TTA seeks plants for coal output

Monday, 23 January 2012

Thoresen Thai Agencies (TTA), a leading SET-listed dry bulk carrier, is studying a possible investment in coal-fired power plants in Indonesia and the Philippines and a deep-sea port in Myanmar.
With a coal output of 4-5 million tonnes a year, TTA will be ready to operate power plants, said M.L. Chandchutha Chandratat, the president and chief executive. Under the current plan, TTA plans to produce 3 million tonnes of Indonesian coal and one million tonnes from the Philippines by 2014.
TTA and three partners have been awarded a concession for four coal exploration blocks covering 200,000 rai in Kalimantan, on Borneo.

The company is producing coal from its first mine in the Philippines and looking for a second mine there.
"We are considering investment in power plants near our mines in Indonesia and the Philippines so we don't have to spend a lot on logistics cost," said M.L. Chandchutha.On Cebu in the Philippines and Borneo in Indonesia, there are large-scale coal-fired power plants in operation, he acknowledged.Meanwhile, TTA has been invited by Premchai Karnasuta, chairman of Italian-Thai Development Plc, to co-invest in a deep-sea port in Dawei, Myanmar.

Thailand's largest construction firm by market value is seeking partners and mobilising at least US$12.5 billion this year to develop infrastructure on the coast of the neighbouring country."I agree there's a lot of potential in Myanmar and we are interested," said M.L. Chandchutha. "However, we need time to study the regulations there, as well as strategic partners who understand this business quite well." TTA owns a 20% share of Baria Serece, which operates the largest deep-water port in southern Vietnam.

M.L. Chandchutha said TTA plans to dilute its ownership in Unique Mining Services (UMS), a SET-listed coal importer and distributor, from 86% now. TTA acquired shares and warrants of UMS in late 2009 with a total investment of 3.9 billion baht at 23 baht per share. UMS shares now trade at 13-14 baht.
"We will consider reducing shares when the price improves, and we will still take control of more than 50% in the coal mine subsidiary, as TTA has a plan for long-term investment in energy," said M.L. Chandchutha.TTA has said that its core shipping business will bottom out this year as the new supply of ships eases from next year onwards.

In 2011, 70 million tonnes of vessels arrived on the market, denoting a 14% increase from the year before.
Supply is expected to rise by 10% or more this year, but the gloomy global economic outlook will continue to pressure the demand side. "We expect the Baltic Dry Index (BDI) to stay on par with last year's level or even worse," said M.L. Chandchutha. The BDI, a measure of shipping cost for dry-bulk commodities, just slipped below 1,000 points, compared with last year's low of 1,043.
"Our shipping business might be flat from last year or slightly drop, but it should gradually recover from this quarter onwards," he said.

Source: Bangkok Post

PT Bumi to explore iron ore in West Africa

Monday, 23 Jan 2012

It is reported that PT Bumi Resources Minerals Tbk, a non-coal mining unit of coal giant PT Bumi Resources Tbk is set to start iron ore production in Mauritania after securing exploitations permit from the West African government.

Mr Kenneth Farrell CEO of Bumi Minerals said the concession is expected see exploitation activities start between March and May this year, with an output of 600,000 tons of iron ore per year.

He said that Bumi Minerals is to boost output to 1 million tons of ore by 2014 in 990 square kilometers area of iron ore. He added that “We were happy to obtain the necessary exploitation permit early this month, adding that the permit was obtained earlier on January 13.”

Bumi Minerals file submitted to the Indonesia Stock Exchange said “In this case, the government of Mauritania has exercised its right. Therefore, its ownership in Tamagot Bumi is 20%.”

Based on the regulation in Mauritania, all concessions that have received exploitation permits are required to divest a 10 percent stake of the respective concession at no cost to the local government prior to commercial productions.

The same regulation also gives the Mauritanian government the right to buy another 10% stake in these concessions for prices agreed by the buyers and sellers.

