Sunday, 29 Jan 2012
Coal India Ltd the biggest coal miner in the world, will announce the new set of coal prices this month, before the acting chairman Mr NC Jha retires on January 31st 2012. The decision comes after the ministry formally asked CIL to relook its January 1 pricing.
Mr Jha in an informal interaction said that "We were planning to revisit the pricing in March. But the coal ministry had formally sent a letter on January 25 asking us to relook the prices now to prevent any major impact from the previous prices regime. But, GCV (Gross Calorific Value) mechanism will not be rolled back.”
Mr Jha added that "The revised GCV pricing will be done in consultation with coal ministry officials within end of the month adding that January 1 pricing was also done with the ministry's consultation. As switchover from Useful Heat Value concept to GCV had happened under me, so I'll address the price issue before I retire.”
He added that the revised pricing that CIL is working on would benefit or reduce the price shock mainly in C, D, and upper E grades of coal under UHV category.
Mr Jha accepted that the January 1 pricing benefited CIL by close to 12.5% in additional revenue and the new pricing will eliminate most of it. Besides, he said, the new wage agreement will have additional burden of at least INR 4,000 crore annually at a time when CIL production is slipping from the target.
The revised GCV pricing of the coal will deviate from the Coal ministry's and Planning Commission's long term roadmap to link Indian coal with international coal. Mr Jha said that "The January 1 pricing was based on discount on import price but now the pricing would be done on what the consumers were paying in UHV regime.”
CIL had attempted to reduce the gap of landed international coal price with domestic coal which was as high as close to 75 per cent in certain coal varieties like C, D and part of E grades. However, Jha conceded that gradually, the new concept will achieve its goal gradually in future.
Asked about large number of complaints about high ash and moisture content and inconsistent quality in CIL coal compared to international coal, Mr Jha said "for that we have kept band of 300 kcal for each band of grades, while, price for international coal changes in narrow band of 50 kcals".
sourced Profit.ndtv.com
Sunday, January 29, 2012
QR National upgrades Blackwater Coal System
Sunday, 29 Jan 2012
QR National is on track to double the electric capacity of the rail system connecting coal mines west of Rockhampton to the export terminals at Gladstone.
The rail freight provider said that it has commissioned the first of four new electrical feeder stations in the Blackwater coal system as part of its major AUD 195 million electrification upgrade project.
One of the largest upgrades since the initial electrification of the Central Queensland Coal Network in the 1980s, the project will allow more new high-capacity electric trains to operate on the Blackwater network.
Construction and commissioning of the AUD 55 million feeder station at Raglan, 60 kilometres south of Rockhampton, is the first to be completed and will be followed by new electrical feeder stations at Wycarbah, Duaringa and Bluff in Central Queensland.
Commissioning of these remaining three feeder stations will follow progressively over the coming months, with the entire electrification project on track for completion in June 2012, six months ahead of schedule.
Mr Michael Carter executive vice president of QR National Network said that the company has delivered the Raglan works under budget, despite the construction challenges posed by Queensland’s wet weather last year.
He added that “The hard work of our project delivery team means we remain on track to complete the Blackwater Power Project by the middle of the year, at which time the entire system will be electrified by Powerlink and the extra capacity will take effect.”
The Blackwater Power Project is designed to cater for the growing coal export demand in the region.
Completed works at Raglan include the establishment of the feeder and connecting stations, as well as track sectioning cabins at Bajool and Mount Larcom.
The upgrades will see 33 all-electric locomotives in operation upon completion in 2012.
(sourced Supplychainreview.com.au)
QR National is on track to double the electric capacity of the rail system connecting coal mines west of Rockhampton to the export terminals at Gladstone.
The rail freight provider said that it has commissioned the first of four new electrical feeder stations in the Blackwater coal system as part of its major AUD 195 million electrification upgrade project.
One of the largest upgrades since the initial electrification of the Central Queensland Coal Network in the 1980s, the project will allow more new high-capacity electric trains to operate on the Blackwater network.
