Carmichael mine: End green sabotage of coal, says Tony Abbott – by Jared Owens and Dennis Shanahan (The Australian – August 7, 2015)

http://www.theaustralian.com.au/

Bill Shorten has challenged Tony Abbott to propose “sensible” reforms to environmental laws, rather than “attacking the court system” for overturning the proposed Queensland Carmichael mega coalmine.

The Opposition Leader today accused Mr Abbott of “second-guessing our judges” by proposing a new environmental standard that “near enough is good enough”.

“If there’s a problem with the way the law is formed then we go back and debate it in parliament, but Mr Abbott seems to be creating a new test for environmental protection in this country that near enough is good enough – well it’s not,” Mr Shorten said.

“If Mr Abbott doesn’t like the law … he can always sit down with Labor and talk about sensible amendments which may need to be made … rather than just attacking the court system.”

Mr Abbott today touted the environmental benefits of Australian coal, describing it as “invariably … much better for the environment than the alternative”.

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Coal Industry Wobbles as Market Forces Slug Away – by James B. Stewart (New York Times – August 6, 2015)

http://www.nytimes.com/

In April 2005, President George W. Bush hailed “clean coal” as a key to “greater energy independence,” pledging $2 billion in research funds that promised a new golden age for America‘s most abundant energy resource.

But a decade later, the United States coal industry is reeling as never before in its history, the victim of new environmental regulations, intensifying attacks by activists, collapsing coal prices, and — above all — the rise of cheap alternative fuels, especially natural gas.

This week President Obama slammed the industry with tougher-than-expected rules from the Environmental Protection Agency limiting power plant carbon emissions, which will accelerate an already huge shift from coal to natural gas and other alternatives. “Clean coal” remains an expensive and thus far impractical pipe dream. Coal is the world’s biggest source of carbon emissions by far and the leading culprit in global warming. Coal advocates like Mitch McConnell, the Kentucky senator and Republican majority leader, have accused the president of an out-and-out “war on coal.”

But it’s collapsing prices and heavy debt loads that are driving the industry into bankruptcy.

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Why Chevron, Adani, Fortescue show commodity mega-projects era is over – by Clyde Russell (Reuters U.S. – August 6, 2015)

http://www.reuters.com/

LAUNCESTON, Australia, Aug 6 (Reuters) – Want a snapshot of the problems facing natural resource companies and why the era of big projects is over? Consider the recent dilemmas of Chevron, Adani and Fortescue Metals in Australia.

The first is battling cost overruns and combative unions in trying to get a multi-billion dollar project ready.

The second is facing yet another delay to the world’s biggest coal-mining development, with a court victory by environmentalists adding to financing challenges amid deteriorating economics.

The third is playing coy about a possible rescue by a Chinese white knight, which could help it survive a severe downturn in the price of its product, largely self-inflicted by overly ambitious expansions within the industry.

The three companies have little in common other than they all operate in Australia and face the challenge of trying to successfully run major projects at a time of unrelenting commodity price weakness.

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In coal-mining Kentucky, shock and dismay over Clean Power Plan’s new targets – by Francine Kiefer and Ryan Alessi (Yahoo News – August 5, 2015)

http://news.yahoo.com/

Kentucky was on track to meet an earlier proposed target in the Clean Power Plan. Now the state, which has lost thousands of coal-mining jobs in recent years, plans to fight the final, more stringent rule in the courts.

It is a tense time in Kentucky. The Environmental Protection Agency has just come out with its final rule on reducing carbon emissions – the strongest step ever taken to counter climate change in the United States – and this coal state is reeling.

“We are shocked at the difference in the proposal we were given to work on last year, versus the final rule announced Monday,” said Dick Brown, spokesman for the state’s Energy and Environment Cabinet, in an e-mail. The new target is a 27 percent increase in the amount of CO2 emissions that Kentucky’s power plants have to reduce by 2030, he says.