(Sourced Thejakartapost.com)

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)

Santanghu Coalfield to sell exploration rights of 3 blocks

Monday, 02 Jan 2012

SinoCast Daily Business Beat X reported that exploration rights for 3 blocks of Santanghu coalfield, China largest un compartmentalized coalfield in Hami of Xinjiang was listed for sale on December 29. The blocks cover over 370 square meters with coal resource reserves of 14.9 billion tonnes.

Local Bureau of Geology introduced the Santanghu coalfield is located in Santanghu basin about 80 kilometers away from North Balikun County, Hami district.

The Government of Xinjiang autonomous region has invested CNY 1 billion since 2009 and arranged geological exploration department to launch exploration in the Santanghu coalfield, which covers approximately 200 kilometers from East to West and roughly 30 kilometers from North to South.

It is the largest un compartmentalized coalfield in China, owing 55 billion tonnes of proven coal reserves located less than 1000 meters below the surface and 120 billion tonnes within the depth of 2000 meters.

(Sourced from SinoCast Daily Business Beat via COMTEX)

Mozambique Ports expand with Rio Tinto

Thursday, 15 Dec 2011

Roads were little more than rubble and there was barely enough working equipment to load cargo at Maputo port in 2003. Then Mozambique brought in Grindrod Ltd and DP World Ltd to operate the harbor.

Since then, a coal mining boom has fueled expansion at the southern African nation’s harbors. Rio Tinto Plc bought Sydney based Riversdale Mining Ltd for AUD 3.4 billion in July to add 25 million tonnes of Mozambican coal to its annual output.

Clinton Duncan resource analyst at Avior Research Ltd in Johannesburg said that “Rio Tinto has been buying up a lot of assets in Mozambique, and they stand to be one of the significant beneficiaries there.”

The number of ships docking at Maputo has almost doubled to 1,030 a year since 2003, while coal exports have climbed from 1.5 million metric tons to more than 4 million tons and chrome shipments are set to reach about 2 million tons, a five-fold increase, said Ricardo Roberts, commercial manager of the port.

Mozambique is attracting exporters, such as Rio Tinto and Sappi Ltd from neighboring South Africa, which is burdened with high port costs and a lack of rail capacity.

Exxaro Resources Ltd and Coal of Africa Ltd are bringing shipments from mines in northern South Africa to Maputo as the miners face restrictions in using South Africa’s Richards Bay port.

A coal-mining boom is fueling development in the southern African nation after a 16-year civil war that ended in 1992 destroyed infrastructure. Durban, South Africa-based Grindrod is spending as much as $800 million to boost capacity by 20 million tons at the coal terminal in the next four years.

Cargo-handling capacity at the Maputo port, 286 miles north of Durban harbor, is set to climb to 50 million tonnes by 2030 from about 13 million tonnes currently, according to David Rennie, Grindrod’s executive director of ports and terminals. Grindrod and DP World of Dubai have a 25% stake each in the port and the government owns the rest.

(Sourced from Bloomberg)

Investment for coal development in Indian

Wednesday, 30 Nov 2011

Mr Pratik Prakashbapu Patil minister of state in the ministry of coal informed the Rajya Sabha that following steps are being taken by Coal India Ltd to enhance coal production and productivity:-

1. Improving capacity utilization by improvement in efficiency and modernization.
2. Implementation of ongoing projects in a time bound manner to achieve targeted production as per schedule.

3. Efforts being made by all the subsidiaries for obtaining Environment/ Forest Clearance (EC/FC) within the scheduled time frame so that projects could start production in time.

4. Continuous liaisoning with the State Government agencies to acquire land for identified & expansion projects.

As per available information, the coal imports by various consumers, during the last three years, were as under:-

The following steps were taken/are being taken by Coal India Limited to encourage private investments for coal development and to acquire new technologies:

1. Seven green field underground coalmines / blocks have been identified for development, construction and operation at high capacity with state of the art technology on turn-key basis.

2. 18 abandoned / derelict underground mines with estimated reserves over 1600 MT, not been worked for reasons of safety and economy, have been identified for salvaging, rehabilitation and operation with risk-gain sharing basis.

Thrust on automation and use of Information Technology in opencast mines. 11 existing mines are to be equipped with Operator Independent Truck Dispatch System for which tendering has been done.

