Coal – Page 105 – Republic of Mining

Ukraine miners rescued after shelling left them trapped – by Alec Luhn (The Guardian – January 26 2015)

January 27, 2015

http://www.theguardian.com/uk

Donetsk power station was hit by artillery fire, leaving nearly 500 workers deep underground

Moscow – Almost 500 coal miners were trapped for a while in separatist-controlled Donetsk in Ukraine, after shelling knocked out a power station. But a Donetsk city official told the Donetsk News Agency later in the afternoon that all the miners had been removed without injury and the power station was back online.

At about midday local time artillery fire damaged the Kievsky district power station, leaving 496 men stranded underground in the Zasyadko mine, the Russian state news agency RIA Novosti reported.

Officials from the self-declared Donetsk People’s Republic later told local news outlets that 110 miners had been evacuated and the rest were gradually coming out of the mine.

A Zasyadko miner who recently joined the pro-Russia separatists told the Guardian that workers usually set up a mobile generator above ground to power lifts and gradually take the miners out in such instances. He said several of his friends were still in the mine and blamed Ukrainian forces outside the city for the artillery strike.

“They’re still shelling at this very moment,” said the miner, who would give his name only as Andrei. “They don’t make war on the rebels, but rather on civilians.

Anglo American set to sell Australian coal mines to boost returns – by Arash Massoudi, James Wilson and Neil Hume (Financial Times – January 22, 2015)

January 22, 2015

http://www.ft.com/intl/companies/mining

Anglo American is eyeing the sale of a cluster of coal assets in eastern Australia as the miner struggles to boost shareholder returns during a slump in commodities prices, people familiar with the matter said on Thursday.

The UK-listed miner, one of the world’s largest coal producers, is preparing to sell five mines in Queensland and New South Wales as part of a $3bn-$4bn asset disposal programme ordered by Mark Cutifani, chief executive.

Large mining companies including Vale and BHP Billiton are looking to dispose of or spin off non-core assets as they battle falling commodity prices and declining share prices. They are also under pressure to boost returns to investors. For Anglo American, a sale of assets would help strengthen its balance sheet.

Mines including Dawson and Foxleigh would be primed for a possible sale, the people close to the situation said. One of these people added that Bank of America Merrill Lynch was working with Anglo.

The miner said in December that it was selling the Callide mine as well as Dartbrook. Anglo and Bank of America declined to comment. The mines earmarked for potential sale produce coal used for steel making or power generation.

Coal’s King Canute moment – by Cole Latimer (Australian Mining – January 22, 2015)

January 22, 2015

http://www.miningaustralia.com.au/home

As the coal price continues to falter and major producers are hit drastic action is being taken to reverse the tide.

The commodity has faced a massive decline. It has fallen in price by more than a third in a year from December 2013 to December 2014, as Chinese demand waned and a projects came online, flooding the market and causing excessive supply problems.

The Bureau of Resources and Energy Economics (BREE) said Australia exported 181 million tonnes of metallurgical coal in 2013-14, with this expected to increase to 185 million tonnes in 2014-15, while thermal coal exports are tipped to top 196 million tonnes in 2014-15.

Queensland alone managed to export 216 million tonnes of both thermal and coking coal for 2014, setting new export records.

Making matters worse for miners in Australia is the supply coming online from other competitors such as Indonesia, Colombia and South Africa, further flooding the market, while Russia has plans to quadruple its coal output levels by 2030.

At the same time, rising natural gas production in the United States means thermal coal will be diverted from domestic American markets where it is used as an energy source, to export destinations – particularly Asia.

COLUMN – A few rays of sunshine break through coal’s storm clouds – by Clyde Russell (Reuters India – January 19, 2015)

January 20, 2015

http://in.reuters.com/

LAUNCESTON, Australia – The new year has started positively for Asian coal, with prices rallying from a 5-1/2 year low, Chinese imports jumping to the highest in 11 months and renewed merger and acquisition interest.

While these are undoubtedly welcome developments for a sector that has witnessed four years of falling prices, there are still serious questions as to whether these swallows really do indicate a summer of good fortune ahead.

The spot price of thermal coal at Australia’s Newcastle port, an Asian benchmark, rose to $62.91 a tonne in the week ended Jan. 16, up 3 percent from $61.04 the prior week, which was the lowest since April 2009.

The obvious caveat here is that prices are still some way below the breakeven point for many miners in top exporters Australia and Indonesia, and it will take weeks of sustained gains to bring the sector as a whole back into the black.

Chinese imports were 27.22 million tonnes in December, the highest since January last year, again a positive sign but not enough to mask that imports for 2014 as a whole were down 10.9 percent to 291 million tonnes, the first annual drop in a decade.