Construction and commissioning of the AUD 55 million feeder station at Raglan, 60 kilometres south of Rockhampton, is the first to be completed and will be followed by new electrical feeder stations at Wycarbah, Duaringa and Bluff in Central Queensland.
Commissioning of these remaining three feeder stations will follow progressively over the coming months, with the entire electrification project on track for completion in June 2012, six months ahead of schedule.
Mr Michael Carter executive vice president of QR National Network said that the company has delivered the Raglan works under budget, despite the construction challenges posed by Queensland’s wet weather last year.
He added that “The hard work of our project delivery team means we remain on track to complete the Blackwater Power Project by the middle of the year, at which time the entire system will be electrified by Powerlink and the extra capacity will take effect.”
The Blackwater Power Project is designed to cater for the growing coal export demand in the region.
Completed works at Raglan include the establishment of the feeder and connecting stations, as well as track sectioning cabins at Bajool and Mount Larcom.
The upgrades will see 33 all-electric locomotives in operation upon completion in 2012.
(sourced Supplychainreview.com.au)
Industrea wins coal mine contract
Sunday, 29 Jan 2012
Miningaustralia.com.au reported that Industrea has renewed its mining contract at the Baralaba South mine in the Bowen Basin. The contract, with AUD 38 million annually, will see Industrea provide whole of mine services at the mine, including drill and blast works. It will run until December 31st 2013.
Industrea originally won the contract in 2009, and since then has completed various work including the construction of the recently completed 1:1000 flood levee wall extension.
At the end of 2010 severe flooding saw the Baralaba mine inundated with water.
Mr Robin Levison CEO of Industrea stated that the renewal is a demonstration of the strong relationship between it and Cockatoo Coal, which owns Baralaba. He added that "Subject to production volumes at the mine there is an option for Baralaba Coal to continue contract services in 2014".
(sourced Miningaustralia)
Miningaustralia.com.au reported that Industrea has renewed its mining contract at the Baralaba South mine in the Bowen Basin. The contract, with AUD 38 million annually, will see Industrea provide whole of mine services at the mine, including drill and blast works. It will run until December 31st 2013.
Industrea originally won the contract in 2009, and since then has completed various work including the construction of the recently completed 1:1000 flood levee wall extension.
At the end of 2010 severe flooding saw the Baralaba mine inundated with water.
Mr Robin Levison CEO of Industrea stated that the renewal is a demonstration of the strong relationship between it and Cockatoo Coal, which owns Baralaba. He added that "Subject to production volumes at the mine there is an option for Baralaba Coal to continue contract services in 2014".
(sourced Miningaustralia)
German iron ore import in 2011 up by 34.6%
Sunday, 29 Jan 2012
According to a report released by the German Federal Statistical Office in December 2011 the import price of iron ore increased by 14.6% YoY in Germany, while it decreased by two percent as compared to November.
In December, the average import price of pig iron, steel and ferroalloys in Germany fell by 2.8% YoY while it decreased by 0.2% compared to November.In 2011, the index of import prices for iron ore was up 34.6% over the previous year's average level, while the import price index for iron and steel and ferroalloys increased 8.8% in 2011 compared to 2010.
(sourced SteelOrbis.com)
According to a report released by the German Federal Statistical Office in December 2011 the import price of iron ore increased by 14.6% YoY in Germany, while it decreased by two percent as compared to November.
In December, the average import price of pig iron, steel and ferroalloys in Germany fell by 2.8% YoY while it decreased by 0.2% compared to November.In 2011, the index of import prices for iron ore was up 34.6% over the previous year's average level, while the import price index for iron and steel and ferroalloys increased 8.8% in 2011 compared to 2010.
(sourced SteelOrbis.com)
Saturday, January 28, 2012
China overtakes Japan as world top coal importer
Sat, 28 Jan 2012
Reuters quoted customs data from both countries showed that China overtook Japan as the world top coal importer in 2011 and partly driven by robust Chinese demand.