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

Coal production can not keep pace with demand in India - Mr NC Jha

Wednesday, 23 Nov 2011

Disappointed at the pace at which Coal India Ltd is able to build infrastructure to move coal from mines and to scale up production, Mr NC Jha chairman and MD of CIL said that the state owned miner can only supply half the country’s thermal coal needs.

Q - How do you explain the decision to build your own power plant when you are unable to fulfil the country’s thermal coal needs?

A - There are so many power plants in India, and CIL building another one doesn’t make any sense unless you consider the specific problems of the coalfield where this power plant is proposed to be built. We have decided to set up a 1,600 MW power plant at the Ib-Vasundhara coalfield, which is run by our subsidiary Mahanadi Coalfields Ltd. There are four-five mines in this coalfield, and the potential to scale up production at these mines is huge.

Though we have initiated the process of laying a 54km railway track to connect the Ib-Vasundhara coalfield, moving coal from there will always be difficult. The plan is to ramp up production and burn the coal at the pithead. It is to optimally exploit the production potential of this coalfield that we have decided to set up a power plant in partnership with a power company, and have asked Power Finance Corp. to help us identify a suitable partner for the project.

We have similar problems in at least three other coalfields. Though we haven’t considered setting up power plants at these coalfields, logically speaking, this experiment could be extended to other areas as well where production is hobbled by infrastructure bottlenecks.

sourced: Livemint.com

Berau starts to explore binungan site - Insider Stories

Saturday, 05 November 11

Insider Stories reported that, coal miner PT Berau Coal, a 90% owned subsidiary of PT Berau Coal Energy Tbk (BRAU), is busy to hold exploration in Block 1 Binungan mine site (Prapatan) with a target production of 500,000 tons.

The output expansion is intended to underpin BRAU's annual production of 23 million tons. BRAU is now 85% controlled by Bumi Plc, a London-based company that was founded by Nathaniel Rothschild.

Public Relations Manager Berau Coal Bintoro Prabowo said the company started a mining construction at Prapatan last month.

"Reserves at Binungan site is estimated about 10 million tons. We expect to produce 500,000 tons of coal next year," he said as quoted by Bisnis Indonesia today.

Berau Coal produced 17.3 million tons last year, 20.3 million tons this year, and 23 million tons next year.

source: Insider Stories & coalspot.com

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Cove Energy says Mozambique block may have 40 TFC of gas

Tue Nov 1, 2011

CAPE TOWN Nov 1 (Reuters) - Britain's Cove Energy PLC believes its offshore Mozambique Rovuma block it is exploring has an upside potential of 40 trillion cubic feet of gas, almost triple the 11 tcf it has proven, the company's chairman said on Tuesday.

"We believe to date that we have already proven up more than 11 tcf, however Cove estimates the overall potential of the (Rovuma offshore Mozambique) block only to be more 40 tcf . and the total potential for East Africa is easily 100 tcf," Michael Blaha, executive chairman of Cove Energy, told an African oil and gas conference on Tuesday.

Oil and gas companies, including U.S. firm Anadarko , are flocking to the southern African nation following huge gas finds.

Blaha said the first gas from Mozambique was eyed for 2018, with the first LNG gas trains likely to supply the growing Asian market.

"The Mozambique LNG project alone could be a game-changer for the LNG industry," he said.

(sourced Reuters)

Endocoal boosts coal resource by 500pct in under explored eastern Bowen Basin

Tuesday, 01 Nov 201

Endocoal has upgraded the resource for the Rockwood coal project in the Bowen Basin by 505% to 312.5 million tonnes, in what could turn out to be a company making project.

Endocoal has one of the largest landholdings in the Bowen Basin region, with 11 tenements across 5,200 square kilometres in the under explored eastern region of the basin.

The company has intersected the Moranbah Coal Measures at Rockwood, with multiple coal seams presenting including some shallow seams.

Recent drilling and coal analysis along with results from a number of surveys could indicate Endocoal has discovered a new coal province on the eastern side of the Bowen Basin. An intensive exploration program started at Rockwood in April 2011 with drilling extending to 300 metres depth, intersecting more than 20 separate coal intersections.

