Monday, 02 Apr 2012
The Philippines received 68 bids for 38 coal exploration projects on Friday and said it could award more than half the contracts within the next five months, as it aimed to cut imports of costly fossil fuels and secure energy supply.
Bidders at the country's fourth, and biggest, tender for prospective coal blocks included Philippine miners Benguet Corp and Semirara Mining Corp., the country's biggest coal producer.
Energy Undersecretary Jose Layug told reporters at the opening of sealed bids for the tender that "We obviously have attracted a lot of investors, and the list includes new parties.”
Mr Layug said that there were no bidders for a few sites. Most of the prospective coal blocks are located on the mineral rich provinces on the southern Mindanao island.
Mr Layug said winning bidders would receive two year contracts to explore for coal and 23 year operating contracts if successful.
Foreign ownership of coal projects in the Philippines is limited to 40%.
The government estimates the Philippines has a total coal resource potential of more than 3 billion tons, mainly thermal coal used for power generation.
Source - www.abs-cbnnews.com
Showing posts with label bid. Show all posts
Showing posts with label bid. Show all posts
Monday, April 2, 2012
Sunday, February 26, 2012
CIL to float tender from Mozambique
Sunday, 26 Feb 2012
ET reported that having cancelled bids submitted for exploration of its Mozambique coal block twice, Coal India has decided to invite expression of interest from Mozambique which will now be handled by Coal India Africana Limitada.
CIAL, a 100% subsidiary of Coal India, was floated in Mozambique when Coal India acquired a coal block in the country. Earlier the bidding process was being handled by another Coal India subsidiary Central Mine Planning & Design Institute Ltd which is based out of Ranchi in Jharkhand.
Cancellation of bids comes at a time when the government has asked CIL to sign fuel supply agreements with all new power units that have come up between 2009 and 2012. It has also been asked to sign FSAs for units that will come up between 2012 and 2015.
The Mozambique block was acquired to import the coal to meet domestic demand from customers in Western India. If the first round of bidding had yield results, the company could have produced by 2014, as originally planned.
During the first time in 2010, biddings were cancelled because of issues with the bank guarantees submitted by the bidders.
The second round of bidding, during 2011, was also cancelled after the lowest bidder imposed new conditions on exploring the coal block which were not part of the notice inviting tenders.
During both the tendering processes three companies had submitted their bids. They were Mining Associates, Indu-CBS Joint Venture and Kartikeyan.
(Sourced from ET)
ET reported that having cancelled bids submitted for exploration of its Mozambique coal block twice, Coal India has decided to invite expression of interest from Mozambique which will now be handled by Coal India Africana Limitada.
CIAL, a 100% subsidiary of Coal India, was floated in Mozambique when Coal India acquired a coal block in the country. Earlier the bidding process was being handled by another Coal India subsidiary Central Mine Planning & Design Institute Ltd which is based out of Ranchi in Jharkhand.
Cancellation of bids comes at a time when the government has asked CIL to sign fuel supply agreements with all new power units that have come up between 2009 and 2012. It has also been asked to sign FSAs for units that will come up between 2012 and 2015.
The Mozambique block was acquired to import the coal to meet domestic demand from customers in Western India. If the first round of bidding had yield results, the company could have produced by 2014, as originally planned.
During the first time in 2010, biddings were cancelled because of issues with the bank guarantees submitted by the bidders.
The second round of bidding, during 2011, was also cancelled after the lowest bidder imposed new conditions on exploring the coal block which were not part of the notice inviting tenders.
During both the tendering processes three companies had submitted their bids. They were Mining Associates, Indu-CBS Joint Venture and Kartikeyan.
(Sourced from ET)
Friday, February 24, 2012
Steam coal prices stable despite modest gains in oil
Friday, 24 Feb 2012
Reuters reported that prompt physical coal prices were little changed on Thursday on muted trading activity and bid offer spreads for fixed price cargoes widened by around USD 1, too far apart for trades to seem likely.
An April South African cargo was bid at USD 105.75 and offered at USD 107.45, compared with bids and offers of USD 106 on Wednesday.
A May South African cargo was bid at USD 101.25 and offered at USD 102.50.
An April DES cargo was bid at USD 98.50 and offered at USD 100.50
One trader said “The market's moved sideways, if anything, just looking at the wider spreads.”
Oil at over USD 100 a barrel is providing structural support to coal prices, traders and analysts said, although there are spells when coal disconnects from oil and moves more on fundamentals.
(Sourced from Reuters)
Reuters reported that prompt physical coal prices were little changed on Thursday on muted trading activity and bid offer spreads for fixed price cargoes widened by around USD 1, too far apart for trades to seem likely.
An April South African cargo was bid at USD 105.75 and offered at USD 107.45, compared with bids and offers of USD 106 on Wednesday.
A May South African cargo was bid at USD 101.25 and offered at USD 102.50.
An April DES cargo was bid at USD 98.50 and offered at USD 100.50
One trader said “The market's moved sideways, if anything, just looking at the wider spreads.”
Oil at over USD 100 a barrel is providing structural support to coal prices, traders and analysts said, although there are spells when coal disconnects from oil and moves more on fundamentals.
(Sourced from Reuters)
Monday, February 13, 2012
Mozambique's Maputo hot spot for South African coal
Monday, 13 February 2012
Mozambique capital Maputo is hotting up as a magnet for companies aspiring to be significant South African coal exporters, following a Vitol joint venture deal, industry sources said this week.
The port has been used on a small scale for coal exports which shippers were unable to move from the main export hub, Richards Bay Coal Terminal (RBCT), but is now the centre of major expansion plans for South African coal.
Two exporters have in the last few months started using the main Maputo harbour, which has no loading equipment, for the first time and gleaming new fencing has been set up around stockpiles there, a recent visitor to the port said. A handful of mining majors own RBCT, by far the cheapest, most efficient port, but new entrants have mostly failed to gain a foothold there.
"If you want to be producing South African coal for export, don't ever think you are going to get into Richards Bay - Maputo is really the only option," an executive involved in South African projects said.
Would-be entrants already see Glencore well established. At Maputo it accounts for a third of the 3 million tonnes a year of exports and is also using the main harbour which has no loading equipment.
This deadlock has been frustrating for rival, large trading firms wanting to catch up with Glencore's roughly 20 year head start in building an integrated global coal business including investments in mines and ports and myriad offtake agreements.
"Glencore were in Matola (Maputo's inland coal terminal) from the start, to see how significant or useful an export point it was, with the ability to back out at any time," said an industry source recently returned from Maputo."Vitol seems to want to move into the Glencore space (by investing in ports and production)," a veteran South African industry source said.
"This is a great deal for Vitol, it gives them an export outlet for thermal, coking and sized coal and from the Waterberg too, eventually," another industry source said.If Glencore completes its purchase of Optimum Coal Holdings with its empowerment partner, entrepreneur Cyril Ramaphosa, it will be the country's fourth-largest exporter after Anglo American, and own a big chunk of highly-desirable Richards Bay export capacity.Although currently high, Maputo's costs will fall when the port is expanded substantially and rail investment allows more coal to be railed rather than trucked.
"RBCT offers huge savings - $2-3 a tonne to shareholders, $5 for Quattro junior miners but that's a fraction of the $15-20 charged by Richards Bay Dry Bulk Terminal or $9-10 at Maputo," said the recently returned official. Vitol has a coal offtake agreement with producer Coal Of Africa and is expected to make export space for COA as it ramps up production.
