Saturday, 17 Dec 2011
Bloomberg reported that Aquila Resources Ltd selling assets to help fund a AUD 5.2 billion iron ore project in Australia is in talks with two bidders for the sale of a coal asset.
Mr Martin Alciaturi general manager finance and corporate of the Perth based company said that “We remain in active dialog with two bidders and expect to announce a transaction in the near future.”
Aquila plans to develop the West Pilbara Iron Ore port, rail and mine project with joint venture partner AMCI Inc as demand for steel in China grows. The company is selling three assets, including the Washpool coking coal project in Australia and the Avontuur manganese project in South Africa.
Mr Alciaturi said that “We remain in active dialog with two bidders and expect to announce a transaction in the near future.”
Washpool is valued at AUD 263 million and Avontuur at AUD 120 million.
(Sourced from Bloomberg)
Showing posts with label Aquila Resources Ltd.. Show all posts
Showing posts with label Aquila Resources Ltd.. Show all posts
Saturday, December 17, 2011
Monday, November 14, 2011
Aquila Resources approves West Pilbara iron ore project
Monday, 14 Nov 2011
Aquila Resources Limited advise that it has advanced the approval processes for the West Pilbara Iron Ore Project in which the Company holds a 50% interest, regarding the development of Anketell Port and the development of a railway, mines and mine infrastructure south west of Pannawonica.
Port Facilities
In a letter received today, DSD has given its support to the assessment by the Environmental Protection Authority of an amendment to the Anketell Port PER to describe a revised port layout.
The amendment document describes and evaluates changes to the port proposal and addresses submissions received on the original PER and DSD acknowledged that the environmental data and analysis in
the draft PER was a significant consideration in the Dampier Port Authority’s master planning process.
The PER amendment document will be available for examination for 30 days from next week. On the current schedule a report from the EPA as to the environmental acceptability of the proposed Anketell Port development is anticipated late in the March Quarter 2012.
The revised proposal provides for other mining companies to participate in the port development of up to 100Mtpa.
Mine and Rail Facilities
Progress is being made in respect of other approvals necessary for the Project. State and Commonwealth Ministerial environmental approvals for the mine and rail elements are expected before the end of the year.
The Stage 1 Project Management Plan for the construction and operation of the mining operations has been approved by the Department of Mines and Petroleum.
Applications for Mining Leases and other tenure necessary for the mining operations and infrastructure such as Miscellaneous Licences have been lodged with the Department of Mines and Petroleum. Assuming a successful completion of Native Title agreements, receipt of the Mining Leases is expected by mid-2012.
HIGHLIGHTS
1. Department of State Development supports amendment of the Anketell Port Public Environmental Review to accommodate up to 100 million tonne per annum capacity development
2. Environmental approvals from the State and Commonwealth governments for the mine and rail facilities are expected before the end of the year
3. Applications for Mining Leases and Miscellaneous Licences submitted to the Department of Mines and Petroleum
4. The Department of Mines and Petroleum has approved the Stage 1 Project Management Plan for the mining operations
Aquila Resources Limited advise that it has advanced the approval processes for the West Pilbara Iron Ore Project in which the Company holds a 50% interest, regarding the development of Anketell Port and the development of a railway, mines and mine infrastructure south west of Pannawonica.
Port Facilities
In a letter received today, DSD has given its support to the assessment by the Environmental Protection Authority of an amendment to the Anketell Port PER to describe a revised port layout.
The amendment document describes and evaluates changes to the port proposal and addresses submissions received on the original PER and DSD acknowledged that the environmental data and analysis in
the draft PER was a significant consideration in the Dampier Port Authority’s master planning process.
The PER amendment document will be available for examination for 30 days from next week. On the current schedule a report from the EPA as to the environmental acceptability of the proposed Anketell Port development is anticipated late in the March Quarter 2012.
The revised proposal provides for other mining companies to participate in the port development of up to 100Mtpa.
Mine and Rail Facilities
Progress is being made in respect of other approvals necessary for the Project. State and Commonwealth Ministerial environmental approvals for the mine and rail elements are expected before the end of the year.
The Stage 1 Project Management Plan for the construction and operation of the mining operations has been approved by the Department of Mines and Petroleum.
Applications for Mining Leases and other tenure necessary for the mining operations and infrastructure such as Miscellaneous Licences have been lodged with the Department of Mines and Petroleum. Assuming a successful completion of Native Title agreements, receipt of the Mining Leases is expected by mid-2012.
HIGHLIGHTS
1. Department of State Development supports amendment of the Anketell Port Public Environmental Review to accommodate up to 100 million tonne per annum capacity development
2. Environmental approvals from the State and Commonwealth governments for the mine and rail facilities are expected before the end of the year
3. Applications for Mining Leases and Miscellaneous Licences submitted to the Department of Mines and Petroleum
4. The Department of Mines and Petroleum has approved the Stage 1 Project Management Plan for the mining operations
Friday, October 7, 2011
Eagle down hard coking coal project Vale appeals injunction
Fri,07 Oct 2011
Aquila Resources Limited refers to its announcement dated 8 September 2011 regarding the interlocutory injunction obtained by Aquila Coal Pty Ltd restraining Vale SA wholly owned subsidiary, Bowen Central Coal Pty Ltd from seeking to vote on a resolution proposed by Vale in relation to the Eagle Downs Hard Coking Coal Project.
