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Vale to Sell Moatize Coal Mine & Nacala Logistics to JSPL’s Vulcan

Strategic Research Institute
Published on :
30 Dec, 2021, 5:30 am

Brazilian mining giant Vale has entered into a binding agreement with Vulcan to sell the Moatize coal mine and the Nacala Logistics Corridor in Mozambique for total proceeds of USD 270 million, comprised of USD 80 million at Closing and USD 190 million from the existing business until Closing; plus a 10-year Royalty Agreement subject to certain mine production and coal price conditions. Vulcan is a private company and part of Jindal Steel & Power Limited. JSPL has rich experience working in Mozambique with its Chirodzi mine operations, located in the Tete Basin in Mozambique, an open cast mine operating at 5 million tonne per annum in FY21.

The Closing of the transaction is subject to the satisfaction of customary conditions precedent, including the approval of the Ministry of Mineral Resources and Energy of Mozambique pursuant to the Mining Law No. 20/2014, and the approval of the Government of Mozambique pursuant to the Concession Agreements for the change of control and antitrust.

In early 2021, Vale announced its objective to no longer own coal assets, focusing on its core businesses and on its ambition to become a leader in low-carbon mining.?Over the past 15 years, Vale has worked in partnership with Mozambique and Malawi governments in the implementation of the Moatize mine and NLC’s 912-km railway for coal transportation, in addition to the revamp of general cargo operations and passengers transportation. These investments represent a relevant legacy to the countries and are an important driver for local development.?While conducting a responsible search process for an investor in the coal business, Vale continued to support the project's ramp-up and its commitments to society and stakeholders.
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HCCL Engages German Firm for Underground Coal Seam Fires

Strategic Research Institute
Published on :
31 Dec, 2021, 5:30 am

Zimbabwe based HWANGE Colliery Company Limited has engaged a German firm to deal with underground coal seam fires after the government described the smouldering fires as a ticking bomb. HCCL Managing Director Mr Charles Zinyemba said the company is disturbed by the ravaging fires that have claimed lives, and left others with permanent injuries and disabilities. He said “As part of the long term mitigation measures, HCC has since contracted a German-based specialist company to assist with necessary interventions. The organisation is among the best engineering teams in the world who have intervened in coal seam fires such as we are experiencing. DTM is the only company which offered services for managing the fires using Mr Zinymodern and cost effective methods among other companies which HCCL consulted.”

emba said the company’s interventions will include subsurface fire detection, location of hotspots, magnetic mapping of underground fires, laser scanning of underground cavities, crack mapping and rock mechanical analysis and devising extinguishing strategies among others.

President spokesperson Mr George Charamba had urged the HCCL to urgently act after a picture of the fires that cracked wide open a tarred road in the mining town went viral. The fire cut through the road that links No 2 at Madumabisa village and No 3 at Makwika village in Hwange Colliery Company concession areas.

A coal seam fire is an underground burning coal fire. It can burn for decades and can self-ignite through spontaneous combustion. Because of lack of oxygen, it is usually smouldering unnoticed until ground opens up.

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Meer stroomproductie uit steenkool
De energietransitie heeft voorlopig nare bijwerkingen. De grotere vraag naar elektriciteit heeft tot veel meer stroomproductie door steenkoolcentrales geleid, blijkt uit deze grafiek van het Internationaal Energie Agentschap.

twitter.com/IEA/status/14766706922381...

www.tijd.be/markten-live/live-blog/be...
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Indonesia Bans Thermal Coal Exports on Domestic Shortages

Strategic Research Institute
Published on :
03 Jan, 2022, 5:30 am

Indonesia has banned coal exports in January 2022 due to concerns over low supplies for domestic power plants. Indonesia’s energy ministry instructed that all coal at harbours should be stored to supply power plants and independent power producers. The export ban will be evaluated and re examined based on the stock realisation of coal stocks for PLN's power plants and IPP

Indonesia has a Domestic Market Obligation policy whereby coal miners must supply 25% of annual production to state utility Perusahaan Listrik Negara, at a maximum price of USD 70 per tonne, well below current market prices. In August 2021, Indonesia suspended coal exports from 34 coal mining companies it said failed to meet domestic market obligations between January and July last year.

Indonesia is the world's biggest exporter of thermal coal, exporting around 400 million tonnes in 2020. Its biggest customers are China, India, Japan and South Korea.
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Explosion Rocks CSX Curtis Bay Coal Facility in Baltimore US

Strategic Research Institute
Published on :
03 Jan, 2022, 5:30 am

An explosion at a CSX facility in Baltimore in US created a loud boom last week, but no injuries were reported. Coal was moving though tunnels near Benhill Avenue when the explosion happened. It was the result of a coal dust explosion, which happened as coal was being moved on a conveyor belt at the plant. While most damage was limited to the plant, the explosion blew out the windows of nearby buildings, showering sidewalks with shards of shattered glass.

