Monday, 24 Oct 2011
It is reported that Korea Southern Power has purchased 65,000 tonnes of thermal coal of Indonesian origin through a tender.
The utility paid USD 79.90 per tonne FOB for the 4,500 kilocalories per kilogram coal for November 2011 to January 2012 delivery.
Source coalportal
Monday, October 24, 2011
Euro exchange rate key to European coal prices
Monday, 24 Oct 2011
According to Mr Karim Kanji Barclays Capital head of coal and dry freight trading has said at the Coaltrans the euro dollar exchange rates have been keys to recent falls in the API 2 derivatives market. Calendar 2012 prices on API 2 have slipped in recent weeks mirroring the euro's fall against the dollar.
He said that there has also been strong correlation between the front-month Brent crude contract and the calendar 2012 coal contract, as these are the two largest global energy supply sources. The correlation between crude and coal disconnected during the “Arab Spring”, when crude prices rocketed, but have been close for the rest of this year.
Mr Kanji said there is also a strong correlation between the calendar 2012 summer months and the NBP gas summer 2012 contract as rival energy sources. Mr Kanji expects volatility in the market to pick up after a slow summer where volatility dropped to just 5pc because of seasonal factors such as low demand. Implied freight prices are at a premium to actual freight rates showing that South African coal cannot price into Europe. Bankers are looking to Asian markets and at new prices indexes such as CFR south China to hedge their price exposure in Asia-Pacific.
source Argusmedia
According to Mr Karim Kanji Barclays Capital head of coal and dry freight trading has said at the Coaltrans the euro dollar exchange rates have been keys to recent falls in the API 2 derivatives market. Calendar 2012 prices on API 2 have slipped in recent weeks mirroring the euro's fall against the dollar.
He said that there has also been strong correlation between the front-month Brent crude contract and the calendar 2012 coal contract, as these are the two largest global energy supply sources. The correlation between crude and coal disconnected during the “Arab Spring”, when crude prices rocketed, but have been close for the rest of this year.
Mr Kanji said there is also a strong correlation between the calendar 2012 summer months and the NBP gas summer 2012 contract as rival energy sources. Mr Kanji expects volatility in the market to pick up after a slow summer where volatility dropped to just 5pc because of seasonal factors such as low demand. Implied freight prices are at a premium to actual freight rates showing that South African coal cannot price into Europe. Bankers are looking to Asian markets and at new prices indexes such as CFR south China to hedge their price exposure in Asia-Pacific.
source Argusmedia
Rio Tinto may invest EUR 1 billion in Portuguese iron ore mines -Report
Monday, 24 Oct 2011
Portuguese news agency Agencia Lusa reported citing an unidentified person close to the negotiations that mining giant Rio Tinto PLC may invest about EUR1 billion in northern Portugal Torre De Moncorvo mines which are considered to be among Europe largest iron ore deposits.
According to the report ortugal Economy Ministry confirmed it is negotiating a big investment in the country's mining sector with one of the world's largest mining companies, but didn't name it.
(Sourced from Agencia Lusa)
Portuguese news agency Agencia Lusa reported citing an unidentified person close to the negotiations that mining giant Rio Tinto PLC may invest about EUR1 billion in northern Portugal Torre De Moncorvo mines which are considered to be among Europe largest iron ore deposits.
According to the report ortugal Economy Ministry confirmed it is negotiating a big investment in the country's mining sector with one of the world's largest mining companies, but didn't name it.
(Sourced from Agencia Lusa)
NMDC to buy four more iron ore assets abroad - Report
Monday, 24 Oct 2011
It is reported that state owned iron ore miner NMDC which had entered into a deal to acquire 50% stake in Australia Legacy Iron Ore last month, is likely to decide on acquiring four more properties overseas by the end of this month.
A source close to the development said "The company board is likely to meet this week to take a final call on these properties. Of these, two properties an iron ore mine and a phosphate mine are in Australia while the third one is an iron ore deposit in Brazil and the fourth a coking coal asset of Russia Vincy Coal.”
