Coal of Africa is continuing to evaluate opportunities to acquire a cash-generating concern after its takeover of Universal Coal lapsed in July after certain conditions remained unfulfilled at the closure date.
“The lapse of the Universal offer is disappointing to both parties involved,” said CoAL’s CEO David Brown. “But it’s crucial for any acquisition made by the company to be sustainable and accretive.”
Brown said the company continued to look at takeover prospects to provide cash flow during the construction period of the Makhado metallurgical coal project in South Africa’s Soutpansberg Coalfield.
The start for construction work has now been pushed back into 2017, the company said in its activities report. When fully online, the Makhado mine is targeting production of 5.5 million tpy.
The company did not rule out taking another shot at Universal: “The company is currently evaluating various opportunities to acquire a cash generating concern, including the possibility of a revised offer for Universal Coal,” CoAL said.
Edited by Jonathan Rowland.
Mississippi Power’s Kemper County energy facility has successfully converted local lignite into syngas, its “most significant milestone to date”, according to the company.
The production of syngas via the transport integrated gasification technology (TRIG) involved operated the front end of the plant and validating the TRIG technology works at commercial scale.
The back end of the project – which includes the power plant – is already in services and has been generating electricity since August 2014.
Despite the milestone, Mississippi Power announced another delay to the scheduled date for the plant to enter service to 31 October.
“The one month extension is needed to make mechanical equipment modifications to the gasifiers’ supporting systems, complete the remaining commissioning activities on the syngas clean-up systems and integrate all systems necessary to generate electricity,” the company said.
The extension is expected to cost the company an additional US$43 million.
When complete, the 582 MW plant will consume about 4.7 million tpy of lignite, capturing at least 65% of CO2 produced. The plant has been best by delays and cost overruns, however, with its current project cost of US$6.6 billion over three times its original estimate.
Edited by Jonathan Rowland.
The government of India has set a target of 724.71 t in the current financial year (FY2017), according the Minister for Power, Coal, New & Renewable Energy and Mines Piyush Goyal. This compares to a target of 700 million t for FY2016.
Indian demand for coal has risen from 769.69 million t in FY2014 to 822.36 million t in FY2016, according the Ministry of Coal.
The Indian government has been focused on growing domestic production of coal to meet the growing demand, including efforts to expedite environmental and forest clearances, improving the country’s rail network and working with state governments on land acquisition.
Last month, Goyal said the Coal India (CIL), the state-owned company with a monopoly on commercial coal mining in India, has been set an FY2017 production target of 598.61 million t – an 11.11% increase on FY2016 production of 538.75 million t.
Recent production figures from CIL, however, show year-to-date production 6% below the target – although showing growth of 4% on the previous year.
Edited by Jonathan Rowland.
White Energy has made “significant progress” on an agreement that would see the construction of a binderless coal briquetting (BCB) plant at one of the major coal producers in the South African coal market.
According to its 2Q16 activities report, the major commercial terms have largely been agreed with the coal producer but negotiation of the final binding transaction documentation has taken longer than anticipated.
The company expects the process to be concluded “in the near future”, however. This transaction remains the company’s focus, following the removal of its coal beneficiation plant from the Woestalleen Hub site as part of the business rescue plan.
Outside of South Africa, the company’s management is continuing discussions with coal miners in Australia with a view to briquetting discarded coal fines.
These fines currently represent an environmental liability to the mines but “application of the BCB technology could provide an opportunity for miners to convert waste coal fines into a saleable product,” the company said.
Edited by Jonathan Rowland.
The CSL Group (CSL), a global leader in marine dry bulk cargo shipping and handling, has released its third annual Corporate Sustainability Report, featuring highlights of the company’s 2015 sustainability performance.
Despite a global economic downturn majorly impacting the shipping sector, CSL maintains a steady focus on advancing a performance-based sustainability culture and going beyond regulation to operate according to the highest standards of corporate social responsibility.
“CSL has the capacity to integrate and continuously improve sustainability in all aspects of the business, no matter the length and depth of the market crisis,” said Rod Jones, President and CEO of CSL Group. “In fact, we believe that our unwavering commitment to safety, to reducing our environmental footprint, to investing in the development of our employees and to contributing to our communities in a meaningful way is not only right thing to do, it’s good for business.”
The 2015 report features CSL’s progress in achieving its short- and long-term sustainability goals and commitments. Notable accomplishments by the company include:
The 2015 report was prepared using the Global Reporting Initiative’s (GRI) G4 Sustainability Guidelines as a reference, and provides information on CSL’s performance in the areas of governance, safety, environmental responsibility, ethics, the workplace, employee and community engagement, and value for customers.
Edited from press release by Harleigh Hobbs
Construction at Coal of Africa’s (CoAL) Makhado metallurgical coal production in South Africa’s Soutpansberg Coalfield is to be delayed until 2017, the company said in its 2Q16 activities report, and will begin as soon as all regulatory approvals are in place. Construction had been expected to being in 2H16.
The delayed start up “reflects the complex environment in which mining operates,’ CoAL said. “But as a company we commit to ensuring that the requisite processes are completed as efficiently and as quickly as possible.”
The Makhado project has been hit by a number of regulatory and legal issues, including the suspension of its Integrated Water Use Licence (IWUL) after an appeal to the Department of Water and Sanitation by the Vhembe Mineral Resources Forum.
