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According to the US Energy Information Administration (EIA), energy-associated carbon dioxide (CO2) emissions from natural gas are expected to surpass those from coal for the first time since 1972. Even though natural gas is less carbon-intensive than coal, increases in natural gas consumption and decreases in coal consumption in the past decade have resulted in natural gas-related CO2 emissions surpassing those from coal. The EIA’s latest Short-Term Energy Outlook projects energy-related CO2 emissions from natural gas to be 10% greater than those from coal in 2016.

Source: US Energy Information Administration, Short-Term Energy Outlook (August 2016) and Monthly Energy Review

From 1990 to about 2005, consumption of coal and natural gas in the US was relatively similar, but their emissions were different. Coal is more carbon-intensive than natural gas. The consumption of natural gas results in about 52 million t of CO2 for every quadrillion British thermal units (MMmtCO2/quad Btu), while coal’s carbon intensity is about 95 MmtCO2/quad Btu, or about 82% higher than natural gas’s carbon intensity.

Because coal has a higher carbon intensity, even in a year when consumption of coal and natural gas were nearly equal, such as 2005, energy-related CO2 emissions from coal were about 84% higher than those from natural gas.

Source: US Energy Information Administration, Short-Term Energy Outlook (August 2016) and Monthly Energy Review

In 2015, natural gas consumption was 81% higher than coal consumption, and their emissions were nearly equal. Both fuels were associated with about 1.5 billion t of energy-related CO2 emissions in the US in 2015.

Annual carbon intensity rates in the US have generally been decreasing since 2005. The US total carbon intensity rate reflects the relative consumption of fuels and those fuels’ relative carbon intensities. Petroleum, at about 65 MMmtCO2/quad Btu, is less carbon-intensive than coal but more carbon-intensive than natural gas. Petroleum accounts for a larger share of US energy-related CO2 emissions because of its high levels of consumption.

Another contributing factor to lower carbon intensity is increased consumption of fuels that produce no carbon dioxide, such as nuclear-powered electricity and renewable energy. As these fuels make up a larger share of US energy consumption, the US average carbon intensity declines. Although use of natural gas and petroleum have increased in recent years, the decline in coal consumption and increase in nonfossil fuel consumption have lowered US total carbon intensity from 60 MMmtCO2/quad Btu in 2005 to 54 MMmtCO22/quad Btu in 2015.

Edited from source: EIA by Harleigh Hobbs

Australian coal company, Whitehaven Coal, has reported a return to profit for the financial year to 30 June 2016 (FY2016), as the company benefitted from the ramp up of its Maules Creek mine to commercial production.

Whitehaven made AUS$20.5 million on revenue of AUS$1.2 billion in FY2016. The previous year, the company had made a loss of AUS$342.7 million on revenues of AUS$763.3 million.

The ramp up of the company’s Maules Creek mine to commercial production drove the return to profitability, underpinning the 55% increase in ROM coal production to 15.8 million t.

In additional to boosting production volumes, Maules Creek benefits from lower unit costs and higher-quality coal, helping to reduce average unit costs and boost the amount of metallurgical coal in Whitehaven’s product mix.

The company continued to drive down costs at its Narrabri and Gunnedah operations with the combination of efforts reducing overall FOB costs per tonne to AUS$56 in FY2016 – a fall of 8% from ASU$61 per tonne in FY2015.

“Our successful introduction of further cost reductions means out business model can operate profitably at lower price levels and that the business is resilient to cyclical pressure on price and demand,” said Whitehaven Managing Director and CEO, Paul Flynn.

Meanwhile, the higher quality of Maules Creek thermal coal helped support realised thermal coal prices with Maules Creek coal typically achieving substantial quality and CV uplifts over the GlobalCoal Newcastle Index price.

“The high-quality coal we are producing delivers higher yield and lower emissions and is in growing demand from Asia’s new generation of power plants, which are far more efficient and produce lower emissions that those in Australia,” Flynn added.

“Whitehaven is positive about the medium and long-term outlook for coal, particularly the outlook for the high-quality coal we produce.”

Maules Creek produced 7.3 million t of saleable coal in FY2016, a 231% increase on the previous year’s total of 2.2 million t.Saleable coal production was also up 1% at Narrabri, despite an 11% fall in ROM coal production, as the company ran down its stockpiled coal. Saleable coal production was down 2% at the company’s Gunnedah operations at 5 million t.

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Australian utility EnergyAustralia has received significant interest from businesses keen to use the site of the retired Wallerawang coal-fired power plant. According to the company, it received 14 expressions of interest from local, national and international businesses.

“We think the site can accommodate a range of potential new industries,” said EnergyAustralia Executive – Energy, Mark Collette. “It’s clear from the responses we received that business sees some great potential too.”

Collette added that all of the expressions of interest sought to utilise the site’s existing infrastructure, which includes heavy-lift crane facilities, a private railway connected to the main western railway and space for new buildings.

EnergyAustralia will now assess the proposals for potential economic benefit to the region, logistical viability and compatability with ongoing rehabilitation works.

If a viable alternate use is found for the site, the company hopes to have an agreement in place by the end of the year.

“The aim of this process is to arrive at an outcome that’s good for the community, a new business proponent and EnergyAustralia. We have a long way to go but the keen interest in the EOI process is an encouraging start,” Collette concluded.

Closed in 2014, the plant is located 150 km west of Sydney. Along with the nearby Mt Piper power plant, the Wallerawang plant was acquired by EnergyAustralia from the New South Wales government in September 2013.

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Maptek I-Site Studio 6.1 includes new tools that streamline management of survey data.

Users will be able to easily register laser scans to coordinate systems, including local mine grid coordinates. As soon as scans are brought into I-Site Studio, they are ready for processing. There is no need to undertake custom transformations.

“This new tool will save substantial time for surveyors working with mine coordinates,” said Global Business Development Manager Laser Imaging Solutions, Jason Richards.

“The biggest advantage is that users only need to specify a coordinate system once to use it thereafter,” Richards added. “They can also import the site geoid and .dc file for correct site parameters and save it into their site or project folder. I-Site Studio applies the geoid transformation when scans are imported and they automatically load in the predefined system.”

Another option in the I-Site Studio 6.1 coordinates upgrade allows users to take a scan object or surface not already in a coordinate system and define it to a coordinate system, applying projections correctly.

Users can also easily change between systems by choosing from predefined grid coordinate systems or the stored mine grid system.

I-Site Studio 6.1 also includes improved support for continuous mapping with I-Site Drive.

