In February 2015 at the PG Silesia coal mine, miners set a record of monthly wall advance in longwall no. 102, reaching 180 m. In June this year, their average output in lonwgwall no. 101 was 9500 tpd and the wall advance was as high 184 m.
Mining in longwall No. 101 was performed under methane hazard category IV, water hazard degree I and coal dust explosion hazard class B.
FAMUR Group supplied the equipment that has been used at the mine. It considerably contributed to the achievement of these results. The equipment at longwall 101 includes the FS-400 multi-voltage shearer loader, the Novomag 850 armoured face conveyor, the Novomag 850 beam stage loader and a section of the Fazos 14-41 powered roof support. A key device is a new generation shearer loader: FS-400, combining safety and capability to achieve record outputs. Essential feature of this loader shearer are its compatibility with all types of conveyors, which are between 850 and 1200 mm wide, and with Eicotrack or Megatrac®
Due to the advanced design of the haulage system, the loader shearer may operate at different heights without the need to replace the tractor bodies.
Two independent hydraulic systems allow the machine to cooperate with a crusher both on the left and on the right. In addition, the shearer loader is controlled by the extended FAMAC OPTI 5000 radio system, which provides full diagnostic capability.
FS-400 has been designed in accordance with the e-mine standard, which allows full monitoring of its operation from the surface of the mine.
Edited from press release by Harleigh Hobbs
FirstEnergy has completed the demolition of the R.E. Burger power plant, a former coal-fired power plant in Shadyside, Ohio.
About 450 lb of explosives were used to drop the plant’s concrete stack and 171 ft boiler house. Charges were detonated at about 8:30 AM on 29 July and the structures took only 10 sec. to fall.
The demolition were the culmination of more than three weeks of preparation during which excess concrete and rebar were removed from the structures to direct the angle of the building’s fall. Dust suppression systems were set up around the building to help contain the concrete and dirt particles that resulted from the structure’s collapse.
“Today’s demolition is an important milestone that supports future development of the Burger facility,” said James H. Lash, Executive Vice President and President of FirstEnergy Generation.
FirstEnergy has entered into an agreement with PTTGC America for transferring the property if PTTGC elects to proceed with the construction of an ethane gas cracker plant.
The plant was fully retired in 2011 with demolition activities beginning in 2015 to remove several other structures, including an electrical switchyard, three other buildings and the coal yard and its associated equipment. The plant began life in 2955 as a single-unit 63 MW plant. A second 63 MW unit followed in 1947, following by further units in 1950 and 1955, bringing the total capacity to 568 MW.
Demolition and clean up operations are expected to be complete by the end of 2016.
Edited by Jonathan Rowland.
Coal India (CIL) has adopted a number of measure to help boost the quality of its coal production, according Piyush Goyal, Minister for Power, Coal, New & Renewable Energy and Mines.
Measures include the adoption of new technologies, such as surface miners in opencast mines and continuous miners in underground mines, as well as operational improvements, including the position of overburden and coal benches to avoid contamination.
Other improvements include the installation of metal detectors/magnetic separators over running conveyors before coal loading and re-arranging crushers to provide coal that is better sized to consumer demands.
Customer representatives have also been included in coal sampling and analysis activities and subsequently given the opportunity to adjust payment against the value of the coal.
Other measures are aimed at increasing CIL’s coal production to the target of 908.1 million t by 2020, including expansion of existing mines, the opening of new mines and the building of three major rail projects to boost coal transport capacity. Exploration activities have also been stepped up through the use of modern equipment and outsourcing to private-sector firms.
Edited by Jonathan Rowland.
Paringa Resources has raised AUS$6.49 million from a bookbuild placement of 38.1 million shares at an issue price of AUS$0.17 per share.
The proceeds of the placement will be used to complete the bankable feasibility study for the Buck Creek No. 2 mine and provide funds to being development of the No. 2 mine by mid-2017.
“The strong institutional support received underlines the quality of the Buck Creek mine complex, which we believe is one of the best undeveloped coal projects in the US, being surrounded by mines which continue to achieve high-EBITDA margins,” said David Gay, Paringa’s President and CEO.
Paringa’s development of the Buck Creek complex includes the initial low-CAPEX No.2 mine followed by the larger No.1 mine, with the site eventually reaching production of 5.6 million tpy of thermal coal for supply to the eastern US power market.
“We believe Paringa offers excellent exposure to the improving fundamentals in the US coal market, as US thermal coal stockpiles continue to deplete due to rising natural gas prices, favourable weather patterns and severe production cuts form higher-cost mines,” concluded Gay.
Edited by Jonathan Rowland.
Cloud Peak Energy announced positive second quarter results, making a profit of US$35.3 million compared to a loss of US$52.9 million in 2Q15. Year-to-date, the company remains just in the red with a loss of US$1.1 million compared to a loss of US$57.6 million last year.
“Increasing natural gas prices and a warm start to the summer are beginning to improve the overall outlook towards the coal industry,” said Cloud Peak’s President and CEO, Colin Marshall. “After very low shipments in April and May, we started to see improved shipments in June and are optimistic this trend will continue during the second half of the year.”
Cloud Peak also benefited from contract buyouts from three customers and the impact of reduced reclamation cost assumptions on its asset retirement obligations. The company’s operations remained cashflow negative, however, losing US$11.6 million compared to US$17.1 million last year.
Total revenue in 2Q16 was US$174.2 million, compared to US$244.1 million last year, on production of 11.9 million short t. Year-to-date production stands at 24.9 million short t – down from 35.8 million short t last year.
Edited by Jonathan Rowland.
The Queensland Resources Council (QRC) has welcomed the state’s chief scientist’s formal validation of Carbon Energy’s underground coal gasification (UCG) practices, while criticising the Queensland government for its continued ban on UCG development in the state.