Despite submitting urgent representation to the Minister of Water and Sanitation requesting that the IWUL remain in full force pending the final conclusion of the appeal by the Water Tribunal, discussions remain ongoing, the company said.
An interim interdict against the project’s environmental authorisation (EA) also remains in place, pending a court-ordered review of the authorisation.
“CoAL remains committed to the sustainable development of the Makhado project,” the company said. It “continues to engage with all stakeholders to ensure the ongoing implementation of a co-existent model, seeking co-operating between mining, agriculture and heritage land uses.”
Edited by Jonathan Rowland.
MAN Diesel & Turbo has shipped the largest turbomachinery unit to Sasol’s Secunda coal-to-liquids site in South Africa. The turbomachinery unit will form part of a new air separation plant supplied by Air Liquide and described as the “most efficient” in the world.
Following acceptance texting, the AR-MAX1 unit was shipped from the MAN works in Oberhausen, Germany. Despite being released only recently, the AIRMAX concept has already racked up orders for 19 trains, including the first machine to enter operations in Yulin, China.
It has also bee ordered for what will be the largest air separation plant in the world, currently being erected and commissioning in Yichuan, China. The AIRMAX concept allows volume flows for up to 1.5 million m3/hr, enabling production of up to 8000 tpd of oxygen.
Sasol’s Secunda syfuels operations receives coal from mine in Mpumalanga Province. The coal is crushed and blended to obtain an even quality distribution. The coal is then gasified to produce a syngas, which is used to produce components for making synthetic fuels, as well as a number of downstream chemicals.
Edited by Jonathan Rowland.
For more than two decades, McLanahan Corp. manufactured a successful line of vibrating screens and built a reputation as a trusted screen provider in many different industries.
McLanahan is now introducing its own line called the McLanahan MD Vibratory Screen.
The McLanahan MD Vibratory Screen is a compact, high-capacity dry screening unit used in a variety of industries. Dried sand, fertilizer, iron ore, wood pellets, quick and burnt lime, limestone, grain, gypsum, salt, sugar and animal feed (pellets and crumbles) are just a few of the materials and applications in which the MD Vibratory Screen is capable of screening efficiently and effectively.
The MD Vibratory Screen provides producers more tonnes per hour per square feet of screen surface area and handles much larger capacities than conventional screens while occupying the same – or less – floor space. Additionally, it is capable of making multiple product sizes simultaneously as progressively smaller material sizes are separated from deck to deck.
McLanahan MD Vibratory Screens are available in widths ranging from 19 in. (0.05 m) to 78 in (2 m) with 1 to 5 screen decks depending upon the application. It is capable of handling feed sizes as large as approximately 3 in. and can make size separations down to approximately 60 mesh.
McLanahan’s design concept for this screen reduces the risk of pegging and blinding, while achieving high capacities due to its ability to make a separation at a given size using a mesh aperture of greater size.
To provide an even longer screen life larger particles are removed by heavier, larger screens, while finer screens see only smaller particles and only a portion of the incoming feed.
With a compact design, minimal maintenance, low power requirements and a product that is totally dust enclosed, this line of screens provide an efficient and cost effective setting for any operator.
McLanahan maintains in-house equipment to conduct laboratory screening tests on materials to help ensure that you have the correctly sized MD Vibratory Screen for applications.
Edited from press release by Harleigh Hobbs
It takes only a drop of 4° in core body temperature for hypothermia to set in, therefore the body wastes no time in activating its defence against cold weather. Goosebumps, shivers, teeth chatter and raised hair are all symptoms triggered by the hypothalamus – the brain’s temperature centre – to produce heat.
And it’s not just humans who feel the effects of sub-zero climates, which can be experienced in countries, such as Canada or Russia – where temperatures regularly plummet to -35°C. Machines also feel the cold too – and can suffer serious damage if not properly protected against the chill.
To meet the needs of trucks working in adversely low temperatures, Terex Trucks has released two extreme cold weather protection kits for their rigid hauler products. With the help of Webasto, the first of the two kits, labelled the Winter Kit, defends trucks working for prolonged periods where temperatures fall to -25°C while the second, the Arctic Kit, enables safe operating up to a deep freezing -40°C.
General practice in colder countries sees engines constantly running even during shift changes to keep fluids warm, prevent fatigue failures in the drivetrain and seal leaks. Recognised as inefficient, the method of idling is one that is not only environmentally sub optional but also costly to the end user due to the needless fuel consumption.
Thanks to the Webasto-supplied truck-mounted thermo-heater, non-productive fuel consumption, engine wear-and-tear and prolonged downtime are significantly reduced. The new technology makes use of an environmentally-friendly start-stop system, with just a very small trickle of diesel. The thermo-heater is powered once the engine is shut down, it then draws the coolant from the engine and circulates around critical components. The engine-independent heater has the ability to keep the machine at a pre-determined warmer temperature for hours after the motor is switched off, and restart without a hitch.
The new system not only protects the truck but it also helps make the operator’s life easier. The engine-off solution makes for a pleasant work climate as it supports the standard cab heater, making for a much warmer environment, and there’s the added heater operator seat, which also aids productivity.Speaking about the winter kits, Scott Pollock, Product Manager at Terex Trucks, explained: “It’s all part of listening to the voice of the customer – our aim is to provide solutions tailored to the countries the trucks are operating in – in this case, territories, such as Russia, Northern Canada and even Europe where temperatures can plummet to arctic levels.”
