provide enhanced aftermarket support and faster response to our many valued customers.
Edited by Jonathan Rowland.
Rhino Resource Partners LP has completed a definitive agreement between Royal Energy Resources Inc. and Wexford Capital LP where Royal has acquired 6 769 112 issued and outstanding common units of the Partnership previously owned by Wexford.
The definitive agreement also includes the committed acquisition by Royal within sixty days from the date of the agreement of all of the issued and outstanding membership interests of Rhino GP LLC, the general partner of Rhino, as well as 9 455 252 issued and outstanding subordinated units of the partnership currently owned by Wexford.
Once Royal has completed the acquisition of the Rhino GP LLC membership interests and the issued and outstanding subordinated units of the Partnership from Wexford, the company will obtain majority ownership interest and control of the partnership.
Joe Funk, President and Chief Executive Officer of Rhino’s General Partner, commented: “We continue to look forward to the opportunity to work with Royal once the final steps of the transaction are complete. Royal’s additional resources provide us with the capability to strategically grow the Partnership from our existing platform as we move forward. Royal’s insight and market strategies will provide us with the capability to deliver optimal value to our unitholders as we expect our relationship with Royal will grow our cash flow in the future.”
Edited from press release by Harleigh Hobbs
The Indian Ministry of Shipping has began a project to make the country’s major ports “cleaner and greener”. Project Green Ports will comprise two elements: the Green Ports Initiatives and Swachh Bharat Abhiyaan.
Green Ports Initiatives will include twelve schemes to reduce the environmental impact of Indian ports, including the acquisition of environmental monitoring and dust suppression equipment, setting up sewage, waste water treatment and garbage disposal plants, and the development of renewable energy projects.
Swachh Bharat Abhiyan – or Clean India Mission – is a national campaign by the Indian government to keep the country’s infrastructure clean. Launched in 2012 by Prime Minister Narendra Modi, the Ministry of Shipping now aims to apply it to the country’s major ports, identifying twenty activities to promote cleanliness at port premises.
These include cleaning the wharf, cleaning and repairing buildings, port roads and drainage systems, painting road signs, road crossings and pavement edges, modernising toilet complexes, and planting trees. The ministry will also provide staff training in the issues of environmental and cleanliness awareness.
”All major ports have initiated actions and are making good progress,” the ministry said in a recent press release.
India designates thirteen ports as major ports. Between them, they are responsible for handling about three quarters of India’s seaborne cargo traffic. The Indian Ports Associations recently released figures showing a 3.32% increase in throughput at these ports between April and November 2015.
Edited by Jonathan Rowland.
With the intention to stream line, emphasise portfolio optimisation and increase proceeds through selling non-core assets, in 4Q15 Peabody Energy launched a competitive biding process in preparation for the company to sell the subsidiary holding its 5.06% share of the Prairie State Energy Campus.
Prairie State is a 1600 MW coal-fired electricity generation plant and adjacent coal mine in Washington, St. Clair and Randolph counties in Illinois. It began operations in 2012 and is one of the cleanest coal-fired plants in the US and the lowest-cost coal plant in one of the world’s largest energy and operating reserve markets.
Peabody has now entered into a definitive agreement with the Wabash Valley Power Association to sell the share for US$57 million, subject to certain customary closing adjustments.
It is expected that the end of 2Q16 will be when the transaction closes ¬– subject to certain governmental and regulatory approvals, expiration of purchase rights and other customary conditions.
It is reported Peabody intends to use transaction proceeds for general corporate purposes and/or deleveraging activities, and expects to record see a modest gain related to the sale.
The planned sale of the Prairie State interest, along with other recently announced or enacted transactions, would bring total proceeds from asset sales to nearly US$500 million since the beginning of the second quarter of 2015.
In the fourth quarter, Peabody entered into a definitive agreement to sell its New Mexico and Colorado assets for US$358 million in cash. The transaction would bring forward multiple years of cash flows and release the company of approximately US$105 million of liabilities.
The company’s planned completion of the sale of the Wilkie Creek mine and other associated assets in Queensland’s Surat Basin has been delayed and remains highly dependent on successful financing by the proposed purchaser.
