Saturday, 25 Feb 2012
INDIA’S Adani Group plans to spend as much as USD 6 billion in Australia over the next three years to develop coal mines and related infrastructure and is interested in buying a majority stake in a gas company at home as the conglomerate gears up to expand operations.
Mr Ameet H Desai spokesman told a news conference that in Australia, Adani will invest at the Abbot Point coal terminal where it acquired operating rights last year, with funds also going to mining activities and building a railway line connecting the terminal with its coal mines in the Galilee basin.
Mr Desai said the group is arranging the funds through a mix of equity, debt and internal accruals.
The group plans to use coal sourced from Australia to run its own power stations and also for trading, primarily in India where a shortage of the dry fuel is hurting power generation.
Demand for coal is rising in India as many new power stations are coal based, but complicated environmental clearances and problems in land acquisition are delaying domestic mining projects.
The group started mine exploration work at the Galilee basin.
Its Adani Ports and Special Economic Zone unit spent USD 2 billion for a 99 year lease of the Abbot Point terminal in Queensland. The terminal can handle 21 million metric tonnes coal a year.
An executive said the company is refinancing most of the bridge loan taken to fund the Abbot Point deal through another loan of USD 1.8 billion. The loan will be from four Australian banks and the process should be completed in a few weeks.
Meanwhile, chairman Mr Gautam Adani said the group is interested in buying BG Group's 65% stake in India's Gujarat Gas Co. He didn't give details, but spokesman Mr Desai said the group is conducting due diligence before submitting a bid.
(sourced Theaustralian.com.au)
Showing posts with label Australian coal industry. Show all posts
Showing posts with label Australian coal industry. Show all posts
Saturday, February 25, 2012
Thursday, December 22, 2011
China's Yanzhou inks A$700 mln deal for Gloucester Coal
Thu Dec 22, 2011
* Yanzhou says to merge Australian unit with Gloucester Coal
* Deal worth A$700 million in cash, or A$3.20 per share - Yancoal
* Reverse takeover creates one of largest coal companies in Australia
SYDNEY/HONG KONG, Dec 22 (Reuters) - China's Yanzhou Coal Mining Co Ltd said on Thursday it plans to merge its Australian unit with Gloucester Coal in a A$700 million deal that will create one of Australia's largest listed coal companies.
Australia's coal sector has seen a series of mergers and acquisitions initiated by Asian suitors hungry to satisfy fast growing domestic demand for coal from steel mills and power generation plants.
Yanzhou Coal's deal for Gloucester is also yet another case of a Chinese company buying up natural resource assets in Australia, tapping its commodity base to fuel massive residential, commercial and infrastructure projects across China.
Sydney-based Gloucester will be merged with Yancoal Australia Ltd., and Yanzhou will own 77 percent of the new company. Gloucester shareholders will own the rest and receive A$700 million ($705.36 million) in cash, the equivalent of A$3.20 in per share, Yancoal said in a statement. Each Gloucester Coal shareholder will receive one share in the merged company.
Gloucester closed at A$7.03 in Sydney on Dec. 19, before trading in the shares was suspended.
The reverse takeover of Gloucester would give Yanzhou Coal's Australian unit, Yancoal Australia Ltd, a local listing without having to risk an initial public offering in a shaky market, where coal stocks in particular have been pummelled on worries about a global economic downturn.
A condition of Yancoal's A$3.3 billion takeover of another Australian coal miner, Felix Resources, in 2009 required it to float at least 30 percent of the business on the local exchange by 2012.
Yanzhou Coal chairman Li Weimin said in a statement the merger plan allows it to meet that requirement and at the same time "reflects the company's strategy to grow our Australia business and to become a global leader in the coal mining sector."
Gloucester, which has a market value of A$1.4 billion, is 64 percent owned by commodities trader Noble Group. Trading in the coal firm's shares were suspended earlier Thursday ahead of the expected offer.
Yanzhou said the transaction is subject to various approvals, and plans to complete the deal in the second quarter of 2012.
Yancoal and Gloucester both have mines and projects in New South Wales and Queensland. Gloucester aims to expand production to 10 million tonnes a year by 2016, while Yancoal expects to produce 20 million tonnes a year by 2015.
That would put a combined group ahead of Whitehaven Coal , which last week announced a $2.5 billion takeover of Aston Resources to create a company producing 25 million tonnes a year by 2016.
Since taking over Felix Resources, Yancoal has bought Syntech Resources for A$203 million and is about to complete the A$297 million acquisition of Premier Coal from Wesfarmers.
It sought to buy Whitehaven Coal earlier this year but the two were unable to settle on a price.