In its standard deliverable configuration, a Terex Trucks’ rigid hauler is designed to safely operate in conditions down to -18°C but with the added help from the state-of-the-art heating systems, the trucks will be able to work safely down to an almost unimaginable -40°C.
Fitted at the Motherwell factory in Scotland, the protection kits will be available on the TR45, TR60, TR70 and the 91 t capacity TR100. The solutions can also be retrofitted on older machines and are covered on the Terex Trucks protection warranty.
Pollock added: “The newly designed kits will be offered globally for customers who are required to operate trucks in cold climates, as it protects the machine and the operator thereby maximising uptime. Additionally, due to the reduction of engine idling there is a potential fuel saving of up to 90% during these non-productive periods, and with that comes less engine wear-and-tear, less maintenance and a potential effect on machine residual values.”
“We’ve also got to recognise it’s not all about the truck working,” concluded Pollock. “It’s also about the truck maintenance time, the overhaul time and minimising the start-up time as well.”
Edited from press release by Harleigh Hobbs
Resource Generation (Resgen) subsidiary, Ledjadja Coal, has agreed the commercial terms with a syndicate of lenders to secure funding for the construction of the Boikarabelo coal mine. Members of the financing syndicate will now seek their requisite approvals to release the funds worth AUS$515 million.
“This is an extremely important milestone towards the construction and commissioning of the mine,” said Resgen and Ledjadja CEO, Rob Lowe. This mine will be second largest in the Waterberg region of South Africa, and “will have a marked impact on the opening up of the Waterberg Coalfield,” Lowe continued.
The financing syndicate includes Rand Merchant Bank, a division of FirstRand Bank, one of the largest financial services companies in South Africa, and global commodities trading house, Noble Group, through its subsidiary, Noble Resources International, as well as two large development funding institutions, Public Investment Corp. SOC Ltd and Industrial Development Corp. of South Africa Ltd.
“Transnet Freight Rail has also worked supportively with us in order to develop a viable logistics solution for the transportation of our domestic and export coal production,” said Lowe.
Credit approval and financial close of the funding arrangement is targeted by the end of October. Construction at the mine is expected to be completed by September 2018 with production of the first saleable coal in 4Q16.
Unlocking the northern mineral belt of South Africa – which includes the Waterberg Coalfield – forms a part of the National Development Plan. The Waterberg region accounts for around 40% of South Africa’s known coal resources with Ledjadja Coal reporting probable reserves of 744.8 million t.
Edited by Jonathan Rowland.
According to the Queensland Resources Council’s quarterly State of the Sector survey, the legislation coming out of the Queensland Parliament is more of a concern to resource company CEOs than global macroeconomic conditions.
The survey has revealed that, for the second quarter in a row, concerns about poor and uncertain regulation are again outweighing concerns about the state of the market for resource commodities.
“The constant changes to industry regulation seems to be really starting to bite into industry confidence,” Queensland Resources Council Chief Executive Michael Roche said.
Certain comments from the CEOs include:
Roche said that CEOs also nominated the areas in which they want to see urgent reform.
Environmental regulation, such as fixing the uncertainty over the government’s Chain of Responsibility legislation, is top of CEO concerns, but also prominent are reform of the land court and local government rate setting.
“The message from the sector is that genuine consultation must take place with stakeholders affected by changes to legislation, as opposed to the new laws being rammed through,’” Roche said. “The mere two weeks allocated for consultation on the government’s legislation arising from the FIFO parliamentary inquiry is another example of inadequate consultation.”
“However the latest State of the Sector report has some positive news. Coal exports are at record highs, with 222 million t shipped offshore over the past financial year,” he added. “Productivity in Queensland resources is also high with the coal industry producing around 2800 t per employee, up by 170% in the past four years.”
“If there is community complacency about the importance of our sector, we are determined to address that by continuing to remind people that our sector provides one in every five dollars of the Queensland economy and one in six every jobs,” concluded Roche. “The recent federal election results shows that those politicians who do support our sector and the jobs of those people in their electorates are in turn supported by the voters.”
The United Mineworkers of America (UMWA) has reached a new tentative agreement with the Bituminous Coal Operators Association (BCOA), a group of coal companies that includes Murray Energy. An original agreement was rejected by UMWA members in June.
The new agreement will now be presented to union members at a series of “contract explanation meetings” to be led by UMWA President Cecil E. Roberts, before a ratification vote on 12 August. The meetings will take place in Wheeling and Morgantown, West Virginia, and Centerville, Ohio.
Following the rejection of the original agreement, Murray Energy issues warning notices to over 80% of its workforce, informing of potential job losses due to weak coal markets. UMWA represents about 1500 Murray Energy workers.
The meetings will the open to active and retired members of the UMWA and their spouses. Details of the proposed agreement will be release following the ratification vote.
Edited by Jonathan Rowland.
Coal plays a “pivotal role” in a number of battleground states in the upcoming US Presidential Election, according to a new research paper from the American Coalition for Clean Coal Electricity (ACCCE).
According to the ACCCE, as of mid-July, there were 17 states that were considered close contests between the two candidates – Democrat Hilary Clinton and Republican Donald Trump. Of these, coal-fired power plays an important role in at least 13, including Pennsylvania, Michigan and North Carolina.
Collectively, these 13 states represent 149 electoral college votes – more than half of the 270 votes necessary to win the election.