During the last three quarters of 2015, the company realiSed cash proceeds of nearly US$70 million related to its ongoing resource management activities through the sale of surplus land and coal reserves.
Edited from press release by Harleigh Hobbs
Teck Resources Ltd has been acknowledged as one of the Global 100 Most Sustainable Corporations for the fourth consecutive year by media and investment research company Corporate Knights.
Teck was ranked the top company in the Metals and Mining category and was the second-ranked Canadian company on this year’s Global 100 list.
“Our focus on sustainability is an important part of our overall efforts to improve efficiency and reduce costs to ensure we emerge stronger from current challenging market conditions,” commented Don Lindsay, President and CEO. “We are proud of the hard work of our employees whose commitment to sustainability is directly responsible for Teck being included in the Global 100 for the fourth consecutive year.”
According to the company, its environmental and social performance is lead by a company-wide sustainability strategy that includes short and long-term goals designed to enhance the company’s sustainability performance.
After completing its 2015 short-term sustainability goals, Teck recently updated its strategy, including establishing new goals for 2020 and ensuring the strategy focuses on the greatest risks and opportunities related to Teck’s sustainability performance.
The top 100 companies for the Global 100 list are selected from all publicly traded companies with a market capitalisation over US$2 billion. Companies were evaluated based on a range of sector-specific sustainability metrics, such as water, energy and carbon productivity and safety performance, as well as financial strength and business sustainability.
Edited from press release by Harleigh Hobbs
In a significant victory for , a federal appeals panel on Thursday rejected an effort by 27 states and dozens of corporations and industry groups to block the administration’s signature regulation on emissions from coal-fired power plants while a lawsuit moves through the courts.
The rule, issued last summer by the , is at the heart of Mr. Obama’s efforts to tackle . It would require each state to significantly cut greenhouse gas pollution from electric power plants, the nation’s largest source of such emissions.
Once fully in place, the regulation — which would cut emissions from existing power plants by 32 percent from 2005 levels by 2030 — could transform the electricity system, closing hundreds of heavily polluting coal-fired plants and sharply increasing production of wind and solar powers.
But the 27 states, many of which have economies that rely on coal mining or coal-fired power, have sued the administration to kill the plan. The Court of Appeals for the District of Columbia Circuit set June 2 to hear arguments in that case, although it is widely expected to be ultimately decided by the Supreme Court, most likely in 2017.
“We are pleased that the court has rejected petitioners’ attempts to block the Clean Power Plan from moving forward while litigation proceeds,” said Josh Earnest, the White House spokesman. “We look forward to continuing to work with states and other stakeholders taking steps to implement the Clean Power Plan.”
By rejecting the petition on Thursday, a three-judge panel of the court required states to move forward with plans to shut down polluting coal plants and build new wind and solar sources.
“Obviously, we’re extremely pleased, since today’s order rejects extreme mischaracterizations of the Clean Power Plan and efforts to delay its implementation,” said Sean Donohue, a lawyer for the Environmental Defense Fund. “We’re not that surprised, since E.P.A. was able to show that the rule rests on a firm statutory and factual footing, and that the agency built into it ample time to allow states, regulated sources and the agency to work together to reduce carbon emissions.”
Mr. Donohue said Thursday’s action made him optimistic that the courts would ultimately uphold the rule.
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Attorney General Patrick Morrisey of West Virginia, a coal mining state that has led the legal push against Mr. Obama’s climate change agenda, noted that the court did not rule on the merits of the lawsuit.
“We are disappointed in today’s decision but believe we will ultimately prevail in court,” Mr. Morrisey said. “We remain confident that our arguments will prevail as the case continues,” potentially to the Supreme Court, he added.
Opponents of the rule said they were pleased that the court set a relatively quick schedule for hearing the broader case.
“Today’s decision to expedite the legal review of the Obama administration’s electricity regulations indicates that the court agrees that it is important to review the rules quickly,” said Karen Harbert, president of the U.S. Chamber of Commerce’s Institute for 21st Century Energy. The chamber is a plaintiff in the case.
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“We look forward to presenting our arguments to the court as part of an expedited review process, and we will continue our efforts to halt the E.P.A.’s unprecedented effort to restructure the American economy,” she added.