“Once a scan is imported into I-Site Studio, querying the scan extents reveals the scanning route and labels the track. The route geometry can be saved as a CAD file,” concluded Richards. “This upgrade builds on the earlier 2016 release of I-Site Studio 6, which delivered significant new 3D CAD, geology, geotechnical and production reporting tools. We will continue to support surveyors through workflow improvements.”

Edited from press release by Harleigh Hobbs

In response to the increased market volatility in the coal industry, and recent bankruptcies and increasing public concerns, the Office of Surface Mining Reclamation and Enforcement (OSMRE) will begin the rulemaking process to strengthen regulations on self-bonding to help ensure that companies are financially able to restore lands disturbed by coal mining when extraction operations are completed.

“The US coal market is dramatically different from when our self-bonding regulations were last updated 30 years ago,” said OSMRE Director Joe Pizarchik. “This is a turbulent time of energy transformation in our country, of declining use of coal and increased use of cheaper natural gas and renewable energy. These conditions have exposed the limitations of the current self-bonding rule and we have a responsibility to protect the public’s interest by keeping up with these changes.”

The rulemaking decision follows a citizen’s petition from WildEarth Guardians asking OSMRE to consider amending its regulations on financial assurances, specifically to prevent coal companies with a history of financial insolvency, and their subsidiaries, from using ‘self-bonding’ as a means to ensure disturbed lands are restored after mining operations are completed.

The Surface Mining Control and Reclamation Act (SMCRA) defines three major types of bonds to ensure reclamation is carried out: corporate surety bonds; collateral bonds (such as cash or certificates of deposit); or self-bonds, which are legally binding corporate promises without separate surety or collateral, available only to permittees who meet certain financial tests.

OSMRE received more than 117 000 comments during an extended public comment period on the WildEarth Guardians’ petition that ended on 20 July, the vast majority of commenters favouring a rulemaking. Based on those comments and a thorough analysis of current market conditions supported by Energy Information Agency data, OSMRE determined that the petitioners set forth facts, technical justification and law establishing a reasonable basis for amending its self-bonding regulations.

The goals for the rulemaking include:

  • Modify self-bonding eligibility standards, including for parent and other corporate guarantors, to include criteria that are more forward looking, instead of only focusing narrowly on past performance.
  • Provide for an independent third party review of self-bonded entities’ annual financial reports and certification of the current and future financial health of self-bonded entities.
  • Establish the percentage of all self-bonds to be supported by collateral that is not subject to any other lien or used as collateral for any other liability.
  • Provide diversification for financial assurance/reclamation bonds for each mine to prevent a single entity from providing 100% of the bond for a mine (except for cash bonds).
  • Provide regulatory authorities with better tools for obtaining replacement bonds when a self-bonding entity no longer meets the self-bonding eligibility criteria.
  • Minimise the risks associated with corporate sureties that rely on a cash flow basis to cover the cost of reclamation when its bonds are forfeited.

OSMRE will also explore the possibility of new financial assurance instruments to provide the coal industry with more financial assurance options to enhance flexibility, and the creation of incentives for mine operators to complete timely reclamation and apply for final bond release, including a financial assurance release schedule. In the coming days OSMRE will file a Federal Register Notice officially announcing its intent to start rulemaking on self-bonding.

OSMRE will seek input from state regulatory authorities and other stakeholders for suggestions on how to improve self-bonding regulations to make it easier for State regulatory authorities to ensure they have adequate financial assurance to complete reclamation of each mine. While OSMRE directly regulates opencast coal mining and reclamation activities in 12 states, there are 24 states that have primacy for surface coal mining regulation –they have developed and obtained Secretarial approval of regulatory programs that meet SMCRA requirements and are no less effective than the federal regulations in achieving those objectives.

“We know more today about financial assurance than 35 years ago and our current out-of date self-bonding regulations aren’t working as intended,” Pizarchik said. “Together with state regulatory authorities that allow, or are considering allowing self-bonds as a form of financial assurance, we can write a better rule, and together we can protect the public’s interest and the environment.”

Marco Steinberg will be joining allmineral GmbH & Co as Managing Director, effective 1 October 2016.

His focus will be on continuing and extending the company’s technological leadership by diversifying the product portfolio. Further, it is his intention to concentrate his efforts on creating and building synergies with the company groups and the shareholders SINOMA and Schmidt, Kranz.

“We are pleased to welcome Marco Steinberg to the team,” said Marcus Heinrich, CEO of HAZEMAG Group. “He builds on our teams’ experience and brings additional technical, sales and marketing expertise in our drive to provide industry leading separation solutions.”

Steinberg brings extensive global industry experience to the company and will be leaving MBE Coal and Minerals Technology GmbH in Cologne to join the management team. His previous experience includes Vice President ‘Global Sales and Marketing’ for the MBE-CMT Group and he has also filled several Executive Committee positions including that of managing director of PT.MBE Coal and Minerals Technology in Indonesia.

“Not only has he worked for respected companies but he is also most known to the market through the authoring of several publications and scientific papers,” concluded Heinrich.

Edited from press release by Harleigh Hobbs

Cementos San Marcos has contracted Loesche to supply a vertical roller mill for coal grinding at its cement plant, located 20 km north of Cali, Colombia. The Loesche Mill Type LM 35.2+2 is the sole vertical roller mill in this plant for cement grinding.

This order is a result of the company’s previous experience with Loesche and purchase of the Loesche state-of-the art vertical roller mill for the grinding of cement.

The cement plant was designed as a two-phase project to initiate a conservative market entry with the aim to more than double capacity to meet market needs within a short period of time.

The coal mill will be used in phase 2 of this project. The challenge of this project was to fit the new and larger mill in the existing plant and reuse the existing coal mill’s foundation of a smaller capacity Raymond mill, which will be replaced. The classifier and the plant ducting equipment will be part of the contract.

Cementos San Marcos is one of the latest additions to Colombia’s cement production base. The cement plant allows the company a closer connection to regional building sites and most of its output is used for infrastructure projects as Colombia builds toll roads and links the capital Bogotá to the north. Sustainable cement production is central to the plant’s design with energy efficiency and the use of alternative fuels.

Edited from press release by Harleigh Hobbs

India’s state-owned coal company, Coal India (CIL), is to target coking coal production of 71.77 million t by the financial year ending April 2020 (FY2020), according to the Minister for Power, Coal, New and Renewable Energy and Mines Piyush Goyal.