In many states, residents may be wondering how the EPA’s Clean Power Plan will affect their energy bills, for example. But in states like Kentucky, the new carbon rule arguably hits even closer to home. The Bluegrass State is America’s third-largest coal producer, and it gets more than 90 percent of its electricity from coal. Even before the carbon rule was finalized, the state had lost thousands of coal-mining jobs in the past two years alone.

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Obama Didn’t Kill Coal, the Market Did – by Michael R. Bloomberg (Bloomberg News – August 4, 2015)

http://www.bloombergview.com/

Critics of the Environmental Protection Agency’s new Clean Power Plan are describing it in apocalyptic terms. But much of what they believe about the plan — that it will destroy the coal industry, kill jobs and raise costs for consumers — is wrong. And it’s important to understand why.

The overblown political rhetoric about the plan tends to obscure the market reality that the coal industry has been in steady decline for a decade, partly as a result of the natural gas boom, but mostly because consumers are demanding cleaner air and action on climate change.

Communities across the U.S. have led the way in persuading utilities to close dirty old coal plants and transition to cleaner forms of energy. The Sierra Club’s grass-roots Beyond Coal campaign (which Bloomberg Philanthropies funds) has helped close or phase out more than 200 coal plants over the past five years.

The primary reason for the public revolt against coal is simple: It causes death, disease and debilitating respiratory problems. A decade ago, coal pollution was killing 13,000 people a year. Today, the number is down to 7,500, which means that more than 5,000 Americans are living longer, healthier lives each year thanks to cleaner power.

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White House set to adopt sweeping curbs on carbon pollution – by Joby Warrick (Washington Post – August 1, 2015)

http://www.washingtonpost.com/

The Obama administration will formally adopt an ambitious regulation for cutting greenhouse-gas pollution on Monday, requiring every state to reduce emissions from coal-burning power plants and putting the country on a course that could change the way millions of Americans get their electricity.

A retooled version of the administration’s Clean Power Plan, first proposed a year ago, will seek to accelerate the shift to renewable energy while setting tougher goals for slashing carbon emissions blamed for global warming, according to administration officials briefed on the details.

The new plan sets a goal of cutting carbon pollution from power plants by 32 percent by the year 2030, compared with 2005 levels — a 9 percent jump from the previous target of 30 percent — while rewarding states and utility companies that move quickly to expand their investment in solar and wind power.

Many states will face tougher requirements for lowering greenhouse-gas emissions under the revised plan.

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New EPA rule on greenhouse gases the latest blow to King Coal – by Steven Mufson (Washington Post – August 1, 2015)

http://www.washingtonpost.com/

When coal was king, it fueled more than half of the nation’s electricity. It fired up American industry and powered an ever-growing variety of household appliances and electronics. And American presidential hopefuls paid homage to coal, courting mine owners and miners whose unionized ranks once numbered more than 400,000.

Barack Obama was no exception. As a state legislator in 2004 and again as a U.S. senator, he supported proposals for huge federal subsidies to turn coal into motor fuel and ease America’s reliance on oil imports. “With the right technological innovations, coal has the potential to be a cleaner-burning, domestic alternative to imported oil,” Obama said in June 2007.

All of that has changed. On Monday, the Obama administration takes on the coal industry with the final version of rules it has dubbed the Clean Power Plan, a complex scheme designed to reduce, on a state-by-state basis, the amount of greenhouse gases the nation’s electric power sector emits. The main target: coal.

Today, more people in the United States work jobs installing solar panels than work in the coal industry.

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War of words between charity and coal lobbies – by Ben Hagemann (Australian Mining – July 30, 2015)

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

Charity group Oxfam Australia has taken aim at the coal industry in a new report which suggests renewable energy is quicker and cheaper for bringing energy to the developing world than coal-fired power.

The report ‘Powering up against poverty’ accused Peabody Energy, the Minerals Council of Australia, Adani, and other coal mining interests of aggressively promoting coal as a solution for energy poverty, while going no further than PR campaigns in their own interests.