Late on Tuesday 4 October 2011, the last day of the appeal period available to Vale, Aquila Coal was served a notice of appeal by Vale. Aquila will defend the appeal.
Aquila will continue to keep the market informed of developments in respect of the above.
Aquila Resources Limited refers to its announcement dated 8 September 2011 regarding the interlocutory injunction obtained by Aquila Coal Pty Ltd restraining Vale SA wholly owned subsidiary, Bowen Central Coal Pty Ltd from seeking to vote on a resolution proposed by Vale in relation to the Eagle Downs Hard Coking Coal Project.
Late on Tuesday 4 October 2011, the last day of the appeal period available to Vale, Aquila Coal was served a notice of appeal by Vale. Aquila will defend the appeal.
Aquila will continue to keep the market informed of developments in respect of the above.
Sunday, September 11, 2011
Aquila Resources updates on West Pilbara Iron Ore Project
Sunday, 11 Sep 2011
The Weckl Deposit is the first area of mineralization identified in the south-eastern area of the Mt Elvire Project. The Deposit is a Detrital Iron Deposit, comprising three narrow valleys incised into the Hamersley Range.
Buckland Hills
The Buckland Hills Deposit is located in the western area of the Mt Elvire Project, 30km east of the proposed railway to be constructed for the Stage 1 development of the West Pilbara Iron Ore Project. This Deposit is contiguous with the Bungaroo South Deposit owned by Iron Ore Holdings Limited.
Aquila Resources Limited report an update to the JORC Mineral Resource estimate for the West Pilbara Iron Ore Project located in the Pilbara region of Western Australia. The Company has a 50% interest in the Project.
With the assistance of Golder Associates Pty Limited, maiden Mineral Resource estimates have been completed for the Weckl and Buckland Hills within the Mt Elvire Project, adding 296 million tonnes to the previous JORC Resource Statement total of 927 million tonnes, advised to the ASX on 1 November 2010, taking the total Mineral Resource inventory for the Project to 1,223 million tonnes.
Weckl and Buckland Hills Deposits - Inferred Resources
| Tonnes | Fe% | SiO2% | Al2O3% | P % | S % | Mn % | MgO% | LOI% | |
| Weckl | 101 | 54.4 | 11.94 | 3.60 | 0.080 | 0.021 | 0.025 | 0.050 | 5.76 |
| Buckland Hills | 149 | 57.0 | 7.01 | 2.41 | 0.135 | 0.010 | 0.096 | 0.058 | 8.28 |
| Buckland Hills - Southeast | 46 | 56.5 | 8.05 | 2.42 | 0.142 | 0.016 | 0.024 | 0.054 | 8.04 |
| Total | 296 | 56.0 | 8.85 | 2.82 | 0.117 | 0.015 | 0.061 | 0.055 | 7.38 |
The Weckl Deposit is the first area of mineralization identified in the south-eastern area of the Mt Elvire Project. The Deposit is a Detrital Iron Deposit, comprising three narrow valleys incised into the Hamersley Range.
Buckland Hills
The Buckland Hills Deposit is located in the western area of the Mt Elvire Project, 30km east of the proposed railway to be constructed for the Stage 1 development of the West Pilbara Iron Ore Project. This Deposit is contiguous with the Bungaroo South Deposit owned by Iron Ore Holdings Limited.
Saturday, August 20, 2011
Vale to spend $875 million on coking coal mine with Aquila
Saturday, 20 August
Vale SA, the world's biggest iron ore exporter, approved spending $875 million to pay its share in the Eagle Downs coal project in Queensland it owns with equal joint venture partner Aquila Resources Ltd.
Eagle Downs, an underground mine project in the Bowen Basin, is planned to produce an average of 4.5 million metric tons of steelmaking coal annually, Rio de Janeiro-based Vale said in an e-mailed statement. The Queensland government also approved the project's mine lease, it said.
Vale expects to "expedite commencement of the project" after board and government approvals, Decio Amaral, Vale's
Global Coal Director, said in the statement. "We're looking to start construction as soon as possible, with the first long wall operation in the third quarter of 2015," he said.
The Brazilian company is mining and developing coal projects from Australia to Columbia and Mozambique, aiming to boost output to 40 million metric tons by 2016. Demand for steel
will rise 6 percent next year, according to the World Steel Association.
Eagle Downs may cost A$1.2 billion to develop, Aquila said May 31, with a board decision due in the second quarter of 2012.
Aquila fell 2.9 percent to A$5.64 at 10:27 a.m. Sydney time, compared with a 2.3 percent drop in the benchmark S&P/ASX 200 index.
Vale SA, the world's biggest iron ore exporter, approved spending $875 million to pay its share in the Eagle Downs coal project in Queensland it owns with equal joint venture partner Aquila Resources Ltd.
Eagle Downs, an underground mine project in the Bowen Basin, is planned to produce an average of 4.5 million metric tons of steelmaking coal annually, Rio de Janeiro-based Vale said in an e-mailed statement. The Queensland government also approved the project's mine lease, it said.
Vale expects to "expedite commencement of the project" after board and government approvals, Decio Amaral, Vale's
Global Coal Director, said in the statement. "We're looking to start construction as soon as possible, with the first long wall operation in the third quarter of 2015," he said.