The source said "All these are going to be low cost acquisitions, totaling USD 500 million. This would include payment of initial development cost incurred by the holding companies."
Adding that the company board had also met on October 10 to decide on the proposals, the source said that some unanswered issues are likely to decide in the forthcoming board meeting.
The source said the iron ore asset in Australia is certified by the Joint Ore Reserves Committee code of the country and is a large asset, adding that NMDC was looking to acquire a minimum of 50% stake in the asset.
Refusing to name the asset, the source said that it is proposed to be acquired through Legacy Iron Ore which will be used by NMDC as the launching platform in Australia.
(sourced Business-standard)
It is reported that state owned iron ore miner NMDC which had entered into a deal to acquire 50% stake in Australia Legacy Iron Ore last month, is likely to decide on acquiring four more properties overseas by the end of this month.
A source close to the development said "The company board is likely to meet this week to take a final call on these properties. Of these, two properties an iron ore mine and a phosphate mine are in Australia while the third one is an iron ore deposit in Brazil and the fourth a coking coal asset of Russia Vincy Coal.”
The source said "All these are going to be low cost acquisitions, totaling USD 500 million. This would include payment of initial development cost incurred by the holding companies."
Adding that the company board had also met on October 10 to decide on the proposals, the source said that some unanswered issues are likely to decide in the forthcoming board meeting.
The source said the iron ore asset in Australia is certified by the Joint Ore Reserves Committee code of the country and is a large asset, adding that NMDC was looking to acquire a minimum of 50% stake in the asset.
Refusing to name the asset, the source said that it is proposed to be acquired through Legacy Iron Ore which will be used by NMDC as the launching platform in Australia.
(sourced Business-standard)
Mayfield residents to discuss Tinkler new coal terminal
Monday, 24 Oct 2011
It is reported that Nathan Tinkler Hunter Ports group will not be shedding any light on its plans for a massive new coal terminal on Newcastle former BHP steelworks site at a community meeting in Mayfield this morning.
The group 'Correct Planning and Consultation for Mayfield has organised this morning's meeting to discuss the mining magnate proposal for the coal loader and terminal. It is concerned about how the operation will impact on Mayfield and surrounding suburbs, particularly if it is larger than the Port Waratah Coal Service operations.
Spokesman Mr John Hayes says the mining magnate declined an invitation to attend personally but agreed to send his Managing Director, Mr Steve Van Barneveld. He said that "We simply don't know what they're going to tell us, so we're very interested to hear."
A spokeswoman for the company says Mr Van Barneveld's attendance is only a meet and greet exercise and community consultation will not occur until definite plans are on the drawing board.
She says Mr Van Barneveld is not in a position to clarify the plans because they are still in the concept stage and an environmental assessment is not yet complete.
(sourced abc.net.au)
It is reported that Nathan Tinkler Hunter Ports group will not be shedding any light on its plans for a massive new coal terminal on Newcastle former BHP steelworks site at a community meeting in Mayfield this morning.
The group 'Correct Planning and Consultation for Mayfield has organised this morning's meeting to discuss the mining magnate proposal for the coal loader and terminal. It is concerned about how the operation will impact on Mayfield and surrounding suburbs, particularly if it is larger than the Port Waratah Coal Service operations.
Spokesman Mr John Hayes says the mining magnate declined an invitation to attend personally but agreed to send his Managing Director, Mr Steve Van Barneveld. He said that "We simply don't know what they're going to tell us, so we're very interested to hear."
A spokeswoman for the company says Mr Van Barneveld's attendance is only a meet and greet exercise and community consultation will not occur until definite plans are on the drawing board.
She says Mr Van Barneveld is not in a position to clarify the plans because they are still in the concept stage and an environmental assessment is not yet complete.
(sourced abc.net.au)
Coal shipments down in past year on Great Lakes
Monday, 24 Oct 2011
It is reported that shipments of coal on the Great Lakes totalled 3.4 million net tonnes in September an increase of nearly 15%MoM but a decrease of 7%YoY.
The trade was more than 10% off the 5 year average for September. Loadings at Lake Superior ports topped 2 million tons for the first time this year but still represented a decrease of 6.5%YoY.