Data from the country showed that China, also the world biggest coal producer and consumer imported 182.4 million tonnes of the fuel in 2011 up by 10.8%YoY.
Japan customs-cleared imports fell 5.1% to 175.2 million tonnes last year and hurt by slack demand for coking coal as steelmakers curbed production.
(sourced from Reuters)
Reuters quoted customs data from both countries showed that China overtook Japan as the world top coal importer in 2011 and partly driven by robust Chinese demand.
Data from the country showed that China, also the world biggest coal producer and consumer imported 182.4 million tonnes of the fuel in 2011 up by 10.8%YoY.
Japan customs-cleared imports fell 5.1% to 175.2 million tonnes last year and hurt by slack demand for coking coal as steelmakers curbed production.
(sourced from Reuters)
Philippines offer transshipment options for Brazilian ore to Vale
Saturday, 28 Jan 2012
Lacking port entry permits into China, Vale had to come up with other options to unload it's massive 400,000 tonnes ore carrying ships.
Enter the 280,815 DWT Ore Fabrica, previously known as the crude oil tanker, Front Duchess. This vessel was converted by China State Shipbuilding Corporation from the crude oil tanker pictured above, to a specially designed platform based in the Philippines that will allow the transshipment of iron ore from these giant ore carriers, to smaller vessels for follow on transport to China, Taiwan, Japan and South Korea.
The first of these transshipment loads will commence in early February with the arrival of the Vale Brazil and Vale China in Subic Bay.
Citing safety concerns after the VLOC Vale Beijing experienced structural issues in Brazil, China has yet to approve port entry permits. Safety concerns aside however, politics and family connections appear to play an important role in this developing drama as the 388,000 DWT Berge Everest was allowed to unload her Brazilian cargo of ore in Dalian recently.
The Berge Everest, despite being on long term charter to Vale, is owned by Berge Bulk an offshoot of Singapore based BW Maritime that is controlled by the Sohmen family, the descendants of the late mainland born shipping magnate Pao Yue kong.
(sourced Gcaptain.com)
Lacking port entry permits into China, Vale had to come up with other options to unload it's massive 400,000 tonnes ore carrying ships.
Enter the 280,815 DWT Ore Fabrica, previously known as the crude oil tanker, Front Duchess. This vessel was converted by China State Shipbuilding Corporation from the crude oil tanker pictured above, to a specially designed platform based in the Philippines that will allow the transshipment of iron ore from these giant ore carriers, to smaller vessels for follow on transport to China, Taiwan, Japan and South Korea.
The first of these transshipment loads will commence in early February with the arrival of the Vale Brazil and Vale China in Subic Bay.
Citing safety concerns after the VLOC Vale Beijing experienced structural issues in Brazil, China has yet to approve port entry permits. Safety concerns aside however, politics and family connections appear to play an important role in this developing drama as the 388,000 DWT Berge Everest was allowed to unload her Brazilian cargo of ore in Dalian recently.
The Berge Everest, despite being on long term charter to Vale, is owned by Berge Bulk an offshoot of Singapore based BW Maritime that is controlled by the Sohmen family, the descendants of the late mainland born shipping magnate Pao Yue kong.
(sourced Gcaptain.com)
Dollar fall boosts Euro coal prompt prices
Saturday, 28 Jan 2012
Reuters reported that US dollar fell to its lowest for almost two months on Thursday, giving a sharp boost to coal prices which have sagged this month due to weak fundamentals globally.
Two March loading South African cargoes traded early in the day at USD 108.50 and USD 108.75, up over USD 3.00 from Wednesday, bought by banks and traders, sold by a large, international trading house.
Coal swaps rallied on Thursday, bolstered by European utilities hedging dark spreads (the profit margin from using coal to generate power) and oil's rise, despite the lack of physical buying and high stockpile levels.