Asked to provide a roadmap for coal production to FY2020 by the Lok Sabha, India’s lower house of parliament, the minister confirmed CIL’s target of around 1 billion t of coal by FY2020, including “enhancement of coking coal production from 53.8 million t achieved in 2015 – 2016 to 71.77 million t in 2019 – 2020.”

“This enhancement in domestic production of coking coal is envisaged to reduce coking coal imports to some extent. However reduction of coking coal imports totally would not be possible due to the constraint of availability of metallurgical grade coal from domestic sources”, the minister added.

India suffers from a lack of high-quality hard coking coal, according to CRU Mumbai Team Leader, Gunjan Aggarwal, with CIL’s coking coal production comprising lower quality weak coking coal, semi-coking coals used for blending in the steel industry, and non-linked washery (NLW) coking coal, which is high ash and not suitable for coking of metallurgical uses.

According to CRU, India did not produce any hard-coking coal and only 11.8 million t of weak coking coal in 2015. In contrast, the country imported 49.7 million t of metallurgical coal in 2015 and is expected to import 48.1 million t this year.

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Russian coal company Kuzbasskaya Toplivnaya Company reported a 2% fall in revenues in 1H16 compared to the same period in 2015. The company made RUB11.1 billion (US$173.1 million) in the six months to June compared to US$11.3 billion (US$176.2 million) in 1H16.

Revenue was particularly impacted in 2Q16, which saw a 25% fall in revenue compared to the previous quarter on the back of a “seasonal drop in demand” as well as a fall in export coal prices.

Following the decline in revenues, the company reported a loss of RUB393 million (US$6.1 million) in 1H16, a significant reversal in fortunes compared to 1H15 when the company made a profit of RUB303 million (US$4.7 million).

Looking ahead, the company said was targeting production of 3 million t of coal in 3Q16 compared to production of 2.73 million t in 2Q16.

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For 1H16, Port of Hamburg’s total seaborne cargo throughput, which includes the general and bulk cargo segments, came in at 70.2 million t.

This was down slightly by 0.9% on the previous year.

“Seaborne cargo throughput in the Port of Hamburg in the first half of the year may have been slightly lower, but the trend was noticeably more stable. With an advance of 1.9% by comparison with the preceding three months, the second quarter of 2016 already signalled a discernible upward trend,” said Axel Mattern, joint CEO of Port of Hamburg Marketing.

This positive trend is also demonstrated by a comparison of the second quarters of 2016 and 2015, which reveals growth of 0.7%. The trend on seaport-hinterland traffic by rail is also very gratifying. Mattern continued: “We have established that in the first half of 2016, the quantity of freight transported ecologically by rail reached 23.8 million t, representing a real increase advance of 3.9%. Hamburg is further extending its position as the largest rail port in Europe.”

Bulk cargo throughput in Hamburg for 1H16 was 23.3 million t – down 1.4%. Bulk cargo saw different trends for imports and exports.

On imports, throughput totalled 17.1 million t, which represented an advance of 6.7%.

On exports, total bulk cargo throughput was 6.2 million t – down 18.3% and well below the same time in the previous year.

Import growth was fuelled by a 25.6% rise in suction cargoes to 2.2 million t and one of 20.8% to 5.5 million t in the liquid cargo segment.

Despite a 1.8% downturn in 1H16, the Port of Hamburg grab cargoes totalled 11.3 million t and remained the strongest segment in bulk cargo handling. Imports of coal and coke were down by 3.7% at 3.7 million t, and of ores were down by 6.2% at 5 million t – both failed to reach the previous year’s strong totals. Weaker demand from power plants and the steel industry are reported as the reason for lower throughput.

Port of Hamburg indicated that there are various reasons for the trend in exports of suction and liquid cargoes. Along with harvest-related lower grain exports that were lower substantially – 34.4% lower – than in the previous year at 2.1 million t.

The lower throughput figure of 1 million t – a reduction of 36.3% – is reported to be due to the closure of a large major refinery in Hamburg and cessation of exports of oil products from there.

On the export side, the grab cargo segment produced an upturn in 1H16 seaborne cargo throughput. Exports of building materials and scrap along with 1.4 million t (up 2.5%) of fertilizers combined to produce growth in this segment of 5.8% to 1.9 million t.

Edited from press release by Harleigh Hobbs

Whitehaven Coal Ltd has placed an order for 50 Cat® longwall roof supports to extend its Narrabri North longwall, in New South Wales, from 300 m to 400 m to increase production and reduce costs.

Already regarded as one of the most productive longwalls in Australia, the current system set a monthly production record of 1.057 million t in April. The mine will start mining its first 400 meter-wide panel in 2H17.

Narrabri is operating a complete Cat longwall mining system including an EL3000 Shearer, roof supports, AFCPF6 Face Conveyor and BSLPF6 Beam Stage Loader with crusher and boot end. The order of Cat roof supports includes 43 face roof supports and seven gate road supports with 2.05 m spacing, 2.25 – 4.70 m height range, 450 mm leg dia. and 13 000 kN support capacity.

Last year, the mine ordered a second EL3000 Shearer based on the productive performance of the first machine. The EL3000 Shearer features a unique one-piece mainframe engineered to optimise productivity while ensuring reliability and durability. The ranging arms feature cast hinge points designed to handle higher cutting and haulage forces, such as 860 kW (1380 hp) cutting forces with haulage capable of 32 m/min. while cutting.

According to Whitehaven, the mechanical availability of the second Cat shearer since its installation in September 2015 is very good. Advanced, state-based automation is boosting longwall productivity and reducing downtime. Functionalities such as horizon control and face alignment provide a consistent cutting process.

Narrabri established a new calendar year production record of 8.3 million t of ROM coal in 2015. Whitehaven’s June quarter production report explains further positive results: “As a direct consequence of the higher production levels, production costs have fallen with Narrabri confirming its place as Whitehaven’s lowest cost mine.”

Edited from press release by Harleigh Hobbs

BANPU’s Indonesian coal mines delivered saleable coal production of 6.24 million t in 2Q16, according to the company’s latest quarterly results, while its Australian operations posted output of 3.03 million t.

Indonesian production was slightly down on last year’s second quarter production of 6.78 million t following the closure of the Kitadin Tandung Mayang operation earlier this year after its reserves were depleted.

The average sales price of BANPU’s Indonesian coal was down to US$46.21 per tonne, while cost of production stood at US$32.6 per tonne – flat with the previous quarter, despite a 28% increase in the cost of diesel.