“Yet despite confirmation that Carbon Energy’s technology is successful and environmentally safe, Queensland will not enjoy the economic benefits that comes with building this new energy industry,” said Michael Roche, the QRC’s Chief Executive.
Carbon Energy has invested AUS$150 million development its UCG technology – but earlier this year the Queensland government banned UCG development in the state, “without releasing evidence to justify the rash decision,” added Roche.
The decision “raised questions for innovative businesses operating in Queensland, as well as the state’s ability to attract future investment,” continued Roche. “Now, with science on its side, Carbon Energy will look to continue its investment in other jurisdictions, taking with it potential jobs that could have gone to Queenslander.”
In June, the formal registration of Carbon Energy’s Chinese joint venture, the Beijing JinHong New Energy Development Joint Venture, was announced – a key part of the company’s expansion activities in China. Carbon Energy is also participating in a UCG research centre in China with the China University of Mining and Technology.
Edited by Jonathan Rowland.
In its 2Q16 results, FirstEnergy Corp. has reported a GAAP loss of US$1.1 billion, or US$2.56 per basic and diluted share of common stock, on revenue of US$3.4 billion.
These results compare to 2Q15 net income of US$187 million, or US$0.44 per basic and diluted share of common stock, on revenue of US$3.5 billion. 2Q15 operating (non-GAAP) earnings were US$0.53 per basic share of common stock.
The 2Q16 loss resulted from asset impairment and plant exit costs in the company’s competitive business. The pre-tax asset impairment and plant exit costs were US$1.5 billion. This includes charges associated with deactivating W.H. Sammis Units 1-4 and Bay Shore Unit 1, an impairment charge associated with goodwill at the company’s competitive energy services segment, and coal contract termination and settlement costs resulting from deactivated units. In addition, the company recorded valuation allowances against state and local net operating loss carryforwards of US$159 million.
FirstEnergy is also providing earnings guidance for Q3 and full year of 2016. The company expects third quarter GAAP earnings of US$0.63 to US$0.73 per basic share, and operating (non-GAAP) earnings of US$0.65 to US$0.75 per basic share. For the full year, FirstEnergy expects GAAP losses of US$0.75 to US$0.55 per basic share, primarily reflecting the asset impairment and plant exit costs recognised in the second quarter. Operating (non-GAAP) earnings guidance for the full year is US$2.40 to US$2.60 per basic share.
“We continue to make steady progress on our strategic initiatives, while positioning FirstEnergy for stable, predictable, and customer-service oriented growth,” said Charles E. Jones, FirstEnergy President and CEO. “At the same time, we have made difficult but necessary decisions to address the continuing impact of challenging market conditions on our competitive business.”
In FirstEnergy’s Regulated Distribution business, 2Q16 earnings decreased compared to 2Q15, primarily due to lower distribution deliveries, higher retirement benefit expense and lower commodity margin at regulated generating units, partially offset by the impact of new distribution rates at the Pennsylvania utilities that went into effect in May 2015.
Total distribution deliveries decreased 1.7% compared to 2Q15. Residential sales decreased 1.5% and commercial sales decreased 0.6%, primarily due to the use of more energy-efficient products. The impact of weather was essentially flat for the quarter. Deliveries to industrial customers decreased 2.7%, as continued growth in the shale gas sector was more than offset by lower usage from steel and coal mining activity.
In the Regulated Transmission business, earnings decreased compared to 2Q15, primarily resulting from increased net financing costs and lower transmission revenues that resulted from ATSI’s and TrAIL’s annual true-ups to their formula rates and a lower return on equity at ATSI that went into effect in January 2016. These were partially offset by a higher rate base related to the company’s Energizing the Future programme.
In the Competitive Energy Services segment, charges related to asset impairment and plant exit costs, as well as mark-to-market adjustments on commodity contract positions, more than offset stronger commodity margin compared to 2Q15. Commodity margin benefited from higher capacity revenues, increased wholesale sales and lower purchased power and fuel expense, partially offset by lower contract sales related to the company’s strategy to more effectively hedge its generation.
Edited from press release by Harleigh Hobbs
Anglo American saw its loss reduced to US$364 million in 1H16 compared to US1.92 billion in the firs six months of 2015, the company has reported in its interim results, on the back of an impairment of its Australian metallurgical coal assets.
The company took a “commodity price-drive” write-down of US$1.2 billion on its Moranbah and Grosvenor coal assets – assets that it is currently trying to sell.
Excluding the write-down, Anglo’s coal earnings (before interest and tax) were down at US$160 million compared to US$267 million in 1H15 on coal sales of 46 million t, a fall of 3.3 million t on the year before.
Coal prices were down across the board. Realised prices the company’s metallurgical coal fell 23%, resulting in EBIT from its Australian coal operations falling US$41 million to US$60 million. Metallurgical coal prices did, however, start to show signs of recover in 1H16 as supply balanced and there was stronger demand from India and China.
The spot metallurgical coal prices averaged US$91 per tonne in 2Q16, up 19% on the previous quarter.
Meanwhile prices for the company’s Australian thermal coal exports fell to US$47 per tonne compared to US$61 per tonne the year before. Prices for South African exports fell similarly to US$50 per tonne from US$60 per tonne, while Colombian thermal coal pries fell to US$47 per tonne from US$58 per tonne.
South African domestic sales were steadier, averaging US$16 per tonne compared to US$18 per tonne the year before.
Underlying EBIT from the Anglo’s South African coal operations fell 10% to US$116 million on the back of a US$85 million hit from reduced prices and an 11% fall in export sales, although this was partially offset by reduced costs.
In Colombia, underlying EBIT fall by 87% to US$8 million on the back of the weaker prices. In response, production was cut to remove higher-cost capacity, while operations also benefitted from the significant cost-reduction programmes run last year.
Edited by Jonathan Rowland.