End users in Europe and Asia remained noticeable for the absence from the market.
Traders said that whether China resumes large scale spot buying after the New Year holidays is absolutely critical for coal price direction, regardless of the gyrations of the swaps market.
China overtook Japan as the world's largest coal importer last year after a surge in imports in the last quarter to a total of 182.4 million tonnes, nearly 11 percent up from the previous year, much of it bought on a spot basis.
One European trader said that "The dollar got hammered overnight and that's pulled commodities up including coal, but the swaps, particularly the Calendar years, have risen even more.”
(Sourced from Thomson Reuters)
Reuters reported that US dollar fell to its lowest for almost two months on Thursday, giving a sharp boost to coal prices which have sagged this month due to weak fundamentals globally.
Two March loading South African cargoes traded early in the day at USD 108.50 and USD 108.75, up over USD 3.00 from Wednesday, bought by banks and traders, sold by a large, international trading house.
Coal swaps rallied on Thursday, bolstered by European utilities hedging dark spreads (the profit margin from using coal to generate power) and oil's rise, despite the lack of physical buying and high stockpile levels.
End users in Europe and Asia remained noticeable for the absence from the market.
Traders said that whether China resumes large scale spot buying after the New Year holidays is absolutely critical for coal price direction, regardless of the gyrations of the swaps market.
China overtook Japan as the world's largest coal importer last year after a surge in imports in the last quarter to a total of 182.4 million tonnes, nearly 11 percent up from the previous year, much of it bought on a spot basis.
One European trader said that "The dollar got hammered overnight and that's pulled commodities up including coal, but the swaps, particularly the Calendar years, have risen even more.”
(Sourced from Thomson Reuters)
Vale gets license to mine high grade iron ore pit at Carajas mine
Saturday, 28 Jan 2012
Brazilian miner Vale SA is granted an operation license to mine a high grade iron ore pit at Carajas in north Brazil.
The license, granted by environmental authorities, will allow Vale to mine the N5 Sul pit, which is part of the N5 mine in the Serra Norte mining site at Carajas in Para state. This operation will support quality enhancement in iron ore production in Carajas in coming years.
Mr Tito Martins CFO of Vale said that the company is seeking to bring new iron ore reserves into production as reserves at some of its long standing mines, particularly in southeast Brazil, become depleted, reducing the iron content of the ore produced. Iron ore is the key raw material in steelmaking.
Carajas, where Vale already has extensive mining operations, has some of the world's highest quality iron ore reserves but its location in the Amazon has made environmental licensing a challenge in recent years.
The operation license now granted allows the opening of a new ore body in the N5 mine, which has the highest ferrous content within Vale's portfolio, strengthening Vale's position as a producer of high quality iron ore to global markets.
(Sourced from Dow Jones Newswires)
Brazilian miner Vale SA is granted an operation license to mine a high grade iron ore pit at Carajas in north Brazil.
The license, granted by environmental authorities, will allow Vale to mine the N5 Sul pit, which is part of the N5 mine in the Serra Norte mining site at Carajas in Para state. This operation will support quality enhancement in iron ore production in Carajas in coming years.
Mr Tito Martins CFO of Vale said that the company is seeking to bring new iron ore reserves into production as reserves at some of its long standing mines, particularly in southeast Brazil, become depleted, reducing the iron content of the ore produced. Iron ore is the key raw material in steelmaking.
Carajas, where Vale already has extensive mining operations, has some of the world's highest quality iron ore reserves but its location in the Amazon has made environmental licensing a challenge in recent years.
The operation license now granted allows the opening of a new ore body in the N5 mine, which has the highest ferrous content within Vale's portfolio, strengthening Vale's position as a producer of high quality iron ore to global markets.
(Sourced from Dow Jones Newswires)
Russia Energy Ministry has not ruled out increase to export duty for energy coal - Mr Shmatko
Saturday, 28 Jan 2012
Interfax reported that Russia Energy Ministry is dissatisfied with rising prices for certain coal types and ready to initiate discussion on increasing the commodity export duty.