The court’s decision came as Mr. Obama is pushing forward with a series of initiatives on climate change, in an effort to leave as large a mark on the issue as he can before leaving office in a year.
Last week, the Interior Department announced a moratorium on new leases for coal mining on public lands, part of a review by the agency that is expected to lead to an increase in the rates and royalties charged to mining companies.
As soon as Friday, the department is expected to propose new regulations aimed at curbing the release of methane, a powerful greenhouse gas, from and gas drilling operations on public lands.
On Thursday, the White House also announced that the Department of Housing and Urban Development would award $1 billion in “climate resilience” funding to communities in 13 states to help them rebuild from and prepare for disasters linked to climate change, such as wildfires in California, flooding in Iowa, and hurricanes and extreme storms in Louisiana, New York and New Jersey.
PITTSBURGH–(BUSINESS WIRE)–EQT Midstream Partners, LP (NYSE: EQM), today declared a quarterly cash distribution of $0.71 per unit for the fourth quarter of 2015. The distribution will be paid on February 12, 2016, to all EQM unitholders of record at the close of business on February 1, 2016. The quarterly cash distribution is $0.13 per unit, or 22%, higher than the fourth quarter of 2014.
EQT GP Holdings, LP (NYSE: EQGP), today declared a quarterly cash distribution of $0.122 per unit for the fourth quarter of 2015. The distribution will be paid on February 22, 2016, to all EQGP unitholders of record at the close of business on February 1, 2016.
About EQT Midstream Partners:
EQT Midstream Partners, LP is a growth-oriented limited partnership formed by EQT Corporation to own, operate, acquire, and develop midstream assets in the Appalachian Basin. The Partnership provides midstream services to EQT Corporation and third-party companies through its strategically located transmission, storage, and gathering systems that service the Marcellus and Utica regions. The Partnership owns 700 miles and operates an additional 200 miles of FERC-regulated interstate pipelines; and also owns more than 1,600 miles of high- and low-pressure gathering lines.
Visit EQT Midstream Partners, LP at www.eqtmidstreampartners.com.
About EQT GP Holdings:
EQT GP Holdings, LP is a limited partnership that owns the general partner interest, all of the incentive distribution rights, and a portion of the limited partner interests in EQT Midstream Partners, LP. EQT Corporation owns a 90% limited partner interest in EQT GP Holdings, LP.
Visit EQT GP Holdings, LP at www.eqtmidstreampartners.com.
MAPLE GROVE, Minn.–(BUSINESS WIRE)–Great River Energy, a wholesale power provider to more than 650,000 member consumers in Minnesota, along with Connexus Energy, the largest electric cooperative in the state serving 130,000 member consumers, will take part in a pilot research project funded by the Department of Energy (DOE) focused on grid reliability.
The DOE will invest $1.3 million in the GridBallast project to create low-cost, demand-side management tools for improving the resiliency of the country’s electric grid and to better control peak demand. The effort is led by the National Rural Electric Cooperative Association (NRECA), which is made up of 900-plus co-ops – including Great River Energy and Connexus Energy.
NRECA and its research partners plan to create two devices: a water heater controller and a smart circuit breaker capable of controlling plug-in appliances. The project team will develop an algorithm to continuously monitor the voltage and frequency of electricity feeds directly at the plug and automatically respond with rapid, low-scale adjustments. The goal of the GridBallast project is to make load management an inherent part of grid operations rather than a central control action, which is currently how demand-response programs are managed.
“These devices will be deployed at homes and businesses in our service territory while Great River Energy will support the research and share those findings with its other cooperatives,” said Tom Guttormson, principal technology engineer at Connexus Energy.
Researchers will focus on defining control algorithms that will allow GridBallast devices to work together without communications between deployed devices. The team assembled by NRECA includes experts from Carnegie Mellon University, Eaton and SparkMeter.
“By participating in this project we hope to further our knowledge on ways to help stabilize the grid as it undergoes a period of transition,” said Eddie Webster III, emerging technology lead at Great River Energy. “The grid must become more flexible in order to integrate more intermittent distributed renewable energy resources. This project is an opportunity to better understand the impact renewable resources have on our system and how we can deploy autonomous intelligent technologies to respond rapidly, without human intervention, to maintain the power quality and reliability our members expect.”