Every four years thousands of mining leaders, managers and decision makers converge on one of the biggest international mining shows on earth: MINExpo, taking place on 26 – 28 September at the Las Vegas Convention Centre in Nevada. This year RCT has announced it will also be exhibiting at the show.
“The theme of this year’s expo reflects RCT’s capabilities as we are an innovative Smart Technology company focused on providing proven solutions to the mining industry,” Executive Director and CEO Brett White said.
“The upcoming expo provides us with the opportunity to showcase our latest innovations helping to increase productivity at mine sites around the world. RCT has a compelling offering – we are the whole package providing an end-to-end service to our clients. It’s what makes us stand out from the crowd, we are very proud of what we do and the team are excited to share it with the world in September.” he continued.
A large group of RCT representatives will be heading to MINExpo 2016 to partake, all of who have extensive experience in the mining industry and with RCT technology.
RCT’s booth will be of particular interest to those in the industry wanting to find unique solutions to increase productivity, profitability and safety at their sites.
This includes the latest in automation technology to maximise mining equipment performance with minimum human interaction; data management solutions that deliver relevant information to ensure an efficient operation by reducing downtime and increasing the lifespan of equipment – all while safeguarding operators.
The company’s biggest drawcard will be the ControlMaster® Guidance simulator, allowing attendees to see RCT’s technology in action.
RCT will be showcasing its latest innovations helping to increase productivity and profitability at mine sites around the world at the upcoming MINExpo 2016 in Las Vegas.
Edited from press release by Harleigh Hobbs
Sven Hörschkes has been appointed as Vice President, EMENA, Minerals, covering all regional operations in Europe, Middle East and North Africa for the Minerals division of FLSmidth, effective 1 July 2016.
Hörschkes’ responsibilities will cover the development of the regional organisation and focused implementation of the Minerals strategy, resulting in increased market share and sales.
Before joining FLSmidth, Hörschkes worked for Metso for more than 25 years, most recently as Vice President, Mining and Process Solutions, for Europe (incl. Russia), Middle East and North Africa. Prior roles over his career included senior positions holding global responsibilities for product lines, sales and operational support for numerous business units within Metso Minerals.
Hörschkes will be based in Walluf, Germany, and will report to the new SVP of Regional Operations, Jeff Court, also starting 1 July.
Edited from press release by Harleigh Hobbs
Tigers Realm Coal (TIG) has raised AUS$15.4 million under an entitlement offer of TIG shares at an offer prices of AUS$0.026 per share. The company had targeted raising up to AUS$23.3 million.
In total, around two-thirds of the new shares were taken by eligible shareholder. The shortfall will now be allocated to the underwriters – BV Mining Holding Ltd, Hanate Pty Ltd and RDFI Investment Management.
A number of the shortfall shares are subject to shareholder approvals or approval from the Australia’s Foreign Investment Review Board (FIRB). Those new shares not requiring approval are expected to the issued on 3 August.
A general meeting to obtain the necessary shareholder approval is expected to be held in September.
The ASX-listed company is developing coal projects in the Russian Far East including coal reserves in the company’s Amaam North and Amaam tenements and the Beringovsky port and coal terminal.
Edited by Jonathan Rowland.
AGL Loy Yang has applied to Australia’s Fair Work Commission to terminate its current enterprise agreement (EA) following a year of negotiations with unions over the terms of a new agreement.
“Despite AGL Loy Yang’s commitment to moving forward, after a year of negotiations and over 30 bargaining meetings, negotiations have not progressed as needed and we remain apart on a number of key issues,” said AGL Loy Yang General Manager, Steve Rieniets.
“AGL Loy Yang has sought to work with unions and workforce representatives to redress the restrictive practices that hamper competitiveness and viability of the business,” Rieniets continued, noting that the company had offered a 21.5% wage increase over four years, which was rejected by the unions.
“Not only did unions reject the offer, they tabled unreasonable claims that would result in increased employee numbers, insourcing of a number of non-core activities, reduced productivity and higher overall costs to the business in the order of AUS$16 million per annum.”
AGL Loy Yang comprises the Loy Yang A lignite-fired power plant and neighbouring Loy Yang coal mine. The mine has an annual production of about 30 million tpy, which it supplies to the power plant. The Loy Yang site is located in the Latrobe Valley of Victoria.
The current EA has been in place since 2012 and officially expired at the end of 2015. However, under the Fair Work Act, an EA remains in place until another agreement is in place or until terminated by the Fair Work Commission.
Edited by Jonathan Rowland.
Australian utility AGL called for the closure of old coal power plants to help balance Australia’s over-supplied energy generation market and support growth in renewables.
In an announcement introducing QIC as an equity partner in AGL’s Powering Australian Renewable Fund (PARF), AGL CEO, Andy Vesey, argued that “an orderly exit of aged, high carbon emitting plant it integral to creating sustainable conditions for further investment and new renewables and Australia’s path to decarbonisation.”
“We look forward to working with energy industry participants, the government and community to address this,” Vesey said.
AGL owns a number of large coal-fired power plants, including the lignite-fired Loy Yang plant, which is supplied from the adjacent Loy Yang mine, in Victoria and the Bayswater and Liddell power plants in New South Wales.
PARF is a partnership created by AGL to develop, own and manage about 1000 MC of large-scale renewable energy infrastructure assets and projects. The projects will help meet federal targets for renewable generation and support a shift towards a low-carbon economy.
QIC on behalf of its clients, which include Future Fund, Australia’s sovereign wealth fund, will provide AUS$800 million in equity funding to PARF, while AGL will provide AUS$200 million. It is envisaged that PARF funding will eventually reach AUS$2 – 3 billion.
Edited by Jonathan Rowland.
Komatsu Ltd has announced its consolidated business results for the three months of the fiscal year ending 31 March 2017 (FY2016).