CSX spokeswoman Ms Cindy Schild confirmed that an explosion took place at the CSX Curtis Bay Coal Terminal, but did not elaborate. She said the cause is still under investigation, that all employees were accounted for and there were no injuries.
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Coal Ministry Stepping up Washed Coking Coal Supplies 5 Fold

Strategic Research Institute
Published on :
04 Jan, 2022, 5:30 am

India's Coal Ministry in a release mentioning developments in 2021, highlighted government plans to increase the supply of washed coking coal to the Steel sector from 3 million tonnes to 15 million tonnes. For this, two coking coal washeries have already been commissioned, three coking coal washeries are under construction, in two cases Letter of Intent have been issued and in one case the tender is under evaluation.

Out of a total of nine coking coal washeries:

Two coking coal washeries constructed and operational

Four under construction (3 Coking & 1 Non-coking)

LoI & WO issued for two washeries

One tendered and bid opened & price bid under evaluation

Three more coking coal washeries in the 2nd Phase

For Non-coking coal washeries, one non-coking coal Washery is under construction and in two cases of non-coking coal washeries, LoI has been issued.
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Adani’s Carmichael's First Thermal Coal Cargo Ready for Export

Strategic Research Institute
Published on :
04 Jan, 2022, 5:30 am

The first shipment of thermal coal from the Adani’s Carmichael mine has been assembled at the North Queensland Export Terminal in Bowen and is ready for export as planned. The coal will now be loaded and dispatched as per NQXT’s normal operations and subject to the port’s shipping schedule.

Bravus Mining & Resources CEO Mr David Boshoff said “The Project had successfully delivered coal for the first coal shipment to NQXT during the testing and commissioning of Bowen Rail Company’s new trains. This is a big moment for everyone who has worked so diligently and passionately to build this mine and its world-class supporting civil and commercial infrastructure.”
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Underground Coal Seam Fires Threaten Hwange Town in Zimbabwe

Strategic Research Institute
Published on :
05 Jan, 2022, 5:30 am

Underground coal seam fires have been burning for years and are threatening homes and lives of 20,000 people in the coal mining town of Hwange in Matabeleland North in Zimbabwe. The Times Live reported that a report by the Centre for Natural Resource Governance has revealed horrific stories of people sinking into underground coal fires in coal mining town of Hwange in Matabeleland North. In 2009, a 10-year-old boy was herding cattle when the ground gave in under his feet. Recently, an eight-year-old girl died after suffering third degrees burns when she fell into a coal fire pit as the ground beneath her carved in.

Centre for Natural Resource Governance Director Farai Maguwu told TimesLIVE that the coal mining company needed fire tracker systems to identify high-risk areas in the community. He said “HCCL is under administration. I do not understand how they will raise the money to pay the German company. Putting out coal seam fires is a very expensive exercise. HCCL should work on getting a state-of-the-art fire tracking system and erect fences around dangerous sites. The problem is not only about humans falling into fires, it also affects wildlife which can get agitated by fires, resulting in exacerbation of human/wildlife conflicts. The company must also carry out vigorous awareness-raising campaigns in the community. Most Hwange residents are not aware of the prevalence of coal seam fires.”

Coal seam fire are an underground burning fire and are ignited by human activity in the process of coal mining. They can burn for decades. The out-of-sight fires pose health threats to surrounding communities and the environment hazards include toxic fumes, reigniting fires and sinkholes.
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Adhunik Power& Auro Coal Emerges as Preferred Bidder for Coal Mine

Strategic Research Institute
Published on :
05 Jan, 2022, 5:30 am

The coal ministry had launched second attempt of auction of 11 coal mines for commercial mining on September 27 and bids were received for four mines. The auction was held for two mines that have received multiple bids. Adhunik Power and Natural Resources Ltd has emerged as preferred bidder for Lalgarh (North) coal mine in Jharkhand & Auro Coal Pvt Ltd for Beheraband North Extension coal block in Madhya Pradesh

With the conduct of this auction, the Ministry of Coal has successfully auctioned 30 mines till date, comprising of 23 fully explored mines and 7 partially explored mines, from the launch of first tranche in June last year. Total peak rated capacity auctioned till date is 63.17 million tonnes per annum (with average premium of approximately 27.78 per cent against the floor price of 4 per cent indicating strong demand for coal mines in market. These mines are expected to generate total annual revenue of INR 8,158.03 crore and estimated employment of 85,406.
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Indonesia Permits Loaded Coal Ships to Leave