Shipments from Lake Michigan terminals rose 40% but loadings at Lake Erie docks slipped 21.6%. YTD the coal trade stands at 19 million tonnes down by 14.7%YoY and even more, 26.1% when compared to the 5 year average for the first three quarters.
(sourced fox21online)
It is reported that shipments of coal on the Great Lakes totalled 3.4 million net tonnes in September an increase of nearly 15%MoM but a decrease of 7%YoY.
The trade was more than 10% off the 5 year average for September. Loadings at Lake Superior ports topped 2 million tons for the first time this year but still represented a decrease of 6.5%YoY.
Shipments from Lake Michigan terminals rose 40% but loadings at Lake Erie docks slipped 21.6%. YTD the coal trade stands at 19 million tonnes down by 14.7%YoY and even more, 26.1% when compared to the 5 year average for the first three quarters.
(sourced fox21online)
Sunday, October 23, 2011
Up to 1,000 killed in 7.2-magnitude quake in southeastern Turkey
Sun, Oct23, 2011
ANKARA/ISTANBUL, Oct. 23 (Xinhua) -- The Turkish earthquake observatory said Sunday the death toll from a powerful 7.2- magnitude quake in the southeastern province of Van could reach 1, 000.
"The toll from this earthquake could be 500 to 1,000," said Prof. Mustafa Erdik, the head of the Kandilli Observatory and Earthquake Research Institute in Turkey's largest city of Istanbul.
The Istanbul-based Kandilli seismology center originally reported that the earthquake was 6.6 on the Richter scale, but later corrected it to 7.2.
Mustafa Erdik said any quake with a strength of 7.0 or more would cause serious damage to buildings in Turkey.
Turkish Prime Minister Recep Tayyip Erdogan is expected to visit the area shortly to assess the situation.
The epicenter was in the village of Tabanli in the eastern province of Van, bordering Iran, but the quake was also felt in the province's center as well as the neighboring provinces of Bitlis, Mus, Batman, Diyarbakir and Hakkari.
The Prime Ministry's Disaster and Emergency Management Directorate (AFAD) said in a statement released after the quake that the tremor was strong and caused material damage and some fatalities. It gave no figure for the death toll.
The earthquake damaged several buildings in the Van province, but the most serious damage was in the neighboring town of Ercis. Several strong aftershocks were also reported.
Turkish Deputy Prime Minister Besir Atalay earlier said that 25 to 30 buildings collapsed in the town of Ercis and one person killed in the earthquake.
AFAD said more than 500 search, rescue and health personnel have been sent to Van from nearly 40 provinces.
"There are so many dead. Several buildings have collapsed, there is so much destruction," Zulfikar Arapoglu, mayor of Ercis, told NTV television. "We need urgent aid, we need medics."
Residents spilled out into the streets in panic as rescue workers struggled to save people believed to be trapped under collapsed buildings, television footage showed.
Turkish Red Crescent is sending tents, blankets and other aid materials to the quake-hit province despite ongoing aftershocks, according to Anatolia reports.
Some people were trapped under debris of buildings in central Van, it added.
The U.S. Geological Survey reported Sunday that an earthquake measuring 7.3 on the Richter scale hit eastern Turkey.
The epicenter, with a depth of 7.20 km, was initially determined to be at 38.6270 degrees north latitude and 43.5349 degrees east longitude, the U.S. Geological Survey said.
Turkey, lying atop the North Anatolian fault, has been plagued by earthquakes frequently.
On March 8, 2010, at least 38 people died and dozens of others were injured after a 6.0-magnitude earthquake which hit Elazig province in eastern Turkey.
On Aug. 17, 1999, two powerful earthquakes, measuring 6.7 and 7. 4 on the Richter scale respectively, hit northwestern and western Turkey, killing about 18,000 people and affecting hundreds of thousands of others.
(source xinhua)
ANKARA/ISTANBUL, Oct. 23 (Xinhua) -- The Turkish earthquake observatory said Sunday the death toll from a powerful 7.2- magnitude quake in the southeastern province of Van could reach 1, 000.
