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Front-quarter coal price may extend 9 month lows

Montel News reported that European coal front-quarter prices may extend current nine-month lows this week, with limited generation demand and ample supply weighing heavily on the market. The API 2 front-quarter contract traded last down USD 1.10 from Friday’s close at USD 81.30 per tonne, while the front year was USD 0.80 lower at USD 79.50 per tonne, on Ice Futures.

The former contract earlier reached its lowest level since April last year, on a rolling basis, of USD 81.20 per tonne .

Mr Hans Gunnar Nåvik, senior analyst with Oslo-based StormGeo Nena Analysis said that “A general driver across the northern hemisphere has been the weather, noting the relatively mild winter so far had been a “heavy burden” on coal and related energy markets.

Indeed, competing gas prices have also come under significant pressure, with the Dutch TTF front-month contract seen last down nearly 5% from Friday’s close, at EUR 21.85/MWh.

According to forecaster SMHI, mild temperatures “will dominate” this month, with average temperatures close to normal, while there is also expected to be “good wind output”.

As a result, there was likely to be a lower call on fossil-fuelled power units, participants said.

A coal broker also pointed to the bearish impact of thin physical-market liquidity.

Source : Montel
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Expectations flat for US coal exports, production heading into 2019 - Seaport Global

Total US thermal and metallurgical coal exports and production are projected to remain relatively flat in 2019 compared with 2018 levels, according to a report by Seaport Global analysts released. Seaport Global’s Mark Levin, senior analyst, and Nathan Martin, senior associate analyst, project US coal production to total 760 million tons in 2019 compared with an estimated production of 758 million tons in 2018.

Expectations for higher 2019 Powder River Basin production fell as natural gas prices have once again fallen below USD 3/MMBtu; although utility stockpiles do remain at historic lows.

The analysts wrote that “In short, we think it would take a nasty next few months of weather to change the trajectory of PRB coal prices.”

Higher production is not expected unless PRB prices increase. But with the known level of uncontracted and unpriced volume for 2019 prices are being kept unchanged, aided by intra-basin competition and excess regional production capacity.

Arch and Cloud Peak, leading PRB producers, had approximately 36 million tons and 26 million tons, respectively, of coal left to price by the end of Q3 2018.

Levin and Martin project Utah and Colorado production to drop with coal plant retirements, along with drops in Central and Northern Appalachian production.

Only production in the Illinois Basin is projected to increase with several producers adding capacity to mines or beginning production at new mines.

Total exports in 2019 are projected to total approximately 113 million tons, down from 2018 export expectations of 116 million tons, mostly due to an anticipated drop in thermal coal exports.

While thermal coal exports are projected to total 54 million tons in 2018, up 30% year on year and at their highest level since 2013, in 2019 Seaport projects a 5% fall to 51 million tons.

The growth in 2018 has led to US producers being able to “lock in” volumes for 2019, supporting this year’s export market.

Source : SP Global
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Coal forecast to drop off in 2019 as demand softens - IBISWorld

Australian Mining Black coal mining has been predicted by IBISWorld to be one of the Australian industries that will experience a decline in revenues this year as market conditions turn. IBISWorld expects revenues in the black mining industry to fall by 14.2 per cent in 2018-19 due to a decline in prices for both coking and thermal coal. Australian production of coking and thermal coal is, however, on track to increase in the 2019 financial year.

IBISWorld senior industry analyst Ms Kim Do said coking coal prices were anticipated to decline following an increase in global supply and softening demand from China. Ms Do said that “Thermal coal prices are expected to decline as global economies continue to transition away from coal as part of increasing efforts to reduce greenhouse gas emissions. In addition, Australian coal production capacity is anticipated to remain limited due to slowing investment in the industry.”