But there will be no shortage of takers for Maputo's capacity, even after the planned expansion, because the 50,000 tonne ships loaded at Matola are ideal for the growing Indian market, an industry source said.
"There are two users of the main harbour, Glencore for sized coal and Jupiter Trading, while Glencore is using the inland Matola terminal for thermal coal," he said.Coal from the main harbour stockpiles is loaded into builders' skips which are tipped into waiting vessels, he said.
This method is costly and slow but the high price of sized coal used for domestic fuel gives a fat profit margin, he said."With their (Glencore's) optimum capacity they can use RBCT primarily for thermal exports and the smaller, higher cost ports for high value products, they don't need Maputo," he added.
TRANSNET SAVES THE DAY
More such strategic investment opportunities are likely to emerge in the next year or so primarily because South Africa's state-owned Transnet Freight Rail has gone from zero to hero in six months to consistently move more coal than miners ever thought possible.
After years of complaining about TFR's poor performance, miners are having to start considering boosting output.
Until June last year, TFR's poor past performance had for several years capped exports at around 65 million tonnes a year despite a capacity of over 80 million and plans to rise to over 90 million tonnes.
"Now the shoe's on the other foot and they're (TFR) getting it right. If they can sustain it, producers will eventually bring on more mining capacity," a producer source said.
"It's a 2-3 year process to make a decision and another 4-5 years to put it into place but it's just so difficult to decide to invest when there are so many uncertainties," he added.RBCT shareholders' export entitlement equates to the stakes they own in the terminal - a 20 percent stake would give 20 percent of whatever total tonnage can be exported and that in turn depends on what TFR can move. While TFR was struggling, RBCT shareholders' ability to export was constrained and they held tightly to their export capacity rather than be tempted to sell or lease it.
But if TFR keeps up its current pace and before miners invest in new mines, RBCT shareholders with more export capacity than production may revisit leasing."It's quite possible that it reverts to the situation several years ago when some RBCT shareholders leased what they couldn't fill with their own output or buy from smaller miners Free On Rail but there's hardly anything available like that now," a transport and logistics source said.
Source: Reuters
Mozambique capital Maputo is hotting up as a magnet for companies aspiring to be significant South African coal exporters, following a Vitol joint venture deal, industry sources said this week.
The port has been used on a small scale for coal exports which shippers were unable to move from the main export hub, Richards Bay Coal Terminal (RBCT), but is now the centre of major expansion plans for South African coal.
Two exporters have in the last few months started using the main Maputo harbour, which has no loading equipment, for the first time and gleaming new fencing has been set up around stockpiles there, a recent visitor to the port said. A handful of mining majors own RBCT, by far the cheapest, most efficient port, but new entrants have mostly failed to gain a foothold there.
"If you want to be producing South African coal for export, don't ever think you are going to get into Richards Bay - Maputo is really the only option," an executive involved in South African projects said.
Would-be entrants already see Glencore well established. At Maputo it accounts for a third of the 3 million tonnes a year of exports and is also using the main harbour which has no loading equipment.
This deadlock has been frustrating for rival, large trading firms wanting to catch up with Glencore's roughly 20 year head start in building an integrated global coal business including investments in mines and ports and myriad offtake agreements.
"Glencore were in Matola (Maputo's inland coal terminal) from the start, to see how significant or useful an export point it was, with the ability to back out at any time," said an industry source recently returned from Maputo."Vitol seems to want to move into the Glencore space (by investing in ports and production)," a veteran South African industry source said.
"This is a great deal for Vitol, it gives them an export outlet for thermal, coking and sized coal and from the Waterberg too, eventually," another industry source said.If Glencore completes its purchase of Optimum Coal Holdings with its empowerment partner, entrepreneur Cyril Ramaphosa, it will be the country's fourth-largest exporter after Anglo American, and own a big chunk of highly-desirable Richards Bay export capacity.Although currently high, Maputo's costs will fall when the port is expanded substantially and rail investment allows more coal to be railed rather than trucked.
"RBCT offers huge savings - $2-3 a tonne to shareholders, $5 for Quattro junior miners but that's a fraction of the $15-20 charged by Richards Bay Dry Bulk Terminal or $9-10 at Maputo," said the recently returned official. Vitol has a coal offtake agreement with producer Coal Of Africa and is expected to make export space for COA as it ramps up production.
But there will be no shortage of takers for Maputo's capacity, even after the planned expansion, because the 50,000 tonne ships loaded at Matola are ideal for the growing Indian market, an industry source said.
"There are two users of the main harbour, Glencore for sized coal and Jupiter Trading, while Glencore is using the inland Matola terminal for thermal coal," he said.Coal from the main harbour stockpiles is loaded into builders' skips which are tipped into waiting vessels, he said.
This method is costly and slow but the high price of sized coal used for domestic fuel gives a fat profit margin, he said."With their (Glencore's) optimum capacity they can use RBCT primarily for thermal exports and the smaller, higher cost ports for high value products, they don't need Maputo," he added.
TRANSNET SAVES THE DAY
More such strategic investment opportunities are likely to emerge in the next year or so primarily because South Africa's state-owned Transnet Freight Rail has gone from zero to hero in six months to consistently move more coal than miners ever thought possible.
After years of complaining about TFR's poor performance, miners are having to start considering boosting output.
Until June last year, TFR's poor past performance had for several years capped exports at around 65 million tonnes a year despite a capacity of over 80 million and plans to rise to over 90 million tonnes.
"Now the shoe's on the other foot and they're (TFR) getting it right. If they can sustain it, producers will eventually bring on more mining capacity," a producer source said.
"It's a 2-3 year process to make a decision and another 4-5 years to put it into place but it's just so difficult to decide to invest when there are so many uncertainties," he added.RBCT shareholders' export entitlement equates to the stakes they own in the terminal - a 20 percent stake would give 20 percent of whatever total tonnage can be exported and that in turn depends on what TFR can move. While TFR was struggling, RBCT shareholders' ability to export was constrained and they held tightly to their export capacity rather than be tempted to sell or lease it.
But if TFR keeps up its current pace and before miners invest in new mines, RBCT shareholders with more export capacity than production may revisit leasing."It's quite possible that it reverts to the situation several years ago when some RBCT shareholders leased what they couldn't fill with their own output or buy from smaller miners Free On Rail but there's hardly anything available like that now," a transport and logistics source said.
Source: Reuters
NTPC will release INR 34000 crore order by March end - BGR Energy
Monday, 13 Feb 2012 Source - CNBC-TV18
Mr BG Raghupathy CMD of BGR Energy told CNBC-TV18 that because of land possession issues, NTPC had to defer the order but he is confident of it being released from NTPC before the end of March.
The 34,000 crore NTPC order for supercritical boilers has been deferred. BGR Energy was L1 for INR 3,600 crore turbine order from NTPC. The order was expected to be released from NTPC before March. The company bid for INR 22,000 crore of projects.
Below is an edited transcript. Watch the accompanying video for more.
Q - Can you confirm to us whether this huge order has indeed been delayed?
A - NTPC has to be in possession of the land and they have to have the expert appraisal committee meeting at the Ministry of Finance. For one project Lara Super Thermal Power Project at Raigarh has been already completed and the land is also almost in possession so we are expecting the order to be released before the end of March.
In Darlipali we expect the order in the month of April. A small bit of land is to be acquired. Once that is over we expect NTPC to release it. So it is not going to be deferred, NTPC is going ahead with the placement of orders.
Q - NTPC is going ahead with the entire INR 34,000 crore orders that they have and you will be hearing from them by the end of March?
A - Yes.