Results of coal quality tests and potential end user assessments should be available by mid-November. The drilling program has increased Endocoal’s exploration footprint south and east of the original project area, and enabled significantly more coal to be included in the Resource, which previously stood at 51.6 million tonnes.

A 20 line kilometer seismic survey, along with aeromagnetic and close-spaced ground gravity surveys have confirmed the continuity of the geological structures being drilled.

These surveys have also identified similar structures elsewhere in the Rockwood tenement. Further exploration work will be undertaken in 2012 to expand the size of the Rockwood resource.

Endocoal is making the move from explorer to developer, with a mining lease application and bankable feasibility study for the first open cut project, Meteor Downs South, underway.

The company has not said whether these latest results will change its initial focus. Endocoal is also participating in the port expansion process at all three of the Northern ports.

sourced from proactiveinvestors

Convergent Minerals to acquire all shares in Blackwood Coal

Monday, 29 Aug 2011

Convergent Minerals is to acquire all of the shares in Blackwood Coal Pty Ltd which holds a portfolio of coal exploration tenements in Queensland.

The Blackwood portfolio of projects includes a pipeline of coal exploration projects and prospects including an advanced thermal coal exploration project called West Bowen Coal Project located 20 kilometers west of Blair Athol in the Bowen Basin.

The lead project has a 27.3 million tonnes JORC Inferred Resource with an additional 15 to 30 million tonnes exploration target. There are drill ready exploration targets in the Bowen, Surat and Clarence Moreton Basins with previous coal intercepts. Blackwood Coal is planning an intensive drill campaign to increase the JORC resource base in calendar year 2011.

Blackwood Coal currently has a portfolio of 7 granted EPCs and 25 applications. The exploration permits range from advanced exploration with drill ready targets to Greenfield lateral opportunities. Drilling at the East Wandoan Project has intersected up to 11.7 meters in cumulative thickness of coal at depths less than 100 meters.

As consideration, convergent will seek shareholder approval to acquire these assets by a capital raising of up to USD 20,000,000, through the issue of shares at a price subject to market conditions, but not less than USD 0.20 per offer share. The transaction is conditional on Convergent shareholder approval and due diligence of all parties. The transaction requires Convergent to comply with the requirements of Chapters 1 and 2 of the Listing Rules.

The board of the company will replaced by the current board members of Blackwood. Convergent will be renamed Convergent Coal Limited.
A consolidation on a 2 for one basis is proposed. Convergent will sell the Bounty Project to AFL Resources Limited.

(sourced proactiveinvestors)

CoAL shirks legal green obligations with big promises

August 24 2011

In recent weeks, Australian mining company Coal of Africa Limited (CoAL) has been ramping up public relations around the potential benefits of its proposed 8 500 hectare largely opencast coal mine in the Mapungubwe Cultural Landscape, next to the Mapungubwe National Park and World Heritage Site, and across the river from the Zimbabwe component of the forthcoming Greater Mapungubwe Transfrontier Conservation Area.

Thousands of jobs, and billions of rands’ investment have been promised, and we find these same claims repeated without critical scrutiny in permits issued by authorities. It is a pity that so few government officials or journalists are prepared to investigate and scrutinise the assumptions and claims made by CoAL. Our failure to assess and understand what the benefits and negative impacts of mining really are creates the danger that we are making decisions based on the self-interested claims of some members of the mining sector – decisions for which we will bear the costs for generations to come.

A favourite argument of CoAL is that the exploitation of this new source of coking coal in Limpopo will bring inflows of revenue into Limpopo province. FIN24 reported in July that at an average price of $200 (R1 439.23) a ton, 10 million tons a year would mean an inflow of $2 billion or R15bn a year for Limpopo.

But instead of being dazzled by big numbers in foreign direct investment, let’s examine the flow of money. In the case of CoAL and its Vele colliery, gross revenue will not flow into Limpopo province, but into CoAL’s subsidiary company, Limpopo Coal (assuming that the revenue will not be channelled, legitimately, elsewhere).