The GridBallast project will take place over a two-and-a-half year period with field demonstrations beginning in late 2017.
About Great River Energy: Great River Energy is a not-for-profit cooperative that provides wholesale electric service to 28 distribution cooperatives in Minnesota and Wisconsin. Those member cooperatives distribute electricity to approximately 655,000 member consumers. With $3.7 billion in assets, Great River Energy is the second largest electric power supplier in Minnesota and one of the largest generation and transmission cooperatives in the nation. Learn more at greatriverenergy.com.
About Connexus Energy: Connexus Energy is Minnesota’s largest electric distribution cooperative, providing electricity and related products and services to homes and businesses in portions of Anoka, Chisago, Hennepin, Isanti, Ramsey, Sherburne, and Washington counties. Learn more at connexusenergy.com.
The American Coal Council (ACC) has joined the chorus of voices criticising the US Department of the Interior’s decision to impose a moratorium on federal coal leases.
The lobby group, which represents both coal producers and consumers, as well as support industries, called the policy “one more slice in the administration’s ‘death by a thousand cuts’ policies enacted against coal.”
“The moratorium fits an established pattern of stalling energy development with endless claims of a ‘need’ for one more study, one more review, or one more hearing,” the ACC continued in a press release.
The approvals process for federal coal leases already requires a number of both state and federal environmental reviews and can take over a decade – a timescale that will be lengthened by the moratorium. Meanwhile, according to the ACC, the federal coal programme has generated nearly US$12 billion for state and federal governments over the past decade.
“The moratorium in the federal coal leasing programme is further evidence that the president’s “All of the Above’ energy policy doe not include coal,” concluded the ACC. “Instead, the administration is proceeding with a ‘Leep it in the Ground’ policy that will be detrimental to all Americans and jeapardise affordable, reliable and secure energy.”
Edited by Jonathan Rowland.
Fred Palmer, formerly Senior Vice President of Government Relations at Peabody Energy, has joined US public affairs firm, Total Spectrum/Steve Gordon & Associates, as partner. Palmer will divide his time between Washington DC and Phoenix, Arizona.
Palmer’s new role will focus on advancing policies at the state and federal level to preserve America’s coal-fired power industry, protect coal production from the various US coalfields and create policy parity for modern coal technology.
“Fred understands how important electricity, water and transportation are to continued economic growth,” said Steve Gordon, Managing Partner of Total Spectrum. “Fred knows how to get things done – and I am delighted that he has brought his unique professional profile and public affairs management experience to Total Spectrum and Total Spectrum Arizona.”
Palmer is originally from Phoenix, Arizona, earning a Bachelor of Arts and Juris Doctorate from the University of Arizona. As well as roles with Peabody Energy, Palmer served as CEO of the Western Fuels Association (WFA) and as the WFA’s representative on the board of the National Mining Association, where he headed the Legal Committee.
He also served a two year term as Chairman of the London-based World Coal Association and as Chairman of the Coal Policy Committee from 2010 and 2015.
Edited by Jonathan Rowland.
Peabody Energy’s flagship North Antelope Rochelle mine (NARM) – the world’s largest and most productive coal mine – has shipped its 2 billionth ton of coal.
The mine is located in Wyoming’s Southern Powder River Basin and routinely ships more coal than most nations and produces some of the lowest sulfur coal in the world.
NARM achieved its first billion ton milestone in 2006, 23 years after operations began, and reached the second billion ton milestone just nine years later.
“2 000 000 000 tons makes for a lot of zeroes… and a lot of low-cost, reliable electricity to power homes and businesses all across the country,” commented Peabody President of the Americas Kemal Williamson. “As the world’s largest and most productive coal mine, North Antelope Rochelle produces nearly 15% of the coal used for generation in the SU and by itself fuels 5% of the electricity used in the US – over eight times more than all the solar power in the country. Thanks to the more than 1400 employees of North Antelope Rochelle for helping to power the US economy and family budgets.”
More than 83 million employee hours were involved reaching the 2 billion ton milestone, with employees loading more than 17 million railcars and more than 125 000 trains. If each train were connected end-to-end it would form a 177 500 mile-long train stretching more than seven times around the earth.