(sourced Reuters)
* Yanzhou says to merge Australian unit with Gloucester Coal
* Deal worth A$700 million in cash, or A$3.20 per share - Yancoal
* Reverse takeover creates one of largest coal companies in Australia
SYDNEY/HONG KONG, Dec 22 (Reuters) - China's Yanzhou Coal Mining Co Ltd said on Thursday it plans to merge its Australian unit with Gloucester Coal in a A$700 million deal that will create one of Australia's largest listed coal companies.
Australia's coal sector has seen a series of mergers and acquisitions initiated by Asian suitors hungry to satisfy fast growing domestic demand for coal from steel mills and power generation plants.
Yanzhou Coal's deal for Gloucester is also yet another case of a Chinese company buying up natural resource assets in Australia, tapping its commodity base to fuel massive residential, commercial and infrastructure projects across China.
Sydney-based Gloucester will be merged with Yancoal Australia Ltd., and Yanzhou will own 77 percent of the new company. Gloucester shareholders will own the rest and receive A$700 million ($705.36 million) in cash, the equivalent of A$3.20 in per share, Yancoal said in a statement. Each Gloucester Coal shareholder will receive one share in the merged company.
Gloucester closed at A$7.03 in Sydney on Dec. 19, before trading in the shares was suspended.
The reverse takeover of Gloucester would give Yanzhou Coal's Australian unit, Yancoal Australia Ltd, a local listing without having to risk an initial public offering in a shaky market, where coal stocks in particular have been pummelled on worries about a global economic downturn.
A condition of Yancoal's A$3.3 billion takeover of another Australian coal miner, Felix Resources, in 2009 required it to float at least 30 percent of the business on the local exchange by 2012.
Yanzhou Coal chairman Li Weimin said in a statement the merger plan allows it to meet that requirement and at the same time "reflects the company's strategy to grow our Australia business and to become a global leader in the coal mining sector."
Gloucester, which has a market value of A$1.4 billion, is 64 percent owned by commodities trader Noble Group. Trading in the coal firm's shares were suspended earlier Thursday ahead of the expected offer.
Yanzhou said the transaction is subject to various approvals, and plans to complete the deal in the second quarter of 2012.
Yancoal and Gloucester both have mines and projects in New South Wales and Queensland. Gloucester aims to expand production to 10 million tonnes a year by 2016, while Yancoal expects to produce 20 million tonnes a year by 2015.
That would put a combined group ahead of Whitehaven Coal , which last week announced a $2.5 billion takeover of Aston Resources to create a company producing 25 million tonnes a year by 2016.
Since taking over Felix Resources, Yancoal has bought Syntech Resources for A$203 million and is about to complete the A$297 million acquisition of Premier Coal from Wesfarmers.
It sought to buy Whitehaven Coal earlier this year but the two were unable to settle on a price.
(sourced Reuters)
Friday, December 9, 2011
Isdemir to maintain coking coal purchases in 2012
Friday, 09 Dec 2011
According to preliminary data, in 2012 Turkish steelmaker Isdemir plans to keep coking coal purchases at this year’s level of 3 million tonne. Nevertheless, the volumes may be lower if coke production is reduced. The material is imported from Australia, the USA and Canada.
According to available information, Isdemir operates 4 coke batteries with a total designed capacity of 2 million tonne per year. The company is running two blast furnaces with a total capacity of 3.6 million tonne per year and is self sufficient in coke. The leftover is shipped to Erdemir.
(Sourced from www.arabsteel.info)
According to preliminary data, in 2012 Turkish steelmaker Isdemir plans to keep coking coal purchases at this year’s level of 3 million tonne. Nevertheless, the volumes may be lower if coke production is reduced. The material is imported from Australia, the USA and Canada.
According to available information, Isdemir operates 4 coke batteries with a total designed capacity of 2 million tonne per year. The company is running two blast furnaces with a total capacity of 3.6 million tonne per year and is self sufficient in coke. The leftover is shipped to Erdemir.
(Sourced from www.arabsteel.info)
Wednesday, November 23, 2011
White Energy declines buyout option in Indonesian coal JV
Wednesday, 23 Nov 2011
Australian clean coal developer White Energy has declined to buy out its Indonesian partner to save its flagship project, sending the Australian company's shares down 13% on Monday to a near six year low.
White said it has told its partner, PT Bayan Resources, it is in breach of their joint venture, including its role as coal supplier and given it seven days to resolve the breach. White Energy holds 51% of PT Kaltim Supacoal with the remainder held by Bayan, which owns the Tabang coal mine in East Kalimantan that supplies their 1 million tonne a year coal upgrading plant.
The two entered talks last week on how to rescue the project after Bayan said it no longer wanted to supply coal to the upgrading plant because it could get a better price selling directly into the export market. Bayan offered to sell its stake in the project for around USD 45 million as a condition for continuing coal supply, but White Energy turned the offer down, saying it did not make sense to pay that much.