"The toll from this earthquake could be 500 to 1,000," said Prof. Mustafa Erdik, the head of the Kandilli Observatory and Earthquake Research Institute in Turkey's largest city of Istanbul.
The Istanbul-based Kandilli seismology center originally reported that the earthquake was 6.6 on the Richter scale, but later corrected it to 7.2.
Mustafa Erdik said any quake with a strength of 7.0 or more would cause serious damage to buildings in Turkey.
Turkish Prime Minister Recep Tayyip Erdogan is expected to visit the area shortly to assess the situation.
The epicenter was in the village of Tabanli in the eastern province of Van, bordering Iran, but the quake was also felt in the province's center as well as the neighboring provinces of Bitlis, Mus, Batman, Diyarbakir and Hakkari.
The Prime Ministry's Disaster and Emergency Management Directorate (AFAD) said in a statement released after the quake that the tremor was strong and caused material damage and some fatalities. It gave no figure for the death toll.
The earthquake damaged several buildings in the Van province, but the most serious damage was in the neighboring town of Ercis. Several strong aftershocks were also reported.
Turkish Deputy Prime Minister Besir Atalay earlier said that 25 to 30 buildings collapsed in the town of Ercis and one person killed in the earthquake.
AFAD said more than 500 search, rescue and health personnel have been sent to Van from nearly 40 provinces.
"There are so many dead. Several buildings have collapsed, there is so much destruction," Zulfikar Arapoglu, mayor of Ercis, told NTV television. "We need urgent aid, we need medics."
Residents spilled out into the streets in panic as rescue workers struggled to save people believed to be trapped under collapsed buildings, television footage showed.
Turkish Red Crescent is sending tents, blankets and other aid materials to the quake-hit province despite ongoing aftershocks, according to Anatolia reports.
Some people were trapped under debris of buildings in central Van, it added.
The U.S. Geological Survey reported Sunday that an earthquake measuring 7.3 on the Richter scale hit eastern Turkey.
The epicenter, with a depth of 7.20 km, was initially determined to be at 38.6270 degrees north latitude and 43.5349 degrees east longitude, the U.S. Geological Survey said.
Turkey, lying atop the North Anatolian fault, has been plagued by earthquakes frequently.
On March 8, 2010, at least 38 people died and dozens of others were injured after a 6.0-magnitude earthquake which hit Elazig province in eastern Turkey.
On Aug. 17, 1999, two powerful earthquakes, measuring 6.7 and 7. 4 on the Richter scale respectively, hit northwestern and western Turkey, killing about 18,000 people and affecting hundreds of thousands of others.
(source xinhua)
China's coal market to remain stable despite increasing demand
Oct23, 2011
BEIJING, (Xinhua) -- Coal supply and demand will keep growing at moderate pace in China, and the market will remain generally balanced in the upcoming winter and spring, an industry association said on Friday.
Some regions will, however, periodically see tight supply, according to the China National Coal Association (CNCA).
The coal output in the first three quarters reached 2.69 billion tonnes, and the sales volume hit 2.64 billion tonnes. Both registered a growth rate of at least 10 percent, according to CNCA.
The annual output is estimated to exceed 3.5 billion tonnes this year, compared with about 3.3 billion tonnes last year. Coal imports are expected to hit 150 million tonnes, less than last year's 164.83 million tonnes.
Domestic demand will keep rising at a moderate pace amid steady economic growth, but uncertainty in the macro economy will decelerate demand growth, predicted Wang Zhanjun, an official with CNCA.
The association said the price hike this year was modest. The current reserve volume stands at 225 million tonnes, which is adequate for 19 days of use for the country's major power producers.
(source xinhua)
BEIJING, (Xinhua) -- Coal supply and demand will keep growing at moderate pace in China, and the market will remain generally balanced in the upcoming winter and spring, an industry association said on Friday.
Some regions will, however, periodically see tight supply, according to the China National Coal Association (CNCA).
The coal output in the first three quarters reached 2.69 billion tonnes, and the sales volume hit 2.64 billion tonnes. Both registered a growth rate of at least 10 percent, according to CNCA.