Source : Australian Mining
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Westmoreland Coal Appalachian connection

In October 2018, the oldest coal company in the United States filed for Chapter 11 bankruptcy. While now largely operating in the western United States, Westmoreland has many historical ties to Southwest Virginia. The history of Westmoreland Coal is also connected to another eastern company known as Penn Virginia, which experienced a bankruptcy in 2016. Understanding the history of these companies contributes an important perspective into what is happening with coal in Central Appalachia. The companies’ history includes some of the most powerful companies and people in Southwest Virginia.
A Brief History of Coal in Southwest Virginia

In 1795, just three years after the state of Kentucky was formed and Lee County broke off from Russell County in Virginia, a land grant was given to three men by the names of Fields, Jason and Taylor. The grant contained over 62,000 acres of land and encompassed most of the coal mining areas around Black Mountain west of what is now the city of Norton. The original grant contained a few exclusions including local residents who had claims to the land through “squatter rights.” The land overlapped an area that would come to be known as the Hagan tract. In 1836, Lee County decided to collect unpaid back taxes on heirs of the property of the land grant by repossessing some of the land. Lee County then resold 49,200 acres of the original land grant to John C. Olinger.

In the 1880s, E.K. Hyndman was president of Tinsalia Coal and Iron Company, which formed with help of former Confederate general John Daniel Imboden. Imboden was in charge of acquiring property in Wise County for the Tinsalia Coal Company, and one of his agents acquired most of Olinger’s land, according to Black Mountain, a book by Lawrence J. Fleener, Jr.

Tinsalia Coal’s Hyndman brought the Virginia holdings to the attention of John Leisenring. In 1881, Hyndman succeeded in selling Tinsalia and additional lands totaling 70,000 acres to Leisenring and his group Virginia Coal & Iron Co. With the Tinsalia Coal Company also came the South Atlantic and Ohio Railway, which connected the town of Appalachia, Va., to Bristol, Va. The railway was needed to make the transport of coal economical.

From 1896 to 1902, Virginia Coal & Iron Co. produced coking coal, which is used for steel production. Stonega Coke and Coal was formed as a new corporate business to handle the production of coking coal in 1902. Virginia Coal & Iron Co. held much of the Stonega Coke and Coal stock and was also its landlord. Dr. John Shriver Wentz, the director of Stonega Coke and Coal, began expanding the company, eventually acquiring Keokee Consolidated Coke and Imboden Coke and Coal Company in 1910.

The Interstate Railroad, headquartered in Andover, Va., was also built during this time by Stonega Coke and Coal to haul coal from Stonega to Appalachia. It was during this early period that many of the recognizable coal and railroad camps in Wise and Lee counties were built, including Stonega and Andover, according to Virginia Coal and Iron Company, a book compiled by E.J. Prescott.

Source : Appvoices
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Russia 2018 coal export and production volumes reach multiyear highs - Ministry

SP Global reported that exports from Russia in 2018 came to 191 million tonne, a rise of 3.4% on the year, according to the latest data from the ministry of energy, making the 2018 volume the highest since S&P Global Platts began collecting data in 2013. The export volume for December came to 15.5 million mt, a drop of 2.6% on month.

Coal production in 2018 came to 431.76 million tonne, a rise of 6% on year and also the highest volume since Platts began collecting data in 2013.

The December production volume came to 38 million tonne, a drop of 1% on month.

The average Platts FOB Russia Pacific 6,300 kcal/kg GAR 90-day price for 2018 was 108.70 per tonne, a rise of USD 16.70 on year.

The average Platts FOB Russia Baltic 6,000 kcal/kg NAR, 90-day price for 2018 was USD 86.10 per tonne, a rise of USD 6.10 on year.

Higher FOB prices for both Atlantic and Pacific markets were likely to be a big incentive to produce and export more tons to the seaborne market with the ability to make higher margins on volumes.

Source : SP Global
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Rescuers still pumping out water from Meghalaya Ksan coal mine

NENOW reported that the ill fated Ksan coal mine in Meghalaya’s East Jaintia Hills district has become sort of the ‘Water of India’, one of the most popular magic tricks performed by renowned magician P C Sorkar. Like Sorkar’s magic trick where water used to pour into the empty jug from nowhere with his chanting of “Gilly Gilly Choo” and “Water of India”, there seems to be no end to pumping out of water by the rescuers from the ill-fated coal mine.

The pumps used by the Kirloskar Borthers’ Limited, the Fire Service Odhisha and the Coal India Limited have been pumping out millions of litres of waters from Ksan coal mine and other mines adjacent to it but the water level is yet to reach the desired level where the Indian Navy divers could go in searching for trapped miners.

A bulletin issued by the rescuers said that “The pump performed very well and the pumping was carried out from the main shaft, pumping continued till 11.30 am this morning which when calculated it was run for 16 hours. The total water pumped out was 28,80000 litres. Other pumps by the Coal India limited pumped out 2075220 litres.”