Instead, White said it would pursue its legal and other commercial options. Mr Brian Flannery CEO of White said that "White Energy's Board and management team are clearly disappointed with the timing of Bayan's recent actions.”
He said the company remains confident that there is strong demand from large coal companies in Indonesia and elsewhere to partner with White Energy to commercialize its clean coal technology.
(Sourced from Reuters
Australian clean coal developer White Energy has declined to buy out its Indonesian partner to save its flagship project, sending the Australian company's shares down 13% on Monday to a near six year low.
White said it has told its partner, PT Bayan Resources, it is in breach of their joint venture, including its role as coal supplier and given it seven days to resolve the breach. White Energy holds 51% of PT Kaltim Supacoal with the remainder held by Bayan, which owns the Tabang coal mine in East Kalimantan that supplies their 1 million tonne a year coal upgrading plant.
The two entered talks last week on how to rescue the project after Bayan said it no longer wanted to supply coal to the upgrading plant because it could get a better price selling directly into the export market. Bayan offered to sell its stake in the project for around USD 45 million as a condition for continuing coal supply, but White Energy turned the offer down, saying it did not make sense to pay that much.
Instead, White said it would pursue its legal and other commercial options. Mr Brian Flannery CEO of White said that "White Energy's Board and management team are clearly disappointed with the timing of Bayan's recent actions.”
He said the company remains confident that there is strong demand from large coal companies in Indonesia and elsewhere to partner with White Energy to commercialize its clean coal technology.
(Sourced from Reuters
Sunday, November 13, 2011
India and Australia discuss bilateral cooperation in coal sector
Sunday, 13 Nov 2011
India and Australia would further explore the possibilities to increase bilateral cooperation and collaboration in coal sector which will include transfer of technology for underground mining and facilitating invest in Indian coal sector.
This was decided in a meeting held between Mr Sriprakash Jaiswal minister of coal and Australian Minister for Resources and Energy and Minister for Tourism, Mr Martin Ferguson recently.
During discussion both the countries decided to have meeting of joint coal task force in December this year to review the bilateral cooperation in identified areas under the action plan signed between the countries in May this year.
It was felt that there is a big scope to strengthen cooperation in the area of coal technology reducing emission, rehabilitation of abandoned coal mines, and extraction of deep seated coal resources and to facilitate investment in coal mining areas.
India and Australia have signed the Coal Action Plan 2011-14 and setup a joint task force to strengthen cooperation in coal sector.
India and Australia would further explore the possibilities to increase bilateral cooperation and collaboration in coal sector which will include transfer of technology for underground mining and facilitating invest in Indian coal sector.
This was decided in a meeting held between Mr Sriprakash Jaiswal minister of coal and Australian Minister for Resources and Energy and Minister for Tourism, Mr Martin Ferguson recently.
During discussion both the countries decided to have meeting of joint coal task force in December this year to review the bilateral cooperation in identified areas under the action plan signed between the countries in May this year.
It was felt that there is a big scope to strengthen cooperation in the area of coal technology reducing emission, rehabilitation of abandoned coal mines, and extraction of deep seated coal resources and to facilitate investment in coal mining areas.
India and Australia have signed the Coal Action Plan 2011-14 and setup a joint task force to strengthen cooperation in coal sector.
Sunday, October 30, 2011
Australia’s Bathurst Resources increases coking coal reserves
Sun,October30, 2011
Australian hard coking coal miner Bathurst Resources has announced a 37 percent increase in its estimated coal reserves at its Buller coal project on the West Coast of the South Island of New Zealand.
The 37 percent increase in reserves for the whole Buller project takes recoverable reserves to 17.3 million mt from 12.6 million mt, including the first firm identification of 4.4 million mt of recoverable coal at Whareatea West.
The Buller coal project is pursuing high value, high temperature coking coal, required for use in steelmaking. Bathurst intends shipping most of its production from Westport to New Plymouth for export.
Tags: coking coal , Australia , raw mat , Oceania , mining , production
(sourced steel orbis)
Australian hard coking coal miner Bathurst Resources has announced a 37 percent increase in its estimated coal reserves at its Buller coal project on the West Coast of the South Island of New Zealand.
The 37 percent increase in reserves for the whole Buller project takes recoverable reserves to 17.3 million mt from 12.6 million mt, including the first firm identification of 4.4 million mt of recoverable coal at Whareatea West.
The Buller coal project is pursuing high value, high temperature coking coal, required for use in steelmaking. Bathurst intends shipping most of its production from Westport to New Plymouth for export.
