Coal – Page 99 – Republic of Mining

Editorial on Teck temporary shutdowns – by Katelyn Dingman (Fernie Free Press – June 7, 2015)

June 8, 2015

http://www.thefreepress.ca/

Last week, Teck announced that they will be implementing temporary shutdowns this summer. For communities that rely heavily on the coal industry for their economy, this is not good news.

During Sparwood’s mining week celebration in early May, Port Metro Vancouver representative Jim Candles said that one in five Kootenay residents work in the mining industry. For 20 days those employees will be out of work.

Many feel that although the announcement is clearly not a good thing, the negative impacts of the temporary closures are outweighed by the devastating impacts of actual layoffs.

The shutdowns were implemented in response to changing coal market conditions. For many, this news didn’t come as a shock, as discussions around the weakening of demand and oversupplying of coal, particularly in China, have been happening for several months.

This is a fact that Teck Coal Vice President, Operations, Coal, Robin Sheremeta highlighted while at the aforementioned mining week celebration.

COLUMN-Indonesia, not Australia, doing heavy lifting on cutting coal output – by Clyde Russell (Reuters U.S. – June 5, 2015)

June 5, 2015

http://www.reuters.com/

LAUNCESTON, Australia, June 5 (Reuters) – Indonesia appears to be doing more of the heavy lifting than Australia when it comes to cutting coal output and exports in the face of persistently weak prices.

Coal production in Indonesia, the world’s largest exporter of the fuel used in power stations, dropped 21 percent year-on-year in the first quarter to 97 million tonnes.

This put the country on track for 2015 output of about 388 million tonnes, which is near the mid-point of the 350-400 million tonnes forecast by Pandu Sjahrir, the chairman of the Indonesian Coal Mining Association.

The low end of Sjahrir’s forecast would mean a decline of 24 percent in coal output in 2015 from 2014, and would also be 75 million tonnes below the 425 million forecast by the government.

In contrast, Australia’s official forecaster expects thermal coal output to be largely steady in the 2014/15 fiscal year.

Iron ore expansions drove down price: Glencore – by Matt Chambers (The Australian – June 5, 2015)

June 5, 2015

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

The most senior local executive at Swiss trading and mining giant Glencore has waded into the iron ore debate, saying rapid Australian expansions have driven down prices and cost the nation tax, royalties and superannuation dollars.

Speaking in Melbourne yesterday, Glencore coal mining chief Peter Freyberg said boomtime expansions that had seen Australian iron ore production surge and cost more than $US50 billion ($64bn) in development spending from Rio Tinto, BHP Billiton and Fortescue Metals, had been a negative exercise.

“The numbers speak for themselves — if you go back a couple of years, there were 500 million tonnes of (annual) export at $US100 a tonne,” Mr Freyberg said.

“That’s versus 700 million tonnes of exports today at $US60, so there’s a whole lot of revenue that’s gone missing following a bunch of investment.

“At the end of the day, (with respect to) the returns to Australia, into superannuation funds, through royalties, through taxes, it’s been a negative exercise.”

We’re not cannibals:Glencore – by Greg Roberts (The West Australian – June 4, 2015)

June 4, 2015

https://au.news.yahoo.com/thewest/

Global miner Glencore has taken a swipe at Australia’s mining giants, saying their mass iron ore and coal expansions had “cannibalised” revenue and hurt the economy.

Glencore itself had been the first to take the responsible path of stopping its own coal expansions, which was good for the Australian mining industry, coal chief Peter Freyberg told a Melbourne Mining Club lunch.

His comments came a day after US coal giant Peabody Energy said it would axe up to 210 jobs and cut production by nearly half at a north Queensland mine as it struggled with falling prices.

Glencore announced it would cut 80 jobs and production from its north Queensland Collinsville coal mine last week.

Mr Freyberg said Glencore was exercising market discipline, cutting mining output, combining some of its NSW coal operations with Peabody’s and putting its $7 billion Queensland Wandoan coal mine project on hold.