Mr Sergei Shmatko Energy Minsiter of Russia said "The increase in coal prices by 15% to 20% and up to 40% as well as the appearance of a deficit in certain coal type is unjustifiable for us. If this continues we will be forced again to discuss raising the export duty on coal."
Mr Shmatko did not specify the brands of coal in question.
(Sourced from Interfax)
Interfax reported that Russia Energy Ministry is dissatisfied with rising prices for certain coal types and ready to initiate discussion on increasing the commodity export duty.
Mr Sergei Shmatko Energy Minsiter of Russia said "The increase in coal prices by 15% to 20% and up to 40% as well as the appearance of a deficit in certain coal type is unjustifiable for us. If this continues we will be forced again to discuss raising the export duty on coal."
Mr Shmatko did not specify the brands of coal in question.
(Sourced from Interfax)
Serbia buys local U.S. Steel unit for $1
Sat Jan28, 2012
BELGRADE - The Serbian government will buy back U.S. Steel Corp's underperforming Serbian unit for a single U.S. dollar, the country's prime minister said on Friday.
"We have agreed to buy it back for $1," Mirko Cvetkovic, the Prime Minister told a news conference. "U.S. Steel is leaving Serbia and the reason for that is the economic crisis."
U.S. Steel bought the then bankrupt Sartid steel mill from the central city of Smederevo in 2003 for $33 million, but the plant has been running well below annual capacity of 2.4 million tonnes for the past five years.
(sourced Reuters)
BELGRADE - The Serbian government will buy back U.S. Steel Corp's underperforming Serbian unit for a single U.S. dollar, the country's prime minister said on Friday.
"We have agreed to buy it back for $1," Mirko Cvetkovic, the Prime Minister told a news conference. "U.S. Steel is leaving Serbia and the reason for that is the economic crisis."
U.S. Steel bought the then bankrupt Sartid steel mill from the central city of Smederevo in 2003 for $33 million, but the plant has been running well below annual capacity of 2.4 million tonnes for the past five years.
(sourced Reuters)
Griffin coal negotiations fail
Saturday, 28 Jan 2012
The latest round of negotiations at Lanco's Griffin coal mine have failed. A settlement is yet to be reached in the battle between unions and the company over pay and working hours.
According to the Collie Mail, unions previously believed they had come to an agreement with Lanco over the proposed shift changes. However the company is still pushing for an increase in shift times and hotseat changeovers on site, with the aim to enhance production fourfold.
CFMEU secretary Mr Gary Wood stated that Lanco will not be able to support its motion. He said that "There is no way in the world they can get this up. They won’t be able to get it up before arbitration. We have provided documents showing it (the longer shift time) is inappropriate from a fatigue point of view.”
He added that "It is also is inappropriate from a community point of view. There are only 24 hours in a day and the workers need to travel, prepare for work and recover."
Mr Wood stated that while the most recent round of negotiations had failed, talks are progressing. He said that "We had only half a day with Griffin on Monday and are getting close. But nothing is agreed until everything is agreed."
The major sticking point remains the increased shift hours.
Mr Wood further said that "There is no firm position one way of the other, but we are reasonably confident that common sense on the safety issues will prevail.”
(sourced MiningAustralia.com.au)
The latest round of negotiations at Lanco's Griffin coal mine have failed. A settlement is yet to be reached in the battle between unions and the company over pay and working hours.
According to the Collie Mail, unions previously believed they had come to an agreement with Lanco over the proposed shift changes. However the company is still pushing for an increase in shift times and hotseat changeovers on site, with the aim to enhance production fourfold.
CFMEU secretary Mr Gary Wood stated that Lanco will not be able to support its motion. He said that "There is no way in the world they can get this up. They won’t be able to get it up before arbitration. We have provided documents showing it (the longer shift time) is inappropriate from a fatigue point of view.”
