Monday, 12 Dec 2011
A Marlboro company is using microwave technology to upgrade low quality coal so it can be used at a majority of the world’s power plants.
CoalTek recently announced a USD 350 million plus joint venture with Chinese partners to build and operate its first commercial clean coal processing facility in Inner Mongolia.
According to the company, it’s the first Sino US clean coal project licensed by the Chinese government since a 2009 strategic partnership agreement announced by president Mr Obama and Chinese president Mr Hu Jin Tao.
Mr Chris Poirier CEO of CoalTek said that “It’s a landmark, groundbreaking approval. We went through a very, very rigorous process to demonstrate our technology.”
According to Mr Poirier, coal is the biggest source of stored energy in the world, and more than 6 billion tons a year are mined and consumed, primarily in power generation and steel manufacturing.
(Sourced from Boston Herald.com)
Showing posts with label low grade coal shipment. Show all posts
Showing posts with label low grade coal shipment. Show all posts
Monday, December 12, 2011
Tuesday, October 11, 2011
ENRC to gain low-cost coal from Shubarkol buy
Tue Oct 11, 2011
* To pay up to $650 mln to buy stake from ENRC founders
* Acquisition to lift ENRC coal capacity to over 25 mtpa
* Independent shareholders to vote on deal on Nov 7
* CEO mulls future development within platinum sector
By Julie Crust
LONDON, Oct 11 (Reuters) - Miner ENRC plans to buy the outstanding 75 percent of Kazakh coal producer Shubarkol Komir from ENRC's founders for up to $650 million, giving it access to low-cost coal for its existing operations and expansion plans.
Eurasian Natural Resources Corp (ENRC) plans to exercise an option to buy the shareholding from the three founding shareholders, who together own 43.8 percent of the London-listed miner, for $600 million plus assumed debt of $50 million.
As a related transaction, the acquisition will require approval from independent ENRC shareholders at a meeting due to be held on Nov. 7 and, if approved, could be completed by the end of next month, ENRC Chief Executive Felix Vulis told Reuters on Tuesday.
Vulis said he is "pretty confident" that the acquisition will get shareholder approval and that the amount to be paid is a fair price.
"We secured the deal when the price of coal was $45-55 a tonne, today it is twice as much," said Vulis. "We have been through a very thorough appraisal process," he said, noting that both advisors valued the deal in line with ENRC.
Credit Suisse advised ENRC and Lazard & Co. advised the independent non-executive directors.
FTSE 100 miner ENRC acquired a 25 percent stake in Shubarkol for $200 million in cash in February 2009.
The acquisition of Shubarkol, a thermal coal producer that produced about 6.0 million tonnes of coal last year will raise ENRC's coal production capacity in Kazakhstan to more than 25 million tonnes a year.
"This is an important strategic acquisition which secures reliable access to the supply of relatively high quality and low-cost thermal coal," Vulis said.
"We are consuming more than 1 mln tonnes of this coal within our enterprises in Kazakhstan," he said.
Current valuation levels for miners are close to the lows hit during the 2008 crisis, making potential targets cheap, and enabling cash-rich miners such as Glencore to lift minority stakes in existing companies.
ENRC has a 14.35 percent stake in Northam Platinum , a major South African platinum producer, that has seen its shares fall almost a third this year.
"We are pretty much considering our future development within this sector," Vulis said, adding that an announcement would be made in due course.
ENRC said it plans to use about 50 percent of the semi-coke and the majority of the coke produced by Shubarkol within its own operations and will sell the majority of the thermal coal to third-party customers.
Shubarkol has estimated proved and probable coal reserves of about 326.2 million tonnes, as of the start of this year.
Shares in ENRC were down 1 percent at 0959 GMT, in line with a British mining index .
"With an H1 2011 net debt of just $2 million, ENRC is well-placed to fund the acquisition however for us the proof will be in the pudding as ENRC increase product diversification and demonstrate the cost benefits of securing additional raw materials to drive its Kazakh businesses," said Liberum Capital analyst Ash Lazenby.
ENRC ended a long-awaited governance review on Sept. 28, unexpectedly confirming both the chairman and chief executive in their roles as part of a trimmer board that it hopes will revive its underperforming shares.
However, speculation about possible board changes has continued to be reported.