In Australia, production fell 11% on the previous quarter following two longwall changeovers at the company’s Mandalong and Springvale mines. The average selling price was AUS$61.83 per tonne, 5% lower than the previous quarter on unfavourable export prices; however, it remained well above the cost of production, which fell to AUS$44.3 per tonne – 11% below the previous quarter.

BANPU’s Chinese business showed some more positive signs, reducing its loss to US$5.4 million compared to US$9.7 million “due to good mining conditions leading to higher sales.” The company did not state Chinese production figures.

Overall, the company reported a net profit of US$8 million compared to a loss of US$5 million in the previous quarter. Earnings stood at US$99 million – a 5% year-on-fall and 13% down on the previous quarter. Coal earnings stood at US$57 million – a fall of 28% year-on-year and 20% on the previous quarter, reflecting lower revenue in Indonesia and Australia.

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Australian mining services company, Mastermyne, reported an underlying net loss of AUS$3 million in the financial year to 30 June (FY2016) as revenues fell 3.3% to AUS$168.4 million. But the company is well positioned to take advantage of any upturn in the market.

“We are starting to see some early signs of recovery as coal prices stabilize,” said Mastermyne CEO, Tony Caruso. “We believe that the worst of the cost restructuring is now behind us and, whilst we expect the next year to remain tight, we are confident that the restructuring undertaken during the second half has set us up for the year ahead.”

In March and April of this year, Mastermyne restructured its business in response to the slowdown in the mining sector, closing workshops in Mackay and Rockhampton, Queensland. “Through the restructuring the company has positioned its operations to generate strong cash returns throughout the upcoming year,” the company said.

Looking ahead, the company believes underground operations will remain subdued, as its clients continue to focus on cost reduction.

More positively, the company said that current divestments by major mining companies were likely to “create opportunities with the new owners in contract mining services.” Mastermyne was “well positioned” to take advantage of these opportunities as they arose, the company concluded.

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China’s thermal coal imports jumped 9% year-on-year in 2Q16, according to the latest issue of the China Resources Quarterly (CRQ) from Australia’s Department of Industry, Innovation and Science. The country took 44 million t over the three months to June 2016 with the majority of that coming from Indonesia.

The southeast Asian country accounted for 51% of Chinese imports. In contrast, Australia saw its shipments to China fall 10% year-on-year to 9 million t, while the value of Australian exports fell 18% year-on-year to AUS$509.8 million.

Australian thermal coal exports to China peaked recently at 12.9 million t in 2Q14 but have now recorded four consecutive quarters under 10 million t – with a low of 6.6 million t in the first quarter of this year. The value of exports has fallen from AUS$870.7 million in 2Q14.

The increase in thermal coal exports comes as the Chinese government continues to cut back on excess domestic production. The government aims to eliminate 500 million t of production over the next three to five years.

“China’s thermal coal imports will remain moderately strong over the coming months due to a pronounced reduction in domestic production in the year-to-date and a temporary increase in demand from industries using coal as power generation,” BMI Research said in a recent research note.

Over the first half of the year, Chinese thermal coal imports registered a fall of just 3.4% year-on-year, a significant increase on the 34.8% decline seen in 1H15. That said, BMI Research believe the effects of government stimulus in driving coal demand, coupled with an easing of production cuts in 2017, will see thermal coal imports “subsiding gradually in the coming years.”

“Weak consumption growth means that China’s thermal coal imports will remain capped around the 108 million t registered in 2015,” BMI Research concluded. “China’s imports peaked at 192 million t in 2013 and we expect 2017 to see a resumption of the gradual contraction in imports.”

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The County Fire Authority (CFA) was called to the Hazelwood power plant, located in Victoria, Australia, in the early hours of Saturday morning on 13 August, to assist mine personnel attending a minor incident within the area of the M172 coal conveyors.

The operators had detected smouldering coal under the M172 coal conveyors at about 1225 hours. These conveyors take coal from the mine to the power plant coal bunker. CFA appliances attended the site, using an aerial appliance to help reach the difficult to access location. They supported onsite emergency services personnel.

Thermal imaging cameras were used to monitor the situation, tracking the heat from the smouldering coal. The incident was declared safe at 0300 hours on Saturday. The smouldering fuel and a small amount of smoke was contained to the conveyor area at all times.

There was no risk to personnel.

Coal supply and power plant operations were not affected during the incident.

Edited from press release by Harleigh Hobbs

When crushing mined rock and materials, uncrushable objects constitute a severe risk for the production process as well as the installed equipment. In order to limit torque load without disrupting operation, Voith designed its SlipSet coupling to temporarily slip in the event of an overload situation and thus act as a shock absorber. The company’s recently developed Coupling Monitoring System (CMS 310) offers further benefits by providing real-time status information as well as performance analyses; displayed in a particular web interface, on a HMI panel or integrated in an already existing supervision system.

When getting stuck in the crushing chamber or between the rollers, too hard materials or too huge pieces cause the system to stop running. As the motor and the momentum of the driveline still deliver torque, the resulting overload overheats the motor or leads to the collapse of the driveline. To avoid cost-intensive repair works or downtime, belt drives can be replaced with direct drives protected by an integrated torque limiting coupling.

Voith SlipSet couplings consist of a twin-walled hollow sleeve with friction generated by pressurised hydraulic oil. In case of a torque peak ,which exceeds the preset torque limit, it will instantly slip and protect the equipment from high stresses. If the blockage persists, the coupling slips until the rotational energy is completely absorbed and the drive can be stopped to enable the blockage to be cleared. On a scale of 1 to 20 000 kNm, the trigger point for slipping can be set at 50 to 100% of the maximum load. Due to its compact design, the SlipSet coupling is easily installed at the optimum position in the driveline.

As it separates the input torque from the output torque of the driveline, the slipping feature of the SlipSet coupling paves the way for a detailed monitoring of the coupling and the occurring forces around. In order to increase product intelligence and enable nonstop performance supervision, Voith developed the PLC based Coupling Monitoring System CMS 310. It is based on the calculation of the torque limiting coupling input and output rotational positions. The measurements are made by inductive sensors mounted on each side. If the coupling slips, there will be a pulse difference between the sensors. The difference in relative position is recorded and recalculated to a slip angle in real time.

Once a slip occurs, the CMS informs the operator about the incident via a web interface or an optional HMI panel for closed systems. Depending on the respective information, the operator can either adapt the power input, material feed or initiate a controlled shut down. This ensures the maximum output of the crusher since it helps the operator to align the motor power with the full capacity of the machine.