The annual output is estimated to exceed 3.5 billion tonnes this year, compared with about 3.3 billion tonnes last year. Coal imports are expected to hit 150 million tonnes, less than last year's 164.83 million tonnes.
Domestic demand will keep rising at a moderate pace amid steady economic growth, but uncertainty in the macro economy will decelerate demand growth, predicted Wang Zhanjun, an official with CNCA.
The association said the price hike this year was modest. The current reserve volume stands at 225 million tonnes, which is adequate for 19 days of use for the country's major power producers.
(source xinhua)
China's coal consumption rises 10.3 pct in first three quarters
Sun, Oct23, 2011
BEIJING, Oct. 23 (Xinhua) -- China's coal consumption posted steady growth in the first three quarters, with an increase of thermal coal consumption in late September after three consecutive months of decline, according to the country's top economic planner.
China consumed 2.28 billion metric tons of coal in the first nine months, up 10.3 percent year-on-year, the National Development and Reform Commission (NDRC), China's top economic planner, said in a statement on its website Thursday.
Coal shipped via railway and ships in the first three quarters totaled 2.17 billion metric tons, according to NDRC.
As the world's largest coal producer and consumer, China relies on coal to fuel its economy as about four-fifths of electricity comes from thermal power plants.
In terms of inventory, coal stocks at five major ports expanded by 980,000 metric tons from the end of September to reach 12.51 million metric tons on Oct. 18.
Major thermal power plants added 6.31 million metric tons to their coal reserves, bringing the current total to 70.86 million metric tons, which can meet electricity generation demands for an average of 20 days, said NDRC.
Coal imports surged 25.1 percent from a year earlier to 19.12 million metric tons in September, reversing a decline in coal imports in the first eight months.
China's imports grew 1.9 percent year-on-year to 123 million metric tons from January to September, while exports totaled 12.12 metric tons in the period.
According to the NDRC data, China has become a net importer of coal in the first nine months, with a net import of 111 million metric tons.
(sourced xinhua)
BEIJING, Oct. 23 (Xinhua) -- China's coal consumption posted steady growth in the first three quarters, with an increase of thermal coal consumption in late September after three consecutive months of decline, according to the country's top economic planner.
China consumed 2.28 billion metric tons of coal in the first nine months, up 10.3 percent year-on-year, the National Development and Reform Commission (NDRC), China's top economic planner, said in a statement on its website Thursday.
Coal shipped via railway and ships in the first three quarters totaled 2.17 billion metric tons, according to NDRC.
As the world's largest coal producer and consumer, China relies on coal to fuel its economy as about four-fifths of electricity comes from thermal power plants.
In terms of inventory, coal stocks at five major ports expanded by 980,000 metric tons from the end of September to reach 12.51 million metric tons on Oct. 18.
Major thermal power plants added 6.31 million metric tons to their coal reserves, bringing the current total to 70.86 million metric tons, which can meet electricity generation demands for an average of 20 days, said NDRC.
Coal imports surged 25.1 percent from a year earlier to 19.12 million metric tons in September, reversing a decline in coal imports in the first eight months.
China's imports grew 1.9 percent year-on-year to 123 million metric tons from January to September, while exports totaled 12.12 metric tons in the period.
According to the NDRC data, China has become a net importer of coal in the first nine months, with a net import of 111 million metric tons.
(sourced xinhua)
Adhunik Metalliks to start iron ore pellet plant in Jharkhand
Sunday, 23 Oct 2011
TNN reported that Adhunik Metalliks Ltd will start its new pellet plant at Kandra in Seraikela on October 24.
The 1.2 million tonne per annum plant, built in record time by Orissa Manganese and Minerals Ltd, a subsidiary unit of Adhunik Group, is set up with an investment of INR 500 crores.
Mr said MD Manoj Agarwal MD said “We will enhance the production capacity of pellet plant to 2 million tonne per annum in the next 20 months with adequate investment.”
sourced TOI
TNN reported that Adhunik Metalliks Ltd will start its new pellet plant at Kandra in Seraikela on October 24.
