Teck waiting for next coal wave to revive Quintette – by Brent Jang (Globe and Mail – October 8, 2013)

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 — Teck Resources Ltd. is sitting on a mountain of untapped coal at its Quintette property in northeastern British Columbia, hoping for market conditions to improve and give the project a new beginning.

Quintette supplied metallurgical (or coking) coal to Japanese steel mills from 1982 until it closed in 2000. Today the coal market is all about China, but prices have plummeted in the wake of the country’s slowing growth and ample industry supply.

In June of this year, the B.C. government issued a mining permit to clear the way for Teck to operate an open-pit mine at Quintette, which is forecast to produce three million tonnes a year of metallurgical coal, a key ingredient in the production of steel. But with coal prices down more than 50 per cent over the past couple of years, Teck announced in July that it decided to delay capital spending of $300-million in 2013 and $350-million in the first half of 2014 that had been earmarked for Quintette.

Having watched the corporation nearly collapse during the 2008-09 recession, Teck executives are being cautious in their approach to Quintette.

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Wanted by the taxman: Indonesia’s $5 billion of lost coal – by Fergus Jensen (Reuters U.S. – October 1, 2013)

http://www.reuters.com/

JAKARTA – (Reuters) – Indonesia may be the world’s top exporter of thermal coal, but that masks an embarrassing fact for a government scrambling to raise revenue – more than $5 billion worth of the fuel is mined illegally and goes untaxed each year.

Export and consumption data shows Indonesia produces around 12-15 percent more coal annually than the ministry of energy and mineral resources reports. That’s enough to supply Taiwan, the world’s fifth-largest coal importer, for a year.

The $460 million of lost tax revenue that industry officials estimate this represents would provide Jakarta, which is considering roughly doubling royalties paid by coal producers, with some of the funds it needs to redress its budget deficit.

The gap between recorded and actual output has also attracted the attention of Indonesia’s top anti-graft agency the Corruption Eradication Commission (KPK).

A combination of export data from the Bureau of Statistics, using customs information, and consumption data from state electricity utility Perusahaan Listrik Negara PLNEG.UL, shows Indonesia’s total coal output at 451.9 million tons in 2012.

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U.S. Coal Companies Scale Back Export Goals – by Clifford Krauss (New York Times – September 13, 2013)

http://www.nytimes.com/

HOUSTON — The ailing American coal industry, which has pinned its hopes on exports to counter a declining market at home, is scaling back its ambitions as demand from abroad starts to ebb as well.

Just south of here, New Elk Coal terminated its lease late last month at the Port of Corpus Christi, where it had hoped to export coal to Brazil, Europe and Asia. Two days later, when the federal government tried to auction off a two-square-mile tract of land in Wyoming’s Powder River basin, a region once poised to grow with exports to Asia, not a single coal company made a bid.

They were the latest signs that a global coal glut and price slump, along with persistent environmental opposition, are reducing the likelihood that additional exports could shield the industry from slipping domestic demand caused by cheap natural gas and mounting regulations.

United States coal exports this year are expected to decline by roughly 5 percent from last year’s record exports of 125 million tons, and many experts predict the decline will quicken next year. At the beginning of 2012, the coal industry had plans to expand port capacity by an additional 185 million tons. But those hopes have faded this year.

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B.C. Mining Protest: Company Pulling Out From Mt. Klappen – by The Canadian Press (Huffington Post – September 24, 2013)

http://www.huffingtonpost.ca/british-columbia/

VANCOUVER – A Canadian mining company is moving to diffuse a growing dispute with First Nations over a proposed open pit coal mine in northern B.C., by pulling out of the mine site for several months.

However, Fortune Minerals (TSX:FT) said it is not leaving Mount Klappan for good, and that the company remains committed to the mine in an area considered sacred by First Nations.

“While all of Fortune’s activities at the project site are focused on gathering necessary information that will be used in a B.C. environmental assessment process, … the company has faced disruptive and damaging protests,” the firm said in a statement.

On Sunday, about 40 members of the Tahltan First Nation, including elders, moved into the Fortune’s camp site at Mount Klappan and asked the workers to leave.

Tahltan members had earlier issued what they called an “eviction notice, requiring the company to halt its exploration activities and leave the area,” said a news release issued by the Tahltan Central Council on Tuesday.