Tags: coking coal , Australia , raw mat , Oceania , mining , production
(sourced steel orbis)
Friday, September 30, 2011
Macarthur Coal awards Codrilla contract
Friday, 30 Sep 2011
Bowen Basin miner Macarthur Coal has awarded USD 85 million contract to construct the coal handling and preparation plant at the Codrilla Coal Mine for the Coppabella Moorvale Joint Venture to mining services company Sedgman and Thiess, a subsidiary of Leighton Holdings.
The Thiess Sedgman Joint Venture will design, procure, construct and commission the plant on behalf of Macarthur with it due for completion by mid 2013 a year and a half after mining operations commence.
Sedgman relationship with Macarthur Coal spans 12 years starting with building the coal handling and preparation plant for Coppabella Mine and then for the Moorvale and Middlemount mines.
Mr Nick Jukes CEO & MD of Sedgman says the company is extremely pleased to be further strengthening this relationship with the miner.
The contract is not contingent on any outcomes of the USD 4.83 billion PEAMCoal takeover offer for Macarthur Coal.
(sourced from ABC.net.au)
Bowen Basin miner Macarthur Coal has awarded USD 85 million contract to construct the coal handling and preparation plant at the Codrilla Coal Mine for the Coppabella Moorvale Joint Venture to mining services company Sedgman and Thiess, a subsidiary of Leighton Holdings.
The Thiess Sedgman Joint Venture will design, procure, construct and commission the plant on behalf of Macarthur with it due for completion by mid 2013 a year and a half after mining operations commence.
Sedgman relationship with Macarthur Coal spans 12 years starting with building the coal handling and preparation plant for Coppabella Mine and then for the Moorvale and Middlemount mines.
Mr Nick Jukes CEO & MD of Sedgman says the company is extremely pleased to be further strengthening this relationship with the miner.
The contract is not contingent on any outcomes of the USD 4.83 billion PEAMCoal takeover offer for Macarthur Coal.
(sourced from ABC.net.au)
Wednesday, September 7, 2011
Macarthur Coal still hoping for rival to Peabody Energy ArcelorMittal bid - Report
Wednesday, 07 Sep 2011
The Australian reported that Macarthur Coal's board is still hoping for a higher takeover bid, despite reaffirming its recommendation of the sweetened offer of Peabody Energy and ArcelorMittal.
Mr Keith De Lacy chairman of Macarthur Coal said that "As previously advised, Macarthur had pursued discussions with third parties, which had expressed interest in putting forward a superior proposal for Macarthur's shares. The directors advise that as at today, no superior proposal has been received. Although it remains possible that a superior proposal might be made, there can be no assurances that any will emerge."
Macarthur also noted that Mr Zeng had made no recommendation or statement about the intentions of Citic Group on the takeover bid. The deal with PEAM Coal, a 60:40 JV between Peabody and ArcelorMittal, has a no shop, no talk condition, but the target's recommendation assumes the absence of a higher bid.
Macarthur also used the target statement to warn shareholders of ongoing uncertainty about the regulatory environment it operated in. It said the mining and carbon tax and land access issues could reduce profitability.
Mr De Lacy said that "By accepting the PEAM offer, Macarthur shareholders are able to crystallize cash value for their shares and remove any ongoing exposure to market, regulatory and other risks that Macarthur Coal may face in the future, assuming that the PEAM offer becomes unconditional."
Many believed a rival offer for Macarthur was likely, with 25% shareholder Citic Group the key to any alternative bid. But with no firm deal apparent, the target's board accepted Peabody and ArcelorMittal's increased price.
The USD 4.9 billion, USD 16 a share bid had been raised from the USD 15.50 offer launched on August 1st 2011.
(sourced from TheAustralian)
The Australian reported that Macarthur Coal's board is still hoping for a higher takeover bid, despite reaffirming its recommendation of the sweetened offer of Peabody Energy and ArcelorMittal.
Mr Keith De Lacy chairman of Macarthur Coal said that "As previously advised, Macarthur had pursued discussions with third parties, which had expressed interest in putting forward a superior proposal for Macarthur's shares. The directors advise that as at today, no superior proposal has been received. Although it remains possible that a superior proposal might be made, there can be no assurances that any will emerge."
Macarthur also noted that Mr Zeng had made no recommendation or statement about the intentions of Citic Group on the takeover bid. The deal with PEAM Coal, a 60:40 JV between Peabody and ArcelorMittal, has a no shop, no talk condition, but the target's recommendation assumes the absence of a higher bid.
Macarthur also used the target statement to warn shareholders of ongoing uncertainty about the regulatory environment it operated in. It said the mining and carbon tax and land access issues could reduce profitability.
Mr De Lacy said that "By accepting the PEAM offer, Macarthur shareholders are able to crystallize cash value for their shares and remove any ongoing exposure to market, regulatory and other risks that Macarthur Coal may face in the future, assuming that the PEAM offer becomes unconditional."