The bulletin said that “The Indian Navy reported that they have searched six mines including the main shaft using Under Water Remotely Operated Vehicles (UWROV) and at present they reported that search was completed in the old shaft that is to be taken up by the Coal India limited.”

A total of 15 miners are believed to have been trapped inside the mine from December 13. The mine got flooded when they were inside the mine. While five of the workers in operation could managed to escape miraculously, the rest were believed to have been tapped.

Source : NENOW
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Europe coal terminal stocks rise to 1 month high - Report

Combined coal inventories at key northwest European import terminals have risen to a one-month high of 7.1 million tonnes as port operations slowed over the holiday season but vessel arrivals remain strong. Sources said that stocks at the four Amsterdam, Rotterdam and Antwerp dry bulk terminals were more than 70% higher on the year and only marginally below early December’s multi-year high of 7.2 million tonnes. This in part reflects the fact that record-low river levels in recent months have hindered inland barge shipments to coal fired plants.

A source at one large terminal said that although barges were now operating without hindrance, the workforce at ports had been thin over the Christmas and New Year holiday period. He said that “[Vessel] arrivals have also been strong.”

Of the total figure, inventories at Rotterdam’s key EMO terminal were seen at 3.8 million tonnes, while the port’s smaller EBS terminal had 285,000 tonne.

Nearby, Amsterdam’s OBA terminal had 2.25m tonnes in stock, while Ovet’s Vlissingen terminal, near Antwerp, had 770,000 tonnes.

Montel reported earlier RWE had cancelled a five-month warning of disruptions in coal supply deliveries via barges to its coal-fired units Gersteinwerk and Westfalen near the river Rhine in Germany.

Source : Montel
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Sluggish China coal demand hits panamax rates

Montel quoted shipping sources as saying that Panamax vessel rates have declined by nearly 12% so far this year, to around seven-month lows, due in part to relatively low Chinese coal import demand. The Baltic Panamax Index which reflects global rates for 60,000-80,000 deadweight-tonne vessels was assessed last at 1,257 points, the lowest since June.

An analyst with a large European shipbroker said that “Activity for panamaxes carrying coal to China has been weak.” He said that “Also, with Chinese New Year approaching [in early February], everything points to a weak demand period, adding lower South American grain exports were also weighing on the index.

China’s government introduced coal import restrictions from mid-November, to keep 2018 foreign purchases in line with 2017 levels of 271m tonnes. The restrictions led to imports in November falling to a 16-month low of 638,000 tonne per day (19.2m tonnes), according to customs data, but more recent figures have yet to emerge.

A Chinese coal analyst said it appeared there were no official restrictions on coal imports at present, but that import activity remained subdued.

Shipbroker Intermodal said the period leading to Chinese New Year was a seasonally slow time for dry bulk vessel demand. It added that “Expectations remain rather modest for the coming weeks, with owners hoping the market will see restricted downward pressure.”

Shipbroker Arrow said rates in the Pacific had come under pressure from surplus vessel availability.

It added that “Lagging Australian and Indonesian coal demand has distracted from what is quite steady [north Pacific] grain market.”

Source : Montel
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Morien issues project and corporate update

Morien Resources Corp has provided an update with respect to the company’s projects and ongoing corporate activities.

Donkin coal mine
Kameron Collieries ULC (Kameron), an affiliate of The Cline Group LLC, and owner/operator of the Donkin coal mine in Cape Breton, Nova Scotia (USA), has temporarily suspended production at Donkin due to a roof collapse in an older part of the mine. The incident occurred on 28 December 2018 during Kameron’s scheduled holiday shutdown and no workers were injured. Kameron has been directed by the Nova Scotia Department of Labour to review a variety of engineering and operational measures designed to monitor, control and prevent future mine roof falls. Production at Donkin is expected to resume after Kameron and government inspectors are satisfied that the appropriate measures are in place. Kameron’s top priority is the safety of its 128 employees and contractors and it will resume operations as soon as practicable. Morien welcomes Kameron and the Nova Scotia government’s commitment to safety and will provide further updates as they become available.

Kameron continues improvements in productivity. In December 2018, it installed a continuous haulage flexible conveyor train (FCT) coal mining system to replace part of Donkin’s shuttle car fleet. The FCT was approved by the Nova Scotia Department of Labour in December and is expected to significantly increase production volumes in 2019 once production resumes and hence export sales.