Strategic Research Institute
Published on :
18 Jan, 2022, 5:30 am

Indonesia announced last week that it would allow 37 vessels loaded with coal to depart. Indonesia’s Coordinating Minister of Maritime and Investment Affairs Luhut Pandjaitan said “The ban implemented on January 1 had been eased for miners that have met a requirement to sell a portion of their output for local power generation, after the state utility procured enough coal to ensure 15 days of operation. I request that this is supervised closely so this also becomes a moment for us to improve domestic governance.”

18 of the vessels, carrying around 1.3 million tons of coal, secured energy ministry verification, which is needed for a departure permit. These 18 vessels, the document said, were carrying coal from companies that had fulfilled their Domestic Market Obligation, under which miners are required to sell 25% of output to local buyers with a price cap at USD 70 per tonne for power plants. Among the companies were units of Adaro Energy, Indika Energy, and Golden Energy Mines

Indonesia set the export ban after state power company Perusahaan Listrik Negara reported critically low coal stocks at power plants and said Indonesia was on the brink of widespread power outages. The ban sent shockwaves through global energy markets.
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China Coal Imports in 2021, Highest since 2013

Strategic Research Institute
Published on :
18 Jan, 2022, 5:30 am

General Administration of Customs of China data showed that China's coal imports fell in December 2021 to 30.95 million tonnes, down 11.7% from November as domestic coal miners boosted output to record levels and utilities slowed the pace of replenishing inventories. For full year 2021, coal imports reached 323.22 million tonnes, the highest since 2013, and up from 303.99 million tonnes a year earlier.

Chinese traders have been slowing overseas coal purchases after domestic miners responded to Beijing's call to ensure energy supply during winter by driving up output to a record high, while domestic coal prices more than halved.

Unlike the previous two years, China did not impose an unofficial imports cap in 2021 amid efforts to ensure stable coal supplies to ease nationwide electricity shortages and to tame runaway coal prices.
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Slovenia to Exit Coal by 2033

Strategic Research Institute
Published on :
19 Jan, 2022, 5:30 am

The Slovenian government has announced that it will phase out coal by 2033 at the latest but the plan lacks ambition when compared to the coal phase out dates of peer countries like Slovakia 2030, North Macedonia 2027 and Greece 2025 and falls short of the country’s responsibility on climate change. Nevertheless, it brings a Paris-aligned, pre-2030 coal phase out within reach.

Europe Beyond Coal Campaigner Zala Primc said “Today’s announcement makes Slovenia the 23rd European country to announce a coal exit. It falls short of the 16 that have either already quit coal or will do so by 2030, but as we have seen with the likes of Germany which is now targeting a fossil-free, completely renewables-based power system by 2035, this will easily be superseded by reality. With a pitiful two percent of Slovenia’s electricity currently produced from solar and wind, the government urgently needs to exploit the country’s immense renewable energy potential and avoid the pitfall of fossil gas if it is to steer away from the energy price and supply crises inherent to fossil fuels.”
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Russia Steps up Safety in Coal Mines in Kuzbass

Strategic Research Institute
Published on :
20 Jan, 2022, 5:30 am

Russian President has approved a list of instructions following a meeting on the coal industry in Kuzbass, which was held on December 2, 2021. In conjunction with the State Duma, the Government has been instructed to ensure the introduction of amendments to the Code of Administrative Offences, which would provide, in particular, for punishment in case of non-compliance with the requirements for conducting degassing during coal (shale coal) mining; and enhancing employer liability for violating requirements related to labour protection in the workplace with a hazardous and dangerous working environment, including subsurface mining. The instructions also cover the need to ensure the introduction of amendments to the legislation providing for the creation of an auditing system for the organisations operating hazardous production facilities, and to use administrative liability measures against oversight officials from the coal mine operators in cases of accidents or incidents at mines that lead to death or that harm the health of two or more individuals.

The instructions to the Government concern, in particular, the creation of financial mechanisms which guarantee that subsoil users will eliminate and conserve mine openings, bore wells and other structures; the use of video recording devices when carrying out federal state supervision of industrial safety as it relates to hazardous production sites; the development of a list of upper-air safety requirements and other occupational safety requirements with regard to underground mining facilities based on best practices.