"I don't know where these rumours are coming from. I am very happy with the size of the board and I'm very happy with the review," Vulis said. (sourced Reuters)
* To pay up to $650 mln to buy stake from ENRC founders
* Acquisition to lift ENRC coal capacity to over 25 mtpa
* Independent shareholders to vote on deal on Nov 7
* CEO mulls future development within platinum sector
By Julie Crust
LONDON, Oct 11 (Reuters) - Miner ENRC plans to buy the outstanding 75 percent of Kazakh coal producer Shubarkol Komir from ENRC's founders for up to $650 million, giving it access to low-cost coal for its existing operations and expansion plans.
Eurasian Natural Resources Corp (ENRC) plans to exercise an option to buy the shareholding from the three founding shareholders, who together own 43.8 percent of the London-listed miner, for $600 million plus assumed debt of $50 million.
As a related transaction, the acquisition will require approval from independent ENRC shareholders at a meeting due to be held on Nov. 7 and, if approved, could be completed by the end of next month, ENRC Chief Executive Felix Vulis told Reuters on Tuesday.
Vulis said he is "pretty confident" that the acquisition will get shareholder approval and that the amount to be paid is a fair price.
"We secured the deal when the price of coal was $45-55 a tonne, today it is twice as much," said Vulis. "We have been through a very thorough appraisal process," he said, noting that both advisors valued the deal in line with ENRC.
Credit Suisse advised ENRC and Lazard & Co. advised the independent non-executive directors.
FTSE 100 miner ENRC acquired a 25 percent stake in Shubarkol for $200 million in cash in February 2009.
The acquisition of Shubarkol, a thermal coal producer that produced about 6.0 million tonnes of coal last year will raise ENRC's coal production capacity in Kazakhstan to more than 25 million tonnes a year.
"This is an important strategic acquisition which secures reliable access to the supply of relatively high quality and low-cost thermal coal," Vulis said.
"We are consuming more than 1 mln tonnes of this coal within our enterprises in Kazakhstan," he said.
Current valuation levels for miners are close to the lows hit during the 2008 crisis, making potential targets cheap, and enabling cash-rich miners such as Glencore to lift minority stakes in existing companies.
ENRC has a 14.35 percent stake in Northam Platinum , a major South African platinum producer, that has seen its shares fall almost a third this year.
"We are pretty much considering our future development within this sector," Vulis said, adding that an announcement would be made in due course.
ENRC said it plans to use about 50 percent of the semi-coke and the majority of the coke produced by Shubarkol within its own operations and will sell the majority of the thermal coal to third-party customers.
Shubarkol has estimated proved and probable coal reserves of about 326.2 million tonnes, as of the start of this year.
Shares in ENRC were down 1 percent at 0959 GMT, in line with a British mining index .
"With an H1 2011 net debt of just $2 million, ENRC is well-placed to fund the acquisition however for us the proof will be in the pudding as ENRC increase product diversification and demonstrate the cost benefits of securing additional raw materials to drive its Kazakh businesses," said Liberum Capital analyst Ash Lazenby.
ENRC ended a long-awaited governance review on Sept. 28, unexpectedly confirming both the chairman and chief executive in their roles as part of a trimmer board that it hopes will revive its underperforming shares.
However, speculation about possible board changes has continued to be reported.
"I don't know where these rumours are coming from. I am very happy with the size of the board and I'm very happy with the review," Vulis said. (sourced Reuters)
Tuesday, October 4, 2011
Indonesia heavies its coal producers with new regulations
Tue, Oct04, 2011
Indonesia only began selling thermal coal abroad 21 years ago but by 2006 it had overtaken Australia as the world biggest exporter now its government apparently wants to curb a business earning it more than USD 6 billion a year.
And by doing so hand back the advantage to Australian-based miners, by means of a technically dubious obligation on Indonesian producers to upgrade energy content of low grade coal or be banned from shipping it.
In the face of mounting opposition from the coal industry and trade bureaucrats, the Energy and Mineral Resources Ministry draft regulation has been revised and weakened for the third time leading some analysts to predict the measure will not be realized by the due date of January 2014.
Investment bank UBS dismissed the export ban recently as a non-event because the necessary technology is not yet workable at mining scale and if enforced the restriction would only cost revenue from a trade worth about USD 22 billion.
Mr Bob Kamandanu Indonesian Coal Mining Association chairman said the regulation when it first came to light, proposed to ban coal exports of calorific value below 5700 kilocalories per kilogram intending to force producers to upgrade such output by removing moisture. That would have affected about 170 million tonnes, 64% of last year total exports.
Mr Kamandanu says it is the wrong question because the concept is so flawed and risky to Indonesia key role as an exporter. He said that "Just don't do it. But resources law expert Mr Bill Sullivan warns that some mild version of the regulation is almost certain and, when on the books be available for upward adjustment.”