The 1.2 million tonne per annum plant, built in record time by Orissa Manganese and Minerals Ltd, a subsidiary unit of Adhunik Group, is set up with an investment of INR 500 crores.
Mr said MD Manoj Agarwal MD said “We will enhance the production capacity of pellet plant to 2 million tonne per annum in the next 20 months with adequate investment.”
sourced TOI
Capesize iron ore ship rents rise - Barclays
Sunday, 23 Oct 2011
Bloomberg reported that rents for Capesize vessels that haul iron ore rose as Barclays Capital said lower prices for the steelmaking raw material may spur demand for shipments to China.
According to the Baltic Exchange in London Daily rates gained 0.8% to USD 29,918 after dropping 5.3% from the 10 month high reached October 14. Capesizes are the biggest vessels tracked by the Baltic Dry Index a broader gauge of commodity- shipping rates which increased 0.2% to 2,140.
UBS AG said in a report dated October 13 Monthly iron ore shipments to China the top steelmaker globally will average 60 million tonnes from September through December. That would exceed the record 59 million tons imported in the first quarter of 2011.
Barclays analysts including Mr Miswin Mahesh in London said “We expect freight rates on routes carrying iron ore to China to maintain the current state of buoyancy for a few more weeks.”
Rents for capesizes on the Brazil-to-China iron-ore route gained 2.2% to the highest level since November.
sourced Bloomberg
Bloomberg reported that rents for Capesize vessels that haul iron ore rose as Barclays Capital said lower prices for the steelmaking raw material may spur demand for shipments to China.
According to the Baltic Exchange in London Daily rates gained 0.8% to USD 29,918 after dropping 5.3% from the 10 month high reached October 14. Capesizes are the biggest vessels tracked by the Baltic Dry Index a broader gauge of commodity- shipping rates which increased 0.2% to 2,140.
UBS AG said in a report dated October 13 Monthly iron ore shipments to China the top steelmaker globally will average 60 million tonnes from September through December. That would exceed the record 59 million tons imported in the first quarter of 2011.
Barclays analysts including Mr Miswin Mahesh in London said “We expect freight rates on routes carrying iron ore to China to maintain the current state of buoyancy for a few more weeks.”
Rents for capesizes on the Brazil-to-China iron-ore route gained 2.2% to the highest level since November.
sourced Bloomberg
Astra Resources targets thermal coal through JV in Nigeria
Sunday, 23 Oct 2011
Diversified mining company Astra Resources PLC which is the UK parent company of Astra Mining, is continuing with an aggressive global expansion, and has now signed a memorandum of understanding for a joint venture development of a thermal coal exploration license in Nigeria.
This announcement follow hot on the heels of two deals earlier in the month, which included an agreement for iron sands development in north east Philippines and trading licenses in India. The MOU allows Astra subsidiary Muyiwa Pte Ltd to take super-majority ownership of African company Barjalex Nig Ltd who owns a coal exploration license covering the Manejo and Odele communities in the Ika District of Ankpa Local Government in Kogi State three kilometres south of Ogboyaga.
This exploration license covers an area of four square kilometres, which is expected to be expanded immediately to 12 square kilometres. A joint venture agreement is in the process of being drafted with the transaction receiving the full support of the local community.
Dr Jaydeep Biswas CEO of Astra said Nigeria is struggling to meet the growing nation’s energy requirements using electrical power, resulting in a renewed focus on alternative energy sources.
He said that “Currently the transmission and distribution of electricity is not adequate for the country, and as Nigeria becomes more industrialized it is predicted to experience more frequent power failures and load-shedding, resulting in economic losses, damaged equipment and the need for expensive stand-by power.”
He added that “As Nigeria has major under explored and underexploited high quality coal resources, the Nigerian government is focusing on developing coal-fired power plants and in turn revitalizing the coal mining industry.”
He also said “The coal present in the district and surrounds is low in sulphur and ash, and high in calorific value making it ideal for power generation and export into the international market. The Barjalex transaction creates a beach-head for growth in a region which has the potential of 800 million tonnes of thermal coal.”