Nordea to blacklist coal-mining companies – by Madison Marriage (Financial Times – January 18, 2015)

January 19, 2015

http://www.ft.com/home/us

Nordea Asset Management plans to blacklist up to 40 coal-mining companies from its investment universe. It joins a growing list of large investors that have decided to cut their exposure to fossil-fuel assets.

Nordea, the largest Nordic fund manager, with $228bn of assets, is in the process of identifying companies for exclusion that have a “large and sustained exposure to thermal coal mining”, according to Sasja Beslik, head of corporate governance at the group.

“[Thermal coal mining] is the most environmentally compromising fossil-fuel resource,” he said.
The asset manager’s exclusion list, which will be finalised by the end of March, is likely to affect a small proportion (€100m) of Nordea’s total assets.

The move is another setback for the coal-mining industry. A number of big institutions have opted to reduce their exposure to fossil-fuel companies in the past 12 months for ethical and financial reasons.

KLP, Norway’s largest pension fund, decided in November to blacklist companies that derive more than 50 per cent of their revenues from coal-based activities.

History buffs dig into mining – by Ralph Nardone (Times Leader – January 17, 2015)

January 19, 2015

http://www.timesleader.com/ [Wilkes-Barre, Pennsylvania]

Knox Mine program kicks off week devoted to industry

SCRANTON — A tribute to the victims of the Knox Mine Disaster near Pittston kicked off the 16th annual Mining History Week on Saturday at the Anthracite Heritage Museum. Events sponsored by local colleges and historical groups will take place this week in Wilkes-Barre, Scranton, Pittston, Port Griffith and Ashley.

The Knox disaster happened on Jan. 22, 1959, when the Susquehanna River broke through the roof of the River Slope Mine, allowing 10 million gallons of water and ice to rush into the mine. According to Explorepahistory.com, 74 miners were trapped by the rushing waters. Only 62 of them would escape, the bodies of the other 12 were never recovered.

On Saturday, experts on the disaster and folks who were there gathered to discuss its historical significance, to honor those who died and to pay tribute to the professional journalists who documented what happened.

“They were true educators,” said Kings’ College Professor Robert Wolensky, who has authored books on the disaster. “We know what happened that day thanks to their work.”

Proposed Murray River mine to rely primarily on foreign workers – by Wendy Stueck (Globe and Mail – January 9, 2015)

January 9, 2015

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

VANCOUVER — If the proposed Murray River coal project goes ahead, more than half of its employees would be temporary foreign workers in 2018 – potentially the first year of operation – and it would take nearly a decade for all the hourly jobs at the project to be filled by Canadians.

HD Mining has previously discussed its plan to shift from a work force that is mostly foreign to one that is mostly domestic, saying in 2013 the mine would have a “full Canadian work force” after 10 years of production.

But documents recently filed as part of an environmental-assessment process provide more detail about that transition, and an updated estimate of the cost to build the mine of $554.9-million, compared with a previous estimate of $300-million.

According to an executive summary, the number of temporary foreign workers at the project, for which preparatory work began in 2014, would peak in 2018 at 494 – 382 hourly and 112 management employees – out of a total of 764, or nearly 65 per cent. By 2027, plans call for zero hourly foreign workers and 20 managers out of a total of 764. Those levels are projected to stay the same for the rest of the mine’s life.

The environmental assessment is taking place nearly two years after HD Mining sent more than a dozen Chinese miners home in January, 2013, over uncertainty related to a high-profile court battle.

Polish farmers threaten uprising over opencast coalmine – by Arthur Neslen (The Guardian – December 31, 2014)

January 6, 2015

http://www.theguardian.com/uk

Heinz unites with farmers in rebellion against plan to build a vast lignite mine and power plant on farming land in western Poland

Krobia, Miejska and Poniec, Poland – Farmers in western Poland are warning of civil unrest if a vast coalmine and power plant are given the go-ahead, with thousands of people at risk of being forcibly relocated.

At risk are the food exports for which the Krobia and Miejska Górka region is known – including tomatoes, and sugar beet destined for Heinz Ketchup on UK supermarket shelves – and a windfarm which campaigners say would have to be demolished to make way for the brown lignite mine.

Experts say that 22 villages could be destroyed by the opencast mine proposed by Polish energy company PAK. The mine would cover 11,900 hectares of land (29,400 acres) and include a 1,000MW coal plant, leaving up to 5,800 people subject to compulsory purchase orders of their land.