In 2018, Kameron signed a multi-year, thermal coal offtake agreement with local power utility, Nova Scotia Power Inc., for a portion of Donkin production. The majority of Donkin coal is and will be sold overseas either as a high quality metallurgical coal and/or as a low ash, high energy thermal coal.

On 4 January 2019, it was reported that Provincial Energy Ventures Ltd is proceeding with the first phase of its USD 75 million expansion of its export facility in Sydney, Cape Breton. PEV is located approximately 30 km from the Donkin mine and is currently responsible for handling all of the exported coal from Donkin. Once complete, the PEV port will be capable of accommodating larger, capesize vessels and is expected to have the capacity to export up to 3 million t of Donkin coal annually. A new, dedicated coal haul road that will bypass certain communities along the truck route between the Donkin mine and PEV is expected to be complete in 2Q19.

Morien owns a gross production royalty for the Donkin mine of 2% on the revenue from the first 500 000 t of coal sales per calendar quarter, net of certain coal handling and transportation costs, and 4% on the revenue from any coal sales from quarterly tonnage above 500 000 t, net of certain coal handling and transportation costs. The royalty is payable to Morien on a quarterly basis over the anticipated 30 plus year mine life. Morien’s royalty payments from Kameron have increased from US$4000 in 2Q17 to US$241 000 in 3Q18.

Production at Donkin is anticipated to reach annual sales volumes of 2.7 - 3 million t over the next two years. While it is assumed that production at Donkin will resume in a timely manner, the timing of production recommencement is unknown at present and may delay the rate of production increases. Should Kameron’s production schedule change, Morien management will provide revised guidance when supporting information becomes available, which could be materially different from prior guidance. Using a wide range of coal pricing (CAN$65 - 115/t), annual royalty payments could be in the order of CAN$5 - 9 million at full production of approximately 3 million tpy. These values are only estimates based on assumptions Morien management consider reasonable, as of 1Q19, and would only be achieved if and when Donkin reaches permitted production levels. Actual results and royalties received, if any, subject primarily to production rates and coal pricing, may vary from those estimated by Morien. As a public company, Morien incurs general and administrative expenses that are necessary for the collection of the aforementioned royalties.

Source : Strategic Research Institute
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SouthGobi to restart guidance relating to trading suspension

SouthGobi Resources Ltd. announces that, on 3 January 2019, the Hong Kong Stock Exchange provided the following resumption guidance for the company, whereby the company is to:

Conduct a forensic investigation of past conduct engaged in by former senior executive officers and employees of the company (the former management and employees), which raises suspicions of serious fraud, misappropriation of company assets and other criminals acts by the former management and employees relating to transactions between 2016 and the first half of 2018 involving the company, Inner Mongolia SouthGobi Energy Co., Ltd. (a subsidiary of the company) and certain coal trading and transportation companies, some of which are allegedly related to or controlled by the former management and employees or their related persons (the suspicious transactions).
Disclose the findings of the forensic investigation and take appropriate remedial actions.

Inform the market of all material information for its shareholders and investors to appraise the company’s position.

The Hong Kong Stock Exchange has advised that it may modify or supplement the trading resumption guidance if the company’s situation changes.

Pursuant to Rule 6.01A(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the listing rules), the Hong Kong Stock Exchange may cancel the listing of any securities that have been suspended from trading for a continuous period of 18 months. In the case of the company, this 18 month period expires on 16 June 2020. The Hong Kong Stock Exchange has advised that if the company fails to remedy the issues causing the trading suspension, fully comply with the listing rules to the Hong Kong Stock Exchange’s satisfaction and resume trading of its commons shares on the Hong Kong Stock Exchange by 16 June 2020, the Listing Department of the Hong Kong Stock Exchange will recommend the Listing Committee to proceed with the cancellation of the company’s listing on the Hong Kong Stock Exchange. Pursuant to listing rules 6.01 and 6.10, the Hong Kong Stock Exchange also has the right to impose a shorter specific remedial period, where appropriate.