Coal Giants Left Unscathed by Growing Divestment Campaign – by Thomas Biesheuvel and Jesse Riseborough (Bloomberg News – June 3, 2015)

June 4, 2015

http://www.bloomberg.com/

The biggest names in mining have so far found themselves immune to a rapidly expanding campaign that’s seeking to curb the use of the most polluting fossil fuel.

From Norway’s $900 billion sovereign wealth fund to France’s biggest insurer and the Church of England, investors are starting to turn the screw on coal producers by selling down their holdings.

The criteria they use to select candidates for divestment exempts some of the biggest producers, however. That’s because those companies are large, diversified miners and only get a small part of their revenue from coal.

Dodging the divestment bullet, at least for now, are companies such as Glencore Plc, the world’s biggest exporter of coal used in power stations, BHP Billiton Ltd., Rio Tinto Group and Anglo American Plc. Between them they mine more than 350 million tons, about one third of the world’s coal trade.

“There’s a view that if they stop investing in it, or take a stance, that coal will go away,” said Mick Buffier, chairman of the World Coal Association and also an executive at Glencore. “Our view is different. Coal will continue to be needed. It’s going to be used by these developing nations. ”

Anger and Grief Simmer in Turkey a Year After Soma Mine Disaster – by Ceylan Yeginsujune (New York Times – June 2, 2015)

June 2, 2015

http://www.nytimes.com/

ELMADERE, Turkey — Through the lace curtains of her window, Beyhan Yilmaz cannot help but see the raw gash of the new coal mine carved through the green hills near her village. She is stung by the sight.

“I used to run away to that hill and have picnics with my husband under the pine trees,” Ms. Yilmaz recalled, with tears trickling down her cheeks. “As if the fact that they destroyed that beauty wasn’t painful enough, now every time I look out the window, I am reminded of the hell where my husband burned to death.”

Ms. Yilmaz, 26, is one of 10 women from Elmadere, in western Turkey, who were widowed by the deadliest industrial disaster in modern Turkish history, the explosion and fire that tore through a coal mine in the nearby town of Soma in May 2014, leaving 301 men dead.

The disaster led to protests in Soma and across Turkey that were broken up by the riot police using rubber bullets and water cannons. The anger here toward the government had barely receded a year later as the widows observed the grim anniversary. Families of victims say that no one has been held accountable and that they have been left to face the future on their own.

Japan’s nuclear plan is bad news for LNG, coal – by Clyde Russell (Reuters U.S. – June 2, 2015)

June 2, 2015

http://www.reuters.com/

LAUNCESTON, Australia, June 2 (Reuters) – The rise of China and India as energy importers has largely consigned Japan to the sidelines, but the world’s third-largest economy still exerts significant influence in some markets.

That’s why Japan’s long-term energy vision is too important to be ignored, given it is the world’s top importer of liquefied natural gas (LNG), number three in coal and four in crude oil.

A consultative committee on Monday endorsed the government’s blueprint for the energy mix it hopes to achieve by 2030, with the proposal now open for public comment for a month ahead of a likely formal approval by the trade ministry mid-July.

While the proposal has attracted controversy over a plan for nuclear energy to generate 20-22 percent of the nation’s electricity, it’s also worth noting how it sees the rest of the generating mix.

Renewables are set at 22-24 percent, LNG at 27 percent and coal at 26 percent. This represents a decline in nuclear’s share of electricity generation from the 30 percent it held before the Fukushima disaster following the March 2011 earthquake and tsunami.

Wealth Fund Ban Betrays Norway’s Awkward Fossil Fuel Goals – by Saleha Mohsin and Mikael Holter (Bloomberg News – May 31, 2015)

June 1, 2015

http://www.bloomberg.com/

Western Europe’s biggest oil producer has decided coal is too dirty to invest in.

Norway’s $890 billion sovereign wealth fund, built on more than four decades of extracting crude from the North Sea, was ordered by lawmakers on Wednesday to limit holdings of companies that produce or burn coal. That could trigger at least $4.5 billion in divestments of stocks such as RWE AG and Duke Energy Corp.