He added that "It is also is inappropriate from a community point of view. There are only 24 hours in a day and the workers need to travel, prepare for work and recover."
Mr Wood stated that while the most recent round of negotiations had failed, talks are progressing. He said that "We had only half a day with Griffin on Monday and are getting close. But nothing is agreed until everything is agreed."
The major sticking point remains the increased shift hours.
Mr Wood further said that "There is no firm position one way of the other, but we are reasonably confident that common sense on the safety issues will prevail.”
(sourced MiningAustralia.com.au)
Australia and Indonesia eyeing Bangladesh
Saturday, 28 Jan 2012
Australian and Indonesia coal miners are eyeing Bangladesh as a potential new market after the authorities concerned have opted to import coal, instead of exploring its domestic reserves.
Traders and experts said that meanwhile, the Bangladesh's option has also opened up scope for India to export its low quality coal to the former.
Bangladesh has been importing some 2.0 million tonnes from that country annually. Prof Mohammad Tamim, a former special assistant on energy affairs to the past caretaker government told the FE that "For power generation, we will prefer coal from Australia or Indonesia as the Indian coal is not energetic enough to serve the purpose.”
He said though the coal of South Africa is of high quality, it would be much expensive for Bangladesh.
However, a section of traders said India coal could be very much used in power plants after being blended with coal from Australia or Indonesia.
A leader of Federation of Bangladesh Chambers of Commerce and Industry told the FE that "If Indian coal starts coming in a very large quantity, the already persistent large trade gap against Bangladesh will widen further enlarging, in favour of the South Asian major economy.”
However, the trade gap was expected to narrow down as India announced duty and quota free access for Bangladeshi items including 46 garment products late last year.
The ministry of commerce officials said that with the increase in exports of garment and some other items to India following its announcement about shortening its sensitive list to 25 from 480, the trade gap is expected to narrow at a quicker pace.
Currently, India exports goods worth USD 5.0 billion to Bangladesh against its import worth only USD 500 million from the latter a year, as the trade data until June last indicated.
(sourced TheFinancialExpress-bd.com)
Australian and Indonesia coal miners are eyeing Bangladesh as a potential new market after the authorities concerned have opted to import coal, instead of exploring its domestic reserves.
Traders and experts said that meanwhile, the Bangladesh's option has also opened up scope for India to export its low quality coal to the former.
Bangladesh has been importing some 2.0 million tonnes from that country annually. Prof Mohammad Tamim, a former special assistant on energy affairs to the past caretaker government told the FE that "For power generation, we will prefer coal from Australia or Indonesia as the Indian coal is not energetic enough to serve the purpose.”
He said though the coal of South Africa is of high quality, it would be much expensive for Bangladesh.
However, a section of traders said India coal could be very much used in power plants after being blended with coal from Australia or Indonesia.
A leader of Federation of Bangladesh Chambers of Commerce and Industry told the FE that "If Indian coal starts coming in a very large quantity, the already persistent large trade gap against Bangladesh will widen further enlarging, in favour of the South Asian major economy.”
However, the trade gap was expected to narrow down as India announced duty and quota free access for Bangladeshi items including 46 garment products late last year.
The ministry of commerce officials said that with the increase in exports of garment and some other items to India following its announcement about shortening its sensitive list to 25 from 480, the trade gap is expected to narrow at a quicker pace.
Currently, India exports goods worth USD 5.0 billion to Bangladesh against its import worth only USD 500 million from the latter a year, as the trade data until June last indicated.
(sourced TheFinancialExpress-bd.com)
Friday, January 27, 2012
Karnataka mining ban being lifted soon - Mr Mukherjee
Friday, 27 Jan 2012
Vedanta group firm Sesa Goa aims to produce about 20 million tonnes of iron ore next financial year as the firm is hopeful of the mining ban in Karnataka being lifted soon.