Q - There has been a slippage in order book. In fact even in this quarter's performance there has been a big dip on the net profit and for orders as well. Are there any more delays that you are seeing from the clients on the ground with the kind of orders that you have got?
A - The entire country's power sector has been slipping orders for the last 12 months, nobody got any big order. We got INR 1,700 crore EPC job of 2x300 MW. Various projects are in the finalisation stage; one is in Rajasthan of 6,000 crore.
They have held discussion with BHEL and we expect to be called next and the 660 MW NTPC bulk tender NTPC is awaiting for the court decision and we have bid for nearly INR 22,000 crore of projects for BTG and EPC projects which is taking a little time which is usual but we expect these orders to come in within the next six months. As of today our order book is about INR 8,500 crore and with the two orders that we expecting in the month of March and April we will be adding INR 9,400 crore we will be adding to our order book.
Mr BG Raghupathy CMD of BGR Energy told CNBC-TV18 that because of land possession issues, NTPC had to defer the order but he is confident of it being released from NTPC before the end of March.
The 34,000 crore NTPC order for supercritical boilers has been deferred. BGR Energy was L1 for INR 3,600 crore turbine order from NTPC. The order was expected to be released from NTPC before March. The company bid for INR 22,000 crore of projects.
Below is an edited transcript. Watch the accompanying video for more.
Q - Can you confirm to us whether this huge order has indeed been delayed?
A - NTPC has to be in possession of the land and they have to have the expert appraisal committee meeting at the Ministry of Finance. For one project Lara Super Thermal Power Project at Raigarh has been already completed and the land is also almost in possession so we are expecting the order to be released before the end of March.
In Darlipali we expect the order in the month of April. A small bit of land is to be acquired. Once that is over we expect NTPC to release it. So it is not going to be deferred, NTPC is going ahead with the placement of orders.
Q - NTPC is going ahead with the entire INR 34,000 crore orders that they have and you will be hearing from them by the end of March?
A - Yes.
Q - There has been a slippage in order book. In fact even in this quarter's performance there has been a big dip on the net profit and for orders as well. Are there any more delays that you are seeing from the clients on the ground with the kind of orders that you have got?
A - The entire country's power sector has been slipping orders for the last 12 months, nobody got any big order. We got INR 1,700 crore EPC job of 2x300 MW. Various projects are in the finalisation stage; one is in Rajasthan of 6,000 crore.
They have held discussion with BHEL and we expect to be called next and the 660 MW NTPC bulk tender NTPC is awaiting for the court decision and we have bid for nearly INR 22,000 crore of projects for BTG and EPC projects which is taking a little time which is usual but we expect these orders to come in within the next six months. As of today our order book is about INR 8,500 crore and with the two orders that we expecting in the month of March and April we will be adding INR 9,400 crore we will be adding to our order book.
Thursday, February 9, 2012
Exxaro yet to reach 50 pct of African Iron
Thursday, 09 Feb 2012
South African miner Exxaro Resources is 27% shy of reaching the minimum acceptance level in its USD338 million take-over bid for Perth-based iron ore explorer African Iron, with one week left to go.
Exxaro currently has a stake in Republic of Congo-focused African Iron of 22.93%.
The suitor, which is South Africa's second largest coal producer, last week declared its offer final and free from defeating conditions including regulatory action but exluding the 50 per cent minimum acceptance level.
It also said there would be no extension to the offer closing date of February 14.
Exxaro has offered 51 cents per share, which will increase to 57 cents per share if the suitor acquires a 75% or more stake in the target.
Exxaro will also pay 31 cents per listed option, rising to 37 cents per listed option if the 75% threshold is reached.
African Iron's directors last month accepted the offer in respect of the shares and listed options in the company that they personally owned.
Its major shareholder, resources investment firm Cape Lambert Resources, has sold most of its interest in African Iron and pledged to divest the remainder into the offer.
(Sourced from news.ninemsn.com.au)
South African miner Exxaro Resources is 27% shy of reaching the minimum acceptance level in its USD338 million take-over bid for Perth-based iron ore explorer African Iron, with one week left to go.
Exxaro currently has a stake in Republic of Congo-focused African Iron of 22.93%.
The suitor, which is South Africa's second largest coal producer, last week declared its offer final and free from defeating conditions including regulatory action but exluding the 50 per cent minimum acceptance level.
It also said there would be no extension to the offer closing date of February 14.
Exxaro has offered 51 cents per share, which will increase to 57 cents per share if the suitor acquires a 75% or more stake in the target.
Exxaro will also pay 31 cents per listed option, rising to 37 cents per listed option if the 75% threshold is reached.
African Iron's directors last month accepted the offer in respect of the shares and listed options in the company that they personally owned.
Its major shareholder, resources investment firm Cape Lambert Resources, has sold most of its interest in African Iron and pledged to divest the remainder into the offer.
(Sourced from news.ninemsn.com.au)
Tuesday, February 7, 2012
Steam coal prices mixed despite gas and oil rise
Tuesday, 07 Feb 2012
Reuters reported that steam coal prices made modest gains of around 75 cents per tonne on Monday as the arrival of more cargoes balanced against a freeze across much of Europe, which drove up gas and oil prices.
A February delivery DES ARA parcel of multi origin, including American coal, was bid at USD 96.75 and offered at USD 98.00, up 75 cents.
A March DES ARA for coal was bid at USD 96.50 and offered at USD 100.50, down 50 cents.
A March South African cargo was bid at USD 105.00, down 50 cents.
Several European utilities and utility/traders signed term contracts two years ago to import American coal, which have kept stockpiles swollen through a winter that has been unusually mild until the latest cold snap.
As more US and Colombian cargoes arrive in Europe while spot buying remains weak, some downward pressure is expected on prices. How far this will be offset by a resumption of large scale Chinese imports, remains to be seen.
Floods in Australia and heavy rains during the past month in Indonesia are already delaying shipments, but so far end users have not been compelled to seek replacement tonnes.
(Sourced from Reuters)
Reuters reported that steam coal prices made modest gains of around 75 cents per tonne on Monday as the arrival of more cargoes balanced against a freeze across much of Europe, which drove up gas and oil prices.
A February delivery DES ARA parcel of multi origin, including American coal, was bid at USD 96.75 and offered at USD 98.00, up 75 cents.
A March DES ARA for coal was bid at USD 96.50 and offered at USD 100.50, down 50 cents.
A March South African cargo was bid at USD 105.00, down 50 cents.
Several European utilities and utility/traders signed term contracts two years ago to import American coal, which have kept stockpiles swollen through a winter that has been unusually mild until the latest cold snap.
As more US and Colombian cargoes arrive in Europe while spot buying remains weak, some downward pressure is expected on prices. How far this will be offset by a resumption of large scale Chinese imports, remains to be seen.
Floods in Australia and heavy rains during the past month in Indonesia are already delaying shipments, but so far end users have not been compelled to seek replacement tonnes.
(Sourced from Reuters)
Wednesday, January 18, 2012
CIL to invite fresh bids for Mozambique blocks
Wednesday, 18 Jan 2012
ET reported that state run CIL will call for fresh bids for exploration of its two blocks in Mozambique that houses about one billion tonnes of reserves of coal.
A top company official told PTI that “Coal India will float fresh tenders for exploration of Mozambique blocks as the firm shortlisted during the second tender in June had put some additional conditions. As a result the tender became invalid.”
The production from the twin mines is scheduled from 2015 but analysts said it may get delayed as Coal India is yet to to zero in on a company for exploration.