For the first three-month period (1 April 1 – 30 June 2016) of the fiscal year ending 31 March 2017, consolidated net sales totalled JPY389.2 billion, down 12.7% from the corresponding period a year ago.
In the construction, mining and utility equipment business, while Komatsu steadfastly captured demand for construction equipment in North America and Europe among traditional markets, sales declined from the corresponding period a year ago. The company reported this to be due to being affected by the Japanese yen’s appreciation and reduced volume of sales of construction and mining equipment and parts against the backdrop of slack demand, especially in strategic markets, such as the Middle East and Indonesia.
Consolidated net sales for Komatsu’s construction, mining and utility equipment for three months ended 30 June 2016 came in at 345.1 billion yen, whereas it was 392.3 billion yen for the same period in 2015 – decreasing 12%.
In the retail finance business, revenues decreased from the corresponding period a year ago, affected by the Japanese yen’s appreciation and a decline of assets, mainly in China and Oceania.
In the industrial machinery and others business, sales declined from the corresponding period a year ago, affected by reduced sales of presses and machine tools, especially to the automobile manufacturing industry.
With respect to profits, Komatsu continued to cut down fixed costs and improve selling prices. However, profits were adversely affected by one-time factors of inventory write-off of remanufactured/rebuilt parts and an additional allowance for bad debts recorded in the retail finance business in China, both in the first three-month period.
Komatsu also weathered the Japanese yen’s appreciation against major currencies and reduced volume of sales in the construction, mining and utility equipment business. As a result, operating income dropped by 40.1% from the corresponding period a year ago, to JPY29.7 billion. The operating income ratio translated into 7.7%, down 3.4 percentage points. Income before income taxes and equity in earnings of affiliated companies totalled JPY24.2 billion, down 52.5%. Net income attributable to Komatsu Ltd. amounted to JPY15.5 billion, down 52.1%.
In the company’s projections for the fiscal year ending 31 March 2017 (FY2016), Komatsu has made no changes to its projections in regards to its consolidated business results.
The Minerals Council of Australia (MCA) has called for a technology-neutral approach to Australia’s future electricity generation mix, allowing the country to continue to take advantage of its domestic coal resources.
“The simple fact is that coal-fired generation is central to the affordability and reliability of Australia’s energy supply,” said Greg Evans, MCA’s Executive Director – Coal, in a statement posted to the MCA’s website. Coal supplies 76% of the Australia’s National Electricity Market (NEM).
“As comes of Australia’s aging coal plants retire, there is an opportunity for them to be replaced by new generation high-efficiency low-emissions (HELE) coal plants that can reduce CO2 emissions by 50% and are the equivalent of gas-fired electricity in terms of total emissions,” Evans continued.
Evans pointed to examples of HELE technology implementation in Germany, where efficiency rates at some lignite-fired plants have reached well over 40%.
“Many nations around the world are investing in these new generation power plants that meet the goal of ensuring reliable supply, while reducing emissions and not harming economic development,” concluded Evans. “The bottom line is that governments should not mandate the composition of the energy mix.”
Edited by Jonathan Rowland.
The US Mine Safety and Health Administration (MSHA) issued 65 citations during its June special impact inspections of 11 coal mines, the administration said in a news announcement.
Monthly impact inspections began in April 2010 and target mines that “merit increased agency attention and enforcement due to their poor compliance history or compliance concerns,” according to MSHA.
June impact inspections took place at mines in Pennsylvania, West Virginia, Virginia, Kentucky, Illinois, Utah and Louisiana.
Bowie Resource Partners Dugout Canyon mine in Utah and AEP’s Dolet Hills lignite mine in Louisiana received no citations, while Knight Hawk Coal’s Prairie Eagle-Underground mine received just one.
Dugout Canyon mine, which is operated by Bowie subsidiary, Canyon Fuel Co., produced 0.76 million t last year, according to MSHA data.
Dolet Hills mines lignite to feed the Dolet Hills power plant, a 650 MW plant co-owned by Cleco, which also operates the plant, and AEP-SWEPCO. Last year the mine produced 3.2 million t of coal, according to MSHA.
Alliance Resources Partners’ Mine #4 in Pike County, Kentucky, received over a third of the citations – 22 in total. Mine #4 is operated by Alliance subsidiary, Excel Mining LLC, and produced 1.5 million t of coal last year.
Other mines inspected included Mepco Intermediate Holdings’ 4 West mine in Green County, Pennsylvania, Murray Energy’s Monongella County mine in West Virginia and Paradise #9 mine in Kentucky, Panther Creek Mining’s American Eagle mine in West Virginia, Revelation Energy’s D-19 mine in Virginia and S-17 Cumberland mine in Kentucky and Alpha Natural Resources’ Road Fork #5 mine in West Virginia.
Edited by Jonathan Rowland.
CS Energy’s Callide coal-fired power plant is making the final preparations for an AUS$31 million overhaul of one of the plant’s generating units. Contractors have been mobilising onsite for the overhaul of the 350 MW unit, which will run from 30 July – 16 September.
According to the company, more than 350 temporary contractors would be onsite for the overhaul in addition to the power plant’s 205 permanent employees. The temporary workers were being housed in local motels and camps in Biloela, the plant’s General Manager, Roy Powell, said.
“We expect that approximately AUS$2 million will be spent on local accommodation services throughout the overhaul and there will be flow-on benefits to other service industries, such as hospitality and retail,” added Powell.
Most of the additional workers will be from the overhaul’s major contractor, MHPS Plant Services, and will be sourced from central Queensland. Other contractors include Central Queensland Inspection Services, a part of the Intertek Group, and MHPS sub-contractors, Highpoint Access and Rescue and BLJ In Situ Solutions.
“This overhaul includes inspections and maintenance on a range of power station equipment, such as the boiler, air heaters, ash conveyor systems, main steam pipe and generator circuit breaker,” said Powell.