The Government was also instructed to consider the introduction of amendments to the legislation concerning, in particular, the remuneration of workers in the coal industry; requiring employers to provide trade unions with the opportunity to monitor compliance by employers with labour legislation and other regulatory legal acts; the responsibility of employers for obstructing the exercise of trade union control; the decommissioning of coal mines presenting a high accident risk (based on the analysis of the consequences of such a decommissioning for the economy and the social sphere); and the introduction of coal mining technology that eliminates the risk of group accidents.

In addition, instructions for the Government concern the introduction of amendments to the legislation providing for the improvement of security and monitoring systems, increasing reliability of collective and individual means of rescue, protection against falsified readings of automatic control systems, transmitting remote monitoring and individual sensor data on miner location to Rostekhnadzor and the Emergencies Ministry in real time, and additional employer liability to compensate the family members of miners who die as a result of an industrial accident or in connection with an occupational disease.

A number of instructions were issued to the Government in conjunction with the General Prosecutor's Office, the Government of Kemerovo Region-Kuzbass and the Russian Independent Trade Union of Coal Industry Workers.
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DTEK Receives 2 US Thermal Coal Laden Vessels

Strategic Research Institute
Published on :
20 Jan, 2022, 5:30 am

Inter-Fax reported that Ukrainian power company DTEK Energy is accepting two more Panamax class ships from the United States in Ukrainian ports. The seventh vessel with 75,500 tonnes of American coal on January 9 moored in the TIS port, and the eighth vessel with 82,500 tonnes of coal will moor in Pivdenny port on January 11. Coal from these ships will replenish the warehouses of DTEK Energy TPPs.

DTEK has contracted nine ship supplies with 618,000 tonnes of coal for the needs of Ukrainian thermal power plants. The first vessel contracted by the company for the needs of state-owned PJSC Centrenergo arrived in Ukraine on November 20, 2021. In December, another five Panamax ships with 350,000 tonnes of coal arrived in Ukraine for the needs of DTEK Energy TPPs. Three more ship deliveries are in January 2022.
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Russian Railways Bans Coal Rails to VaninoTransUgof Coal Terminal

Strategic Research Institute
Published on :
21 Jan, 2022, 5:30 am

Russian Railways has imposed a ban on coal railway transportation to Kolmar Group’s VaninoTransUgof coal terminal. The decision was made due to the high congestion of the railways in the Eastern direction and a slower ioading at Dyanka station due to unfavorable weather conditions. The terms of the ban cancellation have not been announced.

According to Russian Railways information, since the beginning of the year, the railway operator has already restricted traffic to sea terminals more than 17 times due to the congestion of trains caused by the slowdown of loading by an average of 30%. 8.2 million tonnes of coal was shipped to VaninoTransUgol by rail inn 2021 as compared 0.9 million tonnes a year earlier. About 80% was sent by Kolmar, Elgaugoi, and KTK.
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Indonesia Targets 663 Million Tonnes Coal Output in 2022

Strategic Research Institute
Published on :
21 Jan, 2022, 5:30 am

Indonesia is targeting 663 million tonnes of coal output in 2022, up from 614 million tonnes produced in 2021. Indonesia’s Minister of Energy and Mineral Arifin Tasrifi said at a briefing on the performance of Ministry of Energy and Mineral ESDM in 2021 on January 12 that the country set a target of exploiting 663 million tonnes of coal in 2022. Of these, 165.7 million tonnes are for domestic consumption and the rest are for export. It means that the coal export target in 2022 also increased by 14.3 percent compared to 435 million tonnes set out in 2021.

Indonesia's coal production reached 98.24 percent of the set target of 625 million tonnes in 2021, equivalent to 614 million tonnes.

In a little more than 20 years, Indonesia has gone from being a minor player in the global coal industry to playing a central role as a key consumer and producer of coal. And even as investors and key export markets are shifting toward alternative energy sources, Indonesia’s laws are increasingly tying future economic growth to the fossil fuel. Production has also grown dramatically, from just 67 million tonnes in 2000, to 325 million tonnes in 2010, and 616 million tonnes in 2019, making Indonesia the world’s biggest thermal coal exporter and 12th-largest consumer of coal.
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Indonesia Allows 48 More Coal Laden Ships to Leave

Strategic Research Institute
Published on :
24 Jan, 2022, 5:30 am

Indonesia is continuing to ease the ban on thermal coal exports, admitting more ships to leave its ports. The country has allowed 48 ships carrying thermal coal to set sail to deliver the product to overseas customers. The move follows the permit to leave for another 37 vessels, issued last week. The Ministry of Energy and Mineral Resources confirmed that the Indonesian government has allowed 139 coal mining companies to resume their export activities. The export ban was lifted, as the companies have met the target percentage of domestic market obligation of 100% or more