“There’s this incredible logic that coal is the climate problem, and Norway is helping solve the world climate problem by producing gas that can replace coal in Europe and reduce emissions,” Rasmus Hansson, a lawmaker for the Green Party, said in a phone interview.

“That logic has unbelievably been accepted by the Norwegian majority as credible — which it isn’t.”

The cognitive dissonance is on display in Stavanger, Norway’s oil capital. The local Scandic hotel, which charges around $200 a night, tells guests it runs on wind and hydropower. The view is of the North Sea, where Norway — a country that boasts the highest per capita income in Europe after Luxembourg — spends billions extracting its oil.

Norway oil fund plans to withdraw from coal-burning utilities – by David Crouch and Pilita Clark (Financial Times – May 27, 2015)

May 29, 2015

http://www.ft.com/intl/world/europe

Gothenburg and London – Norway’s $916bn oil fund will consider pulling billions of dollars of investments out of coal in a move that threatens European utilities using the fossil fuel to generate power.

Members of the finance committee of Norway’s parliament confirmed on Wednesday night that opposition and governing parties had reached agreement that the fund should withdraw investments from companies whose business relies more than 30 per cent on coal, measured either by revenue from fossil fuel or by the percentage of power they generate from it.

The proposal will be put to parliament on Thursday for a vote on June 5 but cross-party agreement means it is very likely that it will be passed.

Norway’s move is one of the most significant responses yet to a global divestment campaign that aims to ‎stigmatise the use of coal and other fossil fuels because of their input to climate change.

“This will make a huge difference, it will have influence on ordinary miners and energy companies,” said Terje Breivik, a Liberal party member of the finance committee. “The main explanation is that the oil fund itself is aware of the financial risk due to climate problems.”

Teck Resources to temporarily close six Canadian coal mines – by Rachelle Younglai and Eric Atkins (Globe and Mail – May 29, 2015)

May 29, 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.

Teck Resources Ltd. will temporarily shutter its six Canadian metallurgical coal mines this summer, a move that will have ripple effects in other sectors of the Canadian economy.

The suspensions are Teck’s latest step to deal with weak commodity prices and a glut of supply in the market. The Vancouver-based company already reduced its dividend, cut 600 jobs and shelved plans to restart one of its mines in British Columbia.

But that was not enough to deal with the prolonged slump in metallurgical coal, which is used to make steel and is down 70 per cent over four years.

“Rather than push incremental tonnes into an oversupplied market, we are taking a disciplined approach to managing our mine production in line with market conditions,” Don Lindsay, Teck’s chief executive officer, said in a statement.

NEWS RELEASE: Teck Responds to Steelmaking Coal Market Conditions

May 28, 2015

May 28, 2015 – Vancouver, B.C. – Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) (“Teck”) announced today it will be implementing temporary shutdowns in the third quarter at its six Canadian steelmaking coal operations in order to align production and inventories with changing coal market conditions.

Each of Teck’s steelmaking coal operations will be temporarily shut down for approximately three weeks in the quarter. Shutdowns will be staggered over the summer months among the operations. Teck will continue to meet all contracted and committed coal sales for its entire suite of products.

Third quarter production will be reduced by approximately 1.5 million tonnes (Mt) to 5.7 Mt, a reduction of 22% for the quarter, with expected sales in the range of 6.0 – 6.5 Mt. Annual coal production is now estimated at 25 – 26 Mt. Additional coal production adjustments will be considered over the course of 2015 as market conditions continue to evolve.

Guidance for unit operating and distribution costs for the year is unchanged. Capitalized stripping is expected to be about $65 million lower than original guidance reflecting lower coal production and reduced stripping costs this year due to lower diesel costs and productivity improvements since the start of the year.

Inside the war on coal – by Michael Grunwald (Politco.com – May 2015)

May 27, 2015

http://www.politico.com/

How Mike Bloomberg, red-state businesses, and a lot of Midwestern lawyers are changing American energy faster than you think.