CIL had invited tenders twice first in 2010, which was cancelled due to shortcomings and the second in June, 2011 for exploratory drillings of its blocks.
The two coal blocks A1 and A2 are spread over an area of 200 sq km and their exploration may take over two years, as per CIL. The company had planned production from blocks from 2015.
Coal India Africana Limitada a wholly owned subsidiary of CIL, had won a five year licence for exploration and development of the blocks in Mozambique in August, 2009.
CIL, which accounts for over 80% of the domestic production, is scouting for coal properties abroad to bridge the widening demand supply gap estimated at 142 million tonnes in the current fiscal.
(Sourced from ET)
ET reported that state run CIL will call for fresh bids for exploration of its two blocks in Mozambique that houses about one billion tonnes of reserves of coal.
A top company official told PTI that “Coal India will float fresh tenders for exploration of Mozambique blocks as the firm shortlisted during the second tender in June had put some additional conditions. As a result the tender became invalid.”
The production from the twin mines is scheduled from 2015 but analysts said it may get delayed as Coal India is yet to to zero in on a company for exploration.
CIL had invited tenders twice first in 2010, which was cancelled due to shortcomings and the second in June, 2011 for exploratory drillings of its blocks.
The two coal blocks A1 and A2 are spread over an area of 200 sq km and their exploration may take over two years, as per CIL. The company had planned production from blocks from 2015.
Coal India Africana Limitada a wholly owned subsidiary of CIL, had won a five year licence for exploration and development of the blocks in Mozambique in August, 2009.
CIL, which accounts for over 80% of the domestic production, is scouting for coal properties abroad to bridge the widening demand supply gap estimated at 142 million tonnes in the current fiscal.
(Sourced from ET)
Tuesday, January 10, 2012
PNOC EC to bid for 9 oil and coal prospects
Tuesday, 10 Jan 2012
PNOC Exploration Corp plans to apply for at least nine service contracts for the exploration and development of petroleum and coal blocks being offered by the government under the Philippine Energy Contracting Round 4.
Mr Gemiliano Lopez Jr PNOC-EC chairman and CEO disclosed that the company was initially interested in four coal blocks and at least five oil and gas areas in Palawan and Mindanao.
He said that PNOC-EC—the upstream oil and coal arm of state-run Philippine National Oil Co preferred to bid for the blocks that were near the areas covered by its existing service contracts as it was most likely already familiar with these places. The company studies for its existing service contracts usually extended to the adjacent areas.
PNOC-EC, however would continue conducting additional studies for the areas it planned to bid for to ensure that these blocks would fit its
Under the PECR 4, the Department of Energy is offering 15 contracts for the exploration, development and production of prospective oil and gas sites in areas covering 7.92 million hectares in onshore and offshore Cagayan, Central Luzon, northwest Palawan, Mindoro-Cuyo basin, east Palawan and Cotabato.
For coal, the 30 blocks up for auction are located in Quezon, Camarines Norte, Albay, Sorsogon, Masbate, Occidental Mindoro, Oriental
1. Mindoro, Negros Occidental, Cebu, Bohol, Agusan del Norte, Misamis
2. Oriental, Agusan del Sur, Surigao del Sur, Compostela Valley, Davao
3. Oriental, Lanao del Sur, Lanao del Norte, South Cotabato, Sultan
4. Kudarat, Sarangani, Zamboanga del Norte and Zamboanga Sibugay.
The company planned participation in the ongoing PECR 4 will allow PNOC-EC to fulfil its mandate to explore, exploit, develop, transport, distribute, trade in, import and export oil, gas and other energy resources.
It is also mandated to engage in the search for indigenous sources of energy. Since its establishment, PNOC-EC has undertaken various onshore and offshore oil and gas exploration activities nationwide.
(sourced Business.inquirer.net)
PNOC Exploration Corp plans to apply for at least nine service contracts for the exploration and development of petroleum and coal blocks being offered by the government under the Philippine Energy Contracting Round 4.
Mr Gemiliano Lopez Jr PNOC-EC chairman and CEO disclosed that the company was initially interested in four coal blocks and at least five oil and gas areas in Palawan and Mindanao.
He said that PNOC-EC—the upstream oil and coal arm of state-run Philippine National Oil Co preferred to bid for the blocks that were near the areas covered by its existing service contracts as it was most likely already familiar with these places. The company studies for its existing service contracts usually extended to the adjacent areas.
PNOC-EC, however would continue conducting additional studies for the areas it planned to bid for to ensure that these blocks would fit its
Under the PECR 4, the Department of Energy is offering 15 contracts for the exploration, development and production of prospective oil and gas sites in areas covering 7.92 million hectares in onshore and offshore Cagayan, Central Luzon, northwest Palawan, Mindoro-Cuyo basin, east Palawan and Cotabato.
For coal, the 30 blocks up for auction are located in Quezon, Camarines Norte, Albay, Sorsogon, Masbate, Occidental Mindoro, Oriental
1. Mindoro, Negros Occidental, Cebu, Bohol, Agusan del Norte, Misamis
2. Oriental, Agusan del Sur, Surigao del Sur, Compostela Valley, Davao
3. Oriental, Lanao del Sur, Lanao del Norte, South Cotabato, Sultan
4. Kudarat, Sarangani, Zamboanga del Norte and Zamboanga Sibugay.
The company planned participation in the ongoing PECR 4 will allow PNOC-EC to fulfil its mandate to explore, exploit, develop, transport, distribute, trade in, import and export oil, gas and other energy resources.
It is also mandated to engage in the search for indigenous sources of energy. Since its establishment, PNOC-EC has undertaken various onshore and offshore oil and gas exploration activities nationwide.
(sourced Business.inquirer.net)
Monday, January 9, 2012
Steam coal prices rise on weekend on short covering
Monday, 09 Jan 2012
Reuters reported that prompt physical coal prices rose by 50-75 US cents a tonne on Friday as players covered short positions and Indian buying showed signs of picking up after several months of a lull.
Traders and utilities in Europe short of Colombian tonnes due to delays to shipments from two of the country biggest exporters, Drummond and Prodeco have been seeking replacement cargoes helping to bolster DES ARA prices.
Suppliers said the gap between South African physical prices and API4 coal swaps has narrowed substantially, enough to tempt Indian trade buyers back into the market.
Traders and utilities said South African coal supply for January is extremely tight, exporters. Almost nothing is available now for January and shrinking volumes for February.
They said the unusually high size of this prompt bid a bid or offer for more than a cape worth is almost unheard of versus the offer for only part of the tonnage sought is the best visible indicator of the market tightening.
Indian cement and sponge iron makers have this week bought several prompt South African cargoes and are seeking more, but the power sector is still squeezed between fixed electricity tariffs, strong coal prices and the weak rupee.
(Sourced from Reuters)
Reuters reported that prompt physical coal prices rose by 50-75 US cents a tonne on Friday as players covered short positions and Indian buying showed signs of picking up after several months of a lull.
Traders and utilities in Europe short of Colombian tonnes due to delays to shipments from two of the country biggest exporters, Drummond and Prodeco have been seeking replacement cargoes helping to bolster DES ARA prices.
Suppliers said the gap between South African physical prices and API4 coal swaps has narrowed substantially, enough to tempt Indian trade buyers back into the market.
Traders and utilities said South African coal supply for January is extremely tight, exporters. Almost nothing is available now for January and shrinking volumes for February.
They said the unusually high size of this prompt bid a bid or offer for more than a cape worth is almost unheard of versus the offer for only part of the tonnage sought is the best visible indicator of the market tightening.