While the unit is offline, Callide’s other three generating units will continue to operate.
Edited by Jonathan Rowland.
This week as part of the new regime to protect the health of the Queensland state’s underground coal miners, a boosted x-ray screening system with international checks will start.
The improved screening and quality assurance system is part of the three-pronged attack Natural Resources and Mines Minister Dr Anthony Lynham announced earlier this month to tackle the re-emergence of coal workers’ pneumoconiosis.
Dr Lynham said the changes, including double-checks by United States-based accredited x-ray readers, would kick in this week.
“Government, employers, unions and the medical profession have acted quickly to implement plan to deal with this important health issue,” he said. “Going forward, all coal miners requiring respiratory health assessments will have their chest x-rays checked, and then double-checked, by two medical experts.”
He continued: “The new screening system will see an Australian radiologist read x-rays to the International Labor Organisation (ILO) standard first.”
A major change in the system is that radiologist will report in the format recognised by the ILO. Dr Lynham explained this “provides a rigorous process for reporting on the presence of the disease, and if it is present, describing its stage.”
“Initially, digital x-rays will be provided to the US to be checked a second time by an x-ray reader accredited by the National Institute for Occupational Safety and Health. This second check will be established and available within Queensland, as soon as local radiologists are accredited in the ILO system.”
“These measures have been developed based on feedback from key stakeholders together with local and international medical experts to ensure the quality of medical assessments and health care provided to mine workers is second to none.”
Dr Lynham said the new system would help restore coal miners’ confidence in the screening program, with results back to their doctors usually within a fortnight.
“I urge any coal mine worker who has concerns about their health to talk to their general practitioner,” he concluded.
Eleven Queensland miners have been diagnosed with coal workers’ pneumoconiosis, which is caused by long-term exposure to high concentrations of coal dust.
The joint three-pronged approach, announced at a joint news conference by government, unions, employer and medicos, aims to:
Edited from various sources by Harleigh Hobbs
Mitsubishi Hitachi Power Systems Ltd. (MHPS) has made executive-level personnel changes, effective as of 1 August 2016.
Paul Browning, currently President and CEO of Mitsubishi Hitachi Power Systems Americas Inc., has been given an additional position of Senior Vice President of Mitsubishi Hitachi Power Systems.
Oliver Klitzke has also been appointed to Senior Vice President of Mitsubishi Hitachi Power Systems, Ltd. He also selected as the new CEO for Mitsubishi Hitachi Power Systems Europe Ltd.
Before joining MHPS, Browning was President and Chief Executive Officer for Irving Oil Company Ltd. Before joining Irving Oil, he was President and Chief Executive Officer of the Thermal Products Division of GE Power & Water. He has held his current position since 1 April 2016.
Klitzke joins MHPS from GE Energy Germany (General Electric Deutschland Holding GmbH).
Edited from press release by Harleigh Hobbs
Jeff Court has been appointed as Senior Vice President for Regional Operations within the Minerals division of FLSmidth, effective as of 1 July 2016.
In this new role for the division, Court will hold oversight of sales, project execution, operational excellence and P&L for all regions.
He joins FLSmidth’s Global Minerals Management team, ensuring greater collaboration and streamlined communication between the division’s business units and the regional heads, which will deliver more effective and harmonised responses to any regional needs. His focus will be on improving operational excellence in the regions, including improved order execution, sales and deliveries.
Jeff’s career history includes more than 20 years in senior roles, where he focused on industrial products and services while working within and supplying to the mining, minerals and construction sector. His business expertise – including business strategy, balancing growth and efficiency through to delivery, business management, sales and business turn-around in difficult economic environments – will be of great value in improving the company’s profitability and operational excellence in the regions.
Jeff comes directly from Orica, the largest provider of commercial explosives and blasting systems to the mining and other industries, where he held numerous global leadership positions. Most recently, he was a regional Vice President over Europe, Turkey and the Middle East. Before working for Orica, Jeff held several senior global roles for Rio Tinto.
For the short-term, Jeff will reside in the UK and be based in FLSmidth’s Rugby office, but will later relocate to the company’s Minerals headquarters located in Salt Lake City, Utah, US.
Edited from press release by Harleigh Hobbs
Greg Waller, Vice President, Investor Relations and Strategic Analysis, will retire from Teck Resources Ltd as of mid-2017.
“I would like to thank Greg for his many contributions to Teck,” commented Don Lindsay, President and CEO. “The strong relationship Teck has with the investment community today is due in large part to Greg’s leadership, extensive knowledge and expertise, and the many innovations in investor relations he has introduced over the years.”
Waller’s career with Teck spans more than 30 years. He joined the company in 1984 and held progressively more senior roles before assuming responsibility for investor relations in 2006.
Waller is the 2016 recipient of the Belle Mulligan Award for Leadership in Investor Relations from the Canadian Investor Relations Institute (CIRI), in recognition of his leadership and contributions to the field.
Teck is now underway with finding a replacement for Waller.
Edited from press release by Harleigh Hobbs
Caterpillar is expecting sales and revenues to come in at the lower end of its US$40 – US$42 million estimate, according to its latest quarterly results statement, as it warned for further job losses to come in the second half of the year.
Pointing to subdued economic growth and global uncertainty, particularly in Europe following the Brexit vote and coup attempt in Turkey, the company said it was now forecasting sales and revenues of between US$40 and US$40.5 billion – in line with the Thomson First Call analyst consensus.
The company also raised its forecast for restructuring costs from about US$500 million to about US$700 million on the back of additional workforce reductions expected in 2H16.
“We’re not expecting an upturn in important industries like mining, oil and gas and rail to happen this year,” said Caterpillar CEO, Doug Oberhelman.