Oxfam also said that statistics given by the Institute of Public Affairs, that an increase in the supply of Australian coal to India would bring electricity to 82 million people, were rejected by Indian NGO the Vasudha Foundation which said the arguments did not stand up “even the most basic scrutiny”.

Report author Dr Simon Bradshaw said there were many examples of how renewable energy was already helping impoverished people to gain access to energy, bringing job creation and community development.

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Margaret’s Museum (British/Canadian Coal Mining Movie – 1995) – Review by Janet Maslin (New York Times – February 7, 1997)

 

http://www.nytimes.com/

Finding Signs of Hardy Life in Tough Surroundings

With a strong and colorful sense of its Nova Scotia setting, ”Margaret’s Museum” describes life in a remote coal mining community. It’s an existence that the film’s reckless, earthy heroine knows all too well. Rough-hewn Margaret MacNeil, played spiritedly by Helena Bonham Carter, has lost a father and brother to ”the pit,” as the miners call it.

And she works as a scrubwoman in the village hospital. Periodically throughout the film, which is set in the late 1940’s and early 1950’s, alarm bells sound as the hospital staff braces for new accident victims from underground.

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Coal’s Fortunes Keep Getting Worse – by James Stafford (Huffington Post – July 21, 2015)

http://www.huffingtonpost.com/business/

James Stafford is the editor of Oilprice.com.

The coal industry is in uncharted territory. After decades of strong financial numbers and dominance in the electric power sector, coal producers are starting to fall apart faster than anyone could have anticipated. SNL Financial has produced some jaw dropping data on the quickly deteriorating coal industry, with a horrific performance in the second quarter.

The U.S. coal mining sector has exhibited an unprecedented wave of turmoil in just the last few weeks.

Walter Energy, an Alabama coal miner, announced on July 15 that it is filing for bankruptcy. Senior lenders will see their debt turned into equity, and if the company cannot turn the ship around, it will more or less sell off all of its assets. “In the face of ongoing depressed conditions in the market for met coal, we must do what is necessary to adapt to the new reality in our industry,” Walter Energy’s CEO Walt Scheller said in a press release.

Alpha Natural Resources, a top producer of metallurgical coal (used for steelmaking), was delisted from the New York Stock Exchange because its share price was “abnormally low.” The company is eyeing the possibility of declaring bankruptcy protection.

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In dispute over coal mine project, two ways of life hang in the balance – by William Yardley (Los Angeles Times – July 21, 2015)

http://www.latimes.com/

Crow Agency, Montana – Neither tribe created the modern energy economy. They did not build the railroads or the power plants or the giant freighters that cross the ocean.

But the Crow Tribe, on a vast and remote reservation here in the grasslands of the northern Plains, and the Lummi Nation, nearly a thousand miles to the west on a sliver of shoreline along the Salish Sea in Washington state, have both become unlikely pieces of the machinery that serves the global demand for electricity — and that connection has put them in bitter conflict.

The Crow, whose 2.2 million-acre reservation is one of the largest in the country, have signed an agreement to mine 1.4 billion tons of coal on their land — enough to provide more than a year’s worth of the nation’s coal consumption.

The Lummi, on a 13,000-acre peninsula north of Seattle, are leading dozens of other tribes in a campaign that could block the project. They say it threatens not only the earth’s future climate, but also native lands, sacred sites and a fragile fishery the Lummi and others have depended on for thousands of years.

For the Crow, the project is a matter of survival. Traffic at the Crow’s remote and modest casino provides no meaningful revenue, there are no reservation hotels and unemployment here is well into the double digits.

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BHP Billiton’s coal king Mike Henry digs in for a challenging time – by Matt Chambers (The Australian – July 18, 2015)

http://www.theaustralian.com.au/

After 25 years working in and around the mining industry, Mike Henry has been given his first major role managing operations. And it’s a beauty.