The Brazilian company is mining and developing coal projects from Australia to Columbia and Mozambique, aiming to boost output to 40 million metric tons by 2016. Demand for steel
will rise 6 percent next year, according to the World Steel Association.
Eagle Downs may cost A$1.2 billion to develop, Aquila said May 31, with a board decision due in the second quarter of 2012.
Aquila fell 2.9 percent to A$5.64 at 10:27 a.m. Sydney time, compared with a 2.3 percent drop in the benchmark S&P/ASX 200 index.
Friday, August 19, 2011
Aquila and AMCI reject Red Hill Iron Limited claim
Friday, 19 Aug 2011
Aquila Resources Limited refers to the announcement by Red Hill Iron Limited that it has instituted legal proceedings against API Management Pty Ltd a company jointly owned by AMCI (IO) Pty Ltd and Aquila Steel Pty Ltd a wholly owned subsidiary of Aquila.
Aquila believes the substantive claims of Red Hill Iron Limited are without foundation and, having discussed the matter with its co-joint venturer AMCI, advises that API will vigorously contest the proceedings.
Aquila Resources Limited refers to the announcement by Red Hill Iron Limited that it has instituted legal proceedings against API Management Pty Ltd a company jointly owned by AMCI (IO) Pty Ltd and Aquila Steel Pty Ltd a wholly owned subsidiary of Aquila.
Aquila believes the substantive claims of Red Hill Iron Limited are without foundation and, having discussed the matter with its co-joint venturer AMCI, advises that API will vigorously contest the proceedings.
Thursday, August 11, 2011
Competition heats up for Pilbara port and rail use
Thu,August 11, 2011
By Minsi Chung
With several key iron ore projects due to come online in the north west of Western Australia, competition for existing port and rail infrastructure is intensifying.
The proposed $4 billion open access port at Anketell Point about 30 km east of Karratha is expected to be one of the solutions, with the port set to ship 350 million tonnes of product a year.
The Environmental Protection Authority has recently given Aquila Resources approval for the $6 billion West Pilbara Iron Ore Project south of Pannawonica, which includes the construction of a 285 km rail line connecting the mine to the Anketell Point Port.
Companies like Aquila are now hoping the next step will be the environmental approval for the port itself.
The Aquila Executive Chairman Tony Poli says Anketell is of paramount importance - not just to the West Pilbara Iron Ore Project - but also to the state.
"With the fullness of time there will be also other industrial uses, agricultural uses going through Anketell Point, so it is an extremely important asset to the state, putting aside the significant royalties the state will win from Aquila and other companies exporting iron ore to China."
He says the open access port is also important for other companies, especially the smaller iron ore players.
"It is very important to the West Pilbara; there is no other open access port in the West Pilbara," he said.
"You have Rio Tinto's Cape Lambert [port] which is only 10 km away from the proposed Anketell Port but unfortunately it is not open to third parties.
"It is a significant project for companies like Atlas Iron and Iron Ore Holdings, who have made it public they would also like to use Anketell and other companies like Flinders, who are very dependent on the on the development of Anketell, it must be high on their list of priorities.
"Indeed it could service one day FMG, Rio Tinto and BHP."
Fortescue Metals Group has also flagged its interest in the port at Anketell.
While FMG currently exports out of Port Hedland Port, a company spokeswoman says Anketell is crucial to its plans to expand its capacity to 155 million tonnes a year.
"The timely development of a new Pilbara port is vital for the future expansion of the Pilbara resources industry," she said.
"Fortescue's priority in the development of the port is that it is built with future expansion in mind."
Anketell is expected to open up new growth opportunities in the region and will be important to ease the pressure off other ports, which are approaching capacity.
The Port Hedland Port, which is the main multi-user port in the region, reported record figures last financial year, shipping more than 199 million tonnes of bulk exports.
The 2010-2011 figure is up more than 20 billion tonnes on the previous year and is a jump of 80 per cent on five years ago.
While Port Hedland is expanding to take its capacity to more than 400 million tonnes in the coming years, it is currently fully allocated.
Who will lead?
Anketell is funded solely by the private sector and once built, will be managed by the Dampier Port Authority.
Aquila Resources is hoping to become the lead proponent as part of the API joint venture with US investment group AMCI, but will have to fight FMG for the rights to be the lead company.
The State Government is expected to decide by the end of the year whether it is Aquila, FMG or even a third party, who will take control of building the port.
And the government will be keen to avoid the problems which have plagued another of the state's key port developments, Oakajee, which has been delayed over funding concerns.
Aquila's Tony Poli believes Anketell will go ahead.
"I think the significant advantage we have is that the feasibility study we have completed on the project clearly shows that our project alone will support the development of the port," he said.
In a report by Bell Potter analysts Fleur Close and David George, Aquila is marked as the lead contender because its West Pilbara Iron Ore Project is the driver of the port project and the approvals process, but it needs to show it can come up with the money.
"From the government's point of view, it will be looking to appoint someone it can count on to deliver," the report stated.
"The other port project the government has supported is the Oakajee Port project which has failed to deliver on time.
"From that perspective, FMG is well credentialed".