“We’re continuing significant restructuring plans, which are designed to bring our cost structure more in line with demand, while maintaining our capability to quickly serve our customers when our business recovers.”
Total employment stood at 112 000 at of 2Q16, compared to 126 800 at the end of June 2015. The company announced a 16% fall in sales and revenues in 2Q16, while sales from its Resource Industries segment, which houses Caterpillar’s mining equipment business, fell by 29%.
Edited by Jonathan Rowland.
Steel Authority of India Ltd (SAIL) has become the latest company to join globalCOAL’s international coal trading community.
The Delhi-based company is one of India’s largest steelmakers with five integrated steel plants, three specialist plants and one subsidiary.
“We are delighted to welcome SAIL to our trading community.” said Ajay Baral, India Manager at globalCOAL.
“We have recently seen a growing number of Indian enterprises join as globalCOAL market members. The coal market in India is diversifying as it evolves, and access to our trading platform provides another route to market for major operators such as SAIL to procure coal with flexibility.”
Edited by Jonathan Rowland.
Coal throughput at Port of Rotterdam fell 18.4% in 1H16 compared to the same period in 2015, according to figures released by the port. Rotterdam handled 12.75 million t of coal over the six months to June, compared to 15.62 million t in 1H15.
The vast majority of this was imported coal with port seeing 12.64 million t of incoming coal shipments. Only 0.11 million t was exported.
Total dry bulk throughput was down 9.9% as a jump in agribulk handling helped to offset falls in coal, iron ore and scrap and other dry bulks. The port handled 39.31 million t of dry bulk commodities, down from 43.65 million t in 2015.
Despite the fall in dry bulk throughput, the port retained a leading market share in the Hamburg-Le Havre range, accounting for 38.3% of traffic in 1Q16.
“Overall this means that, given the current difficult macro-economic circumstances, Rotterdam’s port business community is performing well compared to companies in competing ports,” the port said in its half year results.
Edited by Jonathan Rowland.
The South African Department of Mineral Resources (DMR) and the Limpopo Department of Economic Development, Environment and Tourism (LEDET) have granted Coal of Africa Ltd (CoAL) the amendment of the Environmental Authorisation in terms of the National Environmental Management Act (NEMA) (Act 107 of 1998) and the Environmental Impact Assessment Regulations (2014) for Makhado project, transferring the holder of the Environmental Authorisation from CoAL to Baobab Mining and Exploration Ltd.
The departments have also granted an extension of the validity period of the EA, extending the commencement period for an additional five years.
The Environmental Impact Assessment Regulations (2014) allow for the appeal of the above mentioned authorisations by any stakeholder. Any such appeal will immediately suspend the authorisation. If this takes place, the company would deal with the regulatory authorities in this regard.
David Brown CEO, commented: “The decision by DMR and LEDET, and is a confirmation of the government’s commitment to drive socio-economic development, not only in our area of operation, but also the broader Limpopo Province. The recent designation of the Special Economic Zone by the South African government in this area is a further demonstration of that commitment. We continued to engage the Department of Water and Sanitation in respect of the processing of the appeal against the Water Use Licence for the Makhado project.”
Brown concluded: “ We have commenced with the implementation of our Social and Labour plan at the Makhado project to ensure that our communities develop the necessary skills to access the opportunities offered within the project.”
Bathurst Resources has recorded full year ROM coal production of 431 000 t in the financial year to end of June 2016 (FY2016), according to the June quarterly report. Bathurst operates mines on the South Island of New Zealand, producing coal for local industrial users.
The company also reported that it was cash-flow positive for FY2016 with cash and restricted deposits of NZ$6 million at the year end. Earnings were NZ$11 – 12 million.
The bulk of the company’s production was recorded at the Takitimu mine, which mined 303 000 t in FY2016. The Canterbury mine produced over 61 000 t and plans to ramp up production to over 100 000 t in FY2017 on the back of strong local demand.
Escarpment mine was put into care and maintenance in the June quarter, after the local cement works ceased offtake in April. The resource remains available, however, and can be brought back online with minimal cost or delay when market conditions improve.
Looking ahead, the company is expecting ROM coal production of 330 000 t with earnings of NZ$12 – 13 million.
Edited by Jonathan Rowland.
Power management company Eaton has appointed Dorothy C. Thompson to the company’s board of directors, effective 29 July 2016.
Thompson is group Chief Executive and a director of Drax Group plc, a UK-based power generation company. She was appointed CEO of Drax Group plc in September 2005 and to the company’s Board of Directors in October 2005.
“Dorothy adds a valuable perspective to our Board through her extensive global business and financial expertise, extensive work with regulatory agencies and government bodies and deep roots in the energy field,” said Craig Arnold, Eaton Chairman and CEO. “We are confident she will further strengthen our board’s breadth of talent and background.”
Before joining Drax, Thompson was Vice President of InterGen NV, an independent power-company jointly owned by Shell and Bechtel. At InterGen she was initially responsible for new business activities in the Middle-East and Europe. Later she managed the operational assets of InterGen’s European business comprising 3.2GW of gas generation in the UK and continental Europe.
Thompson joined InterGen in 1998 from PowerGen plc where she was assistant group treasurer with specific responsibility for raising funding for PowerGen’s overseas power generation facilities. She began her career in development banking working for the Commonwealth Development Corporation in the UK and Malaysia and the National Development Bank of Botswana in Botswana.
In addition to her leadership at Drax, Thompson is a member of the board of directors of the Sustainable Biomass Partnership Ltd, and the Court of the Bank of England.
Edited from press release by Harleigh Hobbs
Caterpillar reported sales and revenues down US$1.975 billion in 2Q16 to US$10.342 billion on the back of continued weak commodity demand globally and economic weakness in developing countries.
Sales of both new equipment and aftermarket parts fall, although most of the decrease was for new equipment.