The North Antelope Mine began operating in 1983, with the Rochelle Mine beginning production in late 1985. The two mines were combined in 1999. Coal from the complex is delivered to more than 40 electricity generating customers operating more than 80 power plants throughout the US.
Edited from press release by Harleigh Hobbs
BHP Billiton have announced a fall in metallurgical coal production in 4Q15 on the back of convergence issues at its Broadmeadow mine and the completion of longwall mining at its Crinum mine in Queensland, Australia. This offset record production at the Blackwater, Duania, Caval Ridge and South Walker Creek mines.
The company mined 10.5 million t of metallurgical coal in the quarter, 6% down on the same period in 2014. Production in the six months to December 2015 totalled almost 21 million t – a 3% drop on 2014. Production guidance for the year to June 2016 remains unchanged at 40 million t.
On the thermal coal side, BHP mined 9.5 million t in 4Q15 – again a fall of 6% on the same period in 2014. Half-year production was 19.4 million t.
“Lower production for the December 2015 half year reflected the continued draught conditions at Cerrejon and the impact of heavy rainfall at New South Wales Energy Coal,” the company said in its production report. Production guidance for the full year to June 2016 remains at 40 million t.
BHP also said that the sale of its San Juan thermal coal asset in New Mexico, US, had received regulatory agreement and was expected to close in 1Q16. San Juan mined 1.2 million t of coal in 4Q15 – down from 1.5 million t in 4Q14 on lower demand for its product.
“Commodity prices fall substantially in the first half of the 2016 financial year putting pressure on the whole resources sector,” said BHP CEO, Andrew Mackenzie. “We continue to cut costs and remain focused on safely improving our operational performance to enhance the resilience of the business.”
The company reported falls in production across all of its major products – with the notable exception of iron ore, which was up 4% at 118 million t in 2H15. Petroleum production fell 5% and copper fell 6%.
Written by Jonathan Rowland.
A number of mining equipment manufacturers have been included in RobecoSAM’s 2016 “The Sustainability Yearbook”, which lists the world’s most sustainable companies in by industry segment as determined by their score in RobecoSAM’s annual Corporate Sustainability Assessment (CSA)
Mining equipment manufacturers, Caterpillar, Komatsu and Sandvik all make the yearbook, as do engine manufacture, Cummins, SKF, a global manufacturer of bearings and seals, and global water technology company, Xylem. The companies are all listed in the Machinery and Electrical Equipment sector.
“The inclusion in RobecoSAM’s The Sustainability Yearbook for the seventh year in a row illustrates our continued success in integrating sustainability both in our offerings in close cooperation with our customers, as well as in our operations throughout out value chain,” said Chistina Båge-Friborg, Sandvik’s Head of Sustainable Business, said in a statement.
Only one company is included on the Coal & Consumable Fuels list: Thai-based coal mining company, Banpu. However, diversified miners, Anglo American, BHP Billiton and Rio Tinto – all of which have significant coal operations – make RobecoSAM’s Silver Class in the Metals & Mining sector list.
It is gold producers, however, that dominate the Metals & Mining list, accounting for five of the nine companies listed in the Metals & Mining sector. Newmont Mining and Barrick Gold top the industry – both (fittingly) making the RobecoSAM Gold Class – while South Africa’s Gold Fields Ltd and Canada’s Goldcorp and Kinross Gold are also included in the yearbook.
Indeed Canada appears is home to four of the nine entrants on the list, with two from the UK and one each from the US, Australia and South Africa.
Over 2100 of the world’s largest companies across 59 industries are invited to participate in the CSA each year with inclusion in The Sustainability Yearbook determined by a company’s sustainability score as determined by its CSA, as well as an analysis of the company’s response to critical sustainability issues that may arise through the year.
Founded in 1995, RobecoSAM is an investment specialist focused on sustainability investing. It also publishes the Dow Jones Sustainability Indices.
Written by Jonathan Rowland.
The 235-188 House vote to advance the Supporting Transparent Regulatory and Environmental Actions in Mining (STREAM) Act, has been welcomed by US Rep. Paul A. Gosar (R-AZ) – for which he is a co-sponsor.