Many farmers in the area have ties to the land stretching back several generations, and say they will not leave without a fight. Sitting in his farm with friends and family, Janusz Mackowiak, a moustachioed former MP for Poland’s Agricultural party, told the Guardian that thousands of local people had already protested against the mining project, and more would join in if plans are escalated next year.

Coal India Workers Strike to Fight Modi’s Privatization Plans – by Rajesh Kumar Singh and Abhishek Shanker (Bloomberg News – January 6, 2015)

January 6, 2015

http://www.bloomberg.com/

A strike by coal miners in India has shut down some mines and disrupted supply at others as unions vowed the biggest walkout in decades to halt plans by Prime Minister Narendra Modi to privatize the industry.

“The strike is on,” said R. Mohan Das, a personnel director at state-run Coal India Ltd. (COAL), the world’s biggest miner of the fuel. It’s too early to assess supply losses, he said, adding that all workers have walked out at some mines, while others are partially closed.

Unions called a five-day strike starting today after rejecting an offer to meet management this morning. Hundreds of union members protested outside Coal India’s Kolkata office denouncing the privatization plans.

“If this strike intensifies there will be a severe coal shortage,” said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. “With many power utilities being hand to mouth as far as coal supplies are concerned, the problem may be severe.”

Of the 100 power plants that run on local coal, 42 had supplies for less than seven days as of Jan. 1, according to the power ministry’s Central Electricity Authority. Twenty of these plants had less than four days of stock.

NEWS RELEASE: Cliffs Natural Resources Inc. Concludes the Sale of Logan County Coal and Provides Update on Bloom Lake

January 6, 2015

CLEVELAND, Jan. 2, 2015 /PRNewswire/ — Cliffs Natural Resources Inc. (NYSE: CLF) is pleased to announce that it has completed the sale of its Logan County Coal assets in West Virginia to Coronado Coal II LLC, an affiliate of Coronado Coal LLC, for $174 million in cash and the assumption of certain liabilities. The expected tax benefit associated with the transaction will be between 20% to 25% of the previously disclosed pre-tax loss of approximately $400 million, which represents an additional benefit of $80 million to $100 million in future cash tax savings. Cliffs will record the results of this sale in its fourth quarter earnings.

Separately, Cliffs confirms that active production at Bloom Lake has completely ceased and the exit from Eastern Canada continued to be executed on schedule as previously announced. The mine has transitioned to care and maintenance status and, consequently, at this time only a small number of employees involved in such activities are still in the payroll. The last shipment of iron ore out of the Port of Sept-Iles will be completed in early January 2015.

Lourenco Goncalves , Cliffs’ Chairman, President and Chief Executive Officer said, “The execution of the strategic initiatives outlined during our Q3 Conference Call in October 2014 continued to progress as planned during the last two months. The sale of Logan County Coal, which included a meaningful tax benefit to the Company, clearly demonstrates our ability to execute complex transactions despite an adverse M&A environment for commodity related transactions. Additionally, as we approach the final steps of our exit from Eastern Canada, we have brought to an end the flawed expansion that has cost Cliffs and its shareholders billions of dollars.”

Turning point for coal? Japanese trading firms snap up coal assets – by Yuka Obayashi and Sonali Paul (Reuters India – December 22, 2014)

December 22, 2014

http://in.reuters.com/

TOKYO/MELBOURNE, Dec 22 (Reuters) – Only a few months ago, a potential buyer said Japanese trading house Marubeni Corp was prepared to sell a costly stake in a Canadian coal mine for as little as $1.

But a flurry of acquisitions of high-quality coal assets by Japanese firms in recent weeks signals that some trading houses at least are betting a depressed coal market where prices have halved in three years may be bottoming out.

This vote of confidence comes amid signs that coal demand in Japan and emerging markets such as India is holding up well despite weaker demand in markets such as China, where coal imports in the first 11 months fell nearly a tenth.

Japan is the world’s second-biggest coal importer behind China, importing almost 200 million tonnes a year.

Recent acquisitions include the first coal investment by Mitsui & Co in 10 years. It is purchasing a stake in a Mozambique mine operated by Brazil’s Vale, in which the trading firm has an indirect stake.

“The biggest reason for participating in the Moatize project is to retain excellent quality metallurgical coal that is scarce globally,” Tetsuya Fukuda, general manager of Mitsui’s coal division, said. “With the resource supercycle, we had been not able to buy any assets.”

‘No hope for Harlan’: Deep in coal country, pondering future without it – by Allen G. Breed (The Associated Press – December 20, 2014)

December 22, 2014

http://www.middletownpress.com/

HARLAN, Ky. – The rest of the house is just waking as Scottie Sizemore plops down in a rocking chair on his front porch with a cup of coffee. The sun has yet to crest the ridge above, where mist clings like clouds that couldn’t quite make it over.