And FMG says it is confident it has the sufficient resources to underpin the Anketell Point project.
But Mr Poli also appears optimistic and says Aquila is looking forward to demonstrating it has the financial capabilities to fund the infrastructure of the port.
"We hope to have some positive announcements in terms of funding in the September quarter," he said.
"We are in discussions [with] the China Development Bank as a result of a MOU with Baosteel."
Aquila needs the port by 2014 when it expects to start producing from the West Pilbara Iron Ore Project.
FMG also expects to reach its 155Mtpa production target in 2014.
Meanwhile, the Environmental Protection Agency is due to release its environmental assessment for Anketell by the end of this year, with construction scheduled for the second quarter of next year.
The West Pilbara Iron Ore Project is now waiting for the final greenlight from the Environment Minister Bill Marmion.
(sourced ABC.net)
By Minsi Chung
With several key iron ore projects due to come online in the north west of Western Australia, competition for existing port and rail infrastructure is intensifying.
The proposed $4 billion open access port at Anketell Point about 30 km east of Karratha is expected to be one of the solutions, with the port set to ship 350 million tonnes of product a year.
The Environmental Protection Authority has recently given Aquila Resources approval for the $6 billion West Pilbara Iron Ore Project south of Pannawonica, which includes the construction of a 285 km rail line connecting the mine to the Anketell Point Port.
Companies like Aquila are now hoping the next step will be the environmental approval for the port itself.
The Aquila Executive Chairman Tony Poli says Anketell is of paramount importance - not just to the West Pilbara Iron Ore Project - but also to the state.
"With the fullness of time there will be also other industrial uses, agricultural uses going through Anketell Point, so it is an extremely important asset to the state, putting aside the significant royalties the state will win from Aquila and other companies exporting iron ore to China."
He says the open access port is also important for other companies, especially the smaller iron ore players.
"It is very important to the West Pilbara; there is no other open access port in the West Pilbara," he said.
"You have Rio Tinto's Cape Lambert [port] which is only 10 km away from the proposed Anketell Port but unfortunately it is not open to third parties.
"It is a significant project for companies like Atlas Iron and Iron Ore Holdings, who have made it public they would also like to use Anketell and other companies like Flinders, who are very dependent on the on the development of Anketell, it must be high on their list of priorities.
"Indeed it could service one day FMG, Rio Tinto and BHP."
Fortescue Metals Group has also flagged its interest in the port at Anketell.
While FMG currently exports out of Port Hedland Port, a company spokeswoman says Anketell is crucial to its plans to expand its capacity to 155 million tonnes a year.
"The timely development of a new Pilbara port is vital for the future expansion of the Pilbara resources industry," she said.
"Fortescue's priority in the development of the port is that it is built with future expansion in mind."
Anketell is expected to open up new growth opportunities in the region and will be important to ease the pressure off other ports, which are approaching capacity.
The Port Hedland Port, which is the main multi-user port in the region, reported record figures last financial year, shipping more than 199 million tonnes of bulk exports.
The 2010-2011 figure is up more than 20 billion tonnes on the previous year and is a jump of 80 per cent on five years ago.
While Port Hedland is expanding to take its capacity to more than 400 million tonnes in the coming years, it is currently fully allocated.
Who will lead?
Anketell is funded solely by the private sector and once built, will be managed by the Dampier Port Authority.
Aquila Resources is hoping to become the lead proponent as part of the API joint venture with US investment group AMCI, but will have to fight FMG for the rights to be the lead company.
The State Government is expected to decide by the end of the year whether it is Aquila, FMG or even a third party, who will take control of building the port.
And the government will be keen to avoid the problems which have plagued another of the state's key port developments, Oakajee, which has been delayed over funding concerns.
Aquila's Tony Poli believes Anketell will go ahead.
"I think the significant advantage we have is that the feasibility study we have completed on the project clearly shows that our project alone will support the development of the port," he said.
In a report by Bell Potter analysts Fleur Close and David George, Aquila is marked as the lead contender because its West Pilbara Iron Ore Project is the driver of the port project and the approvals process, but it needs to show it can come up with the money.
"From the government's point of view, it will be looking to appoint someone it can count on to deliver," the report stated.
"The other port project the government has supported is the Oakajee Port project which has failed to deliver on time.
"From that perspective, FMG is well credentialed".
And FMG says it is confident it has the sufficient resources to underpin the Anketell Point project.
But Mr Poli also appears optimistic and says Aquila is looking forward to demonstrating it has the financial capabilities to fund the infrastructure of the port.
"We hope to have some positive announcements in terms of funding in the September quarter," he said.
"We are in discussions [with] the China Development Bank as a result of a MOU with Baosteel."
Aquila needs the port by 2014 when it expects to start producing from the West Pilbara Iron Ore Project.
FMG also expects to reach its 155Mtpa production target in 2014.
Meanwhile, the Environmental Protection Agency is due to release its environmental assessment for Anketell by the end of this year, with construction scheduled for the second quarter of next year.
The West Pilbara Iron Ore Project is now waiting for the final greenlight from the Environment Minister Bill Marmion.