“This important legislation will save mining jobs throughout the country and put an end to the Obama Administration’s secret science justification for the President’s war on coal,” Gosar stated. “Obama’s continued efforts to implement his ideologically-driven coal regulations will kill hundreds of thousands of jobs and take billions of dollars out of the pockets of hard-working Americans.”
The STREAM Act, or H.R. 1644, intends to stop the Department of Interior’s (DOI) proposed Stream Buffer Zone Rule, and create new regulatory requirements that will stop the DOI from using the same methods, which Gosar described as “deception and a lack of transparency,” in creating future rules.
“Shamefully, states — which have traditionally had primary jurisdiction on these matters regulating 97%t of the nation’s coal mines — were not consulted in this process,” Gosar explained. “To make matters worse, information leaked in 2011 when the agency was crafting this new mandate indicated the agency was trying to cover up job losses that would be associated with this new rule. The agency has even changed the technical name of this proposal in an attempt to further pull the wool over the American public’s eyes.”
Edited from press release by Harleigh Hobbs
Fortum has reported it will have a one-time negative impact of approximately €110 million on its 4Q15 net profit as a result of impairments and provisions.
The impact before taxes will mainly be included in the items affecting comparability of the power and technology segment.
The one-time items largely due to Fortum’s two coal-fired power plants in Finland: Inkoo power plant and Meri-Pori power plant. The demand for coal condensing power in the Nordic power market has decreased as a result of the drop in the wholesale price for electricity.
Fortum is booking a provision for the dismantling of the Inkoo coal-fired power plant and starting preparations for permanent dismantling. The Inkoo operations were ceased in February 2014 and assets written down in 2013.
The company is also making an impairment loss for Fortum’s share of Meri-Pori assets.
The negative impact to net profit also includes an additional write-down based on information received during the fourth quarter regarding the closure of the units 1 and 2 in Oskarshamn nuclear power plant in Sweden.
In addition, Fortum’s 4Q15 will include approximately €75 million negative effect to net profit related to derivatives mainly hedging Fortum’s future power production, which do not get hedge accounting status according to IFRS (IAS 39).
Edited from press release by Harleigh Hobbs
Interior Secretary Sally Jewell recently announced that the the Department of Interior’s (DOI) will not issue new coal leases for federal lands, which provide approximately 40% of the country’s coal, for at least three years to allow for evaluation and review of the federal coal programme.
US Rep. Ed Whitfield, Chairman of the Energy and Power Subcommittee, adds to the growing argument against the DOI’s plan to halt leasing and managing coal on federal lands.
Whitfield disapproves of the overall and stated: “Once again the administration is circumventing Congress, the voice of the American people, to launch another unilateral attack on coal … We cannot support climate ‘solutions’ that would result in new taxes or mandates, drive up energy prices, threaten jobs and harm the most vulnerable in society — all of which undermine our communities and our ability to confront future risks.”
“We will continue to fight to ensure our policies promote access to affordable, reliable energy that allows our communities to grow economically, to adapt to changes and to be resilient, both now and in the future,” Whitfield continued.
Edited from press release by Harleigh Hobbs
Spectro Scientific has launched the new MicroLab® Series all-in-one, automated lubricant analysis systems. The MicroLab platform is used in many industries that operate equipment powered by engines, including automotive and trucking, energy, mining and heavy equipment, agricultural and the government sector – at all levels from the military to local municipalities.
The ability to perform oil analysis on location eliminates the ongoing expense of outside testing services and reduces the time waiting for the results of those tests. This can save days or weeks, which can be critical if a mechanic is trying to diagnose a problem on a vehicle before it leaves the service bay or if a maintenance operator is trying to keeping millions of dollars’ worth of the equipment running on a drill ship in the North Sea. The systems provide comprehensive results in less than 20 min., which enables companies to maintain the readiness of mission-critical assets, improve reliability at remote locations, while decreasing downtime and lowering maintenance costs.