Mr Sullivan at the Jakarta legal firm Christian Teo Purwono and Partners says it is instructive to note which export producers are preparing to toe the ministry line, even while most of the industry remains firmly opposed.
Bumi Resources subsidiary Arutmin Coal is building one beneficiation plant in South Kalimantan partnered by Kobe Steel of Japan and plans another for South Sumatra.
Bumi controlled by the Bakrie family group is the most politically connected of the big coalminers and while Nirwan Bakrie runs the business side, elder brother and Golkar party chairman Mr Aburizal prepares for the 2014 presidential race.
(sourced from TheAustralian)
Indonesia only began selling thermal coal abroad 21 years ago but by 2006 it had overtaken Australia as the world biggest exporter now its government apparently wants to curb a business earning it more than USD 6 billion a year.
And by doing so hand back the advantage to Australian-based miners, by means of a technically dubious obligation on Indonesian producers to upgrade energy content of low grade coal or be banned from shipping it.
In the face of mounting opposition from the coal industry and trade bureaucrats, the Energy and Mineral Resources Ministry draft regulation has been revised and weakened for the third time leading some analysts to predict the measure will not be realized by the due date of January 2014.
Investment bank UBS dismissed the export ban recently as a non-event because the necessary technology is not yet workable at mining scale and if enforced the restriction would only cost revenue from a trade worth about USD 22 billion.
Mr Bob Kamandanu Indonesian Coal Mining Association chairman said the regulation when it first came to light, proposed to ban coal exports of calorific value below 5700 kilocalories per kilogram intending to force producers to upgrade such output by removing moisture. That would have affected about 170 million tonnes, 64% of last year total exports.
Mr Kamandanu says it is the wrong question because the concept is so flawed and risky to Indonesia key role as an exporter. He said that "Just don't do it. But resources law expert Mr Bill Sullivan warns that some mild version of the regulation is almost certain and, when on the books be available for upward adjustment.”
Mr Sullivan at the Jakarta legal firm Christian Teo Purwono and Partners says it is instructive to note which export producers are preparing to toe the ministry line, even while most of the industry remains firmly opposed.
Bumi Resources subsidiary Arutmin Coal is building one beneficiation plant in South Kalimantan partnered by Kobe Steel of Japan and plans another for South Sumatra.
Bumi controlled by the Bakrie family group is the most politically connected of the big coalminers and while Nirwan Bakrie runs the business side, elder brother and Golkar party chairman Mr Aburizal prepares for the 2014 presidential race.
(sourced from TheAustralian)
Thursday, August 25, 2011
High coal prices in Indonesia to hit India’s power projects: Tata
Aug 24 2011 ,
By Vikas Srivastav
Mumbai:Tata group chairman Ratan Tata said the current Indonesian coal pricing
situation is acute and the company has approached the Indian government and the Indonesian government for a solution to keep the cost of power under control and make the upcoming ultra-mega power project in Mundra viable.
Addressing the 92 AGM of Tata Power, Tata said the higher price of coal from Indonesia is bound to impact the profitability of the firm’s projects. “I believe the blending of coal can offset the higher cost to some extent, but the situation is acute and we cannot blame the Indonesian government for being concerned about their country. I think Indian government will have to review the tariff structure. I think, the impact will be more on the power producers.”
“Although we have couple of mines in Indonesia and higher price of coal from these mines, in terms of operations, would mitigate the cost of power from Mundra project, but we need to reiterate to the government on tariff restructuring,” he said. Anil Sardana, MD of Tata Power, elaborated on the issue. He said the company plans to use low grade coal as an alternative to the higher priced Indonesian coal for its upcoming ultra-mega power project in Mundra. The company is already using the lower grade coal for its Trombay power plant. “We will source the low grade coal from Indonesia, Africa and our other existing mines and do the trial runs to find if they would be capable of reducing the cost of power from Mundra too as they have done at Trombay.”
In response to a question if they will be able to maintain the efficiency of their plants, he said, “these mines have sufficient amount of coal at their disposal and are willing to supply to us.”
As per the new formula notified by Indonesia’s directorate general of minerals, coal and geothermal, Indonesian coal producers will have to sell at prices notified by their government benchmarked against the international index. The benchmark price is to be based on a formula that refers to the average coal index price in accordance with international market mechanism.