Mr Biswas says if power becomes available and the population becomes more accustomed to modern conveniences, the “KW per household” factors will increase, further expanding the demand for electrical power.
He said that “Even by conservative measures, the country appears ready to absorb the output from 10,000 MW to 15,000 MW of additional generation capacity during the next 20 to 25 years. He added that in order to meet these needs, approximately 3.2 million tonnes of coal will be required per year for each 1000 MW of capacity.”
With a population approaching 140 million, statistics indicate that Nigeria can be considered to have between 20 million and 25 million households.
Estimates of the minimum load demand or generating capacity indicate that the 10,000 MW of capacity targeted by the Federal Government of Nigeria is a reasonable reflection of the capacity necessary to satisfy the country actual needs for electricity supply in the near term and that as electricity becomes available the demand can grow to over 15,000 MW.
(sourced proactiveinvestors)
Diversified mining company Astra Resources PLC which is the UK parent company of Astra Mining, is continuing with an aggressive global expansion, and has now signed a memorandum of understanding for a joint venture development of a thermal coal exploration license in Nigeria.
This announcement follow hot on the heels of two deals earlier in the month, which included an agreement for iron sands development in north east Philippines and trading licenses in India. The MOU allows Astra subsidiary Muyiwa Pte Ltd to take super-majority ownership of African company Barjalex Nig Ltd who owns a coal exploration license covering the Manejo and Odele communities in the Ika District of Ankpa Local Government in Kogi State three kilometres south of Ogboyaga.
This exploration license covers an area of four square kilometres, which is expected to be expanded immediately to 12 square kilometres. A joint venture agreement is in the process of being drafted with the transaction receiving the full support of the local community.
Dr Jaydeep Biswas CEO of Astra said Nigeria is struggling to meet the growing nation’s energy requirements using electrical power, resulting in a renewed focus on alternative energy sources.
He said that “Currently the transmission and distribution of electricity is not adequate for the country, and as Nigeria becomes more industrialized it is predicted to experience more frequent power failures and load-shedding, resulting in economic losses, damaged equipment and the need for expensive stand-by power.”
He added that “As Nigeria has major under explored and underexploited high quality coal resources, the Nigerian government is focusing on developing coal-fired power plants and in turn revitalizing the coal mining industry.”
He also said “The coal present in the district and surrounds is low in sulphur and ash, and high in calorific value making it ideal for power generation and export into the international market. The Barjalex transaction creates a beach-head for growth in a region which has the potential of 800 million tonnes of thermal coal.”
Mr Biswas says if power becomes available and the population becomes more accustomed to modern conveniences, the “KW per household” factors will increase, further expanding the demand for electrical power.
He said that “Even by conservative measures, the country appears ready to absorb the output from 10,000 MW to 15,000 MW of additional generation capacity during the next 20 to 25 years. He added that in order to meet these needs, approximately 3.2 million tonnes of coal will be required per year for each 1000 MW of capacity.”
With a population approaching 140 million, statistics indicate that Nigeria can be considered to have between 20 million and 25 million households.
Estimates of the minimum load demand or generating capacity indicate that the 10,000 MW of capacity targeted by the Federal Government of Nigeria is a reasonable reflection of the capacity necessary to satisfy the country actual needs for electricity supply in the near term and that as electricity becomes available the demand can grow to over 15,000 MW.
(sourced proactiveinvestors)
Australia still attracts investments in iron ore despite tax issues
Sunday, 23 Oct 2011
Commodity Online reported that carbon tax introduced in Australia affects little over the investments in the iron ore sector, the major players like BHP Billiton and Rio Tinto continues with their investment in the mineral resource.
Mr Martin Hoffman acting secretary, Department of Resources, Energy and Tourism said "In our contact with them we have seen no change in those plans to continue the substantial expansions in port facilities and mines in the iron-ore sector."
According to BHP's September Quarterly reports, its Western Australian iron ore shipments rose 28% higher than the previous corresponding period to a record annualized rate of 173 million tonnes a year in September 2011.
The Chinese demand for iron ore has been the driver for the Australia major producers.