The MicroLab is a multi-component analyser used for engine, generator, gear box, power steering and transmission fluids. It is offered in two versions – the MicroLab 30 provides key properties for oil chemistry, kinematic viscosity and concentration of 10 wear and contamination metals. Additionally, the MicroLab 40 version offers an increase to 20 wear, contamination and additive metals along with the addition of a particle counter for analyzing gear and hydraulic oils.
The programmed expert system of the MicroLab combines equipment information, analysis results and a proprietary database of more than 20 yr of oil analysis rules to provide the user easy-to-understand reports, which include colour-coded alarm limits and diagnostic statements of recommended maintenance actions. The test data can be printed or wirelessly transmitted to the company’s LubeTrak® data management and storage software to track and trend the key oil parameters necessary for optimising asset health and utilisation. The MicroLab does not require specialised lab personnel to run the instrument or to interpret the results so the fully automated system is easy to integrate into the workflow of maintenance or support staff.
The MicroLab was originally developed and introduced by On-Site Analysis, a company acquired by Spectro Scientific in November 2014. The MicroLab holds multiple patents and complies with ASTM 7417D-10.
Brian Mitchell CEO of Spectro Scientific stated: “the launch of the new Spectro Scientific MicroLab series products, alongside the introduction of the CoolCheck 2 just a few months ago, marks the complete integration of On-site Analysis, Inc. into Spectro Scientific. This further solidifies Spectro Scientific as the leading provider of onsite lubrication, oil and performance fluid analysis solutions.”
Edited from press release by Harleigh Hobbs
The Gupta Group has appointed Jay Hambro as Group Chief Investment Officer. Hambro will also take up the role to CEO of the Energy and Mining Divisions at Gupta-owned SIMEC.
“Appointing Jay Hambro is a key hire as part of evolution and growth plans,” said P K Gupta, Chairman of the SIMEC Group, in a press statement. “Jay has a proven track record in buying, building, operating and financing commodity businesses. He is well respected in the sector and I am delighted that he is joining our team.”
Hambro joins SIMEC and the Gupta Group from indutrial commodities firm, IRC, where he was Executive Chairman. His primary role will be the global development of SIMEC, which currently includes a power generating arm, which owns the Uskmouth coal-fired power plant in South Wales, and a global portfolio of trading operations focused on the resources sector.
According to the company’s website, it is also interested in adding coal mining operations to its business to support the group’s trading and power generation activities with mines in Australia, India and the UK under assessment.
“I am very pleased and honoured to be joining this highly successful team,” Hambro said in a statement. “What the group has achieved in creating a dynamic and entrepreneurial business unit focused on commodities is to be commended.”
After graduating in business management, Hambro began his career in resource finance with NM Rothschild & Sons before moving to the investment bank of HSBC. Leaving the banking sector, he joined what was then Petropavlovsk Plc, spearheading the development of their industrial commodity division as Aricom Plc and more recently at IRC.
IRC is a vertically integrated commodities producer. Under Hambro the company has constructed and commissioned a 30 million tpa iron ore mining and processing operation with a near-term plan of bringing on stream one of the lowest-cost new iron ore mines in the world.
Edited by Jonathan Rowland.
UK-based Telestack, specialists in the design, manufacture and installation of mobile bulk material handling systems, has appointed Martin Dummigan as its new Managing Director with immediate effect.
Dummigan will be responsible for setting and achieving Telestack’s goals and objectives and will report to the Group Vice President Aggregates & Mining, Jeff Elliott.
Dummigan commented: “I look forward to expanding Telestack’s business globally and building on the strong growth that it has experienced over the last number of years. The Telestack brand has an excellent reputation in the industry and I am confident of a positive and strong future for the company.”
With 10 year tenure, he brings with him gained expertise and knowledge. His last role saw him serve as Vice President, China Operations and Business Initiatives for Terex and was based in Xiamen in China. Prior to this, he served in various positions of increasing responsibility within Terex, including Terex Environmental Equipment, Terex Materials Processing, Terex Cranes and Terex Port Solutions, all with an emphasis on Operations.
Jeff Elliot stated: “Martin brings valuable operational know-how to Telestack and will be an tremendous asset to the company. His knowledge of manufacturing and international experience will be invaluable as we look to define more innovative solutions for our clients and grow our presence globally.”
Edited from press release by Harleigh Hobbs