Many believed a rival offer for Macarthur was likely, with 25% shareholder Citic Group the key to any alternative bid. But with no firm deal apparent, the target's board accepted Peabody and ArcelorMittal's increased price.
The USD 4.9 billion, USD 16 a share bid had been raised from the USD 15.50 offer launched on August 1st 2011.
(sourced from TheAustralian)
Friday, August 12, 2011
Peabody Energy and Yanzhou Coal signs technology agreement
Friday, 12 Aug 2011
Peabody Energy announced a new licensing agreement with Yanzhou Coal Mining Company for the installation of its Longwall Top Coal Caving technology to enhance recovery of metallurgical coal at Peabody's North Goonyella Mine in the Bowen Basin, Queensland, Australia. Yanzhou is a subsidiary of Yankuang Group Co Ltd.
Peabody estimates the new technology will allow the recovery of up to 3.9 million tonnes of additional high quality hard coking coal from the mine, with opportunities for future use in other areas. LTCC technology improves the recoverability of coal over traditional longwall mining methods, and will allow the operation to mine the full coal seam thickness of 6.5 meters versus the conventional longwall mining method of 4.2 meters.
According to Mr Eric Ford executive vice president and COO of Peabody Energy said that "Our agreement will lead to greater resource recovery, enhanced productivity and extended mine life. It also advances another avenue in our growing Chinese collaboration."
Peabody is the first company to sign a LTCC licensing agreement with Yanzhou. The equipment is expected to be placed into service in late 2012. Peabody will work with Yanzhou to ensure the mine's workforce is fully trained and equipped to begin LTCC operations in the first quarter of 2013. Peabody's North Goonyella Mine shipped 2.5 million tons of high quality hard coking coal to steel producing customers in 2010.
Peabody Energy announced a new licensing agreement with Yanzhou Coal Mining Company for the installation of its Longwall Top Coal Caving technology to enhance recovery of metallurgical coal at Peabody's North Goonyella Mine in the Bowen Basin, Queensland, Australia. Yanzhou is a subsidiary of Yankuang Group Co Ltd.
Peabody estimates the new technology will allow the recovery of up to 3.9 million tonnes of additional high quality hard coking coal from the mine, with opportunities for future use in other areas. LTCC technology improves the recoverability of coal over traditional longwall mining methods, and will allow the operation to mine the full coal seam thickness of 6.5 meters versus the conventional longwall mining method of 4.2 meters.
According to Mr Eric Ford executive vice president and COO of Peabody Energy said that "Our agreement will lead to greater resource recovery, enhanced productivity and extended mine life. It also advances another avenue in our growing Chinese collaboration."
Peabody is the first company to sign a LTCC licensing agreement with Yanzhou. The equipment is expected to be placed into service in late 2012. Peabody will work with Yanzhou to ensure the mine's workforce is fully trained and equipped to begin LTCC operations in the first quarter of 2013. Peabody's North Goonyella Mine shipped 2.5 million tons of high quality hard coking coal to steel producing customers in 2010.
Thursday, August 11, 2011
Killara Resourced to acquire six Coal concessions of Tason Holdings
Wednesday, 10 August 11
Killara Resources Limited, an Australian listed company has formed PT Tavesco Killara Energy (TKE), a joint company with PT Tavesco International which owned by Tanri Abeng, a former Indonesia's state enterprises minister. TKE is being set up to sourcing, exploring, and potentially developing coal projects in Indonesia, according to the statement released by Killara Resources Limited.
Tavesco as part of PT Tason Holdings (Tason) that owned by Tanri Abeng, has presented a number of coal concessions throughout East and South Kalimantan to Killara for review and assessment for potential inclusion within PT TKE.
Report further said, desktop studies of the short listed concessions have been completed and confirmatory site inspections on the initial six concessions are underway, with results of the site visits expected by the end of August. This work will determine which concessions the parties select for inclusion in PT TKE, which would then be subject to detailed due diligence prior to potential acquisition.
TKE is targeting to produce two millions metric ton of coal in the end of this year.“We are planning to sell our coal to Indonesia State Electricity of Company,” Ridwan Zachrie, chief executive officer Tason Holdings and also director of TKE said to COALspot.com via SMS.
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Killara Resources Limited, an Australian listed company has formed PT Tavesco Killara Energy (TKE), a joint company with PT Tavesco International which owned by Tanri Abeng, a former Indonesia's state enterprises minister. TKE is being set up to sourcing, exploring, and potentially developing coal projects in Indonesia, according to the statement released by Killara Resources Limited.
Tavesco as part of PT Tason Holdings (Tason) that owned by Tanri Abeng, has presented a number of coal concessions throughout East and South Kalimantan to Killara for review and assessment for potential inclusion within PT TKE.