Sizemore is the fourth generation of his family to mine coal in Harlan County. He knows he’ll probably be the last.

For over a century, life in Central Appalachia has been largely defined by the ups and downs of the coal industry. Through all the bust years, there was always the promise of another boom. Until now.

There is a growing sense in these mountains that this downturn is different, deeper. That for a variety of reasons — economic, environmental, political — coal mining will not rebound this time.

State and federal initiatives are exploring everything from ecotourism and small farmer loans to regional tax incentives for job creators. Some here pray for a regulatory climate change that would breathe new life into the region’s mines. For Sizemore and his wife, Madonna, the answer is simple, if painful. They’re leaving.

Modi Getting His Thatcher Moment Confronting Coal Unions – by Rajesh Kumar Singh and Debjit Chakraborty (Bloomberg News – December 17, 2014)

December 17, 2014

http://www.bloomberg.com/

Is India’s Prime Minister Narendra Modi reading up on Margaret Thatcher?

The late former prime minister of the U.K. had one of her defining and controversial confrontations in a protracted fight with striking coal miners in the 1980s. Different time, another country, but Modi has angry unions threatening to stop work at the world’s biggest coal miner, Coal India Ltd. (COAL)

Coal-fired power plants generate 60 percent of India’s electricity, except for when shortages lead to repeated blackouts. Outages shaved $68 billion or almost 4 percent off annual gross domestic product in the year ended March 2013, says the Federation of Indian Chambers of Commerce and Industry.

Last week, Modi made a move toward ending shortages, winning partial passage of a bill that will allow him to end a 40-year government coal monopoly. The plan is to bring in more efficient private companies. The coal unions say that will mean job losses, and that they will fight the legislation.

“Let them open up the sector, there will be strikes all across and large-scale violence,” S.Q. Zama, secretary general at the Indian National Mineworkers Federation, a unit of the opposition’s Congress party-backed Indian National Trade Union Congress, said in a Dec. 5 interview.

Why B.C. desperately wants to fill your stocking with coal – by Jason Kirby (MACLEAN’S Magazine – December 15, 2014)

December 15, 2014

http://www.macleans.ca/

Coal, a major B.C. export, suffers from a global glut and falling prices. Sound familiar?

Hey kids, wouldn’t you really rather get a lump of coal this Christmas? That’s the message from the B.C. government, which sent out this rather odd email to reporters late Friday (excerpt)…

Stuff your stockings with B.C. coal

VICTORIA – No matter whether you light the menorah, trim the tree or setup the Festivus Pole, your holiday activities likely have a connection to a lump of coal mined right here in British Columbia.

From the planes, trains and automobiles that are used to transport holiday gifts, to the stores where those gifts are sold – they all require steel. That steel is made using metallurgical coal.

Planning to drive to the mall over the holidays? There are approximately three million cars in B.C. and it takes roughly 630 kilograms of metallurgical coal to produce a single vehicle.

Nothing says Canadian winter like lacing up the ice skates for a game of hockey. The steel blades that make breakaway goals possible start out as metallurgical coal.

Oil, coal and iron ore at financial crisis levels – by Henning Gloystein (Reuters India – December 15, 2014)

December 15, 2014

http://in.reuters.com/

SINGAPORE – (Reuters) – Tumbling oil, coal and iron ore prices are now all at levels last seen during or before the financial crisis of 2008/2009, signalling not only the impact of a glut of supplies but deeper weakness in parts of the global economy, analysts say.

The raw materials are among the most sensitive to economic health, with oil and coal the world’s two most important energy sources and iron ore used to make steel.

Brent crude prices have almost halved since June to slightly above $60 a barrel, a level last seen in early 2009 during the financial crisis. In the coal market, the benchmark European futures contracts has dropped below $70 a tonne to levels comparable before the boom and bust of 2007-2009.

Iron ore prices have halved to under $69 a tonne as demand growth in the biggest market, China, wanes. Analysts initially pointed to rising oil and mining output, as well as energy efficiency and alternative sources such as renewables, as the main factors behind the drops.

But with no end to the price slide, it became apparent that a significant cooling of emerging economies as well as ongoing slack in developed markets such as Europe and Japan was also at play, especially after oil producer club OPEC said it would not cut output in support of prices.

“Softer global demand, coupled with unprecedented growth in supply are weighing on global oil indices, with prices falling to levels not seen since the Global Financial Crisis,” National Australia Bank said in a note on Monday.