“We want both candidate to understand the political importance of coal in this election,” said ACCCE President and CEO, Mike Duncan. “Each candidate needs to explain how they will ensure an affordable and reliable supply of electricity that is essential to creating jobs and sustaining our manufacturing base in the US.
According to the ACCCE, 200 coal-fired generating units have already closed “because of current EPA policies”, with another 46 expected to close in the new future. “If the next president adopts the wrong policies, the 370 000 jobs and US$90 billion in economic activity coal-fired electricity in these states will be threatened,” said Duncan.
“Coal-fired power plants not only provide the dependable and reliable electricity our nation needs, but they support hundreds of thousands of families and their communities,” concluded Duncan.
“It is imperative that Mr. Trump and Sec. Clinton work to protect these people and ensure we all have the affordable power needed to keep food on the table and the lights on.”
Edited by Jonathan Rowland.
US weekly coal production hit a peak of 16.1 million short t during the week ending 31 July, according to the US Energy Information Administration (EIA), its highest level this year.
The total is 7.7% higher that the previous week and just 11% lower than the same week in 2015 compared to a year-to-date decline of 25.8%.
Of the major coal-producing states, Texas recorded the biggest rise, up almost 11% on the previous week to 0.76 million short t. Texas is also the only state to record a year-to-date increase in production. The Lone Star state has production 18.65 million short t so far this year, 3.2% up on the same period in 2015.
West Virginian production was also up over 10% on the week before at 1.64 million short t. Production in the north of the state was up 12.6% at 0.92 million short t, while production in southern West Virginia was up 7.4%.
The largest coal-production state in the US, Wyoming, saw its production jump 8.1% week-on-week to 6.87 million short t – it’s highest weekly total this year. Elsewhere, Illinois production was up 7.7%, Montana was up 7.1%, Kentucky was up 5.5% and Pennsylvania was up 5.2%.
Total US production year-to-date stood at 389.9 million short t compared to 525.2 million short t over the same period in 2015.
Edited by Jonathan Rowland.
The US Department of Labor’s Mine Safety and Health Administration (MSHA) has begun implementing provisions of the third – and final – phase of the landmark rule.
This comes exactly two years after the rule aimed at preventing black lung disease took effect.
The overall respirable dust standard in coal mines is now reduced from 2.0 to 1.5 milligrams/m3 of air. The rule also reduces the standard for miners diagnosed with black lung, and for air used to ventilate areas where miners work, from 1.0 to 0.5 milligrams/m3 of air.
In July 2016, MSHA announced approximately 99% of the respirable coal mine dust samples collected from 1 April 2016 through 30 June 2016 complied with coal mine dust standards. Using the new, cutting-edge continuous personal dust monitor that provides miners with dust results in real time during the working shift, agency personnel have analysed more than 20 000 underground coal mine operator samples.
“Black lung has claimed tens of thousands of lives,” said Joseph A. Main, Assistant Secretary of MSHA. “The positive sampling results are due to the extraordinary efforts of MSHA and industry working to clean up the air that miners breathe and successfully implement the respirable dust rule.”
“The nation’s coal miners are better protected from debilitating and deadly disease than ever before, but we still have much more work to do to prevent black lung. Miners deserve to work their shift each day and return home healthy and safe,” he added.
Since the final rule went into effect on 1 August 2014, MSHA and mine operators have collected more than 122 000 respirable dust samples and more than 99% of those samples met compliance levels.
On 25 January 2016, the US Court of Appeals for the 11th Circuit denied a challenge to the dust rule brought by two separate groups representing the coal industry. The court found that MSHA acted within its statutory authority in promulgating the dust rule, and that MSHA’s dust rule reflected reasonable agency decision making based on an expansive rulemaking record.
Edited from press release by Harleigh Hobbs
Nigerian cement company, Dangote Cement, plans to start mining coal in Nigeria’s Kogi State by 4Q16 on the back of gas shortages in the country.
According to local media reports, Dangote Cement CEO, Onne van der Weijde, told investors at a company presentation day that the company had already shifted its cement plants to coal, using a blend of local and imported coal until the company’s mine began production.
Two coal mills came online at its Obajana Cement factory in July, with other coal mills resuming operation by the end of September.
The company’s coal mine at Ankpa would provide coal of sufficient quality to be used without blending and provide a significant cost advantage against natural gas. It also insulates the company against foreign exchange changes, as local coal would be priced in Nigerian naira, while natural gas is priced in US dollars.
Dangote Cement is part of Nigerian multinational, Dangote Group and is the largest cement producer in Africa. The company is controlled by Africa’s wealthiest man, Aliko Dangote, who founded the company in 1981.
Edited by Jonathan Rowland.
New research released by HWL Ebsworth has found that effective regulatory enforcement is critical to building public and investor confidence in carbon capture and storage (CCS) technology.
Looking at research conducted over the first half of 2016, Effective enforcement of underground storage of carbon dioxide compares existing legislation for current geological storage activities, and identifies additional legislative measures required to support permanent geological storage of carbon dioxide (CO2).
Commissioned by the Global CCS Institute, the study was undertaken by prominent Australian environmental lawyer, Dr Meredith Gibbs, as part of her Asia Pacific Fellowship with the Institute.
Dr Gibbs’ research assessed five legal jurisdictions including the Commonwealth of Australia, the State of Victoria, Japan, Malaysia and China.
Within Asia Pacific, Australian and Japanese legislators have covered the most ground on developing effective enforcement regimes within their CCS-specific regulatory frameworks, under which projects may be progressed.