(sourced commodityonline)
Commodity Online reported that carbon tax introduced in Australia affects little over the investments in the iron ore sector, the major players like BHP Billiton and Rio Tinto continues with their investment in the mineral resource.
Mr Martin Hoffman acting secretary, Department of Resources, Energy and Tourism said "In our contact with them we have seen no change in those plans to continue the substantial expansions in port facilities and mines in the iron-ore sector."
According to BHP's September Quarterly reports, its Western Australian iron ore shipments rose 28% higher than the previous corresponding period to a record annualized rate of 173 million tonnes a year in September 2011.
The Chinese demand for iron ore has been the driver for the Australia major producers.
(sourced commodityonline)
Patriot Coal sees higher coking coal output in Q4
Sun, 23 Oct 2011
Reuters reported that Patriot Coal Corp which is boosting metallurgical coal production sees higher pricing for the steel making coal amid strong demand from countries such as Brazil and India.
St Louis Missouri based Patriot said it sees improved production in the fourth quarter and lower costs per ton. The company expects fourth quarter cost per ton in the eastern US region of Appalachia to be USD 72 to USD 75 lower than the USD 79.10 in the third quarter.
Patriot said in the statement that "Looking forward, we are expecting improved production in the fourth quarter. There are no scheduled longwall moves, and the increased production should lead to lower cost per ton."
Patriot expects fourth quarter sales volume to be 8 million tonnes to 8.3 million tonnes including met coal sales of about 2 million tonnes.
(Sourced from Reuters)
Reuters reported that Patriot Coal Corp which is boosting metallurgical coal production sees higher pricing for the steel making coal amid strong demand from countries such as Brazil and India.
St Louis Missouri based Patriot said it sees improved production in the fourth quarter and lower costs per ton. The company expects fourth quarter cost per ton in the eastern US region of Appalachia to be USD 72 to USD 75 lower than the USD 79.10 in the third quarter.
Patriot said in the statement that "Looking forward, we are expecting improved production in the fourth quarter. There are no scheduled longwall moves, and the increased production should lead to lower cost per ton."
Patriot expects fourth quarter sales volume to be 8 million tonnes to 8.3 million tonnes including met coal sales of about 2 million tonnes.
(Sourced from Reuters)
Mozambique to become a significant coking coal producer
Sun, 23 Oct 2011
According to Ms Christy Tawii Frost & Sullivan research associate Mozambique is poised to become a significant coking coal producer within the next three to five years with its coal sector accounting for 61% of the total value of the project pipeline.
She said the total value of mining projects across seven commodities was USD 11.6-billion of which the coal sector accounted for USD 7.1 billion.
The coal industry which is expected to produce 20 million tons a year by 2015 currently comprises 12 projects in a feasibility stage, one in a bankable feasibility study stage and five projects that are under construction.
Coal production increased sharply from 25 900 tonnes in 2009 to 35 700 tonnes in 2010. Ms Tawii said the increase in capital expenditure reflected mining confidence in the medium to long term.
Mozambique regulatory environment is considered time consuming, which could discourage prospective investors, Ms Tawii said the government is showing strong signs of creating a friendly mining investment environment.
(sourced from allafrica.com)
According to Ms Christy Tawii Frost & Sullivan research associate Mozambique is poised to become a significant coking coal producer within the next three to five years with its coal sector accounting for 61% of the total value of the project pipeline.
She said the total value of mining projects across seven commodities was USD 11.6-billion of which the coal sector accounted for USD 7.1 billion.
The coal industry which is expected to produce 20 million tons a year by 2015 currently comprises 12 projects in a feasibility stage, one in a bankable feasibility study stage and five projects that are under construction.
Coal production increased sharply from 25 900 tonnes in 2009 to 35 700 tonnes in 2010. Ms Tawii said the increase in capital expenditure reflected mining confidence in the medium to long term.
Mozambique regulatory environment is considered time consuming, which could discourage prospective investors, Ms Tawii said the government is showing strong signs of creating a friendly mining investment environment.
(sourced from allafrica.com)
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