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Coal mining protest in B.C. set to erupt – by Margo Harper (Globe and Mail – September 21, 2013)

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.

An increasingly tense standoff between a B.C. First Nation and a London, Ont.-based coal company in a remote mountain valley known as Sacred Headwaters is set to erupt as protesters flaunt their month-long presence on a drilling site and taunt the RCMP to arrest them.

For the Tahltan First Nation, which has worked both with and against industry, the stakes are high: It is determined to halt the development of an open-pit coal mine in a spot it views as the land of origin, the birthplace of all waters.

“We dare Fortune to get us arrested. We have cameras here. We will make sure the world knows what’s going on,” said Rhoda Quock, spokeswoman for the protest group Kablona Keepers, in a statement.

Fortune Minerals Ltd., which has invested $100-million to develop what it says may be the world’s biggest undeveloped deposit of high-quality, clean-burning coal, has no intention of giving up on the Arctos Anthracite project.

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EPA sets first-ever curbs on power plant pollution – by Valerie Volcovici (Reuters U.S. – September 20, 2013)

http://www.reuters.com/

WASHINGTON – (Reuters) – The Obama administration on Friday announced first-ever regulations setting strict limits on the amount of carbon pollution that can be generated by any new U.S. power plant, which quickly sparked a backlash from supporters of the coal industry and are certain to face legal challenges.

The U.S. Environmental Protection Agency’s long-awaited guidelines would make it near impossible to build coal plants without using technology to capture carbon emissions that foes say is unproven and uneconomic. The rules, a revision of a previous attempt by the EPA to create emissions standards for fossil fuel plants, are the first step in President Barack Obama’s climate change package, announced in June.

The revised rule contained a few surprises after the agency held extensive discussions with industry and environmental groups, raising concerns by industry that the EPA’s new restrictions on existing power plants, due to be unveiled next year, will be tough.

But the regulations announced on Friday cover only new plants. Under the proposal, new large natural gas-fired turbines would need to meet a limit of 1,000 pounds of carbon dioxide per megawatt hour, while new small natural gas-fired turbines would need to meet a limit of 1,100 pounds of CO2 per MWh.

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NEWS RELEASE: Anglo American delivers the largest financial commitment ever made by a mining company to protect northern caribou in British Columbia

(L to R) Brent Waldron, Chief Financial Officer of Anglo American’s Metallurgical Coal business; the Honourable Steve Thomson, Minister of Forests, Lands and Natural Resource Operations with the Government of British Columbia, and Mike Bernier, M.L.A. Peace River South for the Province of British Columbia.

VANCOUVER, Sept. 18, 2013 /CNW/ – Today the Chief Financial Officer of Anglo American’s Metallurgical Coal business, Mr Brent Waldron, presented the Minister of Forests, Lands and Natural Resource Operations for the Government of British Columbia, the Honourable Steve Thomson with a $2.566 million cheque for the Government of British Columbia’s Peace Northern Caribou Plan in Vancouver, B.C.

This is the largest funding contribution made by a mining company for caribou mitigation measures under the Peace Northern Caribou Plan and Mr Waldron said he was proud to personally present the donation on behalf of Anglo American.

“This contribution comes as part of Anglo American’s Trend-Roman project, an open cut expansion for the Peace River operation near Tumbler Ridge in north-east British Columbia and represents the company’s commitment to maintaining the highest standards of environmental protection,” Mr Waldron said.

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COLUMN-Australia’s coal industry enters the final stage of grief – by Clyde Russell (Reuters U.S. – August 14, 2013)

http://www.reuters.com/

Aug 14 (Reuters) – Australian coal miners have been in mourning over the rapid loss of profitability and expansion opportunities, but the industry is entering the final stage of the grieving process.

The five stages of grief, as described by Swiss-American psychiatrist Elisabeth Kubler-Ross on how people face events like terminal illness, are denial, anger, bargaining, depression and acceptance.

While not all of the attendees at the annual Coaltrans Australia conference this week have got past the depression stage, most were looking at how the industry deals with the reality of its myriad of issues.