As announced in the company’s 15 December 2018 press release, the Board of Directors of the company has expanded the mandate of the special committee of independent non-executive directors of the company to also include a formal investigation of the suspicious transactions, the implicated former management and employees, and their impact, if any, on the business and affairs of the company. The special committee expects to engage forensic accounting experts to assist with the investigation on or before 11 January 2019 and will endeavor to complete the investigation by the middle of March 2019.

Pursuant to Rule 13.24A of the listing rules, the company is required to announce quarterly updates on developments relating to its trading resumption plan, including details of the actions taken or to be taken in order to remedy the issues causing the trading suspension and fully comply with the listing rules, the progress of implementing the trading resumption plan, details of any material change to the trading resumption plan (including any delays thereof) and impact on the company’s business operations. The company is required to make its first quarterly update on or before 16 March 2019 and announce additional updates every three months thereafter until resumption of trading on the Hong Kong Stock Exchange or cancellation of the company’s listing on the Hong Kong Stock Exchange (whichever is earlier).

Source : Strategic Research Institute
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JERA Trading poaches Vitol's Alex Baileff for its coal division

Reuters reported that Mr Alex Baileff will be joining JERA Trading in April 2019 as Senior Vice President – Coal. Mr Baileff joins JERAT from Vitol where he was Head of Coal. Prior to that, he held positions at Peabody Coaltrade, Essent Trading and EDF Energy.

JERAT is a joint venture (two thirds and one third respectively) between JERA and EDF Trading established in April 2017 following the acquisition of EDFT’s coal business.

Source : Reuters
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Indonesia plans 2019 domestic coal allocation of 128 million tonne - Ministry

Reuters reported that Indonesia's mining ministry plans a total domestic market allocation for coal of 128,038,745 tonnes, Coal and Minerals Director General Bambang Gatot Ariyono told a parliament hearing that the planned figures could still change. He said thatthe total includes an allocation of around 96 million tonnes for power stations, up from around 90 million tonnes in 2018 as a result of rising demand.

Ministry data showed that the total also includes approximately 16 million tonnes of coal for cement plants and 6 million tonnes for paper mills.

According to the ministry, Indonesia set a domestic market allocation for coal at 121 million tonnes in 2018, while consumption reached around 115 million tonnes.

Source : Reuters
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Mongolian state coal miner chooses Hong Kong for USD 3 billion IPO

Nikkei Asian reported that Mongolian state company controlling one of the world's largest coal mines plans to raise up to USD 3 billion in a public stock offering in Hong Kong this year. The listing of 30% of Erdenes Tavan Tolgoi, announced by Chief Executive Gankhuyag Battulga, will be good news for Hong Kong, which analysts have forecast will see a much lower volume of initial public offerings this year after beating all world markets in 2018.

It will also cheer members of the Mongolian public who received 15% of the company's shares for free in 2012 when the IPO was initially planned. They have received no dividends since nor been able to sell their stock after the listing plans were sidetracked by an upsurge in domestic resource nationalism and the collapse in global coal prices.

Their shares will soon become tradable on the Mongolian Stock Exchange, before or at the same time as the Hong Kong listing, with the first dividends to go out this year as well, Battulga said at a press conference in Ulaanbaatar.

Mr Rainer Michael Preiss, portfolio strategist at Taurus Wealth Advisors in Singapore and the founder of a Mongolian investment fund said that "I think there is a rush and realization to get the IPO done before the economic cycle downturn that could unfold in late 2019 or 2020.”

The Hong Kong Stock Exchange last year played host to 286.5 billion Hong Kong dollars (USD 36.55 billion) in IPOs, according to consultancy PwC. It and rival KPMG both project that proceeds this year will fall to around HKD 200 billion, in part due to fewer big listings.

The Mongolian government last year won parliamentary approval for listing Erdenes amid rebounding coal prices. Battulga told the Nikkei Asian Review that a secondary listing in New York might follow the one in Hong Kong. London was earlier considered as a possible listing venue.

Source : Nikkei Asian
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DBCT coal terminal sees loading issues as Queensland weathers ex cyclone

Platts reported that Australia’s coal industry seems to have so-far largely escaped any major impacts related to Ex-Tropical Cyclone Penny which is moving along the Queensland coast and the only issue to date being some vessel loading problems at the Dalrymple Bay Coal Terminal. Market sources said that vessel loading issues at the common-user 85 million tonne per year nameplate capacity DBCT happened on Tuesday, while train arrivals to the terminal were not affected.