Report further said, desktop studies of the short listed concessions have been completed and confirmatory site inspections on the initial six concessions are underway, with results of the site visits expected by the end of August. This work will determine which concessions the parties select for inclusion in PT TKE, which would then be subject to detailed due diligence prior to potential acquisition.
TKE is targeting to produce two millions metric ton of coal in the end of this year.“We are planning to sell our coal to Indonesia State Electricity of Company,” Ridwan Zachrie, chief executive officer Tason Holdings and also director of TKE said to COALspot.com via SMS.
If you believe an article violates your rights or the rights of others, please contact us.
Saturday, July 30, 2011
Coal workers start work stoppage as part of campaign against BHPB
Saturday, 30 Jul 2011
The Construction Forestry Mining and Energy Union said that Australian union coal workers at the Norwich Park mine in Queensland state has started a 36 hour work stoppage as part of an ongoing labor campaign against BHP Billiton.
Mr Stephen Smyth Queensland division president of the CFMEU said that twelve hour rolling stoppages will also be held at the Gregory and Crinum mines on July 31st 2011 and August 1st 2011, as union workers press for job security. The mines are among six operated by a JV of BHP Billiton and Mitsubishi with a combined output capacity of more than 58 million tonnes per year of mostly metallurgical coal used to make steel.
Mr Smyth said that output from the mines accounts for about a fifth of annual global trade in metallurgical coal. He added that "We're now looking at escalating these actions to include more mines to press BHP over our concerns."
Union workers at the six coal mines operated by BHP Billiton and Mitsubishi have been staging protests over the past three months against rising non union staff jobs.
Mr Smyth said that "Ultimately, our intention is to disrupt production at the mines in order to pressure BHP."
A BHP Billiton spokeswoman declined to comment on any impact the actions may be having on production, saying any significant disruptions would be cited in the company's end of quarter operations review. The campaign has been helping underpin global coal prices, already firm on restricted supply from Australia due to widespread flooding of coal fields earlier this year.
The price of metallurgical coal used in steel production hit a record high USD 330 a tonne in the second quarter while thermal coal prices remained stable and have since only showed only a modest retreat, according to coal traders. The Norwich Park mine yields coking coal used in producing steel and is exported to Asia and Europe at a rate of about 4 million tonnes a year.
The Gregory and Crinum mines together yield around 5 million tonnes of both coking and thermal coals, also for sale in Asia and Europe. The CFMEU represents the majority of the 3,500 union workers at the BHP Billiton Mitsubishi mines, which is about one third of the total workforce.
Analysts have said the campaign contributed to a 28% decline in BHP Billiton's June 2011 quarter metallurgical coal production to 7.9 million tonnes from a year earlier, though flooding had a greater impact. Floods in Queensland between November and March crippled coal output from Australia, which provides two thirds of global exports of steel making coal, and contributed to the Australian economy's biggest decline in two decades in the first quarter. Coal miners had hoped operations would be back to normal by now, but the flooding of coal pits and damage to rail lines and ports proved worse than originally feared.
By Reuters
The Construction Forestry Mining and Energy Union said that Australian union coal workers at the Norwich Park mine in Queensland state has started a 36 hour work stoppage as part of an ongoing labor campaign against BHP Billiton.
Mr Stephen Smyth Queensland division president of the CFMEU said that twelve hour rolling stoppages will also be held at the Gregory and Crinum mines on July 31st 2011 and August 1st 2011, as union workers press for job security. The mines are among six operated by a JV of BHP Billiton and Mitsubishi with a combined output capacity of more than 58 million tonnes per year of mostly metallurgical coal used to make steel.
Mr Smyth said that output from the mines accounts for about a fifth of annual global trade in metallurgical coal. He added that "We're now looking at escalating these actions to include more mines to press BHP over our concerns."
Union workers at the six coal mines operated by BHP Billiton and Mitsubishi have been staging protests over the past three months against rising non union staff jobs.
Mr Smyth said that "Ultimately, our intention is to disrupt production at the mines in order to pressure BHP."
A BHP Billiton spokeswoman declined to comment on any impact the actions may be having on production, saying any significant disruptions would be cited in the company's end of quarter operations review. The campaign has been helping underpin global coal prices, already firm on restricted supply from Australia due to widespread flooding of coal fields earlier this year.
The price of metallurgical coal used in steel production hit a record high USD 330 a tonne in the second quarter while thermal coal prices remained stable and have since only showed only a modest retreat, according to coal traders. The Norwich Park mine yields coking coal used in producing steel and is exported to Asia and Europe at a rate of about 4 million tonnes a year.