All regions were hit. Latin America took the worst fall with sales down 31% on the back of significant decreases in Brazil and Mexico. Sales were down 16% in North America, 15% in EAME and 13% in Asia-Pacific.
As a result, operating profit dropped by 41% to US$785 million from US$1.333 billion in 2Q15. Price realization and restructuring costs also contributed to the fall in profits.
Resources Industries – which includes Caterpillar’s mining equipment business – recorded the worst performance of all business segments with sales down 29% overall at US$1.457 billion. This saw the business drop into the red in with a loss of US$163 million. This compares to a profit of US$27 million in the same period last year on sales of US$2.048 billion.
Mining sales were hit across the board with biggest fall recorded in North America where sales fell 36%. Latin American mining sales were down 21%, EAME sales were down 21% and Asia-Pacific sales were down 24%.
Edited by Jonathan Rowland.
CONSOL Energy is to pay Southeastern Land LLC, a Kentucky company registered to long-time coal entrepreneur James Booth, US$44 million to take two West Virginia coal mines off its hands as the company continues its transition away from coal.
The deal will see Southeastern Land take over the Miller Creek and Fola mining complexes, assuming closing and reclamation liabilities of US$103 million. The mines have 114 million short t of owned and leased coal reserves. Miller Creek produced 2.1 million short t of coal in 2015 from an opencast mining operation; Fola is currently closed.
CONSOL said it would pay Southeastern Land US$27 million on closing with a further US$17 million to be paid in instalments over the next four years in order to “equalise the value exchange”.
According to CONSOL spokesperson Brian Aiello, the deal with Southeastern Land represents the final part of the Pittsburgh-based company’s divestment strategy. Speaking to the Pittsburgh Post-Gazette, Aiello said the deal “exits us from Central Appalachia and surface mining and the associated risk profile.”
CONSOL began life in 1864 as Consolidation Coal Co. and retains a stake in the Bailey mining complex in southwestern Pennsylvania, which is operated by its spin-off CNX Coal Resources. However, over recent years the company has worked to evolve into an oil and gas exploration and production (E&P) company, following its purchase of Dominion Resources, an E&P company active in the Marcellus Shale in 2010.
Edited by Jonathan Rowland.
Alpha Natural Resources has emerged from Chapter 11 bankruptcy – but as a substantially smaller company, having sold its core assets to Contura Energy, a new company set up by Alpha’s first-lien creditors.
The reorganised company will be privately held and operate 18 mines and eight preparation plants in West Virginia and Kentucky. David Stetson, a coal industry veteran with leadership experience at Trinity Coal, RAAM Global Energy and JW Resources, has been appointed CEO, replacing Kevin Crutchfield, who takes the helm at Contura Energy.
“By completing this restructuring, ANR emerges as a company with a solid financial foundation and a strong team to continue to mine and sell coal,” said Stetson.
“We are now also better positioned to satisfy ANR’s environmental responsibilities. I am confident – even though coal markets continue to be challenged by both competitive and regulatory pressures – the company created by our Plan of Reorganisation will have the structure, resources and talent to successfully weather these challenges.”
Edited by Jonathan Rowland.
Peabody Energy has reached agreements with three state regulatory agencies regarding financial assurances in support of coal mine restoration.
Superpriority settlement agreements have been reached with Wyoming, New Mexico and Indiana, states in which Peabody has self-bonding obligations. These agreements, which are subject to bankruptcy court approval, would provide the relevant state authorities with the ability to receive cash first in priority as additional assurance for Peabody’s performance before distribution to any lender or other pre-petition creditor, up to the full amount of the company’s US$200 million bonding accommodation facility. Each state is entitled to a percentage of the company’s US$200 million bonding accommodation facility based on a proportion of self-bonding relative to the company’s total obligation as of 12 April 2016.
Peabody’s US$800 million debtor-in-possession financing facility, which includes the bonding accommodation facility, provides financing for up to 18 months during the chapter 11 process as described further in the company’s SEC filings on Form 8-K on 13 April and 24 May 2016.
“Peabody is continuing our actions to restore coal mined lands using best-in-class practices, and we are committed to our reclamation as we have been for decades,” said Peabody President – Americas Kemal Williamson. “We are pleased to reach agreements that provide additional security toward our reclamation obligations and look forward to ongoing discussions regarding Peabody’s reclamation bonding long term.”
In addition to providing supplemental financial assurances to these states, the company has agreed to, among other things, quarterly reclamation activity status meetings as well as targeting reductions in the amount of bonds outstanding with the states. Motions for the agreements are expected to be heard by the court in August.
Land restoration continues to be an essential part of the coal mining process. Over the past decade, Peabody has spent approximately US$185 million to restore 48 000 acres. As of 30 June 2016, the company had approximately US$1.14 billion of self-bonding and US$320 million of surety bonds supporting reclamation activities outstanding.
Due to the conservative nature of bonding estimates, the total amount of required reclamation bonding in the US for Peabody exceeds the related financial-statement liability by approximately US$1 billion. Self-bonding amounts are calculated based on a reclamation scenario that assumes the company’s current personnel, equipment and expertise do not exist; the coal mines immediately shut down and third parties step in to complete the reclamation, without taking into account the expected lifespan of the coal mine. On the other hand, accounting practices require companies to account for the estimated financial liability based on the projected lifespan of individual mine plans and future costs to complete final reclamation. Based on these estimates, the company’s GAAP financial statements reflect US asset retirement obligations of approximately US$450 million, with recent typical annual cash outlays of approximately US$20 million.
In addition to paying for every dollar of its own coal mine restoration, the company has paid nearly US$560 million in the past decade to the Abandoned Mine Lands (AML) program, and contributed more than US$45 million in 2015. AML, which has an unappropriated balance of US$2.5 billion, is intended for the restoration of lands that other coal producers operated, does not reclaim any Peabody lands and was due to sunset years ago.