On January 1, Indonesia’s government imposed a ban on thermal coal export till the end of the month due to a very low inventory level at a large state-owned power company with a threat of massive blackouts. However, the ban was cancelled on January 13 for the coal producers that had fulfilled their domestic market obligation as local supply improved. Besides, the ban raised numerous protests among local and foreign participants.
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Chinese Coal Production in 2021 Hits New Record

Strategic Research Institute
Published on :
24 Jan, 2022, 5:30 am

According to latest data from National Bureau of Statistics, China has increased coal production to a record high in December and the whole 2021. China produced 4.071 billion tonne of coal in 2021, which is a new ail-time high and 4.7% more than in 2020. In December, coal output hit a record high for the third consecutive month, increasing by 3.7% MoM and 7.2% YoY to 384.67 million tonnes.

China ramped up coal production to secure domestic supply, affected by global coal shortage, ban on imports from Australia, floods in largest producing province Shanxi and frequent environmental checks as China is following the course on decarbonization to avoid coal shortage, like the one which caused large-scale operation halts at industrial enterprises in September and October due to power deficit. In October, China's National Mine Safety Administration said that from the total 976 coal mines it had inspected, 153 could safely increase the supply by about 220 million tonnes per year or 55 million tonnes in 04 of 2021. Since then, Chinese coal producers have been constantly increasing output.

Moreover, the National Development and Reform Commission said on January 18 that local coal miners will be ordered to keep normal production during the upcoming Spring Festival, so the coal supply is expected to stay high in the short term.
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EU to Offset Turow Coal Mine Fines from Payments to Poland

Strategic Research Institute
Published on :
25 Jan, 2022, 5:30 am

The European Commission last week said that it is moving to withhold millions of euros in funds intended for Poland after it refused to pay legal fines over the Turow coal mine near the Czech border in Poland. European Commission spokesperson said that Brussels is utilizing an offsetting procedure for EU payments to Warsaw after a payment deadline expired last week. Poland’s first payment totals EUR 15 million, in addition to EUR 30,000 in interest. Commission needs to do now is to identify a suitable or appropriate payment against which the compensation can be made. Following that, the Commission will deduct the amount concerned from the payment identified

The European Court of Justice last year ordered Poland to close the mine, with the Czech government claiming that it drains groundwater from Czech villages and causes pollution. The European Court of Justice has imposed a fine of EUR 500,000 per day as long as Poland operates the mine.

Poland has refused to shut down the mine, saying it boosts the economy and helps the country meet its energy needs. Poland claims the EU does not have the legal authority to order the closure of the mine.
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BHP Cuts Coking Coal Guidance on Weather & COVID19 Impact

Strategic Research Institute
Published on :
25 Jan, 2022, 5:30 am

Australian mining giant BHP announced that metallurgical coal production decreased by 8% to 18 million tonnes, 31 million tonnes on a 100% basis for the half year ended 31 December 2021. Guidance for the 2022 financial year has been reduced to between 38 million tonnes & 41 million tonnes, 68 million tonnes & 72 million tonnes on a 100% basis from between 39 million tonnes & 44 million tonnes, 70 million tonnes & 78 million tonnes on a 100% basis. The revision is a result of significant La Nina related wet weather impacts during the December 2021 quarter coupled with COVID-19 related labour constraints. Workforce absenteeism arising from the COVID-19 Omicron variant is anticipated to continue into the early part of the second half of the 2022 financial year.

Queensland Coal production decreased due to significant wet weather, with double the amount of rainfall, coupled with COVID-19 related labour constraints impacting stripping and mine productivity across most operations. A longwall move was successfully executed at Broadmeadow and the Caval Ridge wash plant maintenance was also completed on time during the December 2021 quarter. Following the recent easing of Queensland's border restrictions, COVID-19 related absenteeism has increased and remains a risk for the remainder of the year.

BHP’s thermal coal production increased by 5% to 7 million tonnes in for the half year ended 31 December 2021. Guidance for the 2022 financial year remains unchanged at between 13 million tonnes & 15 million tonnes. The divestment of interest in Cerrejbn was completed in January 2022 and Cerrejbn volumes are no longer included in energy coal guidance. NSWEC production increased as a result of increased stripping volumes enabled by continued truck productivity and mining in lower strip ratio areas, despite increased rainfall and COVID-19 related impacts. High quality products now make up approximately 80 per cent of sales compared to approximately 60% of sales in the prior period.
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