Given the upfront capital cost of mining, it will be years before any profit is made that can be taxed for the benefit of the country. When profits are made, Limpopo Coal will declare dividends to CoAL.

CoAL’s website lists its 20 top shareholders, and of those more than 75 percent are offshore nominee holding companies. The largest local shareholder is ArcelorMittal South Africa, with 15.98 percent of CoAL shares. However, 53 percent of ArcelorMittal SA’s shares are held by foreign investors. It appears likely that at least 70 percent of dividends that accrue to the shareholders of CoAL will be repatriated offshore, with additional offshore distribution to foreign investors through Arcelor Mittal SA.

Another argument by CoAL is that the proposed colliery will create employment opportunities within Limpopo. Its projections indicate that during the three-year construction phase, contractor labour levels will peak at about 2 500. Thereafter, the mine will employ about 826 personnel during the operational phase with employment falling to 250 as the mine winds up.

What CoAL never discusses is the detrimental impact that its operations may have on destroying existing local jobs. One example of this is the impact that the mine may have on farm workers. According to Limpopo Coal’s Socio-Economic Impact Assessment Report, there are 1 110 permanent and 4 650 temporary farm workers employed in the area. It also looks likely that farmers surrounding the mine will sell their properties and move out. The numbers are such that, if only one commercial farm stops farming, the mine will be unable to make up for the losses in employment and food production.

Eco-tourism is another area where the mine is expected to destroy jobs or limit the capacity for growth. David Evans, the chairman of the Tourism Working group of the Greater Mapungubwe Transfrontier Conservation Areas, estimates that there are about 560 sustainable tourism related jobs in the area with estimates of those increasing to about 3 500 over time.

Mapungubwe is regarded as the catalyst that will spur major long-term regional tourism that will benefit the Limpopo Province, southeastern Botswana and southwestern Zimbabwe.

Many people and organisations opposed to the colliery’s location argue that having a mine only 6km away from a World Heritage Site and visible from the famous Mapungubwe Hill will detract from Mapungubwe’s sense of place, and may compromise its World Heritage Site status.

The fact of the mine’s location outside the National Park – recently quoted triumphantly by David Gleason in Business Day – also presupposes that only protected areas and heritage sites contain anything of importance and significance. This means that anything outside of them, such as water catchments, major biodiversity areas, undiscovered cultural artefacts and river headwaters deserve no protection. Today we should know better about what regions are appropriate for industrial development and which are not.

Let’s consider the impact of the colliery on water use. In March, the Department of Water Affairs granted a licence to Limpopo Coal to extract 2.4 billion litres of water from the Limpopo river, despite important strategic documents prepared by itself warning against the water-stressed nature of this catchment.

It also granted the licence on a flawed reserve determination, taking into account human water requirements for only a small proportion of people who live in the area. We also know that its “closed system” means that none of this water will be put back into the system. Further pressure on the Limpopo and groundwater in the area will have far-reaching and long-lasting effects on the water resources, socio-economic development and wellbeing of the people of Limpopo province.

With its back against the wall, their opposition to the colliery ignored by the Department of Mineral Resources, the Department of Environmental Affairs’ efforts have been reduced to attempts to limit the impact of mining operations by limiting the extent of these and by requiring Limpopo Coal to offset the impact by increasing the size of the transfrontier park and other commitments. In reality, this leads to a lose-lose outcome where tourism, agricultural jobs and water quality may be negatively affected, while mining is not permitted to take place in a manner that is optimal or cost-effective.

CoAL continues to profess its high concern for the environment, while proclaiming its ignorance of its legal obligations to secure environmental permits before commencing construction in April 2010. It also has yet to explain why it has, to date, failed to entertain or respond to suggestions of abandoning the opencast pits at Vele colliery for underground operations, as the mines near the Kruger Park have done.

Hundreds of local communities, not to mention our many polluted streams and rivers, bear the scars of exaggerated claims of economic benefits and unfulfilled promises by mining companies.

Have we, as a country, properly examined the actual benefits of mining, or are we allowing ourselves to be dictated to by short-term private interests, at the cost of our heritage?