The used Profinet communication standard makes it easy to individually integrate relevant data from the Voith CMS into existing supervision systems. Thus, it requires no particular monitoring activities – still offering the possibility of accessing a history log for in-depth analyses, product settings as well as product information in the web interface provided by default.

As the Voith CMS also documents the number and length of slips of the SlipSet coupling, it proactively highlights the upcoming need for service. Therefore, coupling maintenance can be aligned with the overhaul of further components to not only prevent unplanned downtimes but also reduce planed standstills.

Edited from press release by Harleigh Hobbs

Tanzanian coal companies have welcomed a government directive banning imports of coal into the country and requiring coal consumers to enter into supply contracts with local producers.

As a result, ASX-listed Intra Energy – which owns the Ngaka coal mine through its Tancoal Energy subsidiary – said its coal sales would double in the quarter to December from around 20 000 tpm to 40 000 tpm.

“Measures have already been undertaken to double production at the Ngaka mine, including the introduction of a new contractor fleet of equipment and increasing the availability of Tancoal’s mining equipment,” the company said.

Edenville Energy, which is developing a coal-to-power project in Tanzania, also welcomed the announcement, saying it “created a significant near-term opportunity for coal sales throughout Tanzania and the company is reviewing its options to contribute to this production accordingly.”

Edenville owns a mining licence over the Mkomolo deposit and can also source coal from mining licences in the nearby Namwele deposit, where mining has previously occurred.

The company already holds a valid environmental impact assessment certificate and is thus “well placed to rapidly instigate coal production subject to the project’s economic viability.”

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BHP Billiton’s coal business saw underlying earnings fall to US$635 million in the 12 months to 30 June (FY2016) from US$1.2 billion the year before, as the company was hit by weaker coal prices across the board.

Net impact from lower prices was US$917 million, according to the company’s FY2016 results. Realised prices for hard coking coal saw the sharpest fall, dropping US$22 per tonne to US$83 per tonne, while soft coking coal was not too far behind, sinking US$18 per tonne to US$69 per tonne. Prices for thermal coal dropped just US$10 per tonne to US$48 per tonne.

The fall in prices more than offset productivity measures that saw unit cash costs fall 15% at the company’s Queensland coal operations on the back of increased equipment and wash plant utilisation, lower labour and contractor costs, lower fuel costs and a stronger US dollar.

Unit costs also fell at New South Wales Energy Coal (NSWEC) – by 2% to US$41 per tonne – despite lower volumes. In FY2017, the company expects further unit cost reductions of around 5.5% at its Queensland operations and 7% at NSWEC.

Queensland coal assets accounts for almost two-thirds of BHP Billiton’s coal revenues, contributing US$3.4 billion of US$5.1 billion in FY2016.

On the production side, the company announced metallurgical coal (hard and soft coking coal) of 43 million t – up 1% on the previous year. It is expecting another increase in production to 44 million t in FY2017 on the back of higher wash-plant and truck utilisation at its Queensland operations.

The focus on metallurgical coal reflects BHP Billiton’s relatively bullish outlook for hard coking coals as supply “is projected to become scarce and demand is driven by steel production growth in emerging markets, particularly India,” the company said.

Thermal coal production fall 16% to 34 million t in FY2016 following the sale of the San Juan Mine in New Mexico, US, and operational rescheduling at NSWEC and unfavourable weather in New South Wales and Colombia.

Production is expected to continue to fall in FY2017 to 30 million t after the divestment of its remaining New Mexico assets. The sale of the US mines will leave BHP’s coal production focused on Australia and Colombia, where it owns a third of the Cerrajon mine.

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Hexagon Mining has made major improvements to MineSight Schedule Optimizer (MSSO) in Version 9.6.

Part of Hexagon’s MineSight Planning Suite, MSSO determines the most productive cut mining sequence to achieve the highest project profitability. This versatile scheduling tool satisfies a variety of project quality, quantity, market, and geotechical constraints, as well as destination capacities, equipment resources, and economic parameters. Advanced integer programming engines are used to solve blending and scheduling problems.

Version 9.6 now fully supports stratigraphic models, also known as Gridded Seam Models (GSM). GSMs are most commonly used for flat-lying deposits and metal vein deposits. Mining geometries (polygones or solids) can be imported into MSSO either from MineSight 3D viewer or from an existing MineSight Planner project. Through integration with MineSight Reserve, reserves associated with the geometries along with a list of mining seams available in the GSM are used for proper reserve allocation. Version 9.6 introduces cashflow constraints, allowing you to define cashflow limits. It also allows for customised benching with options for defining elevation range for polygonal geometries.

Other highlights include:

  • Advanced constraints relaxation.
  • Fixed cost by phase and destination.
  • Ability to export cut geometry to MineSight 3D (MS3D) objects and MS3D End-of-Period tool.
  • Speed improvements for reserves calculation.

“These latest improvements build on MSSO’s reputation for empowering mine engineers to generate the most operational mining schedules,” said MSSO Product Manager, Samira Kalantari. “Recent enhancements for stratiform models make MSSO a formidable mine planning and scheduling product for all different types of mines and deposits.”

Version 9.6 of MineSight Schedule Optimizer builds on the product’s reputation for allowing mine engineers to generate the most operational mining schedules.

Edited from press release by Harleigh Hobbs

An administrative law judge has upheld Oregon’s decision to reject permits for a coal export terminal at the Columbia River’s Port of Morrow, ruling the decision constitutional despite arguments to the contrary from the states of Wyoming and Montana.

According to Judge Alison Greene Webster, the Oregon Department of State Lands (DSL) did not overstep its authority when it blocked the proposed terminal development because of potential impacts on tribal fishing grounds.

The proposed terminal forms part of a chain that would see Powder River Basin coal mined in Wyoming and Montana exported to Asian markets.

The two coal-producing states had asked the judge to rule that the DSL decision violated the US Constitution’s Commerce Clause, which prohibits states from interfering or burdening interstate trade – an argument that was rejected by the judge.

The ruling does not, however, end the case. In November, an appeal will be heard related to the impact the proposed terminal would have on state water resources, including the key question over damage to tribal fishing grounds.

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BHP Billiton posted its biggest annual loss in the financial year to 30 June (FY2016) after a difficult year for the mining giant. The company reported a US$6.2 billion loss compared to a US$8.7 billion profit in FY2015. Earnings were 44% down at US$12.3 billion.

“The last 12 months have been challenging for both BHP Billiton and the resources industry,” said BHP Billiton CEO, Andrew Mackenzie, who also warned that commodity prices would remain “low and volatile” in the short to medium term.