Indian cement and sponge iron makers have this week bought several prompt South African cargoes and are seeking more, but the power sector is still squeezed between fixed electricity tariffs, strong coal prices and the weak rupee.
(Sourced from Reuters)
Monday, December 26, 2011
Adani Enterprises floats global tender for logistic services
Monday, Dec26, 2011
NEW DELHI: Adani Enterprises Ltd (AEL) has floated international tender for selecting a logistics service provider, who would be responsible for delivery of coal to various thermal power plants. "AEL hereby invites interested parties to participate in the bidding process for the selection of logistic service provider (LSP), on the basis of international competitive bidding, who will be responsible for...delivery of coal by rail-sea-rail route," according to a public notice today.
Adani Enterprises was appointed as the mine developer and operator for Machhakata coal block in Orissa by Mahaguj Collieries Ltd (MGCL), the joint venture between Maharashtra State Power Generation (MAHAGENCO) and Gujarat State Electricity Cooperation (GSECL).
The firm is also designated with the task of delivery of coal at the thermal power plants of MAHAGENCO and GSECL, the public notice said. "The LSP shall be responsible for all activities related to transportation of coal from AEL's coal washery to thermal power plants, when the coal is to be transported through rail-sea-rail option," it said.
"In addition, the LSP shall also be responsible for obtaining all clearances/approvals, and complying with all requirements of various government/non government agencies related to the scope of work (including approval...required on title of AEL & MGCL," it added.
(sourced ET)
NEW DELHI: Adani Enterprises Ltd (AEL) has floated international tender for selecting a logistics service provider, who would be responsible for delivery of coal to various thermal power plants. "AEL hereby invites interested parties to participate in the bidding process for the selection of logistic service provider (LSP), on the basis of international competitive bidding, who will be responsible for...delivery of coal by rail-sea-rail route," according to a public notice today.
Adani Enterprises was appointed as the mine developer and operator for Machhakata coal block in Orissa by Mahaguj Collieries Ltd (MGCL), the joint venture between Maharashtra State Power Generation (MAHAGENCO) and Gujarat State Electricity Cooperation (GSECL).
The firm is also designated with the task of delivery of coal at the thermal power plants of MAHAGENCO and GSECL, the public notice said. "The LSP shall be responsible for all activities related to transportation of coal from AEL's coal washery to thermal power plants, when the coal is to be transported through rail-sea-rail option," it said.
"In addition, the LSP shall also be responsible for obtaining all clearances/approvals, and complying with all requirements of various government/non government agencies related to the scope of work (including approval...required on title of AEL & MGCL," it added.
(sourced ET)
Thursday, December 22, 2011
Bid for coal mine near Eneabba rejected
Thursday, 22 Dec 2011
It is reported that a bid by Central West Coal to develop a coal mine south of Eneabba has been rejected.
The Environmental Protection Authority considered five appeals against the development. It concluded the proposal could not meet its environmental objectives for protecting flora and fauna.
Mr Bill Marmion Environment Minister said the EPA decision is justified and appropriate. He will now consult with the relevant environmental authorities to determine whether or not the proposal can be implemented and under what operating conditions.
(sourced from www.abc.net.au)
It is reported that a bid by Central West Coal to develop a coal mine south of Eneabba has been rejected.
The Environmental Protection Authority considered five appeals against the development. It concluded the proposal could not meet its environmental objectives for protecting flora and fauna.
Mr Bill Marmion Environment Minister said the EPA decision is justified and appropriate. He will now consult with the relevant environmental authorities to determine whether or not the proposal can be implemented and under what operating conditions.
(sourced from www.abc.net.au)
Monday, December 19, 2011
Euro steam coal spreads widen and activity muted
Monday, 19 Dec 2011
Reuters reported that physical prompt thermal coal prices were little changed again on Friday but few players were active in the market and the bid/offer spreads widened as a result.
In the absence of fresh spot trade to give clear price direction, coal is tracking oil, equities and the euro, as it has for the past few months. Oil edged up near GBP 104 a barrel on Friday consolidating after heavy falls earlier in the week due to the weaker dollar and concerns about US sanctions against Iran but euro zone debt worries capped gains.
There was so little coal trading activity on Friday however that prices barely reacted to oil steadier tone. Traders, producers and utilities are focused more on Q1 where the hot spots of demand might be and what kind of support for prices could come from severe weather.
Australia is preparing for another active cyclone season as a La Nina weather pattern again brings heavy rains. The impact of another La Nina is not expected to be as severe as last year when successive cyclones and tropical storms through the winter and spring flooded coal mines in Queensland states and caused coal prices to spike.
One European trader said "Few people among the usual players were in the market, the holidays seem to have started early and the bid/offer spreads are so wide that clearly very little if anything is going to trade."
There is more talk in the market of substantial tonnages of American high-sulphur coal with 1.5% to 3% sulphur content arriving in Europe and more to come during 2012.
Utilities say they have already absorbed as much blend able high sulphur coal as they can for the next few months much of this is held on stockpiles in ARA and at power plants. Traders with long positions in US coal who had expected to place this in Europe are now hoping that China and India will buy more of this material if it is discounted enough.
Failing that, competition to win the relatively few tenders to buy coal issued in the Atlantic basin is expected to hot up as new entrant traders and banks look for all openings to sell physical coal.
Chinese importers are still enquiring for prompt coal cargoes although buying has slowed but the price window for imports remains wide open, according to a commodities research note issued by Credit Suisse.
(Sourced from Reuters)
Reuters reported that physical prompt thermal coal prices were little changed again on Friday but few players were active in the market and the bid/offer spreads widened as a result.
In the absence of fresh spot trade to give clear price direction, coal is tracking oil, equities and the euro, as it has for the past few months. Oil edged up near GBP 104 a barrel on Friday consolidating after heavy falls earlier in the week due to the weaker dollar and concerns about US sanctions against Iran but euro zone debt worries capped gains.
There was so little coal trading activity on Friday however that prices barely reacted to oil steadier tone. Traders, producers and utilities are focused more on Q1 where the hot spots of demand might be and what kind of support for prices could come from severe weather.
Australia is preparing for another active cyclone season as a La Nina weather pattern again brings heavy rains. The impact of another La Nina is not expected to be as severe as last year when successive cyclones and tropical storms through the winter and spring flooded coal mines in Queensland states and caused coal prices to spike.
One European trader said "Few people among the usual players were in the market, the holidays seem to have started early and the bid/offer spreads are so wide that clearly very little if anything is going to trade."
There is more talk in the market of substantial tonnages of American high-sulphur coal with 1.5% to 3% sulphur content arriving in Europe and more to come during 2012.
Utilities say they have already absorbed as much blend able high sulphur coal as they can for the next few months much of this is held on stockpiles in ARA and at power plants. Traders with long positions in US coal who had expected to place this in Europe are now hoping that China and India will buy more of this material if it is discounted enough.
Failing that, competition to win the relatively few tenders to buy coal issued in the Atlantic basin is expected to hot up as new entrant traders and banks look for all openings to sell physical coal.
Chinese importers are still enquiring for prompt coal cargoes although buying has slowed but the price window for imports remains wide open, according to a commodities research note issued by Credit Suisse.
(Sourced from Reuters)
Tuesday, December 13, 2011
Morocco's JLEC launches three Panamax thermal coal tenders: trade
Tuesday, 13 December 2011
Moroccan generator Jorf Lasfar Energy has issued a tender for three 60,000 mt Panamax cargoes of thermal coal for March, April and May delivery, according to market sources.