These include an apparent structural shift to lower prices for the foreseeable future, rising public opposition to mining on the back of a well-funded and organised environmental lobby, lack of capital available for new projects, still high labour costs and an increasing burden of government red and green tape.

The coal miners have limited influence over most of these issues, but they appear to be making concerted efforts to change what they can in a bid to strengthen their position and make sure Australia remains the world’s biggest exporter of coking coal and number two in thermal coal.

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28 miners die in Afghanistan coal mine blast – by Dorothy Kosich (Mineweb.com – September 16, 2013)

http://www.mineweb.com/

Neighbors of the Abkhorak coal mine were among the rescuers who managed to bring 100 miners to safety after 28 miners perished in a coal mine blast in northern Afghanistan.

RENO (MINEWEB) – When 57 miners were trapped after gas explosion at the Abkhorak mine in the Ruyi Du Ab District of Samangan Province in northern Afghanistan, nearby residents dug through the rubble and debris with their bare hands.

However, 28 miners were killed, while 100 of their coworkers were taken to the hospital with minor injuries.

Samangan provincial governor’s spokesman Mohammad Seddiq Azizi told the BBC that four members of the rescue teams were badly injured, while 14 men were overcome with fumes, but were brought out safely. Samangan’s Deputy Security Chief Mosadiqullah Muzafari said four rescue workers were badly injured.

Workplace safety standards are considered poor in Afghanistan and mine accidents are considered common. Javed Noorani of Integrity Watch Afghanistan told Al Jazeera that 90% of mining in the country is illegal. In December, 11 miners were killed in a mine collapse in the northern province of Baghlan.

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U.S. Coal Companies Scale Back Export Goals – by Clifford Krauss (New York Times – September 14, 2013)

http://www.nytimes.com/

HOUSTON — The ailing American coal industry, which has pinned its hopes on exports to counter a declining market at home, is scaling back its ambitions as demand from abroad starts to ebb as well.

Just south of here, New Elk Coal terminated its lease late last month at the Port of Corpus Christi, where it had hoped to export coal to Brazil, Europe and Asia. Two days later, when the federal government tried to auction off a two-square-mile tract of land in Wyoming’s Powder River basin, a region once poised to grow with exports to Asia, not a single coal company made a bid.

They were the latest signs that a global coal glut and price slump, along with persistent environmental opposition, are reducing the likelihood that additional exports could shield the industry from slipping domestic demand caused by cheap natural gas and mounting regulations.

United States coal exports this year are expected to decline by roughly 5 percent from last year’s record exports of 125 million tons, and many experts predict the decline will quicken next year. At the beginning of 2012, the coal industry had plans to expand port capacity by an additional 185 million tons. But those hopes have faded this year.

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Coal industry predicts bright future – by Derrick Penner (Vancouver Sun – September 13, 2013)

http://www.vancouversun.com/index.html

Exports from Western Canada likely to double over next decade, conference hears

Coal, unloved by environmentalists and battered by a global market glut that has ravaged corporate profits, is still likely to see its production and exports double from Western Canada over the next decade.

“Western Canada produces mainly metallurgical coal for the steel industry and it’s got a lot of things going for it,” said Gerard McCloskey, moderator for the Coal Association of Canada’s annual conference that is in Vancouver this week.

McCloskey, a U.K.-based industry consultant, said Western Canada remains attractive because of its good quality and untapped reserves, and he said while markets are oversupplied now, there is still considerable room for growth, particularly in the Pacific.

“I would think there will be, in my own forecast, a doubling of exports from Western Canada over the next 10 years,” McCloskey said. The coal association conference gathered more than 300 industry participants from all levels of the mining sector and its supply chain, from equipment dealers to consultants and transportation specialists.

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Ex-Massey official gets 3.5 years in prison in mine safety conspiracy – by Dorothy Kosich (Mineweb.com – September 12, 2013)

http://www.mineweb.com/

The 2010 Upper Big Branch Mine Disaster that killed 29 miners in West Virginia has resulted in prison sentences and jail time for 4 former Massey executives and supervisors so far.

RENO (MINEWEB) – The former president of Massey Energy’s White Buck Coal and the Green Valley Resource Group, David Hughart, 53, has become the highest-ranking coal official to date to be sentenced to prison for violating U.S. mine health and safety standards.