Mr PK Mukherjee MD of Sesa Goa in an earnings call said that "I am an optimist... I can not imagine in my wildest dreams that Karnataka will not come in the next financial year. The production from the state will not be less than 6 million tonne per annum. In Goa, it will be almost at the same levels (as of this fiscal).”
He said that the company expects to produce about 14 million tonnes from Goa in the current fiscal.
Talking about Karnataka, Mr Mukherjee said Sesa Goa is ready to restart its operations in the state as and when the ban on mining imposed by the Supreme Court gets lifted. He said that "I am the smartest guy in Karnataka. The moment the whistle is blown, I will be the first person to restart the operations while admitting that all mines in the state may not be allowed to start at one go.”
The Vedanta group firm has a producing iron ore mine of about 6 million tonne per annum capacity in Chitradurga district of Karnataka.
However, it had stopped production, like all other miners in the state, post imposition of the mining ban by the apex court due to large scale environmental degradation in these areas.
(Sourced from www.deccanherald.com)
Vedanta group firm Sesa Goa aims to produce about 20 million tonnes of iron ore next financial year as the firm is hopeful of the mining ban in Karnataka being lifted soon.
Mr PK Mukherjee MD of Sesa Goa in an earnings call said that "I am an optimist... I can not imagine in my wildest dreams that Karnataka will not come in the next financial year. The production from the state will not be less than 6 million tonne per annum. In Goa, it will be almost at the same levels (as of this fiscal).”
He said that the company expects to produce about 14 million tonnes from Goa in the current fiscal.
Talking about Karnataka, Mr Mukherjee said Sesa Goa is ready to restart its operations in the state as and when the ban on mining imposed by the Supreme Court gets lifted. He said that "I am the smartest guy in Karnataka. The moment the whistle is blown, I will be the first person to restart the operations while admitting that all mines in the state may not be allowed to start at one go.”
The Vedanta group firm has a producing iron ore mine of about 6 million tonne per annum capacity in Chitradurga district of Karnataka.
However, it had stopped production, like all other miners in the state, post imposition of the mining ban by the apex court due to large scale environmental degradation in these areas.
(Sourced from www.deccanherald.com)
Government asked to divert E auction coal to power sector
Friday, 27 Jan 2012
Faced with acute fuel scarcity, private power producers, including Reliance, Adanis and TATAs have suggested to Prime Minister, Dr Manmohan Singh that the coal set side for e auction be diverted for power sector at notified prices.
The Association of Power Producers came up with detailed suggestions to address multiple woes plaguing the sector, just days after chiefs of private power companies met the Prime Minister on January 18.
APP in a communication to the Prime Minister’s Office said that “To meet the current (fuel) deficit situation, e auction coal should be diverted for the power sector at notified prices (to avoid tariff shocks).”
APP members that include Adanis, Reliance, TATAs, Essar, Lanco and GMR, account for over 95% of the power capacity in the private sector.
The communication said that “Available coal should be equally distributed to all the plants against FSA/Letter of Assurance/MoU instead of old plants with less efficient operation getting 100% coal and newer, more efficient and higher sized power critical units getting deprived of coal.”
As per the communication, the private power producers have also suggested that domestic coal should be reserved for regulated sectors such as power and fertiliser.
In August last year, a parliamentary panel had said that coal availability for power plants designed to run on indigenous coal would be only 417.5 MT in the current fiscal, as against the requirement of 480 MT.
(Sourced from BL)
Faced with acute fuel scarcity, private power producers, including Reliance, Adanis and TATAs have suggested to Prime Minister, Dr Manmohan Singh that the coal set side for e auction be diverted for power sector at notified prices.
The Association of Power Producers came up with detailed suggestions to address multiple woes plaguing the sector, just days after chiefs of private power companies met the Prime Minister on January 18.
APP in a communication to the Prime Minister’s Office said that “To meet the current (fuel) deficit situation, e auction coal should be diverted for the power sector at notified prices (to avoid tariff shocks).”