The company’s flagship iron ore operations recorded the largest loss – US$2.2 billion. Coal and Petroleum and coal recorded much smaller losses of US$9 million and US$7 million, respectively, while the copper business recorded a profit of US$155 million.

The company was also hit by US$9.7 billion in impairment charges, including US$2.5 billion related to the Samarco dam failure in Brazil and US$7.2 billion on its onshore US oil and gas assets.

Despite this, BHP remains “confident in the long-term outlook for our commodities, particularly oil and copper.”

The loss was slightly better that analyst expectations, said David Cheetham, a Market Analyst at XTB.com, but still “represents an extremely poor financial performance for the first half of 2016.”

“The firm is currently in the process of streamlining their business operations in an attempt to mitigate some of the downside seen by the end of the boom in the commodity super cycle,” continued Cheetham adding that shareholder could take “some solace” in the company retaining its dividend payout of 14 pence per share.

“CEO Andrew Mackenzie cites further productivity gains to be realised in 2017, but it’s hard to be too positive on any company’s outlook when they’re posting record losses,” Cheetham concluded.

Among the productivity gains achieved by the company in FY2016 was a 15% fall in unit cash costs at its Queensland coal business, which helped the company achieve productivity gains of US$437 million. The company is expecting a further US$1.8 billion of productivity gains in FY2017.

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In April, Golden Ocean Ltd announced it was making changes to its corporate management team.

The company recently announced that it has appointed Thomas Semino as its new Chief Commercial Officer.

Semino is currently the Head of Dry Freight in Vitol S.A., and has previously been Managing Director of Ocean Freight in Bunge S.A., and also has background from Cargill S.A. and Coeclerici Spa.

He will be based in Singapore and will take on the position latest on 1 November 2016.

Birgitte Ringstad Vartdal, CEO of Golden Ocean Management AS, commented: “I am very pleased that Thomas Semino has accepted the newly established position as CCO. He has extensive experience from the dry bulk market and his background from trading organisations will be complimentary to our own team today. I look forward to work with Thomas and believe he will add a lot of value to Golden Ocean.”

Edited from press release by Harleigh Hobbs

In its August 15 Emissions Reduction and Capacity Replacement second amendment filing, NV Energy requested an earlier retirement date for the remaining 257 MW unit at the Reid Gardner Generating Station (a 557 megawatt coal fired plant), as well as approval from the Public Utilities Commission of Nevada approve a new 100 MW solar project in Boulder City, Nevada, the US.

The proposal asks to move the original 31 December 2017 retirement date to 28 February 2017.

NV Energy noted that the filing is its next step in the transformation of NV Energy’s fuel mix, moving to a cleaner and balanced generation portfolio.

This request aligns with the Nevada legislature’s 2013 directive in Senate Bill 123 for a structured and orderly retirement of coal-fired generation in southern Nevada and replacing that generation with renewable energy and natural gas-fired resources.

The company retired the first three generating units at Reid Gardner at the end of 2014 and is also exiting its participation in Arizona’s Navajo Generating Station by the end of 2019.

The new solar energy project is the result of a Request for Proposals that was issued earlier this year. With the oversight of an independent evaluator, NV Energy signed a 25 year power purchase agreement with Techren Solar LLC to build a 100 MW high-efficiency single-axis solar photovoltaic project in Eldorado Valley. The project is in the development phase and, subject to regulatory approval, is expected to be operational in the fourth quarter of 2018.

NV Energy’s Senior Vice President of Energy Supply Kevin Geraghty noted that the selection criteria for the new solar project was primarily based on the best value to NV Energy customers, but also factored in economic and job benefits to Nevada.

“At an average cost of energy for the life of the project at approximately four cents per kilowatt-hour, this is one of the lowest-cost solar projects in the nation. And, we are very pleased with the fact that Techren has already signed a work-site agreement with local unions 357 and 396 of the International Brotherhood of Electrical Workers,” Geraghty said.

NV Energy has requested that the Public Utilities Commission of Nevada make a decision on the filing by the end of 2016.

Edited from press release by Harleigh Hobbs

Foresight Energy LP, a Delaware limited partnership, has appointed Brian D. Sullivan as a new independent member of the Board of Directors of its general partner (board) and a member of the board’s audit committee.

Sullivan has extensive experience in the coal industry, most recently serving as a managing member of Energy Resource Services LLC, a consulting company that provides M&A and commercial advisory services to companies in the natural resources, energy and industrial sectors. Previously, he worked for Alpha Natural Resources Inc. as the Executive Vice President and Chief Commercial Officer.

“Brian brings many years of experience in the coal industry to our board. His prior experiences as an operator and consultant will serve the board well. I look forward to working with him as we continue our mission to operate the most efficient, reliable and safest coal mines in the country,” commented Chris Cline, Foresight’s founder and Chairman of the board.

Edited from press release by Harleigh Hobbs

Thornico has launched a new shipping firm, the dry bulk carrier Thorco Bulk onto the shipping market.

Thornico already owns the project oriented carrier Thorco Shipping and, with the opening of this second company, the company aims to strengthen its business and offering a wider range of services to meet the needs and demands of clients.

Thorco Bulk will be an asset-light operator, primarily within the handy/supra segment. The team behind Thorco Bulk consists of the three Managing Directors Marc Slinger, René Mikkelsen and Uffe Hansen. They all have years of experience within shipping.

“René, Marc and Uffe have a great track record, great know-how and expertise within the field and furthermore, an eye for sound business practice. We thus believe that the business model is sound and puts us in a great position to capitalise on any synergies,” Thornico owners, Thor and Christian Stadil, jointly said in a media statement.

Thorco Bulk will be operating as of Monday 1August 2016.

Thor Stadil said an expansion into the dry bulk segment, in the form of the new company Thorco Bulk, seems natural and complements the existing business.

“During the last years, the lines be¬tween the different shipping segments have been fading and especially bulk is a growing part of the business. We are very strong within project and as the segments overlap, it makes sense to expand the business to get closer to our clients and thus be able to serve them with a wider range of services,” he stated.

The two Thorco companies will be separate subsidiaries, each running their businesses independently within bulk and project. But as sister companies, they will run very closely.

According to CEO and Partner in Thorco, Thomas Mikkelsen, the synergies to be gained between the two are numerous. “The boundaries are inching closer together and more than ever, we find ourselves within each other’s segments. And we will, of course, collaborate closely, however, without our customers becoming confused about the fact that we are two separate companies,” he concluded.