Exports throughput at DBCT fell from 214,597 tonne on Monday to 97,334 tonne on Tuesday against a daily target of 224,854 tonne, according to Integrated Logistics Company data for the terminal.

Rail deliveries to the terminal were 241,249 tonne on Monday, and 201,207 tonne on Tuesday with port stocks at midnight local time Tuesday standing at 891,600 tonne and a vessel queue of 24, it said.

Ex-Tropical Cyclone Penny was hovering over the tropical east coast of Queensland, near Gloucester Island east of Bowen Wednesday morning, Australia’s Bureau of Meteorology said.

It said that “Penny is forecast to adopt a track towards the northwest during today and remains a very low chance of reforming into a tropical cyclone in the Coral Sea.”

It said that “Heavy rain remains a risk about coastal and adjacent inland areas north of Mackay during today, noting that a severe weather warning is current and that a flood watch is in place for coastal catchments between Gladstone and Cape Tribulation extending inland over parts of the Central Highlands and Coalfields.”

A spokesman for BHP said Wednesday that the neighboring terminal to DBCT, the 55 million mt/year nameplate Hay Point Coal Terminal is operating as normal.

Source : Platts
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Ukraine increases coal imports in 2018

Open4 Business reported that Ukraine in 2018 increased imports of coal and anthracite by 8.1% (by 1.610 million tonnes) compared to 2017, to 21.388 million tonnes. According to the State Fiscal Service, coal was imported for USD 3.035 billion, which is 10.6% more than in 2017.

At the same time, coal imports from the Russian Federation amounted to USD 1.822 billion (its share in imports was 60.02%), the United States to USD 907.173 million (29.89%), Canada to USD 162.546 million (5.36%), other countries to USD 143.937 million (4.74%). In addition, Ukraine last year exported 63,798 tonnes of coal and anthracite for USD 8.649 million, in particular to the Russian Federation for USD 4.597 million, Slovakia for USD 3.201 million, Moldova for USD 724,000, and other countries for USD 127,000.

Source : Open4 Business
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19 dead in northwest China coal mine accident

Nineteen miners were killed while another two remained trapped underground after a roof collapse happened in a coal mine in northwest China's Shaanxi Province. The accident happened around 4:30 PM local time Saturday at the Lijiagou coal mine of the Baiji Mining Co., Ltd. in the city of Shenmu. At that time, 87 people were working underground. Sixty-six of them were lifted to safety after the accident.

The search for the last two trapped miners continued. An investigation into the cause of the accident is underway.

Source : Xinhua
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Donkin coal production could rise to 3 million ton annually - Morien

Production at Kameron Coal’s Donkin underground coal mine on Nova Scotia’s Cape Breton Island could reach 3.3 million short tons per year over the next two years, aided in part by a USD 75 million ongoing expansion project at an ocean-going port 20 miles south of the mine in Sydney, Cape Breton, according to Morien Resources.

Dartmouth, Nova Scotia-based Morien, Donkin’s former co-owner along with Xstrata Coal, owns a gross production royalty for Donkin of 2% on revenue from the first 550,000 short tons of coal sales per calendar quarter, and 4% on revenue from any coal sales from quarterly tonnages exceeding 550,000 short tons.

Since production started nearly two years ago, Donkin’s ramp-up has been slowed by a number of issues, including its sixth roof fall on December 28 that has idled the mine. It is unclear when production will resume.

Morien, though, sees a bright future for Donkin, as evidenced by its Tuesday update that said Kameron continues to improve mine productivity by installing a continuous haulage flexible conveyor train in December. The new coal mining system replaces part of Donkin’s shuttle car fleet and was approved by the Nova Scotia Department of Labour last month.

It is expected to “significantly” increase production volumes, and, as a result, export sales, in 2019 once mining resumes at Donkin, Morien said.

Morien said Donkin’s production is anticipated to reach annual sales volumes of 2.98 million to 3.3 million short tons over the next two years. The mine was expected to turn out 1.2 million to 1.8 million short tons in 2018, although official results are not yet available.

Morien cautioned, however, that “while it is assumed that production at Donkin will resume in a timely manner, the timing of production recommencement is unknown at present and may delay the rate of production increases.”

In any event, Donkin is expected to benefit from the expansion at Provincial Energy Venture’s export facility in Sydney, Morien added. PEV currently is responsible for handling all of the export coal from Donkin.