The tender called for thermal coal with a minimum calorific value of 5,800 kcal/kg NAR, minimum 9% ash and maximum 1% sulfur.
One trader said it was "strange" that JLEC had lowered its typical sulfur content requirement from 1.5% to 1%, saying that he assumed it was because the generator had concluded a recent supply contract with a Russian producer and needed more lower-sulfur material.
Bids are due by December 20 and valid until December 22.
JLEC last month awarded a tender for four Panamaxes for delivery in January-April to a Switzerland-based trader-producer at a price in the region of $115.50-115.90/mt CIF Jorf Lasfar, according to traders.
JLEC regularly tenders for spot shipments for its coal-fired plant, which has an installed capacity of 1,372 MW, providing around one third of Morocco's electricity supply.
Source: Platts
Moroccan generator Jorf Lasfar Energy has issued a tender for three 60,000 mt Panamax cargoes of thermal coal for March, April and May delivery, according to market sources.
The tender called for thermal coal with a minimum calorific value of 5,800 kcal/kg NAR, minimum 9% ash and maximum 1% sulfur.
One trader said it was "strange" that JLEC had lowered its typical sulfur content requirement from 1.5% to 1%, saying that he assumed it was because the generator had concluded a recent supply contract with a Russian producer and needed more lower-sulfur material.
Bids are due by December 20 and valid until December 22.
JLEC last month awarded a tender for four Panamaxes for delivery in January-April to a Switzerland-based trader-producer at a price in the region of $115.50-115.90/mt CIF Jorf Lasfar, according to traders.
JLEC regularly tenders for spot shipments for its coal-fired plant, which has an installed capacity of 1,372 MW, providing around one third of Morocco's electricity supply.
Source: Platts
Monday, December 12, 2011
Weak rupee stalls overseas coal mine buys
Monday, 12 Dec 2011
Indian power producers, which were aggressively bidding for coal assets overseas over the past 12 to 18 months, are ‘fighting shy’ in pursuing further acquisitions, courtesy the rising cost of funding such acquisitions after the nearly 19% drop in the rupee since August, near standstill infrastructure sector, recent changes in rules by suppliers such as Indonesia, Australia and Africa, and a fall in their stock valuations, which reduce the ability of promoters to leverage on their, said investment bankers and consultants.
Mr Kameswara Rao leader for energy, utilities and mining at PwC India said that “Companies which have made big coal mine acquisitions in recent times will be very selective from here on as they need time to digest earlier acquisitions.”
According to Mr Sanjay Sakhuja CEO of Ambit Corporate Finance power and infrastructure companies are going through severe stress now. He said that “I am not anticipating any big mining deals by those firms, which have already swallowed big acquisitions.”
There has been tremendous shortage of domestic coal due various problems, including tighter environmental norms, the controversy surrounding mining licences in Karnataka and security threats from Maoist groups near coal mining areas, forcing private power producers to venture outside to source coal for their power projects.
Mr HK Mittal chairman of Mumbai based Mercator told Financial Chronicle that “Indian companies are going slow with their acquisition plans. There are several issues. Power projects are moving at a snail’s pace. Coal prices have also gone through the roof.”
TATA Power, which had been looking at small mines of around 10 million tonnes annual capacity in South Africa, Indonesia and Australia, may be going slow in any new purchase.
Mr S Ramakrishnan executive director of TATA Power recently told FC that the power sector is going through a tough phase in India. He added that “Buying new coal mines will be on hold till such time issues back home are sorted out. High coal prices and issues related to land acquisition have slowed down activities in the power sector. Poor financial health of distribution companies has led to drop in purchase of electricity by them, and merchant power rates have crashed.”
A Deutsche Bank report early this week said that owing to the ongoing and likely persisting coal shortage, India’s power demand-supply gap may not be bridged even in FY15.
(Sourced from www.mydigitalfc.com)
Indian power producers, which were aggressively bidding for coal assets overseas over the past 12 to 18 months, are ‘fighting shy’ in pursuing further acquisitions, courtesy the rising cost of funding such acquisitions after the nearly 19% drop in the rupee since August, near standstill infrastructure sector, recent changes in rules by suppliers such as Indonesia, Australia and Africa, and a fall in their stock valuations, which reduce the ability of promoters to leverage on their, said investment bankers and consultants.
Mr Kameswara Rao leader for energy, utilities and mining at PwC India said that “Companies which have made big coal mine acquisitions in recent times will be very selective from here on as they need time to digest earlier acquisitions.”
According to Mr Sanjay Sakhuja CEO of Ambit Corporate Finance power and infrastructure companies are going through severe stress now. He said that “I am not anticipating any big mining deals by those firms, which have already swallowed big acquisitions.”
There has been tremendous shortage of domestic coal due various problems, including tighter environmental norms, the controversy surrounding mining licences in Karnataka and security threats from Maoist groups near coal mining areas, forcing private power producers to venture outside to source coal for their power projects.
Mr HK Mittal chairman of Mumbai based Mercator told Financial Chronicle that “Indian companies are going slow with their acquisition plans. There are several issues. Power projects are moving at a snail’s pace. Coal prices have also gone through the roof.”
TATA Power, which had been looking at small mines of around 10 million tonnes annual capacity in South Africa, Indonesia and Australia, may be going slow in any new purchase.
Mr S Ramakrishnan executive director of TATA Power recently told FC that the power sector is going through a tough phase in India. He added that “Buying new coal mines will be on hold till such time issues back home are sorted out. High coal prices and issues related to land acquisition have slowed down activities in the power sector. Poor financial health of distribution companies has led to drop in purchase of electricity by them, and merchant power rates have crashed.”
A Deutsche Bank report early this week said that owing to the ongoing and likely persisting coal shortage, India’s power demand-supply gap may not be bridged even in FY15.
(Sourced from www.mydigitalfc.com)
6 coal firms unite for QR National rail access bid
Monday, 12 Dec 2011
Six coal companies will be allowed to collectively bargain with QR National for access to rail infrastructure.
The companies will act as one, when negotiating prices and access to the Goonyella, Blackwater and Newlands coal rail systems.
The rail systems will link up with the export terminal at Abbot Point, near Bowen in north Queensland.
Last week, it was announced the port would be expanded from three berths to nine.
The Australian Competition and Consumer Commission has given preliminary approval for the negotiations, with a final ruling in March.
(sourced ABC.net.au)
Six coal companies will be allowed to collectively bargain with QR National for access to rail infrastructure.
The companies will act as one, when negotiating prices and access to the Goonyella, Blackwater and Newlands coal rail systems.
The rail systems will link up with the export terminal at Abbot Point, near Bowen in north Queensland.
Last week, it was announced the port would be expanded from three berths to nine.
The Australian Competition and Consumer Commission has given preliminary approval for the negotiations, with a final ruling in March.
(sourced ABC.net.au)
Indonesia coal pricing norm affects Indian power companies
Monday, 12 Dec 2011
About 14,000 MW of capacity addition in the pipeline, based on Indonesian coal, appears to have hit a roadblock after Indonesia made it mandatory for coal exports to be benchmarked to international prices from September 23.
TATA Power, Reliance Power, Adani Power, JSW Energy and Lanco Infratech had aggressively bid in the tariff based competitive bidding process for power projects, based on their agreements/ arrangements they had made for fuel stock from Indonesia.
It is learnt that the developers had worked the financials of their projects factoring in the coal price they had entered into in Indonesia for long term supply, which in some cases are about USD 26 to USD 30 a tonne, almost half the benchmark prices.