Edited from press release by Harleigh Hobbs

Members of the US mining trade union, the United Mine Workers of America (UMWA), have approved a new labour agreement between the UMWA and the Bituminous Coal Operators Association (BCOA), which includes Murray Energy among its members.

“This is a good day for Murray American’s UMEA-represented employees,” said Robert Murray, GEO of Murray American and Chairman of the BCOA. “This agreement will go a long way towards ensuring that our current coal mines can keep operating and our employees working, even in the current depressed coal marketplace.”

The agreement covers workers at six Murray Energy mines in northern West Virginia and Ohio, as well as support facilities and idled operations. It was ratified by a majority of 60.3% of UMWA members.

“This was a tough vote for our members to take,” said UMWA International President Cecil Roberts. “The coal industry is in depression and more than 50 countries have filed for bankruptcy in the last few years. Thousands have been laid off. The pressures on those whoa re sill working are tremendous and growing.”

Roberts continued: “But despite all that, our members took a courageous stand by voting to try to keep their company operating while maintaining the best wages, benefits and working conditions in the American coal industry.”

The new five-year agreement maintains wages at current levels and includes a wage reopener after three years, said a UMWA press release. Health care benefits also remain intact, while Murray Energy agreed to remain a member of the UMWA 1974 Pension Plan.

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GE Power is to supply its advanced wastewater treatment equipment for the Jingneng Zhuozhou coal-fired power plant in Zhuozhou City, 60 km south of Beijing, in Hebei Province, China.

The company will provide its membrane and brine concentration technologies followed by crystallisation to produce pure NaCl salt (sodium chloride).

GE’s zero liquid discharge (ZLD) technology will treat fluegas desulfurisation (FGD) wastewater to meet Chinese emissions and discharge limitations for new thermal power plants and enable the reuse of 99% of the FGD blowdown wastewater at the plant. The power plant’s wastewater will be recycled and used as makeup water.

China is facing long-term water scarcity and environmental challenges. The government recently tightened emissions and discharge limitations, and all new thermal power plants are required to achieve ZLD of FGD wastewater as a condition of environmental impact assessment approvals.

By adopting this ZLD technology, Hebei Zhuozhou Jingyuan Thermal Power Plant Co. Ltd, a division of China’s state-owned Jingneng Group, will reach a new milestone in that pure salt is recycled in environmental protection for coal-fired power plants.

The project is part of a plan for Hebei Zhuozhou Jingyuan Thermal Power Plant Co. Ltd. to relocate high-pollution plants out of Beijing’s urban areas. The new Jingneng Zhuozhou power Plant will replace the existing Shijingshan power plant, which had already been decommissioned in March 2015. The new plant, which is expected to enter commercial operation in May 2017, will be a demonstration ZLD power plant for the country.

“We stand strong in our commitment to provide industrial users, including coal-fired power plants, with solutions for tough-to-treat wastewater. Our technology to treat flue gas desulfurisation wastewater will help meet new Chinese emissions and discharge regulations for thermal power plants,” said Kevin Cassidy, global leader, engineered systems – water and process technologies for GE Power.

The Cerrejón mine, operated by Carbones del Cerrejón Ltd, has selected EnviroSuite to help the mine reduce environmental impacts in nearby communities while also facilitating improved safety and production outcomes.

The mine is located in Colombia and is one of the world’s largest opencast coal producers. Cerrejón is owned in three equal parts by subsidiaries of BHP Billiton, Anglo American, and Glencore, and includes an integrated rail and port facility.

This is the first EnviroSuite sale in South America and demonstrates the application and relevance of EnviroSuite across borders, languages and differing regulatory regimes. Cerrejón is subject to regulatory and community pressures to control the impacts of dust emissions, as well as operational cost pressures imposed by world market conditions.

The contract worth over $400 000 includes an initial consulting component plus three years of EnviroSuite operation that will provide real-time air quality data and alerts, three day forecasts including site-specific risk identification, and automated daily reports.

Pacific Environment was successful in an invited tender process involving submitters from the US, Spain and Australia among which EnviroSuite was a unique offering to address the requirements. Pacific Environment was approached on the basis of its consulting record in mining dust issues and our EnviroSuite technology.

Managing Director Robin Ormerod commented: “Our first EnviroSuite sale in the Americas is a testament to the international relevance and competitiveness of our Australian developed technology. Due to the excellent work done by our consultants, tech unit and sales and marketing teams, along with EnviroSuite’s successful, existing applications, we can now clearly demonstrate that our world-leading technology offering is ready to move.”

Edited from press release by Harleigh Hobbs

Whitehaven Coal has increased its Maules Creek JORC opencast coal reserves significantly, following an infill drilling programme and revised mine plan. Coal reserves at the mine now stand at 510 million t – an increase of 129 million t or 34% on the previous statement.

Marketable reserves at Maules Creek increased by 111 million t to 460 million t. The additional reserves have the potential to add a number of years to mine life of the project, the company said.

The new mine plan at Maules Creek includes an extensive area in the north of the project area. The mine began railing coal in December 2014 and achieved production of 7.4 million t of saleable coal in the financial year to June (FY2016).

The increase in reserves at Maules Creek was slightly offset by a small reduction in coal reserves at Whitehaven’s Narrabri mine, a result of mining depletion and a change in the mine plan geometry and geological model. Small reductions in reserves at Tarrowonga, Rocglen and Werris Creek were also recorded, a result of mining depletion.

Whitehaven’s recoverable coal reserves increased by 94 million t to 982 million t, of which 334 million t are proved and 649 are probable. Marketable reserves increased by 82 million to 883 million t, while the company’s total coal resources now stand at 4.037 billion t.

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Wollongong Coal has awarded a coal haulage contract to Aurizon Operations Ltd to haul 800 000 tpy of ROM coal from Wongawilli coal mine to Port Kembla Coal Terminal.

This will secure coal haulage services from the coal mine to port from August 2016 to August 2018.

Wollongong Coal CEO, Milind Oza, indicated that the company was please to contract Aurizon for the haulage. “It is another mile stone achieved following engagement of Delta SBD (ASX Code: DBS) to mine and operate Wongawilli [coal mine] for an initial period of two year to extract around 1.45 million t of ROM coal.”

Aurizon EVP Commercial & Strategy Mauro Neves said: “Aurizon is delighted to start operations for Wollongong Coal in the Southern Coalfields and to extend our footprint for coal haulage in NSW beyond the Hunter Valley and the Gunnedah Basin.”

“We’ve worked closely with Wollongong Coal to provide a flexible and innovative service offering, and in leveraging our capability as Australia’s largest coal haulage provider,” he concluded.