In January, the former BHP Billiton marketing boss was made coal president, heading the mining giant’s lowest-margin business at a time when forecasts and prices for the commodity seem to be getting relentlessly worse and in which chief executive Andrew Mackenzie says he will not allocate capital.

But the 48-year-old Henry, who is regarded by company-watchers as a potential internal candidate to succeed Mackenzie, sees plenty of positives.

“I like a challenge and there’s lots to like here,” Henry tells The Weekend Australian from BHP’s coal headquarters on the Brisbane River. “In the first half (of 2014-15), we generated a 2 per cent return on capital and 2 per cent of BHP’s earnings before interest and tax,” he says, explaining coal’s current limited prospects for investment funds.

“My job is to take what we have and make sure that we’re getting the most we possibly can out of it.

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Coal India aiming to double output to one-billion tons a year by 2020 – by Ajoy K Das (MiningWeekly.com – July 17, 2015)

http://www.miningweekly.com/page/americas-home

KOLKATA (miningweekly.com) – Coal India Limited (CIL) dreams of producing one-billion tons of coal a year by 2020, and, as the sixth-largest miner in the world, having big dreams is not unusual. However, if past performance is seen as an indicator of future performance, then it has a lot of sceptics to prove wrong.

“CIL’s major challenge is to meet the rising demand from the power sector . . . and this is how the dream of achieving the one-billion-tons-a-year coal production [target] began,” the miner states in its Roadmap for Enhancement of Coal Production.

“The idea of ramping up production germinated at grassroots level and traversed up, growing bigger as the possible potential was realised,” the vision document adds.

With a current production of 494-million tons a year, the target centres on achieving a 15% compound average annual growth rate (CAGR). However, the road ahead may not be that easy as, over the past five years, CIL’s yearly growth rate has averaged between 0% and 7%, with the latter achieved only in the previous fiscal year.

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Coal Producers Face New Stream Protection Rule From Interior – by Mark Drajem (Bloomberg News – July 16, 2015)

http://www.bloomberg.com/

Coal producers would be subject to new restrictions under an Obama administration proposal that would limit operations near streams and curb the disposal of waste, a plan that had been criticized even before it was issued.

The proposal from the Interior Department’s surface mining office, released Thursday, would replace a Bush-era regulation that was tossed out by a federal court. The rule would require companies to avoid mining practices that permanently pollute streams, destroy drinking water sources, increase flood risk or threaten forests.

“As we engage in mining, let’s do so in a way that helps mitigate the impact they can have on the environment,” Interior Department Secretary Sally Jewell said on a conference call. The rules would provide “a modern and balanced approach to energy development,” she said.

The rules won’t take effect until finalized, probably next year. They are meant to deal with the destruction of streams, watersheds, endangered species and forests tied to mountaintop mining for coal.

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UPDATE 2-Miner Anglo warns of up to $4 bln writedown on iron ore and coal assets – by Eric Onstad and Clara Denina (Reuters U.K. – July 16, 2015)

http://uk.reuters.com/

LONDON, July 16 (Reuters) – Mining group Anglo American has warned of a second multi-billion dollar writedown this year on its coal and iron ore assets, demonstrating the growing impact of sliding commodity prices.

The charge of between $3 billion and $4 billion flagged on Thursday, to be taken in its first-half results, comes on top of a $3.9 billion writedown Anglo took for similar reasons in February, when it also posted a 25 percent drop in underlying operating profit for 2014.

Anglo, the fifth-biggest diversified global mining group by stock market capitalisation, is not alone in feeling the pinch of tumbling commodity prices.

BHP Billiton said on Wednesday it will take a $2 billion impairment on its U.S. shale operations, the third writedown in three years.

Anglo has been fighting the impact of struggling metals prices by trying to improve the efficiency of its mining operations and by selling less profitable assets, including coal mines in Australia.

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