TATA Power has commissioned the first of its 830 MW unit at Mundra. Reliance Power has slowed down work at its 4,000 MW Krishnapatnam project till a decision is taken as no substantial investments had been made and lenders too were reluctant to release funds citing fuel price cost.
Mr Ashok Khurana director general of Association of Power Producers the apex body of power developers in the country said that “The issue concerns about 20,000 MW of stranded capacity.”
He said that the association is only asking the Government for a forum or mechanism where the voices of the developers would be heard. A decision needs to be taken. It is not only about imported coal even domestic producers are impacted as Coal India is not able to address their requirements.
Mr Khurana said it must be understood that the ultra mega power project format was put up by the Government and assurances were given. It is not the developers' fault. Today bankers and investor were spurning them. Asking developers to speak to procurers is just passing the buck.
A few months back, Mr Alok Kanagat, Chief Executive Officer, Coastal Gujarat Power, wrote to the Power Minister stating that while initial calculations based on the Central Electricity Regulatory Commission norms provided for 14% return on equity would be around INR 600 crore per annum, but with the coal cost increase the impact could be up to INR 1,800 crore and nullify returns. Further, the impact on tariff could be up to INR 1 per unit.
To tide over the crisis, TATA Power has provisioned INR 823 crore for impairment in Coastal Gujarat Power Ltd this quarter. This has been worked out on the projected fuel cost that could impact future cash flows. Further, to address coal price volatility, Tata Power said it would also consider transferring 75% ownership of investments in coal companies to CGPL.
(Sourced from BL)
About 14,000 MW of capacity addition in the pipeline, based on Indonesian coal, appears to have hit a roadblock after Indonesia made it mandatory for coal exports to be benchmarked to international prices from September 23.
TATA Power, Reliance Power, Adani Power, JSW Energy and Lanco Infratech had aggressively bid in the tariff based competitive bidding process for power projects, based on their agreements/ arrangements they had made for fuel stock from Indonesia.
It is learnt that the developers had worked the financials of their projects factoring in the coal price they had entered into in Indonesia for long term supply, which in some cases are about USD 26 to USD 30 a tonne, almost half the benchmark prices.
TATA Power has commissioned the first of its 830 MW unit at Mundra. Reliance Power has slowed down work at its 4,000 MW Krishnapatnam project till a decision is taken as no substantial investments had been made and lenders too were reluctant to release funds citing fuel price cost.
Mr Ashok Khurana director general of Association of Power Producers the apex body of power developers in the country said that “The issue concerns about 20,000 MW of stranded capacity.”
He said that the association is only asking the Government for a forum or mechanism where the voices of the developers would be heard. A decision needs to be taken. It is not only about imported coal even domestic producers are impacted as Coal India is not able to address their requirements.
Mr Khurana said it must be understood that the ultra mega power project format was put up by the Government and assurances were given. It is not the developers' fault. Today bankers and investor were spurning them. Asking developers to speak to procurers is just passing the buck.
A few months back, Mr Alok Kanagat, Chief Executive Officer, Coastal Gujarat Power, wrote to the Power Minister stating that while initial calculations based on the Central Electricity Regulatory Commission norms provided for 14% return on equity would be around INR 600 crore per annum, but with the coal cost increase the impact could be up to INR 1,800 crore and nullify returns. Further, the impact on tariff could be up to INR 1 per unit.
To tide over the crisis, TATA Power has provisioned INR 823 crore for impairment in Coastal Gujarat Power Ltd this quarter. This has been worked out on the projected fuel cost that could impact future cash flows. Further, to address coal price volatility, Tata Power said it would also consider transferring 75% ownership of investments in coal companies to CGPL.
(Sourced from BL)
Friday, December 2, 2011
ASIA COAL MARKET: Indonesian coal prices continue to slip on lack of demand
Friday, 2 Dec, 2011
Manila (Platts): Indonesian coal prices continued to soften Friday as reports trickle in that that barging is now being allowed at the Mahakam river and Chinese importers are not serious about chasing spot cargoes.
A trader said his Chinese associates are still asking him to offer Indonesian coal in China, but added that he is not trading as he feels that Chinese importers will only buy at prices lower than what they have been offered.
He said he received a Chinese bid for 5,000 kcal/kg GAR Kalimantan coal at $76.50/mt FOB for blended material.
An Indonesian coal producer previously offered to sell at $77/mt FOB.
The producer has not yet responded to the Chinese bid and may likely agree to lower the price, he said.
"I am trying to close something for 5,000 kcal/kg GAR," the trader said, adding that Indonesian coal prices continued to remain soft.
Meanwhile, the supply disruption caused by the November 26 collapse of a public suspension bridge at the Mahakam river failed to give support to Indonesian coal prices, industry sources said.
On Friday, a north Asian buyer said coal-carrying barges have been now allowed to pass through the portion of the Mahakam river where the bridge collapsed.
Separately, Mahakam Sumber Jaya, or MSJ, a unit of Tanito Coal, which declared a force majeure on its December shipments after the bridge collapsed, has lifted the declaration Thursday.
A second trader said there are hardly any buyers for Indonesian cargoes, adding that Kalimantan prices are edging lower.
Another trader said there continued to be very few bids out of China, describing bids by Chinese importers as all over the place.
"The same is true for Indonesian coal price offers," he said.
He added that Indonesian CFR price offers for 4,000 kcal/kg NAR coal for south China delivery were between $65/mt and $82/mt.
Platts assessed Thursday the FOB Kalimantan 5,900 kcal/kg GAR at $98.00/mt, a $0.25/mt decline from a day earlier and FOB Kalimantan 5,000 kcal/kg GAR at $76.00/mt, down $0.25/mt day on day.
(Courtesy sourced Platts)
Manila (Platts): Indonesian coal prices continued to soften Friday as reports trickle in that that barging is now being allowed at the Mahakam river and Chinese importers are not serious about chasing spot cargoes.
A trader said his Chinese associates are still asking him to offer Indonesian coal in China, but added that he is not trading as he feels that Chinese importers will only buy at prices lower than what they have been offered.
He said he received a Chinese bid for 5,000 kcal/kg GAR Kalimantan coal at $76.50/mt FOB for blended material.
An Indonesian coal producer previously offered to sell at $77/mt FOB.
The producer has not yet responded to the Chinese bid and may likely agree to lower the price, he said.
"I am trying to close something for 5,000 kcal/kg GAR," the trader said, adding that Indonesian coal prices continued to remain soft.
Meanwhile, the supply disruption caused by the November 26 collapse of a public suspension bridge at the Mahakam river failed to give support to Indonesian coal prices, industry sources said.
On Friday, a north Asian buyer said coal-carrying barges have been now allowed to pass through the portion of the Mahakam river where the bridge collapsed.
Separately, Mahakam Sumber Jaya, or MSJ, a unit of Tanito Coal, which declared a force majeure on its December shipments after the bridge collapsed, has lifted the declaration Thursday.
A second trader said there are hardly any buyers for Indonesian cargoes, adding that Kalimantan prices are edging lower.
Another trader said there continued to be very few bids out of China, describing bids by Chinese importers as all over the place.
"The same is true for Indonesian coal price offers," he said.
He added that Indonesian CFR price offers for 4,000 kcal/kg NAR coal for south China delivery were between $65/mt and $82/mt.
Platts assessed Thursday the FOB Kalimantan 5,900 kcal/kg GAR at $98.00/mt, a $0.25/mt decline from a day earlier and FOB Kalimantan 5,000 kcal/kg GAR at $76.00/mt, down $0.25/mt day on day.