Edited from press release by Harleigh Hobbs

Atrum Coal has entered into an option agreement with Atlantic Carbon Group (ACG) for the supply of up to 100 000 t of anthracite from ACG for sales to potential Atrum customers in Europe, Asia and South America in 2016.

The profits generated from this will be split between Atrum and ACG on a 50/50 basis.

The profits are determined after each of Atrum and ACG recover all of their respective costs on production and transportation of the clean anthracite.

The agreement enables Atrum to start selling into export markets that are significantly undersupplied, before the development of its Groundhog North mining complex in British Columbia, Canada.

Subject to certain requirements, ACG will (on Atrum’s request) make available up to 100 000 t of anthracite in aggregate at its Pennsylvania site for Atrum to collect and arrange transport for its customers.

Bob Bell, Executive Chairman of Atrum, said: “ This is another significant step in our development as a company. Having to sell into undersupplied markets will assist us to secure our position in the anthracite supply market whilst we develop Groundhog North and potentially expand our supply from Pennsylvania.”

Edited from press release by Harleigh Hobbs

Indonesian coal company Geo Energy has returned to profitability in 2Q16 on the back of a 191% increase in revenue on the same period in 2015. Cash profit on coal sales increased to US$4.5 per tonne with coal sales standing at 0.85 million t.

Net profit for the quarter stood at US$2.6 million compared to a net loss of 5.9 million t in 2Q15. Revenue for the quarter was US$21.4 million, compared to US$7.4 million the year before.

That took the company to a small profit of US$50 000 for the first six months of the year compared to a loss of US$9.6 million in 1H15. Revenue for the fist half of the year stood at US$33.3 million – a 231% increase on the year before.

“Our group is pleased to turn around our financial performance and register a net profit […] after two years of consecutive losses,” said Geo Energy CEO, Tung Kom Hon.

The company is also positive for the remainder of the year, targeting coal production of 0.6 million tpm to the year-end and then 10 million tpy in 2017.

The company’s production outlook has been boosted by the acquisition of PT Tanah Bumbu Resources (TBR) in July and the signing of a long-term coal supply contract with Engelhart Commodities Trading Partners (ECTP) of Singapore.

The supply contract with ECTP included an advance payment of US$20 million to develop the SDJ mine and will see Geo Energy supply 42 million t of coal through to 2022. Meanwhile, the acquisition of TBR brought with it an additional 44.4 million t of coal reserves located next to the SDJ operations.

“This proposed acquisition contains many significant synergistic advantages and would not only replenish our coal reserves but also potentially double our revenue,” said Tung Kom Hon “We are now in the process of discussing on a life-of-mine contract and prepayment on the TBR mine to off-take its coal and fund its development. The value of the TBR’s LOM contract is expected to be not less than the US$1.2 billion LOM contract signed on the SDJ.”

Geo Energy also noted promising signs of an uptick in prices for its 4200 GAR coal. The price index increased from US$26.60 per tonne in January to US$30.71 per tonne in early August. A continued increase in international coal prices would boost the company’s profit margins on coal sales further, the company said.

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Australian gas company Santos has announced a US$1.05 billion post-tax impairment charge (US$1.5 billion pre-tax) on the carrying value for its Gladstone LNG project on the back of lower gas prices, which have constrained capital expenditure at GLNG.

This has slowed ramp-up of GLNG equity gas. Meanwhile, the company has also been hit by an increase in third-party gas priced.

“The expected impairment charge of GLNG is clearly disappointing but it is a consequence of the challenging environment which we now face,” said Santos Chairman Peter Coates. “We have decided to adjust our long-term operating assumptions for GLNG to reflect the reality of the current oil price environment.“

Despite this, the company “firmly believes in the strong long-term growth of LNG consumption and demand globally,” Coates continued. “GLNG will continue to be an important part of our LNG portfolio and a key supplier of LNF to the Asian market.”

GLNG produces LNG from coalbed methane (CBM: called coal seam gas in Australia) sourced from Queensland’s coalfields. Santos has led development of the project in partnership with Malaysia’s PETRONAS, Total from France and KOGAS from South Korea.

In May, the company said it had begun production of LNG from GLNG Train 2 after first production of LNG from Train 1 in September last year. GLNG exported its first LNG export cargo in October 2015.

The impairment charge will be non-cash and not impact the company’s debt facilities, the company added.

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Berlin-based coal trading company HMS Bergbau has locked in a three-year sales agreement with an international off-taker, the company said in a statement.

The agreement will see HMS Bergbau’s subsidiary, HMS Bergbau Africa, source coal for export from IchorCoal’s Usutu and Penumbra mines in Mpumalanga Province, South Africa. The sale was concluded on the back of an existing exclusive marketing agreement with IchorCoal.

“Through this high-volume contract in South Africa, HMS Bergbau is not only expanding its existing partnership with IchorCoal, but is also underscoring its export and marketing strength on the international coal market,” said Heinz Schernikau, CEO of HMS Bergbau.

“At this time, this agreement is a clear sign that coal markets are recovering. Accordingly, we expect further coal marketing agreements, not only in South Africa.”

HMS Bergbau is an independent marketing and trading company specialising in the purchase and sale of coal and raw materials, including ore, metals and cement products.

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Thiess has been given a four year contract extension by Energy Resources LLC at Ukhaa Khudag (UHG) coal mine.

Located in southern Mongolia, the contract extension follows the current eight year agreement signed in 2008 and results in Thiess continuing mine operations and maintenance delivery until 2022. It is expected to deliver up to US$1 billion of revenue during the next seven years.

CIMIC Executive Chairman and Chief Executive Officer Marcelino Fernández Verdes said the contract reinforces the positive working relationship between CIMIC’s global mining contractor Thiess and Energy Resources over many years.

“It demonstrates Thiess’ ability to deliver world class mining solutions to our clients across our global platform, irrespective of location,” Verdes said.

Thiess Managing Director Michael Wright said the extension at the UHG coal mine is a testament to Thiess’ strong performance at the mine since it started in 2008.

“We are delighted to extend our partnership with Energy Resources LLC and to continue our focus on delivering cost efficiencies and innovation at the UHG mine. It is the quality of our people, and their commitment to safety and operational efficiencies that drive value for our client Energy Resources,” Wright said.

Thiess is responsible for mining services at the UHG coal mine, including fleet operation and maintenance for overburden stripping, coal mining and blast drilling under an alliance structure, with involvement also in mine planning and health, safety and environmental management.

Edited from press release by Harleigh Hobbs