The Gregory and Crinum mines together yield around 5 million tonnes of both coking and thermal coals, also for sale in Asia and Europe. The CFMEU represents the majority of the 3,500 union workers at the BHP Billiton Mitsubishi mines, which is about one third of the total workforce.
Analysts have said the campaign contributed to a 28% decline in BHP Billiton's June 2011 quarter metallurgical coal production to 7.9 million tonnes from a year earlier, though flooding had a greater impact. Floods in Queensland between November and March crippled coal output from Australia, which provides two thirds of global exports of steel making coal, and contributed to the Australian economy's biggest decline in two decades in the first quarter. Coal miners had hoped operations would be back to normal by now, but the flooding of coal pits and damage to rail lines and ports proved worse than originally feared.
By Reuters
Monday, July 11, 2011
RPT-Coal miners say Australia carbon tax treatment unfair
Sun Jul 10, 2011
By James Regan
SYDNEY, July 10 (Reuters) - Australia's powerful coal mining industry on Sunday warned it was being unfairly singled out under the country's new carbon emissions trading scheme, predicting it will lead to job losses and fewer collieries at a time when buyers are paying top dollar for coal.
Xstrata , one of the country's biggest coal mining companies, said it was "disappointed at the government's lack of genuine consultation" before unveiling its plan to slap a carbon tax of A$23 a tonne on its 500 worst polluters.
Australia, the world's biggest coking coal exporter, relies on coal to generate 80 percent of its electricity, accounting for 37 percent of national emissions. Coal is also one of the nation's top export earners, worth A$46 billion in overseas sales last year.
Around 40,000 people work in Australian coal mines and a further 100,000 indirectly, according to sector estimates.
Prime Minister Julia Gillard has announced coal miners, steel and aluminium manufacturers and other heavy emitters of carbon gas polluters would pay a A$23 ($24.70) a tonne carbon tax rising annually to A$25.40, before shifting to market-based emissions regime in mid-2015.
Australia is the rich world's worst per capita greenhouse gas emitter due to a heavy reliance on coal-fired power stations for electricity.
Under the plan, some sectors, including aluminium, zinc refining and steel making will be given free permits covering 94.5 percent of average industry emissions for the first three years.
Gillard has also called for the full or part-shut down of the most emissions intensive electricity generators before 2020, removing up to 2,000 megawatts of capacity and replace older coal-fired power stations with cleaner ones.
"The Government has appeased some industries for political expediency but has ignored the concerns of Australia's biggest export industry and all of the small business people and employees who depend on it for their survival," said Ralph Hillman, chief executive of the Australian Coal Association.
"The government and Greens are imposing costs that none of our international competitors face, and cannot be justified in transitioning the Australian industry to a low carbon future," said Mitch Hooke, chief executive of the Minerals Council of Australia.
"It will simply export investment, jobs, global market share and emissions offshore."
The coal sector is worried too that a A$1.3 billion compensation package unveiled by Gillard to help the worst emissions intensive coal mines adjust is inadequate.
"Our concern is how far that is going to go," said Dylan Byrne, partner, head of a national sustainability advisory group for accountancy BDO.
"There are potentially a lot of mines in parts of Australia that will not see any of that money," Byrne said.
Miners are complaining that the added cost to control emissions comes in the midst of an up-cycle in the market.
A benchmark price settlement negotiated by Anglo American was struck at $315 a tonne for the third quarter with Asian mills, just beneath a record high of $330 agreed in the second quarter. Australian thermal coal sells for around $122 a tonne.
Australia's top coal miners, including BHP Billiton , Rio Tinto RIO.L> and Peabody Energy each sell at around the same price.
At the starting point of A$23 a tonne, the tax would increase the cost of making coal by more than A$1.80 per tonne, according to the Australian Coal Association.
The leader of the Australian Greens party, Bob Brown, has infuriated coal miners by saying he would like to see the industry shut down altogether -- a move mining lobbyists predict would cost the economy between A$29-billion and A$36-billion a year.
Alternative energy interests hailed the Gillard plan, predicting it will lift interest in building more wind farms, solar power stations and recycling centers.
"We will see solar on steroids," said John Grimes, chief executive of the Australian Solar Energy Society.
"We are finally penalising pollution and rewarding clean energy. That will deliver substantial investment in solar power and position Australia as a solar nation," Grimes said.
Simon Bennison, chief executive officer of the Association of Mining and Exploration Companies, disagreed: "Australia`s sovereign risk continues to take a battering, to the detriment of investment, whilst key trading competitor countries continue to emit high levels of carbon dioxide and not incur the same carbon pricing costs as their Australian counterparts," he said.
By James Regan
SYDNEY, July 10 (Reuters) - Australia's powerful coal mining industry on Sunday warned it was being unfairly singled out under the country's new carbon emissions trading scheme, predicting it will lead to job losses and fewer collieries at a time when buyers are paying top dollar for coal.