China and Malaysia, while currently possessing a strong foundation of relevant environmental and energy legislation, have further opportunity to develop their CCS-specific legislation to help accelerate the deployment of domestic CCS projects.
The Institute’s Acting Global Lead – Policy, Legal & Regulation, Ian Havercroft, said the findings were particularly relevant for informing development of legislation in those countries where CCS is identified as a vital part of the low-carbon technology mix.
“Communities around the world want assurances from governments that CCS is safe and reliable,” said Havercroft. “At the same time, project stakeholders need certainty about their obligations and the regulatory environment in which a project will be undertaken and operated.”
“Likewise, regulators are looking for clear delineation of their responsibilities as they relate to CCS projects, and the powers available to them to ensure compliance by project operators,” he continued. “Effective enforcement regimes require a strong legislative framework that addresses the critical needs of these three different types of stakeholders. In this context, effective enforcement is critical to CCS progress the world over.”
“Dr Gibbs’ research is therefore a valuable contribution to the growing body of legal knowledge that supports governments in developing pro-CCS policies, as part of an overall commitment to tackling climate change,” concluded Havercroft.
India’s state-owned coal company, Coal India Ltd (CIL) fell 9% short of its target production in July, according to an announcement to the Bombay Stock Exchange. The company produced 36.74 million t in July, compared to a target of 40.29 million t. Offtake was 11% down on the target at 41.47 million t.
Over the financial year-to-date, production in 6% down on the target at 162.38 million t – but 4% up on the previous year.
On CIL’s subsidiaries, only Eastern Coalfields (ECL) and Central Coalfields (CCL) hit their production targets in July. Western Coalfields (WCL) was down 51% on target, at just 1.42 million t and remains 22% down on its year-to-date target.
South Eastern Coalfields (SECL) and Mahanadi Coalfields (MCL) – CIL’s highest producing subsidiaries were 4% and 21% down on their July targets, respectively, at 9.65 million t and 10.36 million t.
This year, SECL has produced 41.74 million t – a 3.7%r is on the same period in 2015 but 6% off its targeted production of 44.23 million t. MCL has mined 44.45 million t since April – an impressive 10.8% increase on last year but still 5% down off its target.
Edited by Jonathan Rowland.
The New South Wales Department of Planning & Environment issued an official caution to the Maules Creek coal mine in June for failing to ensure that fixed plant at the mine delivered sound power levels within the limits identified in the mine’s environmental assessment.
The official caution was issues as part of the department’s monthly compliance inspections. Maules Creek is now implementing a series of noise mitigation works in relation to its fixed plant equipment.
According to its Compliance Report for June – the latest report available – the department undertook 87 inspections in June.
In additional to Maules Creek, inspections also took place at coal mines including South32’s Dendrobium mine, Yancoal’s Moorlarben mine, Wollongong Coal’s Russel Vale and Wongawilli mine, Centennial Coal’s Springvale Mine, Rio Tinto’s Mt Thorley-Warkworth mine, Glencore’s Ulan mine and Peabody Energy’s Wilpinjong mine.
Edited by Jonathan Rowland.
Glencore is to close its Tahmoor coal mine in New South Wales a year earlier than expected, according to local media reports. In June, the company said the mine would close by 2019 due to the continued low prices in global coal markets.
However, according to a company spokesperson, mining activity would now end at the mine in 2018 after the company decided not to develop the mine’s Longwall 32 panel.
“The decision on Longwall 32 has been under review since the mine closure announcement was made,” the spokesperson said. “It is now apparent, based on current economic conditions, that returns from Longwall 32 will not justify the additional investment required.”
As a result, some development work at the mine will stop immediately with all development work ending by early 2017. The company said it would offer voluntary redundancies to 30 employees with further staff reductions taking place as activity at the mine winds down.
Tahmoor has been operating since 1979. Glencore acquired the mine as part of its purchase of Xstrata in 2013 and last year is produced 2.1 million t of metallurgical coal.
Edited by Jonathan Rowland.
The Queensland Resource Council CEO, Michael Roche, has released data showing more than 24 000 local businesses throughout Queensland were benefitting from resource company purchases.
Regional and rural Queensland businesses are receiving a significant financial boost from resource companies buying local.
“Mining and gas operations are long-term projects and they provide present and future economic benefits across Queensland,” Roche said. “Buying local provides a win-win for resource companies and local communities … That means jobs now and on-going jobs, as well as economic sustainability for regional and rural Queensland.”
Roche indicated that the latest data identifies that over 24 000 local businesses supplied the resources sector in Queensland, from well-established supply hubs in Brisbane, Mackay, Rockhampton and Toowoomba.
On Thursday, the QRC is hosting a forum of 50 resource sector stakeholders to further enhance the benefits of ‘buying local’ for resource companies and local businesses.
“The objective of the forum is to discuss areas where local industry engagement is working well, and not so well,” Roche continued. “Importantly, we are looking for ways to improve the implementation, effectiveness and adoption of the Code.”
Roche said the Code was unique to Queensland and was leading practice self-regulation.
“This approach delivers much more direct positive benefit to local businesses than a tick-a-box regulated scheme,” Roche concluded. “An added and important benefit is that the Code applies to all projects – that is existing projects, not just those seeking project approval.”