Nick Hiltermann is the chairman of the Mapungubwe Action Group, writing here on behalf of the coalition of civil society organisations opposed to the proposed Vele colliery outside Mapungubwe.

(sourced IOL)

PNOC EC ramping up coal production in Mindanao

Wednesday, 24 Aug 2011

With fresh capital outlay for its coal mining activities, state run affiliate Philippine National Oil Company Exploration Corporation is scheduling to ramp up its coal production by 150,000 tonnes via its Lumbog coal mine in Mindanao.

The company in a press statement said that “Development of the coal mine will be from 2011 until 2012, with regular production expected to commence by 2013.”

For the Lumbog venture and other new areas along its Malangas Project Operations in Zamboanga Sibugay, the company’s board of directors gave go-signal for fresh capital allotment of PHP 1.35 billion. For its overall coal mining activities though, the firm indicated that it was able to corner a budget of more than PHP 2 billion.

The Lumbog coal mine is considered as one of PNOC-EC’s premium undertaking given the scale of estimated mineable reserves of 1.39 million tonnes. The venture is under coal operating contract 41 and covers a development area of 170 hectares.

From the initial production it has been expecting from the Lumbog mine, PNOC EC emphasized that the prospective coal yield from its entire MPO area could go up to 800,000 tonnes starting year 2015.

The expected volume of coal production, the company said that will augment the supply of indigenous coal sources in the country.

The capacity ramping up will trail the 1.19 million tonne direct coal sales, including volumes from trading activities, which the state run firm has logged in 2010. With technology shifts being employed by most coal power fleets in the country, even the lower grade coal production in the country would already have a market in the electricity generation segment.

(sourced MB.com.ph)

NSW and Victoria wont follow Queensland rural mining ban

Thursday, 18 Aug 2011 |By CoalPortal

The Australian Associated Press reported that NSW and Victorian governments have said they will not follow Queensland’s move to ban mining exploration in urban areas.

The Queensland government announced it has banned all mining exploration on urban land or within a 2 kilometer buffer of urban land, effective from August 16th 2011.

NSW Greens MP Jeremy Buckingham said that "In NSW right now there are major mining projects occurring perilously close to major centres.”

But a NSW Resources spokesperson said the state government had no current plans to impose a 2 kilometer buffer between mining and residential areas.

Victorian Premier Ted Baillieu added: "We have prospecting mining rights laws here and we don't have any proposal to change them here. Farmers do have rights under Victorian law and everybody has a right to have their say but there are also mining and prospecting rights." The current ban in Queensland includes regional centres such as Ipswich, Toowoomba, Beaudesert, Rockhampton, Mackay and St George, but the state government said the current legislation may be revised to include smaller mining communities.”

CoAL Chapudi deal extended again

Wednesday, 17 Aug 2011

COAL of Africa Limited the coal development company operating in South Africa said that it expected its acquisition of the Chapudi coal project to be finalized by the end of April next year. The original fulfillment date was first set at August 1 and earlier this month extended to August 12.

CoAL is buying the Chapudi coal project and related exploration properties in South Africa's Limpopo province from joint venture companies held by Rio Tinto Minerals Development and Kwezi Mining for USD 75 million.

The company said in a statement to the JSE that irrevocable undertakings from the vendor shareholders have been obtained in terms of the sale and purchase agreement.

Entered into in November, the agreement has been extended to allow for the remaining regulatory approvals required.

Once concluded CoAL will add an estimated 1,040 million tonne JORC compliant resource of which 90 million tonnes is measured, 220 million tonnes indicated and 730 million tonnes inferred to its portfolio of assets.

Mr John Wallington CEO of CoAL said that “The acquisition of the Chapudi Coal Project and the related exploration properties bolsters our existing coking coal projects with the Chapudi Coal Project alone doubling our Makhado Project's 947 million tonnes resource, thereby cementing CoAL's position as the dominant landholder in one of South Africa's most prospective coal basins.”

