Datang approved to develop coal mine in Inner Mongolia

Mar 8, 2011 |en.sxcoal

China’s top power generator Datang Group recently has gained approval from the National Development and Reform Commission to develop the second phase of an opencast coal mine in Inner Mongolia, according to a circular issued by the NDRC.

The project, with designed capacity of 30 million tonnes, is an expansion to the first phase of Shengli East No. 2 open pit in Xilingol, which has designed capacity of 10 million tonnes per year and commenced operation in Jun 2010.

Coal products, mainly brown coal with low-medium calorific value and medium sulphur content, will be supplied to Datong’s local plants in Inner Mongolia, including Xilinhot power plant, coal-to-olefin project in Duolun, coal gasification project in Keshiketeng and other projects.

Datang also plans to develop the third phase with annual capacity of 60 million tonnes, making it one of the largest mine projects in the world.

Australia thermal coal prices steady

8 Mar 2011 , 9:00 PM,

Australia's thermal coal prices, a benchmark for Asia, were steady last week in a quiet market as most players waited on the sidelines for the settlement of the Japanese annual thermal coal contract.

Thermal coal on the globalCOAL Newcastle index for the week to date was $US130.75 per tonne on Monday, relatively unchanged from $132 a week earlier and up slightly from $129.48 on Friday.

"It's hard to tell if there's any movement in the current period, it's a little bit quiet, the price is quite stable," one Sydney-based trader said.

Large Japanese utilities Tokyo Electric Power Co (TEPCO), Tohoku Electric Power Co Inc and Chubu Electric , negotiate April-to-March fiscal year thermal contracts with Xstrata, the world's largest exporter of thermal coal.

The contracts are generally around spot price levels, often with a supply security premium.

"Overall, the market is still tight in the Pacific, so miners have a strong negotiation position," one Singapore-based trader said.

Trade sources said that bids and offers stood about $US10 apart, with Xstrata said to be offering a price of $US140 per tonne and Japanese utilities countering with a $US130 per tonne bid.

Although still far apart, the parties were closer than a few weeks ago when the offer was said to be at $US145 per tonne, with utilities saying they would only be willing to pay $US125 per tonne.

Chinese demand for imported coal continued to be thin, with supplies in the world's number one producer and consumer of coal outstripping demand.

Chinese coal with a heating value of 5,500 kcal/kg was flat at 770 to 780 yuan.

As coal prices in Australia have risen, the arbitrage between Chinese coal prices and Australian imports are at the widest since September 2008.

Indian buyers were back in the market for Indonesian coal, traders said, with deals for 4,900 kcal/kg done for around $US80 per tonne.

Week ahead

Xstrata will head to Japan next week to meet Japanese utilities and all eyes will be on the annual contract talks, which are often used as a benchmark for other deals.

The market will also continue to watch for increasing demand from China and India. (Reuters)

Tags : globalCOAL NEWC Index, benchmark for Asia, Newcastle index, spot prices

Greece raises 1.625 billion euros in six-month treasury bills auction

Tue, Mar08, 2011 21:38:55

ATHENS, March 8 (Xinhua) -- Greece on Tuesday raised an additional 1.625 billion euros (2.27 billion U.S. dollars) in six-month treasury bills at an interest rate slightly higher than that of the February auction, the Public Debt Management Agency reported.

The sale followed a new Moody's downgrade of Greece's credit rating on Monday, which fueled a strong reaction from the Greek government, as Athens accused international rating agencies of making unbalanced assessments of the ailing Greek economy.

PDMA secured on Tuesday an interest rate of 4.75 percent compared with 4.64 percent in the previous auction this year.

PDMA officials appeared optimistic on the result, noting that initially the target was to raise 1.25 billion euros (1.75 billion U.S. dollars), with some 30 percent of the investors being foreigners.

Greece has conducted a monthly short-term debt auction program since last year as a supplementary to the 110-billion-euro (153.7-billion-U.S.-dollar) aid package secured last May by the European Union and the International Monetary Fund to avoid bankruptcy and overcome a severe debt crisis by 2014.

Tags :bankruptcy, debt crisis, International Monetary Fund

Vedanta Aluminium needs 1 million tonnes coal in 2011

Tue Mar 8, 2011

NEW DELHI - India's Vedanta Aluminium needs to import around one million tonnes of thermal coal in 2011 for its new independent power plant in Orissa, an official responsible for coal buying said on Tuesday.

Speaking on the sidelines of the Coaltrans conference in New Delhi, the official said that Vedanta's new 2,400-MW power plant, which supplies power to its aluminium plant, is designed to take a blend of imported and domestic coal.

Vedanta has already bought imports to cover its needs for February-April but is now seeking low calorific value Indonesian coal for the balance of the year.

Vedanta is also looking at long-term offtake agreements and possible purchases of coal mines abroad, the official said. (Thomson Reuters)