(sourced ABC.net)
Thursday, July 28, 2011
Normal shipments to resume at Aquila Resources Isaac Plains coal mine
Thursday, 28 Jul 2011
Aquila Resources Limited refers to the various recent announcements regarding the dispute between its wholly owned subsidiary IP Coal Pty Ltd and Vale Australia Pty Ltd as to the basis on which future separate shipments of coal can be sent from the Isaac Plains Coal Mine. The most recent announcement was on 13 July 2011 which confirmed that a single upcoming shipment by IP Coal would proceed.
Aquila announced that Vale and IP Coal have reached an agreement which effectively puts aside the difference of opinion between them regarding the ability to make separate shipments of coal from Isaac Plains. This means that normal shipments of coal will now resume.
The agreement applies until March 31st 2012. IP Coal and Vale are continuing to pursue options for a longer term resolution of the issues regarding separate shipments of coal from Isaac Plains.
Aquila will keep the market informed of developments in respect of the above.
An Aquila spokesperson said that "Aquila remains firmly of the view that none of this disruption was necessary but, now that we have certainty, our focus is to clear the backlog of predominately coking coal. We have a number of ships lined up and it is important for the ongoing efficiency of the mine that coal is shipped as soon as possible."
Aquila Resources Limited refers to the various recent announcements regarding the dispute between its wholly owned subsidiary IP Coal Pty Ltd and Vale Australia Pty Ltd as to the basis on which future separate shipments of coal can be sent from the Isaac Plains Coal Mine. The most recent announcement was on 13 July 2011 which confirmed that a single upcoming shipment by IP Coal would proceed.
Aquila announced that Vale and IP Coal have reached an agreement which effectively puts aside the difference of opinion between them regarding the ability to make separate shipments of coal from Isaac Plains. This means that normal shipments of coal will now resume.
The agreement applies until March 31st 2012. IP Coal and Vale are continuing to pursue options for a longer term resolution of the issues regarding separate shipments of coal from Isaac Plains.
Aquila will keep the market informed of developments in respect of the above.
An Aquila spokesperson said that "Aquila remains firmly of the view that none of this disruption was necessary but, now that we have certainty, our focus is to clear the backlog of predominately coking coal. We have a number of ships lined up and it is important for the ongoing efficiency of the mine that coal is shipped as soon as possible."
Saturday, January 22, 2011
Australia govt: 20 pct of qtr coal exports lost to floods
* Gov't forecasts 20pct of Australia's quarterly coal exports lost to floods
* Around 7 pct of cotton plantings also lost
* Cockatoo, Aquila make headway at coal mines leave force majeure in place (Wraps ABARES data, Rio Tinto, Aquila)
By James Regan
SYDNEY, Jan 21 (Reuters) - Australia's devastating floods, which shut mines and damaged rail lines, could cut coal exports by around 15 million tonnes, or 20 percent this quarter, even as collieries show signs of recovery, the government's commodities forecasting agency said on Friday.
Coal ports in hardest-hit Queensland state escaped severe damage, but are still operating well under capacity as a result of lower coal receivals, Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) said.
ABARES estimates flooding due to monsoon rains that started in November could lower coal export earnings by A$2.0 - $2.5 billion ($1.97-billion-2.47 billion) during the quarter to March 31.
"Coal production at affected mines has been reduced because of a number of factors, including flooded pits and difficulties in removing the water, and a lack of access to mine sites because of flooded roads," it said.
Australia was forecast to export 160 million tonnes of metallurgical coal and 158 million tonnes of thermal coal in fiscal 2011, according to ABARES.
Cockatoo Coal and Aquila Resources on Friday partially resumed operations in hardest Queensland state as floodwaters continued to recede.
But in the aftermath of one of Australia's worst natural disasters on record, mining companies say operations are still far from normal: Vital rail corridors linking mines with export terminals are only slowing being reactivated and force majeure -- a legal let-out enabling miners to break sales contracts without penalty -- remain in place across Queensland.
COAL OPERATIONS
Aquila, which mines 2.8 million tonnes a year of metallurgical and thermal coals from its Issac Plains mine in 50-50 partnership with Brazil's Vale warned it would still take some time to resume full operations. Cockatoo Coal said mining at its Baralaba operations would not start before February.
The Baralaba mine suffered some of the worst damage during the flooding after a levy protecting the lode collapsed sending a torrent of water into the pit.
Flooding at other mines -- most concentrated in the inland Bowen Basin -- was restricted to rainwater.
"Whilst all equipment is in working order, resumption of full production rates will take some time while dewatering of the site is completed, Cockatoo said.
It only expects to restart mining in February once pit dewatering provides improved access.
"A phased program of dewatering/mining is then expected to continue for several weeks as the mine returns to planned production capacity (about 150,000 tonnes per quarter)," Cockatoo said.
Suppliers of pumping equipment needed to empty water from the mines have said they will be hard-pressed to meet demand and environmentalists are concerned the water may pose health risks.
The flooding has been blamed on rains triggered by a La Nina Pacific weather pattern that has devastated huge areas of the eastern seaboard.
Rio Tinto RIO.L> this week said its Queensland coal mines were operational but still constrained and left its force majeure declaration in place. .
BHP Billiton , the world's largest supplier of sea-borne hard coking coal via a joint venture with Japan's Mitsubishi Corp , is bracing for lower production over the next six months in the aftermath of the flooding, which trimmed December quarter output by a third.