The war on coal is not just political rhetoric, or a paranoid fantasy concocted by rapacious polluters. It’s real and it’s relentless. Over the past five years, it has killed a coal-fired power plant every 10 days. It has quietly transformed the U.S. electric grid and the global climate debate.

The industry and its supporters use “war on coal” as shorthand for a ferocious assault by a hostile White House, but the real war on coal is not primarily an Obama war, or even a Washington war. It’s a guerrilla war. The front lines are not at the Environmental Protection Agency or the Supreme Court.

If you want to see how the fossil fuel that once powered most of the country is being battered by enemy forces, you have to watch state and local hearings where utility commissions and other obscure governing bodies debate individual coal plants. You probably won’t find much drama. You’ll definitely find lawyers from the Sierra Club’s Beyond Coal campaign, the boots on the ground in the war on coal.

Beyond Coal is the most extensive, expensive and effective campaign in the Club’s 123-year history, and maybe the history of the environmental movement.

Blood on the Mountain: New Film Chronicles Coal’s War on Appalachia – by Jeff Biggers (Huffington Post – May 26, 2015)

May 26, 2015

http://www.huffingtonpost.com/green/

One of the most telling moments in the new documentary film Blood on the Mountain draws from 2008 footage of former Massey Energy CEO Don Blankenship calmly mumbling his replies to numerous questions on mine safety at a hearing. When asked if he knew how many coal miners had died in Massey mines in the eight years since Massey became a publicly traded company, the notorious “dark lord” of the coal industry shook his head and said no.

Filmmakers Mari-Lynn Evans and Jordan Freeman allow for a gut-wrenching moment of silence, having methodically chronicled the industry’s treadmill of violation-ridden disasters, and then provide the answer: 52 deaths under Blankenship as CEO of Massey Energy.

[Mining] Education, research help create success – by Brian Burton (Saskatoon Phoenix – May 20, 2015)

May 25, 2015

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

Alberta couldn’t do it — but Saskatchewan did. Today it’s home to the world’s first carbon capture and storage (CCS) operation at a coal-fired power plant.

Alberta approved three coal-based CCS projects and saw proponents back away from all of them. Meanwhile, SaskPower completed its $1.5-billion CCS unit at the Boundary Dam coal-fired power plant in 2014 and now captures 1.2 million tonnes of carbon dioxide a year, equivalent to removing 250,000 cars from the road. Captured carbon dioxide is mostly injected into Weyburn and Midale oil reservoirs; earning a revenue on CCS, boosting oil production, prolonging oilfield life and raising provincial crude royalties.

While some jurisdictions, notably Ontario, have turned their backs on carbon-heavy coal, Saskatchewan is making the technical and environmental case for continued use of a resource that provides about 70 per cent of its electric power.

“It enables the continuation of coal use in the generation of electric power,” says David Grier, chief strategist with Innovation Saskatchewan. Without CCS, he says, new carbon dioxide limits could have spelled the end of coal mining in the province.

Ukraine’s DTEK says will become coal importer – by Sarah McFarlane (Reuters U.S. – May 19, 2015)

May 20, 2015

http://www.reuters.com/

NICE – May 19 Ukraine’s biggest power producer and major coal miner DTEK will become a coal importer due to difficulties in the domestic mining industry, an executive from the company said on Tuesday.

“In a country like Ukraine which typically produces 75 to 80 million tonnes of coal a year, it’s insane to think we’re going to turn into an importer, but there are several factors at work here,” said John Woodham, head of trading at DTEK SA, speaking at the IHS European coal conference.

Woodham said domestic production was in decline due to a combination of the conflict in the east of the country halting production at some mines, while cuts to subsidies for state mines are triggering closures.

DTEK, part of the business empire of Ukrainian tycoon Rinat Akhmetov, accounts for about 29 percent of the country’s thermal power generation and controls about 46 percent of Ukraine’s coal production.