According to market experts, due to the new pricing formula, price of Indonesian coal will go up by $30 a tonne and lead to a Rs 0.70 per unit increase in cost of electricity generation. Until recently, Indonesian coal producers had the freedom to sell their coal at their own price. All existing coal supply agreements with Indonesian coal mining companies will have to be modified to comply with new coal pricing regulations before September 23, 2011.
(sourced MyDigitalFC)
By Vikas Srivastav
Mumbai:Tata group chairman Ratan Tata said the current Indonesian coal pricing
situation is acute and the company has approached the Indian government and the Indonesian government for a solution to keep the cost of power under control and make the upcoming ultra-mega power project in Mundra viable.
Addressing the 92 AGM of Tata Power, Tata said the higher price of coal from Indonesia is bound to impact the profitability of the firm’s projects. “I believe the blending of coal can offset the higher cost to some extent, but the situation is acute and we cannot blame the Indonesian government for being concerned about their country. I think Indian government will have to review the tariff structure. I think, the impact will be more on the power producers.”
“Although we have couple of mines in Indonesia and higher price of coal from these mines, in terms of operations, would mitigate the cost of power from Mundra project, but we need to reiterate to the government on tariff restructuring,” he said. Anil Sardana, MD of Tata Power, elaborated on the issue. He said the company plans to use low grade coal as an alternative to the higher priced Indonesian coal for its upcoming ultra-mega power project in Mundra. The company is already using the lower grade coal for its Trombay power plant. “We will source the low grade coal from Indonesia, Africa and our other existing mines and do the trial runs to find if they would be capable of reducing the cost of power from Mundra too as they have done at Trombay.”
In response to a question if they will be able to maintain the efficiency of their plants, he said, “these mines have sufficient amount of coal at their disposal and are willing to supply to us.”
As per the new formula notified by Indonesia’s directorate general of minerals, coal and geothermal, Indonesian coal producers will have to sell at prices notified by their government benchmarked against the international index. The benchmark price is to be based on a formula that refers to the average coal index price in accordance with international market mechanism.
According to market experts, due to the new pricing formula, price of Indonesian coal will go up by $30 a tonne and lead to a Rs 0.70 per unit increase in cost of electricity generation. Until recently, Indonesian coal producers had the freedom to sell their coal at their own price. All existing coal supply agreements with Indonesian coal mining companies will have to be modified to comply with new coal pricing regulations before September 23, 2011.
(sourced MyDigitalFC)
Wednesday, February 2, 2011
BHP, Anglo Coal Supply Deals to Be Revised, Eskom Says
Wednesday,February 02, 2011
By Carli Lourens
Feb. 2 (Bloomberg) -- Eskom Holdings Ltd., producer of 95 percent of South African power, plans to revise deals with coal mine operators including BHP Billiton Ltd. and Anglo American Plc to secure supplies amid a surge in competing Indian demand.
Eskom has begun talks to spur suppliers to accept prices at “efficient cost, plus fair returns,” Chief Commercial Officer Dan Marokane said in an interview from Cape Town. “About 525 million tons could be at risk from competition with exports,” threatening to make electricity charges unaffordable, he said.
State-run Eskom delivers power to Xstrata Plc’s ferrochrome furnaces, AngloGold Ashanti Ltd.’s gold mines and BHP’s aluminum smelters in South Africa. The utility, one of the 10 largest in the world by capacity, has struggled to fund a 485 billion rand ($68 billion) expansion program to prevent a repetition of the power blackouts that hit mines, factories and cities in 2008.
Eskom, based in Johannesburg, will seek to persuade coal suppliers to accept new terms by reducing the risk of rising production costs for the mine operators, Marokane said today.
Export quotas, restrictions on low-grade coal shipments abroad from Richards Bay and “increased powers for the minister to intervene in the interests of domestic energy security” may also be used to secure domestic power needs, Marokane said.
Xstrata declined to comment on Eskom’s discussions, while Anglo, BHP and Exxaro Resources Ltd., another supplier, didn’t immediately respond to e-mails from Bloomberg seeking reaction.
Competing With India
India competes for South African coal as the Asian country needs a low-grade fuel similar to that used in Eskom’s power plants, more than 80 percent of which are coal-fired. European electricity producers typically only buy higher coal grades.
Asia overtook Europe as the largest foreign buyer of South African coal in the last two years as India boosted purchases.
Richards Bay terminal, which ships almost all of South Africa’s coal for export, sent 59 percent of total shipments to Asia last year and 25 percent to Europe. India is looking to expand electricity generation capacity by 20 percent to 200,000 megawatts from current levels by March 2012.