The flooding has driven contract prices for coking coal as high as $225 per tonne for the first quarter of 2011, compared to $209 per tonne in the fourth quarter of 2010.
Spot prices have shot up to more than $350 per tonne and consultants Wood Mackenzie said prices could reach $500.
This will mean higher second-quarter contract prices, based on average daily spot prices over the previous three months.
But a quicker-than-expected return to production would likely end the upward trajectory in coal prices, according to Patersons Securities analyst Andrew Harrington.
"This happened after flooding in 2007/08 caused the price to go up and then fall back," Harrington said.
WHEAT QUALITY DOWN, COTTON HIT
ABARES also estimated flooding cut agricultural production by at least A$500 million to A$600 million in 2010/11.
It said the winter harvest, including wheat, barley and canola, in most of the flood-affected regions was either complete or near completion before the recent flooding.
But a wet harvest means Australia, usually the world's fourth biggest wheat exporter, could see more than 10 million tonnes of wheat downgraded in quality to low quality milling wheat or feed wheat. A wet growing season means a near record 26 million tonnes of the grain could be harvested nationally.
ABARES also estimated that around seven percent of Australian cotton plantings, valued at A$150 million in 2010-11 was destroyed and a further 2 percent were at risk if the crops did not have the opportunity to dry out.
The 2010/11 Australian cotton harvest could be 3.95 million bales, 8 percent below an earlier estimate but the July to June year harvest would still be a record, exceeding the 3.52 million bales harvested in 2001/02, Rabobank said in a report last week. (4.4 bales equals 1 tone)
The wet weather in Queensland has had a limited impact on other mineral and energy commodity production concentred further north of the coalfields
The one notable exception was Rio Tinto declaring force majeure at its Boyne Island aluminium smelter. Force majeure was lifted on Friday after road and rail access to the port of Brisbane was restored .
(Additional reporting by Bruce Hextall and Balazs Koranyi; Editing by Ed Davies, sourced Reuters)
* Around 7 pct of cotton plantings also lost
* Cockatoo, Aquila make headway at coal mines leave force majeure in place (Wraps ABARES data, Rio Tinto, Aquila)
By James Regan
SYDNEY, Jan 21 (Reuters) - Australia's devastating floods, which shut mines and damaged rail lines, could cut coal exports by around 15 million tonnes, or 20 percent this quarter, even as collieries show signs of recovery, the government's commodities forecasting agency said on Friday.
Coal ports in hardest-hit Queensland state escaped severe damage, but are still operating well under capacity as a result of lower coal receivals, Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) said.
ABARES estimates flooding due to monsoon rains that started in November could lower coal export earnings by A$2.0 - $2.5 billion ($1.97-billion-2.47 billion) during the quarter to March 31.
"Coal production at affected mines has been reduced because of a number of factors, including flooded pits and difficulties in removing the water, and a lack of access to mine sites because of flooded roads," it said.
Australia was forecast to export 160 million tonnes of metallurgical coal and 158 million tonnes of thermal coal in fiscal 2011, according to ABARES.
Cockatoo Coal and Aquila Resources on Friday partially resumed operations in hardest Queensland state as floodwaters continued to recede.
But in the aftermath of one of Australia's worst natural disasters on record, mining companies say operations are still far from normal: Vital rail corridors linking mines with export terminals are only slowing being reactivated and force majeure -- a legal let-out enabling miners to break sales contracts without penalty -- remain in place across Queensland.
COAL OPERATIONS
Aquila, which mines 2.8 million tonnes a year of metallurgical and thermal coals from its Issac Plains mine in 50-50 partnership with Brazil's Vale warned it would still take some time to resume full operations. Cockatoo Coal said mining at its Baralaba operations would not start before February.
The Baralaba mine suffered some of the worst damage during the flooding after a levy protecting the lode collapsed sending a torrent of water into the pit.
Flooding at other mines -- most concentrated in the inland Bowen Basin -- was restricted to rainwater.
"Whilst all equipment is in working order, resumption of full production rates will take some time while dewatering of the site is completed, Cockatoo said.
It only expects to restart mining in February once pit dewatering provides improved access.
"A phased program of dewatering/mining is then expected to continue for several weeks as the mine returns to planned production capacity (about 150,000 tonnes per quarter)," Cockatoo said.
Suppliers of pumping equipment needed to empty water from the mines have said they will be hard-pressed to meet demand and environmentalists are concerned the water may pose health risks.
The flooding has been blamed on rains triggered by a La Nina Pacific weather pattern that has devastated huge areas of the eastern seaboard.
Rio Tinto RIO.L> this week said its Queensland coal mines were operational but still constrained and left its force majeure declaration in place. .
BHP Billiton , the world's largest supplier of sea-borne hard coking coal via a joint venture with Japan's Mitsubishi Corp , is bracing for lower production over the next six months in the aftermath of the flooding, which trimmed December quarter output by a third.
The flooding has driven contract prices for coking coal as high as $225 per tonne for the first quarter of 2011, compared to $209 per tonne in the fourth quarter of 2010.
Spot prices have shot up to more than $350 per tonne and consultants Wood Mackenzie said prices could reach $500.
This will mean higher second-quarter contract prices, based on average daily spot prices over the previous three months.