Edited from press release by Harleigh Hobbs
The Office of Surface Mining Reclamation and Enforcement (OSMRE) is to fund an independent examination of existing research regarding the potential health risks related to opencast coal mining in Central Appalachia. The US$1 million study is to be undertaken at the request of the state of West Virginia and conducted by the National Academy of Sciences (NAS).
“This kind of project represents the best of the Surface Mining Control and Reclamation Act,” said ASMRE Director Joe Pizarchik. “West Virginia asked us in the federal government for help. We wanted to do the best we could for the people, so we brought the NAS on board because they are one the world’s most reputable scientific organisations.”
Under the agreement between the OSMRE and the NAS, the academy will independently choose a committee of twelve subject matter exports to example a growing amount of research that relates to possible correlations between increased health risks and living near opencast mine operations.
There were also calls from some to halt permitting for opencast mining in Central Appalachia until the review was complete: “If we value the lives of Central Appalachian citizens over coal profits, mine permitting would be halted until it could be proven safe for nearby residents,” said Erin Savage, Central Appalachian Campaign Coordinator for Appalachian Voices.
Edited by Jonathan Rowland.
Rio Tinto has completed the sale of its Mount Pleasant coal assets to MACH Energy Australia for US$220.7 million. Located in the Hunter Valley region of New South Wales, Mount Pleasant has total marketable reserves 474 million t of thermal coal.
The sale agreement comprises one payment of US4195.7 million on completion, a conditional payment of US$25 million, and royalties, payable quarterly at 2% of gross FOB revenue for coal sold from existing reserve estimates at prices exceeding US$72.50 per tonne.
This closing sales agreement marks a US$3.3 million reduction in unconditional payments to that announced in January. As of 30 June, the Mount Pleasant asset had gross assets valued at US$137 million and year-to-date projects of US$0.24 million.
MACH Energy Australia was formed in September 2015. It is owned by Droxford International, a Singapore-based subsidiary of the Salim Group, Indonesia’s biggest conglomerate, headed by billionaire Anthoni Salim.
Mount Pleasant is approved to produce up to 10.5 million tpy of ROM thermal coal for export through Newcastle, according to the MACH Energy website. The company expects first production of coal in late 2017.
Edited by Jonathan Rowland.
The construction of new water treatment facilities at the Borodinsky opencast coal mine has been completed.
The commissioning of the facility allows to significantly reduce the adverse impact of mining wastewater on the environment by treating water drained from coal seams, which could otherwise seep into the Barga River, the Kan River and eventually reach the Yenisei River.
The water is now subject to a two-step treatment, including biological treatment, to the benefit of the environment.
Chief Technical Engineer of the Borodinsky opencast, Oleg Tcherskikh, commented: “Mine water and seepage collect in a storage pond, which is a sump in a mined-out area of the mine, before being pumped to the water treatment facilities.”
The sewage treatment facilities are comprised of a pond of approximately 20m3, 200 meters long with a depth of up to 4 meters. Once in the pond, the first step is water aeration. By increasing the oxygen saturation of the water, particles in the water will either rise to the surface or settle on the bottom. The pond also has a sludge treatment system for additional water purification and clarification. The water is then channelled to special gravel and clay bio filters and further oxygenated before being released to make its way towards the Barga River.
The surrounding area to the treatment plant was reconstructed as part of the investment project. The adjacent grounds and access roads to the bio-oxidation pond and filters were levelled and backfilled with gravel.
Compliance with all environmental standards and requirements is an integral part of operations at the Borodinsky opencast mine. Whether in-house or via third-party, the company regularly monitors environmental parameters, including effluent discharge and air quality.
Edited from press release by Harleigh Hobbs
The Indian government has allocated 30 coal mines to private-sector companies under the provisions of the Coal Mines (Special Provisions) Act 2015, which was passed after the Supreme Court nullified over 200 existing coal allocations.
The 30 coal mines were allocated via three tranches of auctions for use in specified end-user industries, including the power sector and the steel and cement industries, said Minister for Coal, Piyush Goyal, in a written reply to a question from the Lok Sabha, India’s upper house of parliament.
Mining operations have begun or mining opening permission granted at 11 of the coal mines with 8.5 million t of coal so far produced.
In total 75 coal mines have been allocated under the provisions of the Coal Mine (Special Provisions) Act – 31 by auction and 44 by allotment. The Indian government is pushing a rapid expansion of domestic coal production in order to meet growing demand for power in the country.
Edited by Jonathan Rowland.
At the MINExpo 2016 show, Flexco will be addressing splicing, cleaning, tracking, belt slippage, and material transfer needs at booth 10000 in the Silver Lot.
Attendees can visit the Flexco booth for hands-on, interactive experiences with new Flexco products, as well as programmes designed to improve belt conveyor productivity and efficiency.
The company will be displaying the breadth of its product offering, demonstrating how everything – from improved maintenance tools to new belt conveyor products – works in conjunction with each other for optimal system performance.
Among the products on display will be the new Extreme Duty Precleaner, the largest, most rugged precleaner in the Flexco offering. The precleaner is ideal for use in copper, coal, iron oil, and oil sands applications and is designed for belts 42 in. to 120 in. wide, with pulley diameters 48 in. and up.
The Extreme Duty Precleaner is designed with a three-piece pole, making it easier to transport to the head pulley and install, and is available with 6” and 12” wide blade segments for varied material paths.