(sourced Miningmx)

NTPC to make final offer for Bandana Energy on July 29

18 Jul,2011, | PTI

KOLKATA: The country's largest power producer today said it will submit its final offer for a stake in Bandanna Energy Ltd on July 29.

"We are going to make our final bid for a stake in Bandana on July 29," NTPC Chairman and Managing Director Arup Roy Choudhury said here today on the sidelines of a Bengal National Chamber of Commerce and Industry organised seminar on power.

He, however, did not reveal how much stake the power producer was intending to take in the coal company having assets in Australia .

Bandanna holds 16 exploration permits in the Bowen and Galilee basins in coal-rich Queensland apart from licences to explore for minerals and oil shale there. It has reserves of at least 1.4 billion tonne of coal.

Bandanna, also has an allocation for 4 million tonne a year at the planned Wiggins Island Coal Export Terminal, which would allow it to ship from early 2014.

Reports suggest that a few other Indian companies, including GMR and Essel Mining, were among the many global companies vying for a stake in the coal explorer.

Meanwhile, NTPC aims to keep the coal import target at 16 million tonnes or 10 per cent of the total coal requirement for the current year.

Asked about de-allocation of five blocks by the coal ministry, Roy Choudhury said, "we are a generating company either we get coal from our sources or the government provides coal."

However, he said that representation to revoke the order had positive feedback from the ministry after NTPC said work in one mine Pakhri has started and coal extraction will begin from the next year.

The development of two blocks development are supposed to be done by Coal India with the NTPC chairman meeting the coal major chief on the issue.

"We are close to appointing consultants for another two blocks," Choudhury said. (sourced ET)

Royal Coal Begins Trading on the Frankfurt Stock Exchange

Mar 21, 2011 16:26 ET

TORONTO, ONTARIO--(Marketwire - March 21, 2011) - Royal Coal Corp. (TSX VENTURE:RDA)(FRANKFURT:RLC) is pleased to announce that its common shares have begun trading on the Frankfurt Stock Exchange under the symbol 'RLC'.

"With our large existing European shareholder base as well as strong overseas investor interest for coal companies like Royal Coal, we are pleased to provide both new and existing shareholder's trading access on the Frankfurt Stock Exchange" commented Mr. Tom Griffis, Chairman of Royal Coal.
About Royal Coal

Royal Coal is a coal exploration and production company, headquartered in Toronto, Ontario, Canada with a regional office in Hazard, Kentucky, U.S.A. whose primary business focus is developing producing surface coal mining operations in the Central Appalachian coal producing region of the United States, which includes parts of West Virginia, Virginia, Kentucky, Ohio, and Tennessee.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.(sourced:markewire)

CPM, China coal mull exploration JV

By JAMES A. LOYOLAJanuary 22, 2011
MANILA, Philippines — Century Peak Metals Holdings Corporation (CPM) is executing a memorandum of understanding (MoU) with China Coal Geology Engineering Corporation for an exploration and drilling joint venture (JV) in the country.
In a disclosure to the Philippine Stock Exchange, CPM said China Coal is a state-owned company duly organized and existing under the laws of the Republic of China.
The MoU will allow the two firms to enter into negotiations and due diligence to establish a joint venture corporation to conduct exploration and drilling activities in the Philippines.
Beijing-based China Coal is China’s largest coal and other mineral exploration company and the proposed joint venture will provide high technology equipment and experienced geologists JVfrom China, CPM said. It will also enter into drilling contracts with CPM’s subsidiaries and affiliates, including any other mining properties that may be acquired in the future.
CPM had earlier announced that it has received confirmation that its subsidiary, Century Hua Guang Smelting, Inc. (CHGSI), has received its Amended Environmental Compliance Certificate (ECC) from the Environmental Management Bureau (EMB) to include the installation of a Coking Coal Plant to be located at the Leyte Industrial Development Estate (LIDE) in Isabel, Le1te.
The Coking Coal Plant will be a support system to its Ferro-Nickel Smelting Plant, since coke is a foremostraw material for the production of ferro-nickel alloy. It is CHGSI's approach to making the Ferro-Nickel Smelting Plant as self-sustaining as possible. (sourced www.mb.com.ph)