But a quicker-than-expected return to production would likely end the upward trajectory in coal prices, according to Patersons Securities analyst Andrew Harrington.
"This happened after flooding in 2007/08 caused the price to go up and then fall back," Harrington said.
WHEAT QUALITY DOWN, COTTON HIT
ABARES also estimated flooding cut agricultural production by at least A$500 million to A$600 million in 2010/11.
It said the winter harvest, including wheat, barley and canola, in most of the flood-affected regions was either complete or near completion before the recent flooding.
But a wet harvest means Australia, usually the world's fourth biggest wheat exporter, could see more than 10 million tonnes of wheat downgraded in quality to low quality milling wheat or feed wheat. A wet growing season means a near record 26 million tonnes of the grain could be harvested nationally.
ABARES also estimated that around seven percent of Australian cotton plantings, valued at A$150 million in 2010-11 was destroyed and a further 2 percent were at risk if the crops did not have the opportunity to dry out.
The 2010/11 Australian cotton harvest could be 3.95 million bales, 8 percent below an earlier estimate but the July to June year harvest would still be a record, exceeding the 3.52 million bales harvested in 2001/02, Rabobank said in a report last week. (4.4 bales equals 1 tone)
The wet weather in Queensland has had a limited impact on other mineral and energy commodity production concentred further north of the coalfields
The one notable exception was Rio Tinto declaring force majeure at its Boyne Island aluminium smelter. Force majeure was lifted on Friday after road and rail access to the port of Brisbane was restored .
(Additional reporting by Bruce Hextall and Balazs Koranyi; Editing by Ed Davies, sourced Reuters)
Rio and Aquila resume operations after Queensland floods
Saturday, 22 Jan 2011
Reuters reported that miners Rio Tinto and Aquila Resources have resumed some operations in Australia's flood ravaged Queensland state as waters receded and the region's vital mining and metals sector slowly returned to work.
Rio Tinto terminated force majeure at its Boyne Island aluminium smelter as it could resume transportation while Aquila restarted production at its Isaac Plains coal mine, a joint venture with Brazil's Vale.
But Queensland's coal industry, which suffered losses of over USD 2 billion according to some estimates, is still far from normal and Aquila warned it would still take some time to resume full operations while Cockatoo Coal said mining at its Baralaba operations would not start before February 2011.
Aquila said that "Whilst all equipment is in working order, resumption of full production rates will take some time while dewatering of the site is completed. Force Majeure remains in place on a number of sales contracts."
Australia accounts for around two-thirds of the world's coking coal exports and Queensland share is around 90 percent of that figures.
Gladstone Port, Queensland's second largest coal export port, earlier this week said it would take until the end of March 2011 for exports to return to normal while mining services companies said it could take three to six months to pump out all the water in mining pits.
(Sourced from www.reuters.com)
Reuters reported that miners Rio Tinto and Aquila Resources have resumed some operations in Australia's flood ravaged Queensland state as waters receded and the region's vital mining and metals sector slowly returned to work.
Rio Tinto terminated force majeure at its Boyne Island aluminium smelter as it could resume transportation while Aquila restarted production at its Isaac Plains coal mine, a joint venture with Brazil's Vale.
But Queensland's coal industry, which suffered losses of over USD 2 billion according to some estimates, is still far from normal and Aquila warned it would still take some time to resume full operations while Cockatoo Coal said mining at its Baralaba operations would not start before February 2011.
Aquila said that "Whilst all equipment is in working order, resumption of full production rates will take some time while dewatering of the site is completed. Force Majeure remains in place on a number of sales contracts."
Australia accounts for around two-thirds of the world's coking coal exports and Queensland share is around 90 percent of that figures.
Gladstone Port, Queensland's second largest coal export port, earlier this week said it would take until the end of March 2011 for exports to return to normal while mining services companies said it could take three to six months to pump out all the water in mining pits.
(Sourced from www.reuters.com)
Wednesday, January 12, 2011
BHP Coal Contract Change Spares Consumers Price Surge
BHP Billiton Ltd.’s push to set coal prices quarterly rather than annually may spare steelmakers from a surge in costs after flooding in Australia disrupted mine production in Queensland state.
“The market can respond far quicker than with the 12-month pricing and buyers will be prepared for an increase knowing they can always renegotiate the next contract,” said Gavin Wendt, a senior resource analyst at MineLife Pty in Sydney. “It’s a more fluid market. You probably won’t see the sorts of huge price movements that we saw a couple of years ago.”Steelmakers were hit with a threefold increase in annual contract prices to about $300 a metric ton in 2008 after heavy rains and floods affected mining in Queensland. This year, coal production and deliveries have been disrupted after Australia had its wettest September-to-November spring on record. BHP, the world’s biggest mining company, has urged the industry to move to short-term deals to make prices more responsive to market changes. It agreed with Japan’s JFE Holdings Inc. to the first three-month coking coal contract in March.Coking coal and iron-ore suppliers traditionally held annual talks with steelmakers to fix benchmark contracts for the 12 months from April 1, the start of the Japanese financial year. Quarterly accords mean producers can spread price increases caused by the rain over the course of the year.“Producers are not compelled to push for higher prices now to offset lost production, like they have in recent years, most notably the super-spike of $300 a ton,” UBS AG analysts led-by Sydney-based Tom Price said in an e-mailed note today. “They don’t have to wait another-12-months like they used to.”