The 550 m berth of Essar Bulk Terminal Ld (EBTL) in Hazira, India, is being expanded by a further 1100 m to accommodate the steady growth in cargo throughput at the port. With the expansion, the capacity of the Hazira terminal will increase from the existing 30 million tpy to 50 million tpy.
Once the expansion is completed, the port will have capability of simultaneously handling 7 vessels at any point of time.
Essar Bulk Terminal is investing Rs 750 crore in the expansion project, which along with the existing investment of Rs 2,450 crore, will take the total investment in Hazira port to Rs 3200 crore.
The company has already invested in creating an all-weather mechanised deep draft port, which is capable of handling capesize vessels. The port has a draft of 14 m, which allows direct berthing of the largest of bulk cargo carriers. The company has dredged an 8.8 km channel on the Tapi river. Approximately, 80 million m3 has been dredged until date, making it one of the largest dredging activities in the country.
Rajiv Agarwal, CEO & Managing Director, Essar Ports Limited, said: “EBTL has huge potential and is moving in the right direction to unlock that potential. Its performance in the last one year has been extremely heartening. I have no doubt that the expansion project will help the company scale new heights.”
In the quarter ending 30 June 2016, traffic at the port increased by 80% to 4.4 million t, as against 2.4 million t in the corresponding quarter of the previous year. The cargo growth is backed by a ramp-up in operations by Essar Steel’s 10 million t plant in Hazira. The total port traffic is expected to reach 24 million t in FY17, as against 12.7 million t in FY16.
EBTL has also received permission from the Gujarat Maritime Board (GMB) to handle 15 million t of third-party cargo over three years. In FY16, 0.75 million t of third-party traffic was handled. This is expected to grow to 5 million t by FY18.
Commenting on the development, Capt. S Das, CEO-EBTL, said: “The Hazira Terminal has been integral to fulfilling the cargo handling requirement of Essar Steel plant. The expanded terminal will not only help us service the enhanced requirements of our anchor customer, but also cater to our growing volumes of third-party cargo.”
Edited from press release by Harleigh Hobbs
Contura Energy Inc. has acquired certain core coal assets from Alpha Natural Resources in connection with Alpha’s successful restructuring.
Formed and majority-owned by a group of Alpha’s first lien lenders, Contura is a well-capitalised entity, created to acquire and operate Alpha Natural Resources’ core operations in Northern Appalachia, the Powder River Basin and Central Appalachia.
Specifically, Contura has acquired all of Alpha’s operations and reserves in Northern Appalachia (including the Cumberland mine complex) and the Powder River Basin, along with three Central Appalachian mining complexes (the Nicholas mine complex in Nicholas County, West Virginia, and the McClure and Toms Creek mine complexes in Dickenson and Wise Counties, Virginia). Contura also purchased Alpha’s interest in the Dominion Terminal Associates coal export terminal in eastern Virginia.
This acquisition was effectuated as part of Alpha’s Chapter 11 process, completed in under a year, involving holders of over US$3.9 billion of debt obligations, various federal and state government entities, surety providers, union employees, pension beneficiaries, trade creditors, and others. Terms of the acquisition are detailed within the asset purchase agreement previously filed with the US Bankruptcy Court for the Eastern District of Virginia on 22 June 2016.
Contura will be led by Kevin Crutchfield as Chief Executive Officer, with a workforce of over 2200 former Alpha Natural Resources employees.
“Today marks the successful culmination of a complex and arduous process, made possible by the tireless work of countless employees, collaboration among a diverse stakeholder group and the unwavering commitment of Contura’s management team and owners to achieve a positive outcome,” said Crutchfield. “The result is the creation of a strong operational asset base, well-positioned to serve unique customer needs in today’s challenged coal market.”
Contura also announced today the formation of its Board of Directors. Appointed Directors include: Crutchfield; Albert E. Ferrara, Jr, Retired Senior Vice President and Chief Financial Officer of AK Steel Corporation; Jonathan Segal, Managing Director at Highbridge Capital Management, LLC; and Neale Trangucci, Principal at NXT Partners, LLC. Additional Board Members may be announced upon appointment.
Edited from press release by Harleigh Hobbs
Russian coal company SUEK has taken delivery of the first 70 rail carriages from Russian railcar manufacturer, Altaivagon. The 12-2143 railcars form the first instalment of a contract for 3000 units.
The carriages were developed as part of a SUEK technical projects to meet a maximum load capacity of 77 t, holding capacity of 94 m3 and unloading adaptability.
The new railcars will help ensure a sufficient supply of railcars remain available under the programme of accelerated carriage write-off implemented by SUEK’s management.
SUEK currently uses about 45 000 railcars with 19 700 units under its direct management. The company is Russia’s largest coal company, supplying both domestic and export markets.
In 1H16 the company produced 53.3 million t of coal, a 15% increase on the same period last year.
Edited by Jonathan Rowland.
Russian Coal Group produced 6.2 million t of coal in 1H16, according to a company press release, with sales of 5.7 million t. This compares to production of 6.7 million t and shipments of 6.2 million t over the same period last year.
“Since the beginning of 2016 there has been some recovery on the global coal market,” said Bilan Uzhakhov, Director General of the Russian Coal Group. “But if the dollar falls below the current rate, all of the positive effects that were obtained an export sales, will be lost”.
Russian Coal Group also said that it planned to invest RUB1.5 billion this year in production, a similar level to 2015. The company has already taken delivery of new hydraulic excavators from Hitachi and dump trucks from Belaz to boost production efficiency and operate new mine layouts.
Russian Coal Group was founded in 2002 and owns mines in the Amur region, Khakassia and Krasnoyarsk. In total, the company owns six mines and a coal preparation plant and holds 1.2 billion t of reserves.
Edited by Jonathan Rowland.