(Courtesy sourced Platts)
3 Indian companies in race for CIL Mozambique Exploration Project
Friday, 02 Dec 2011
Three Indian companies are in the race for a Coal India contract that called bids for exploration of its 200 odd square km block in Mozambique.
The world largest coal miner, which opened the price bids of Mining Associates, Indu-CBS Joint Venture and Kartikeyan Pvt Ltd last week, won the block two years ago. It is now expected to award the contract within 45 days.
Mr AK Singh CMD at the Central Mine Planning and Design Institute which is CIL's technical arm that finalizes and floats tenders said that "We have asked the parties concerned to justify the price bids following which we will scrutinize them and finalize the lowest bidder.”
Coal India Africana Limitad, a wholly owned subsidiary of CIL, won a 5 year licence for exploration and development of two coal blocks in Mozambique in August 2009.
In February, it invited exploration bids for A1 and A2 mining blocks in the northwestern province of Tete. During May, three parties submitted their financial bids. The final selection was to be completed by July. However, there were some issues with respect to the currency in which the bank guarantees were submitted by the bidders. This forced CIL to scrap the bids and call for fresh ones.
Nevertheless, Coal India hopes to start the first phase of production by 2013-14. With an initial estimated reserve of 1 billion tonnes, the coal will be imported to cater to domestic demand from customers in Western India. It is an exploratory block with an area of about 205 square km and preliminary estimates suggest that it could have a reserve of about 1 billion tonnes.
About 20% of the deposits are expected to be coking coal while the remaining is expected to be thermal coal that can be used as fuel in power plants. Exploration will be done in two phases. The first phase will include finding out the tentative concentration of reserves at various locations in the block. The second phase will include estimation of the exact quantum of coal in these probable areas with high reserves.
(Sourced from ET)
Three Indian companies are in the race for a Coal India contract that called bids for exploration of its 200 odd square km block in Mozambique.
The world largest coal miner, which opened the price bids of Mining Associates, Indu-CBS Joint Venture and Kartikeyan Pvt Ltd last week, won the block two years ago. It is now expected to award the contract within 45 days.
Mr AK Singh CMD at the Central Mine Planning and Design Institute which is CIL's technical arm that finalizes and floats tenders said that "We have asked the parties concerned to justify the price bids following which we will scrutinize them and finalize the lowest bidder.”
Coal India Africana Limitad, a wholly owned subsidiary of CIL, won a 5 year licence for exploration and development of two coal blocks in Mozambique in August 2009.
In February, it invited exploration bids for A1 and A2 mining blocks in the northwestern province of Tete. During May, three parties submitted their financial bids. The final selection was to be completed by July. However, there were some issues with respect to the currency in which the bank guarantees were submitted by the bidders. This forced CIL to scrap the bids and call for fresh ones.
Nevertheless, Coal India hopes to start the first phase of production by 2013-14. With an initial estimated reserve of 1 billion tonnes, the coal will be imported to cater to domestic demand from customers in Western India. It is an exploratory block with an area of about 205 square km and preliminary estimates suggest that it could have a reserve of about 1 billion tonnes.
About 20% of the deposits are expected to be coking coal while the remaining is expected to be thermal coal that can be used as fuel in power plants. Exploration will be done in two phases. The first phase will include finding out the tentative concentration of reserves at various locations in the block. The second phase will include estimation of the exact quantum of coal in these probable areas with high reserves.
(Sourced from ET)
Tuesday, November 29, 2011
Kilo Goldmines comments on award of iron ore block in Afghanistan
Tuesday, 29 Nov 2011
Kilo Goldmines Ltd while responding to press reports that it has been awarded one of four concession blocks comprising the Hajigak iron ore deposit in Afghanistan by the Afghan Ministry of Mines confirmed that it has submitted a bid in response to a request for proposals from the MOM for the mining rights to the four concession block Hajigak iron ore deposit.
The company has not been notified by the MOM of the outcome of the bidding process.
It said “If selected, Kilo would have the exclusive right to negotiate with the MOM for the mining rights to the concession block for which it was selected as a preferred bidder before a final award is made.”
Although the bid was submitted in the name of the Company, the bid was prepared by an independent group, led by David Buckle, a UK based corporate financier, who would be responsible for the financing and management of the project. If awarded, the project would be held in a new entity with Kilo receiving an initial 20% interest, subject to dilution but with no funding obligation. The independent financing and management structure was presented in the bid documents submitted to the MOM. The Principals are required to reimburse Kilo for expenses incurred in the bidding process and to indemnify it for any losses sustained.
The bid was initiated earlier in the year and the Board determined that it would be in the best interests of the Company to continue with the bid given the potential financial benefits and limited downside risk following the agreement of the Principals to reimburse the Company for expenses and provide it with indemnification.
The Hajigak iron ore deposit is situated in the mountainous Bamyan province, 130 km west of the capital, Kabul. It is one of several iron deposits within this area and is the largest located to date.
Kilo Goldmines Ltd is a Canadian gold exploration company operating in the Democratic Republic of Congo. The Company has over 7,000 square kilometers of favorable Archaean Kabalian greenstone in the Kilo Moto area in north eastern DRC. Kilo recently announced an inferred resource on the Adumbi Deposit of the Somituri Project of which the Company owns a 71.25% interest in the DRC entity that holds the Somituri Project Exploitation Permits. The Company is also working on a number of other prospective areas which contain historical workings in the same region. It also has a joint venture with Rio Tinto Ltd. on potential iron ore licences in north eastern DRC.
Kilo Goldmines Ltd while responding to press reports that it has been awarded one of four concession blocks comprising the Hajigak iron ore deposit in Afghanistan by the Afghan Ministry of Mines confirmed that it has submitted a bid in response to a request for proposals from the MOM for the mining rights to the four concession block Hajigak iron ore deposit.
The company has not been notified by the MOM of the outcome of the bidding process.
It said “If selected, Kilo would have the exclusive right to negotiate with the MOM for the mining rights to the concession block for which it was selected as a preferred bidder before a final award is made.”
Although the bid was submitted in the name of the Company, the bid was prepared by an independent group, led by David Buckle, a UK based corporate financier, who would be responsible for the financing and management of the project. If awarded, the project would be held in a new entity with Kilo receiving an initial 20% interest, subject to dilution but with no funding obligation. The independent financing and management structure was presented in the bid documents submitted to the MOM. The Principals are required to reimburse Kilo for expenses incurred in the bidding process and to indemnify it for any losses sustained.
The bid was initiated earlier in the year and the Board determined that it would be in the best interests of the Company to continue with the bid given the potential financial benefits and limited downside risk following the agreement of the Principals to reimburse the Company for expenses and provide it with indemnification.
The Hajigak iron ore deposit is situated in the mountainous Bamyan province, 130 km west of the capital, Kabul. It is one of several iron deposits within this area and is the largest located to date.
Kilo Goldmines Ltd is a Canadian gold exploration company operating in the Democratic Republic of Congo. The Company has over 7,000 square kilometers of favorable Archaean Kabalian greenstone in the Kilo Moto area in north eastern DRC. Kilo recently announced an inferred resource on the Adumbi Deposit of the Somituri Project of which the Company owns a 71.25% interest in the DRC entity that holds the Somituri Project Exploitation Permits. The Company is also working on a number of other prospective areas which contain historical workings in the same region. It also has a joint venture with Rio Tinto Ltd. on potential iron ore licences in north eastern DRC.
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