Force Majeure
Production has been disrupted at mines operated by Macarthur Coal Ltd., Aquila Resources Ltd., Vale SA and Xstrata Plc. They have all declared force majeure, a legal clause invoked by companies when they can’t meet obligations because of circumstances beyond their control.“We’ve moved now to quarterly pricing, in the old days we had annual pricing,” Keith De Lacy, chairman of Macarthur Coal Ltd., the world’s largest producer of pulverized coal used in steel manufacturing, said on Bloomberg Television on Dec. 8. “The market responds a lot quicker to supply and demand.”BHP agreed with Japanese steelmakers to cut coking-coal prices by 7 percent in the three months ending Dec. 31. Kobe Steel Ltd. will pay $209 a metric ton, from $225 a ton in the quarter from July to September, Hiroyuki Hashimoto, a spokesman for Kobe Steel, said Sept. 1. JFE Holdings’ steel unit reached the same agreement, the company said.
Fiona Martin, spokeswoman for BHP, declined to comment on what percentage of the company’s coal contracts are settled on a quarterly basis. BHP Billiton-Mitsubishi Alliance, known as BMA, is the world’s biggest exporter of coal for steelmaking and operates seven mines in Queensland’s Bowen Basin.
Consumers Concerned “All our readings of the consumer side is that they’re very concerned about making sure that they have enough supply,” Andrew Harrington, an analyst at Patersons Securities Ltd. in Sydney, said Dec. 7. “This year has been unusual because we had a fair amount of rain up in the inland of Queensland in August and September, which is usually the dry period.”Queensland’s coal exports are worth about A$100 （$99 million） a day to the state, Michael Roche, chief executive of the Queensland Resources Council, said Dec. 7. “Some open-cut pits are now looking more like dams than mines,” he said.Australia is the largest producer of coal used in steelmaking, contributing more than 40 percent of the global seaborne trade, Deutsche Bank AG. said Oct. 19. The country is the second-largest exporter after Indonesia of the commodity burned for power.
“The market can respond far quicker than with the 12-month pricing and buyers will be prepared for an increase knowing they can always renegotiate the next contract,” said Gavin Wendt, a senior resource analyst at MineLife Pty in Sydney. “It’s a more fluid market. You probably won’t see the sorts of huge price movements that we saw a couple of years ago.”Steelmakers were hit with a threefold increase in annual contract prices to about $300 a metric ton in 2008 after heavy rains and floods affected mining in Queensland. This year, coal production and deliveries have been disrupted after Australia had its wettest September-to-November spring on record. BHP, the world’s biggest mining company, has urged the industry to move to short-term deals to make prices more responsive to market changes. It agreed with Japan’s JFE Holdings Inc. to the first three-month coking coal contract in March.Coking coal and iron-ore suppliers traditionally held annual talks with steelmakers to fix benchmark contracts for the 12 months from April 1, the start of the Japanese financial year. Quarterly accords mean producers can spread price increases caused by the rain over the course of the year.“Producers are not compelled to push for higher prices now to offset lost production, like they have in recent years, most notably the super-spike of $300 a ton,” UBS AG analysts led-by Sydney-based Tom Price said in an e-mailed note today. “They don’t have to wait another-12-months like they used to.”
Force Majeure
Production has been disrupted at mines operated by Macarthur Coal Ltd., Aquila Resources Ltd., Vale SA and Xstrata Plc. They have all declared force majeure, a legal clause invoked by companies when they can’t meet obligations because of circumstances beyond their control.“We’ve moved now to quarterly pricing, in the old days we had annual pricing,” Keith De Lacy, chairman of Macarthur Coal Ltd., the world’s largest producer of pulverized coal used in steel manufacturing, said on Bloomberg Television on Dec. 8. “The market responds a lot quicker to supply and demand.”BHP agreed with Japanese steelmakers to cut coking-coal prices by 7 percent in the three months ending Dec. 31. Kobe Steel Ltd. will pay $209 a metric ton, from $225 a ton in the quarter from July to September, Hiroyuki Hashimoto, a spokesman for Kobe Steel, said Sept. 1. JFE Holdings’ steel unit reached the same agreement, the company said.
Fiona Martin, spokeswoman for BHP, declined to comment on what percentage of the company’s coal contracts are settled on a quarterly basis. BHP Billiton-Mitsubishi Alliance, known as BMA, is the world’s biggest exporter of coal for steelmaking and operates seven mines in Queensland’s Bowen Basin.
Consumers Concerned “All our readings of the consumer side is that they’re very concerned about making sure that they have enough supply,” Andrew Harrington, an analyst at Patersons Securities Ltd. in Sydney, said Dec. 7. “This year has been unusual because we had a fair amount of rain up in the inland of Queensland in August and September, which is usually the dry period.”Queensland’s coal exports are worth about A$100 （$99 million） a day to the state, Michael Roche, chief executive of the Queensland Resources Council, said Dec. 7. “Some open-cut pits are now looking more like dams than mines,” he said.Australia is the largest producer of coal used in steelmaking, contributing more than 40 percent of the global seaborne trade, Deutsche Bank AG. said Oct. 19. The country is the second-largest exporter after Indonesia of the commodity burned for power.
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