APP members that include Adanis, Reliance, TATAs, Essar, Lanco and GMR, account for over 95% of the power capacity in the private sector.
The communication said that “Available coal should be equally distributed to all the plants against FSA/Letter of Assurance/MoU instead of old plants with less efficient operation getting 100% coal and newer, more efficient and higher sized power critical units getting deprived of coal.”
As per the communication, the private power producers have also suggested that domestic coal should be reserved for regulated sectors such as power and fertiliser.
In August last year, a parliamentary panel had said that coal availability for power plants designed to run on indigenous coal would be only 417.5 MT in the current fiscal, as against the requirement of 480 MT.
(Sourced from BL)
Adani Power to end coal purchase contract with Mahavitaran
Friday, 27 Jan 2012
Adani Power Maharashtra Ltd a subsidiary of Adani Power Ltd, wants to terminate the power purchase agreement it signed with state owned distribution utility Mahavitaran Ltd due to reasons beyond the company’s control.
The company won’t be able to use coal from the captive block allotted to it for environmental reasons. It has offered to supply power at a higher price than agreed in the PPA.
The move raises a question mark on power supply from Adani Power’s 3,300MW Tiroda power project in the state’s Gondia district and means the state government may be unable to meet its target of ending power cuts in Maharashtra by the close of 2012.
The first 660MW unit of APML’s Tiroda power plant was scheduled to be commissioned in August and another 660MW unit by December.
Maharashtra has been reeling under a power shortfall of 4,500 to 5,500MW for more than a decade, with power cuts ranging from four hours in urban areas to 12 hours in rural areas. The shortfall has been narrowed to around 3,000MW in the last one and a half years due to the availability of power from various sources.
The state government had expected that this year an additional 3,000MW power would become available from private power producers and state power generation firm Maharashtra State Power Generation Co. Ltd (Mahagenco), which included 1,320MW from Adani Power’s plant at Tiroda.
APML cited unforeseeable circumstances for wanting to terminate the agreement in its letter to Mahvitaran, which has been reviewed by Mint.
The company said the ministry of environment and forests has denied clearance required for access to captive coal from the block allocated by the coal ministry at Lohara in the Chandrapur district of Maharashtra. MoEF said the allocated coal block is in the buffer zone of the Tadoba tiger reserve.
(Sourced from www.livemint.com)
Adani Power Maharashtra Ltd a subsidiary of Adani Power Ltd, wants to terminate the power purchase agreement it signed with state owned distribution utility Mahavitaran Ltd due to reasons beyond the company’s control.
The company won’t be able to use coal from the captive block allotted to it for environmental reasons. It has offered to supply power at a higher price than agreed in the PPA.
The move raises a question mark on power supply from Adani Power’s 3,300MW Tiroda power project in the state’s Gondia district and means the state government may be unable to meet its target of ending power cuts in Maharashtra by the close of 2012.
The first 660MW unit of APML’s Tiroda power plant was scheduled to be commissioned in August and another 660MW unit by December.
Maharashtra has been reeling under a power shortfall of 4,500 to 5,500MW for more than a decade, with power cuts ranging from four hours in urban areas to 12 hours in rural areas. The shortfall has been narrowed to around 3,000MW in the last one and a half years due to the availability of power from various sources.
The state government had expected that this year an additional 3,000MW power would become available from private power producers and state power generation firm Maharashtra State Power Generation Co. Ltd (Mahagenco), which included 1,320MW from Adani Power’s plant at Tiroda.
APML cited unforeseeable circumstances for wanting to terminate the agreement in its letter to Mahvitaran, which has been reviewed by Mint.
The company said the ministry of environment and forests has denied clearance required for access to captive coal from the block allocated by the coal ministry at Lohara in the Chandrapur district of Maharashtra. MoEF said the allocated coal block is in the buffer zone of the Tadoba tiger reserve.
(Sourced from www.livemint.com)
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