The recently-introduced PTEZ™ Belt Trainer will also be at the show, allowing customers to get a hands-on feel for the high-performance tracking idler. Designed with the Flexco ‘Pivot and Tilt’ feature without the use of sensor rolls, the new PTEZ belt trainer may be used in any application that requires tracking to prevent damage to the belt or conveyor structure, including single-direction and reversing belts.
Flexco will also be exhibiting a variety of other products in the booth, including two new additions to its line of load zone solutions: modular impact beds and urethane skirting.
The Flexco booth will be staffed by product experts eager to answer questions and demo products. Experienced team members will be available to discuss the entire system and help attendees identify challenges and ways to increase the efficiency and productivity of their operations.
Edited from press release by Harleigh Hobbs
Heavy rainfall at Duke Energy’s Rogers Energy Complex in Mooresboro, North Carolina, US, caused stormwater from the site’s coal pile to overflow and reach the Broad River, the company said in a press release.
The overflow was identified during a routine inspection on 2 August. The inspection determined that stormwater had come into contact with the site’s coal pile. It did not, however, come into contact with the 7.8 million short t of coal ash that is held at the ponds.
The company’s initial estimates put the amount of stormwater reaching the river at between 15 000 and 50 000 thousand gal.
According to the company, the stormwater runoff has now stopped and steps have been taken to ensure the issue does not occur again. The North Carolina Department of Environmental Quality (DEQ) has been notified.
The DEQ said it was investigating the site and would take “appropriate enforcement action” after its review.
Edited by Jonathan Rowland.
In a settlement with the US Environmental Protection Agency (EPA), and the state of Pennsylvania, Consol Energy Inc., CNX Coal Resources and Consol Pennsylvania Coal Co. LLC (Consol) have agreed to implement extensive water management and monitoring activities to prevent contaminated discharges of mining wastewater from the Bailey mine complex in Greene and Washington Counties, Pennsylvania, to the Ohio River and its tributaries.
In a consent decree filed in federal court in Pittsburgh, the company also agreed to continue to prevent certain discharges from the mine complex, conduct regular long-term-monitoring to ensure sufficient storage capacity to prevent future discharges, develop contingency plans should future discharges become likely, and implement an environmental management system to ensure compliance with the Clean Water Act and other applicable environmental laws. In addition, Consol, the largest producer of coal from underground mines in the US, will pay a US$3 million civil penalty for Clean Water Act violations.
“Mining operations that discharge to our rivers, lakes and streams have an obligation to comply with our nation’s laws that protect those water bodies, as well as public health,” said EPA Regional Administrator Shawn M. Garvin. “The actions required by today’s settlement represent a major step forward in protecting local waterways and the health of communities.”
The US government’s complaint, filed concurrently with the settlement, alleges chronic exceedances of osmotic pressure (OP) and other limits in Consol’s Clean Water Act discharge permits. The discharges primarily enter into tributaries of the Ohio River. OP is the standard used in Pennsylvania to protect aquatic life from excess amounts of total dissolved solids (TDS). Too much TDS going into a water body can increase the salinity of the water and harm aquatic life and impact drinking water quality.
“We will continue to vigorously protect our District’s waterways and other vital natural resources,” said US Attorney David J. Hickton for the Western District of Pennsylvania. “Today’s settlement ensures that our rivers remain safe for future generations to use and enjoy.”
“Protecting Pennsylvania’s waterways is a top priority of the Pennsylvania Department of Environmental Protection (DEP), and we will not allow companies to pollute our rivers and streams,” commented Acting DEP Secretary Patrick McDonnell. “CONSOL has agreed to improve their facilities to prevent future discharges, and the actions today will go a long way towards ensuring Pennsylvania’s waters are protected.”
Under the terms of the consent decree, Consol has agreed to:
These measures will continue to reduce TDS in mining waters discharged to streams from the mine complex. The EPA estimates that implementation of the consent decree by Consol will eliminate more than 2.5 million pounds of pollutants in the form of TDS.
Edited from press release by Harleigh Hobbs
Mining operations will restart at TerraCom’s Baruun Noyon Uul (BNU) hard coking coal mine in Mongolia’s South Gobi Province in 3Q16, according to the company’s recent quarterly update, when the mine’s coal stockpiles are “sufficiently depleted”.
Mining at BNU had been suspended since February 2016, allowing the company to establish an alternative supply chain and run down mine stockpiles to target levels.
The new supply chain has now been commissioning, including the full commissioning of the coal preparation plant at Ceke and the integration of a new set of trucking providers. During 2Q16, coal was successfully delivered to steel mills in China via the new supply chain.
Since February, the Chinese hard coking coal market has also stabilised and there are signs of recovery for premium products, such as BNU hard coking coal, the company added. The new preparation plant is also allowing the company to develop new market products of differing ash levels to meet end-user requirements.
Mining personnel and assets were retained during the suspension of mining activity to enable, allowing the rapid restart of production. As a result, the operation is ready for “immediate recommencement”, the company said.
Edited by Jonathan Rowland.
Australian underground coal contractor, Mastermyne Group, has begun a business restructuring programme to reduce overhead costs by 26%, the company said in a recent ASX announcement, following ongoing weakness in the mining services sector.
The restructure follows a full review of Mastermyne’s operations, which identified cost savings from closing workshops that were considered non-core and reducing overhead roles to align with current activities. The company is also reducing board costs by 50% in parallel to the business restructuring.