“Unless a new approach is found, Eskom will find itself paying globally linked coal costs,” Marokane said, adding that a commensurate increase in electricity prices would “counter the aspirations of a growing economy.” Prices of coal shipped through Richards Bay rose about 60 percent last year to $129.75 a metric ton, according to IHS McCloskey data on Bloomberg.
Unaffordable
Eskom is already hiking charges by several-times inflation, on average by 25 percent a year for the three years from 2010, after long keeping prices subdued to stimulate development.
The company, which burnt 123 million tons of coal last fiscal year, has about 95 percent of supplies contracted or committed until 2018. Two new power plants, Medupi and Kusile, will begin generating power in the next few years, adding more than 30 million tons to Eskom’s annual requirement.
The utility is also concerned coal companies will focus on building mines in other countries and the government should make it “more attractive” for companies to dig new mines, Marokane said. Eskom estimates the industry needs to spend 175 billion rand between 2009 and 2020 digging mines to meet rising needs.
South Africa needs a national energy coal development plan, Marokane said. The country mined about 250 million tons of coal in 2009, or 4.1 percent of world output, making it the seventh- largest producer, according to an Oct. 1 report by UBS AG.
(Editors:Tony Barrett,Dan Weeks, sourced bloomberg)
By Carli Lourens
Feb. 2 (Bloomberg) -- Eskom Holdings Ltd., producer of 95 percent of South African power, plans to revise deals with coal mine operators including BHP Billiton Ltd. and Anglo American Plc to secure supplies amid a surge in competing Indian demand.
Eskom has begun talks to spur suppliers to accept prices at “efficient cost, plus fair returns,” Chief Commercial Officer Dan Marokane said in an interview from Cape Town. “About 525 million tons could be at risk from competition with exports,” threatening to make electricity charges unaffordable, he said.
State-run Eskom delivers power to Xstrata Plc’s ferrochrome furnaces, AngloGold Ashanti Ltd.’s gold mines and BHP’s aluminum smelters in South Africa. The utility, one of the 10 largest in the world by capacity, has struggled to fund a 485 billion rand ($68 billion) expansion program to prevent a repetition of the power blackouts that hit mines, factories and cities in 2008.
Eskom, based in Johannesburg, will seek to persuade coal suppliers to accept new terms by reducing the risk of rising production costs for the mine operators, Marokane said today.
Export quotas, restrictions on low-grade coal shipments abroad from Richards Bay and “increased powers for the minister to intervene in the interests of domestic energy security” may also be used to secure domestic power needs, Marokane said.
Xstrata declined to comment on Eskom’s discussions, while Anglo, BHP and Exxaro Resources Ltd., another supplier, didn’t immediately respond to e-mails from Bloomberg seeking reaction.
Competing With India
India competes for South African coal as the Asian country needs a low-grade fuel similar to that used in Eskom’s power plants, more than 80 percent of which are coal-fired. European electricity producers typically only buy higher coal grades.
Asia overtook Europe as the largest foreign buyer of South African coal in the last two years as India boosted purchases.
Richards Bay terminal, which ships almost all of South Africa’s coal for export, sent 59 percent of total shipments to Asia last year and 25 percent to Europe. India is looking to expand electricity generation capacity by 20 percent to 200,000 megawatts from current levels by March 2012.
“Unless a new approach is found, Eskom will find itself paying globally linked coal costs,” Marokane said, adding that a commensurate increase in electricity prices would “counter the aspirations of a growing economy.” Prices of coal shipped through Richards Bay rose about 60 percent last year to $129.75 a metric ton, according to IHS McCloskey data on Bloomberg.
Unaffordable
Eskom is already hiking charges by several-times inflation, on average by 25 percent a year for the three years from 2010, after long keeping prices subdued to stimulate development.
The company, which burnt 123 million tons of coal last fiscal year, has about 95 percent of supplies contracted or committed until 2018. Two new power plants, Medupi and Kusile, will begin generating power in the next few years, adding more than 30 million tons to Eskom’s annual requirement.
The utility is also concerned coal companies will focus on building mines in other countries and the government should make it “more attractive” for companies to dig new mines, Marokane said. Eskom estimates the industry needs to spend 175 billion rand between 2009 and 2020 digging mines to meet rising needs.
South Africa needs a national energy coal development plan, Marokane said. The country mined about 250 million tons of coal in 2009, or 4.1 percent of world output, making it the seventh- largest producer, according to an Oct. 1 report by UBS AG.
(Editors:Tony Barrett,Dan Weeks, sourced bloomberg)
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