In addition to a 42-month prison sentence, Hughart was also ordered to serve an additional three years of supervised release, according to U.S. Attorney Beth Goodwin.

Although Hughart never worked at the Upper Big Branch Mine in West Virginia–where 29 men were killed in April 2010 in the largest coal disaster in 40 years–he admitted that he and others at Massey conspired to violate health and safety laws and to conceal those violations by warning mine operations when MSHA inspectors were arriving to conduct mine inspections.

His cooperation with the criminal investigation of the mine disaster revealed that Massey Energy schemed to avoid compliance with what federal regulators said was even basic safety practices. The investigation was conducted by the FBI, the U.S. Department of Labor Office of Inspector General, and the IRS-Criminal Investigation division.

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The so-called “Great Strike” really was a lockout, part 2 – by T.W. Paterson (The Citizen – September 11, 2013)

http://www.canada.com/news/index.html [Cowichan Valley Citizen]

Premier Richard McBride, who doubled as Minister of Mines, thought it “intolerable” that the strikers should make demands upon the mine owners. Coal mining is a dangerous business at best. But Vancouver Island mines were said to be among the most dangerous in the world for cave-ins, explosions, floods and fires.

The human cost, over 90 years of operation, was appalling: 640 miners killed in Nanaimo-area mines, almost 300 more in the Cumberland colliery. Those who died of their injuries later, sometimes much later, went unrecorded.

The B.C. government had recognized these hazards, particularly that of gas explosion, when it passed the Coal Mines Act of 1911 which stated that, upon the presence of gas or other life threatening hazards being reported to management, the mine, or the section of the mine in question, was to be closed until the problem was rectified.

When Oscar Mottishaw and Isaac Portrey, members of a gas committee, reported five gas emissions in Extension No. 2 Mine on June 15, 1912, it cost Mottishaw, who was known to be an organizer for the newly arrived United Mine Workers of America, his job and he sought employment with a contractor in another Canadian Collieries (Dunsmuir) Ltd. mine in Cumberland.

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The so-called ‘Great Strike’ really was a lockout, part 1 – by T.W. Paterson (The Citizen – September 6, 2013)

http://www.canada.com/news/index.html [Cowichan Valley Citizen]

It devastated families, divided communities, set trade unionism on the Island back by more than a decade and left memories – for many, bitter, bitter memories – that survived for several generations.

August 2013. As you stand in brilliant late summer sunshine at Ladysmith’s First and French Streets, you’re surrounded by busy traffic, neat and well-maintained businesses, the historic Eagles’ Hall and some roadside artifacts dating from this 49th parallel city’s heyday as a shipping port for coal from the Extension mines.

It taxes your imagination to picture this intersection as it would have appeared in August 1913.

That’s when Ladysmith was a city besieged, having been placed under the equivalent of martial law by order of the provincial government. That’s when the Eagles Hall was headquarters to hundreds of armed soldiers, uniformed policemen and civvies-clad special constables who patrolled these very streets amid sand-bagged machine gun emplacements while on the lookout for, and often provoking, confrontations with hundreds of angry, striking coal miners.

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COLUMN-Fed tapering may boost coal, crimp oil in Asia – by Clyde Russell (Reuters India – September 5, 2013)

http://in.reuters.com/

(Clyde Russell is a Reuters market analyst. The views expressed are his own.)

(Reuters) – The turmoil in some Asian currencies created by the likely tapering of monetary stimulus in the United States is likely to spill over into commodity markets. While it’s obvious that as a currency depreciates, the local cost of commodities, which are normally priced in U.S. dollars, increases.

But what is less obvious is what the impact will be on the supply-demand balance for various commodities. Take crude oil and coal for instance. Both are major sources of energy, priced in U.S. dollars and easily traded.

But for many Asian countries, the price of oil has risen dramatically this year, while that for coal has remained steady, or even declined. The focus has been on India in recent weeks, given the South Asian nation’s efforts to stem the slide of the rupee, which has lost some 23 percent of its value against the U.S. dollar this year.

Brent crude is now at record highs in rupee terms, and is 26 percent above the level that prevailed at the start of the year. Given that crude is India’s biggest import in value terms, it’s clear that the government will want to spend less on oil in order to lower the current account deficit.

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