“The restructuring initiatives will strengthen Mastermyne’s competitiveness and result in a more streamlined, more responsive organisation with a lower fixed cost base,” said Tony Caruso, Mastermyne’s CEO. “Importantly [the restructure] has no impacted on the organisation’s capability to pursue its growth strategies.”
The company also reported unaudited results for the financial year to 30 June 2016, which included revenues of AUS$168 million and earnings of AUS$1.4 million – including a one off restructuring costs of about AUS$3.1 million.
Edited by Jonathan Rowland.
On 3 August 2015, US President Barack Obama unveiled the administration’s Clean Power Plan (CPP).
A year on, Hal Quinn, President and CEO of National Mining Association (NMA), has indicated his dissatisfaction with the CPP, calling it a “reckless rule” and indicating that this first year of it shows why there “should not be a second”.
Quinn said: “The CPP is an ill-conceived attempt to transform the nation’s power grid by a federal agency that lacks both the technical competence and the requisite legal authority to do so. On 9 February, the Supreme Court issued its stay, voiding any legal obligation for states to implement a rule that will impose hundreds of billions of dollars of costs on the economy, destroy valuable energy assets that will be replaced at great cost – leaving our economy more vulnerable to rising power prices – and lead to further losses of high-wage jobs in an economy that already fails to provide them for a near record number of jobless Americans. And all for an insignificant environmental benefit that appears designed to address political aspirations rather than climate change.”
He continued: “For these reasons and others, 28 states to date have openly defied the administration by refusing to implement this rule by taking their grievances and EPA to court.”
“In year two of the CPP, more states will appreciate that its costs greatly outweigh any conceivable benefit it provides to the country,” concluded Quinn.
Edited from press release by Harleigh Hobbs
Paringa Resources has completed its AUS$6.5 million new share placement, the company said in an announcement to the ASX.
The proceeds will used to complete the bankable feasibility study for the Buck Creek No.2 mine and provide funding to commence development of the No.2 mine by mid-2017.
The Buck Creek mining complex is located in western Kentucky region of the Illinois Basin in the US. The complex has a JORC measured and indicated coal resource estimate of 224 million t of thermal coal.
The No.2 mine is a low-CAPEX development with total cost of US$44 million t due to a shallow coal seam depth.
The company is planning to develop the No.2 mine first as part of a multistage development plan to become a supplier of 5.6 million tpy of thermal coal into the eastern US power market.
Edited sources by Jonathan Rowland.
There have been “signs of improvement” in market conditions for New South Wales coal operators, according to a recent statement from NSW Minerals Council CEO, Stephen Galilee, with prices for thermal coal increasing over recent months.
This has provided a “welcome boost” to Hunter Valley producers, continued Galilee. “If this continues and our currently remains relatively low, like all export industries, the Hunter’s coal mining operations are well positioned to maximise any further gains after a long and difficulty period of brining production costs down.”
According to Galilee, the Hunter Valley region exported over 51 million t of coal this financial year to February – up from 48 million t over the same period last year: a 7.7% increase. Coal exports through the Port of Newcastle are also up in 2016 – and may top the 150 million t exported through the port last year.
Galilee also said that he expects the Hunter Valley to benefit from a rise in coal-fired power generation in Southeast Asia and from the roll-out of high-efficiency low-emissions coal-fired power plants, which require the high-quality coal typically produced from Hunter Valley operations.
These trends are “yet more evidence that, as the coal price cycle turns, our future prospects are positive,” Galilee concluded.
Edited by Jonathan Rowland.
Canadian anthracite developer, Atrum Coal, has entered into an agreement to purchase a 26.68% interest in Atlantic Carbon Group (ACG), an anthracite mining company with operations in Pennsylvania, US.
Atrum Coal will make cash payments totalling US$4.13 million, as well as a number of Atrum shares equal to US$3 million.
“We are very excited by the possibilities offered through the acquisition of a significant stake in ACG,” said Bob Bell, Executive Chairman of Atrum.
“With the high quality of the sized products ACG produces and direct access to two under-utilised deep-sea ports, we are confident of helping ACG open up new export markets for ultra-grade anthracite,” Bell continued.
“The proposed transaction provides Atrum exposure to undersupplied markets in Europe and Asia, assisting to build the Atrum brand and strengthen relationship with key international offtake customers.”
ACG operations mines and processing plants near to the town of Hazleton, Pennsylvania, including the Stockton mine, the top anthracite ming in the US. ACG also recently acquired the nearby Hazleton shaft and Jeansville mines.
Atrum has began financial and legal due diligence on ACG. The transaction is also subject to Atrum shareholder approval. Completion is expected by late September.
Edited by Jonathan Rowland.
CONSOL Energy has closed its divestment of the Miller Creek and Fola mine complexes in southern West Virginia to Southeastern Land LLC.
As part of the deal, CONSOL said it would pay Southeastern Land US$44 million – US$27 million on closing and a further US$17 million in instalments over the next four years – in order to “equalise the value exchange”.
Southeastern Land will also assume closing and reclamation liabilities for the two mining complexes, which contain 114 million short t of coal reserves. Miller Creek produces 2.1 million short t of coal in 2015; Fola is currently closed.
The divestment forms part of CONSOL’s strategy to move the 150 year old company out of its traditional coal market and position it as an oil and gas exploration and production company.
After this deal, the company will retain only a stake in the Bailey mining complex through its spin-off company, CNX Coal Resources.
Edited by Jonathan Rowland.