Xstrata , one of the country's biggest coal mining companies, said it was "disappointed at the government's lack of genuine consultation" before unveiling its plan to slap a carbon tax of A$23 a tonne on its 500 worst polluters.
Australia, the world's biggest coking coal exporter, relies on coal to generate 80 percent of its electricity, accounting for 37 percent of national emissions. Coal is also one of the nation's top export earners, worth A$46 billion in overseas sales last year.
Around 40,000 people work in Australian coal mines and a further 100,000 indirectly, according to sector estimates.
Prime Minister Julia Gillard has announced coal miners, steel and aluminium manufacturers and other heavy emitters of carbon gas polluters would pay a A$23 ($24.70) a tonne carbon tax rising annually to A$25.40, before shifting to market-based emissions regime in mid-2015.
Australia is the rich world's worst per capita greenhouse gas emitter due to a heavy reliance on coal-fired power stations for electricity.
Under the plan, some sectors, including aluminium, zinc refining and steel making will be given free permits covering 94.5 percent of average industry emissions for the first three years.
Gillard has also called for the full or part-shut down of the most emissions intensive electricity generators before 2020, removing up to 2,000 megawatts of capacity and replace older coal-fired power stations with cleaner ones.
"The Government has appeased some industries for political expediency but has ignored the concerns of Australia's biggest export industry and all of the small business people and employees who depend on it for their survival," said Ralph Hillman, chief executive of the Australian Coal Association.
"The government and Greens are imposing costs that none of our international competitors face, and cannot be justified in transitioning the Australian industry to a low carbon future," said Mitch Hooke, chief executive of the Minerals Council of Australia.
"It will simply export investment, jobs, global market share and emissions offshore."
The coal sector is worried too that a A$1.3 billion compensation package unveiled by Gillard to help the worst emissions intensive coal mines adjust is inadequate.
"Our concern is how far that is going to go," said Dylan Byrne, partner, head of a national sustainability advisory group for accountancy BDO.
"There are potentially a lot of mines in parts of Australia that will not see any of that money," Byrne said.
Miners are complaining that the added cost to control emissions comes in the midst of an up-cycle in the market.
A benchmark price settlement negotiated by Anglo American was struck at $315 a tonne for the third quarter with Asian mills, just beneath a record high of $330 agreed in the second quarter. Australian thermal coal sells for around $122 a tonne.
Australia's top coal miners, including BHP Billiton , Rio Tinto RIO.L> and Peabody Energy each sell at around the same price.
At the starting point of A$23 a tonne, the tax would increase the cost of making coal by more than A$1.80 per tonne, according to the Australian Coal Association.
The leader of the Australian Greens party, Bob Brown, has infuriated coal miners by saying he would like to see the industry shut down altogether -- a move mining lobbyists predict would cost the economy between A$29-billion and A$36-billion a year.
Alternative energy interests hailed the Gillard plan, predicting it will lift interest in building more wind farms, solar power stations and recycling centers.
"We will see solar on steroids," said John Grimes, chief executive of the Australian Solar Energy Society.
"We are finally penalising pollution and rewarding clean energy. That will deliver substantial investment in solar power and position Australia as a solar nation," Grimes said.
Simon Bennison, chief executive officer of the Association of Mining and Exploration Companies, disagreed: "Australia`s sovereign risk continues to take a battering, to the detriment of investment, whilst key trading competitor countries continue to emit high levels of carbon dioxide and not incur the same carbon pricing costs as their Australian counterparts," he said.
Saturday, March 19, 2011
Australia Newcastle Thermal Coal Falls 4.9% to $123.29 a Ton
Mar 18, 2011 5:57 PM GMT+0530
By Rakteem Katakey
By Rakteem Katakey
Power-station coal prices at Australia’s Newcastle port, an Asian benchmark, declined 4.9 percent in the week ending today.
Coal prices at the New South Wales port decreased to $123.29 a metric ton from $129.60 the previous week, according to the globalCOAL NEWC Index.
Xstrata Plc (XTA), the world’s largest exporter of power-station coal, BHP Billiton Ltd. (BHP) and Rio Tinto Group are among mining companies that ship coal through Newcastle.(By bloomberg)
Tags:Rio Tinto, power plant coal, Asian benchmark
Coal prices at the New South Wales port decreased to $123.29 a metric ton from $129.60 the previous week, according to the globalCOAL NEWC Index.
Xstrata Plc (XTA), the world’s largest exporter of power-station coal, BHP Billiton Ltd. (BHP) and Rio Tinto Group are among mining companies that ship coal through Newcastle.(By bloomberg)
Tags:Rio Tinto, power plant coal, Asian benchmark
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