Source : Platts
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Blankenberger moving forward with new underground coal mine in Indiana

SP Global reported that Illinois Basin appears poised to welcome a second major new underground coal mine with the decision by Blankenberger Brothers to start construction later this year on a 3.5 million st/year, 11,300-11,500 Btu/lb underground mine in Pike County, Indiana. Donnie Blankenberger, president of the family owned excavation company in Cynthiana, Indiana, told S&P Global Platts in a interview that 2019 should be the year the company finally moves forward with a project that has been on the drawing board for several years.

The mine will be developed by Blankenberger's BB Mining subsidiary, which has mined previously in southern Indiana.

The company is in discussions with potential offtake customers and expects some positive developments over the next couple of months, he said.

Blankenberger is eyeing the strong US export market for the mine's coal, although he did not elaborate about potential destinations. He predicted the mine will be among the lowest-cost producers in the region, which should make it competitive with other ILB companies selling into the seaborne market.

In addition to the mine's Btu content, the coal's specifications include an average of 6 lb SO2/MMBtu.

Construction on the room-and-pillar operation is estimated to take about 18 months or so. Depending on whether construction commences before mid-year or late in 2019, initial production could come in late 2020 or 2021.

The mine is fully permitted. In September 2016, Blankenberger Brothers was issued a final permit by the Indiana Department of Natural Resources' Division of Reclamation covering just under 1,000 shadow acres for the proposed project.

The new mine will be the second coal mine developed in the region in recent years.

Australia's Paringa Resources has begun production at its Poplar Grove underground mine near the Green River in McLean County, Kentucky. Paringa has sales commitments in excess of 5 million st for Poplar Grove, including a "cornerstone" 4.75 million st, five-year agreement with Kentucky's two largest electric utilities, Louisville Gas & Electric and Kentucky Utilities.

Hallador Energy's Sunrise Coal subsidiary recently was issued a final permit for its proposed Bulldog underground mine near Allerton in Vermilion County, Illinois.

The company has said Bulldog also would be in the range of 3 million st/year. However, Hallador/Sunrise have not released a definitive schedule for developing the mine.

Source : SP Global
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Japan JFE settles Q1 semi soft coking coal contract price at USD 131 per tonne FOB Australia

Platts reported that Japanese steelmaker JFE Steel has settled its first-quarter 2019 contract for semi-soft coking coal at USD 131 per tonne FOB Australia early this week, up USD 1 per tonne from Q4 2018. The contract was settled with Stanmore Coal for Isaac Plains semi-soft coking coal, market sources said. But quarterly settlement prices for other brands of semi-soft such as Bloomsfield and Yancoal’s semi-soft were not heard Wednesday.

JFE has settled its Q4 2018 price at USD 130 per tonne FOB Australia with the same few miners.

Separately, another major Japanese steelmaker Nippon Steel & Sumitomo Metal Corporation is still locked in negotiations for its Q4 2018 semi-soft quarterly contracts that are settled retroactively, market sources said.

Platts assessed semi-soft coking coal FOB Australia at USD 118.70 per tonne Tuesday.

Source : Platts
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Sedgman secures contract extension at Byerwen coal mine

CIMIC Group company Sedgman has been awarded a AUD 155 million minerals processing contract at QCoal’s Byerwen coal mine in Central Queensland. The engineering, procurement and construction contract will deliver an expansion on the first phase of the project, which Sedgman was awarded in February 2018. It includes the duplication of the existing coal handling and processing plant.

Sedgman has started early work on the latest contract and expects to complete the project in early 2020.

CIMIC chief executive officer Michael Wright said the contracting group’s relationship with QCoal extends back to 2007, providing EPC services through Sedgman and mining services through Thiess.

Mr Wright said that “This latest contract demonstrates Sedgman’s ability to deliver positive and consistent outcomes for QCoal, and is a testament to the Sedgman team’s focus on delivering enduring value for our clients.”

The Byerwen site is 20 kilometres west of Glenden in the Bowen Basin. It is being developed to produce 10 million tonnes of coking coal a year.

Sedgman managing director Grant Fraser added that the minerals processing specialist looked forward “to assisting with the expansion of the Byerwen mine in a timeframe that optimises QCoal’s benefit.”

Source : Strategic Research Institute
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