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MetRes Acquires Millennium & Mavis Downs Coking Coal Mines

Stanmore Resources Limited announced the completion of the Millennium and Mavis Downs Mine acquisition from Peabody Energy Australia with all conditions precedent satisfied by MetRes Pty Ltd, a 50:50 joint venture between Stanmore and M Resources. Auger mining is scheduled to commence August 2021, with rail and port logistics contracts executed providing a clear path to delivery allowing the Company to take advantage of favourable market conditions.

MetRes expects to ship its first coal from the the Millennium and Mavis Downs metallurgical coal mine in Queensland in October after it begins mining next month. MetRes hired Coal Augering Services for auger operations at the site.

Millennium and Mavis Downs is expected to produce 13.9 million tonnes of metallurgical coal across its mine life.

Source - Strategic Research Institute
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5 Missing in Coal Mine Flooding in Shaanxi Province of China

Local media reported that 5 people went missing after a coal mine was flooded in the city of Yulin in northwest China's Shaanxi Province. The accident took place at 3:25 PM on 15 July 2021 in a shaft of a coal mine in Huangliang Township of Yuyang District. There was also an inrush of sand in the working area, according to the district government.

Several rescue teams are currently working at the site.

An investigation into the cause of the accident is underway.

Source - Strategic Research Institute
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Employee Missing in Flooding of RWE’s Inden Lignite Mine in Germany

RWE’s open cast lignite mine at Inden in western Germany has suspended operations due to major flooding, following heavy rainfall in the region, resulting in a fatal incident. RWE said “All efforts to find the missing employee at the Inden open-cast mine have not been successful. Unfortunately, chances are that the employee cannot be found alive. The waters of the river Inde had flooded a dam near the village of Lamersdorf and subsequently entered the open-cast mine. The 58-year-old employee of a partner company was swept away by the flood. For many hours yesterday as well as through the night, a search for him was conducted on the ground and from the air with the help of fire brigade and police but to no effect. Further search attempts including the use of drones, police helicopters, search dogs and rescue boats were unsuccessful. Attempts will go on to recover the employee in the coming days.”

Lars Kulik, Member of the Executive Board at RWE Power and responsible for the lignite business said "All parties involved have done everything possible to find the missing colleague but unfortunately without success. We are all deeply shocked by this tragic event. Our thoughts are with his family that we will support in this difficult situation. I thank all the emergency services who have left no stone unturned."

Inden mine

Size of approved coalfield - 4,500 hectare

Operating area - approximately 1,700 hectare

Coal capacity - 260 million tonnes

Ratio of overburden to coal (total coalfield deposit) - 3.9:1

Overburden capacity per year - 70 - 90 million cubic meters

Coal output per year - Approximately 20 million tonnes

Source - Strategic Research Institute
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Benga Mining Knocks Court of Appeals for Grassy Mountain Coal Mine

The Canadian Press reported that Benga Mining Limited has filed a request with the Court of Appeal of Alberta in regard to its Grassy Mountain Coal Project after a decision by a review panel that rejected the open-pit coal mine in Alberta’s Rocky Mountains project as being not in the public interest. The application for the appeal is to be heard on Sept. 9.

In the court filing, Benga says a June 17 decision by a joint federal-provincial review panel, including the Alberta Energy Regulator, contains errors of law and procedural fairness that warrant the granting of permission to appeal. Benga contends that the joint review panel erred in law by ignoring relevant evidence from Benga, or misconstruing that evidence, regarding surface water quality, the westslope cutthroat trout and habitat, and Project economics. As a result, the JRP, in its capacity as the AER, improperly found Benga’s evidence and plans to be inadequately developed and potential benefits overstated.”

In the June decision, the review panel said the significant adverse environmental effects on west slope cutthroat trout and surface water quality likely to be caused by the mine outweigh the low to moderate positive economic impacts of the project.

Benga says the metallurgical coal mine in the Crowsnest Pass area of south western Alberta would create hundreds of jobs and produce up to 4.5 million tonnes of coal per year over a mine life of approximately 23 years.

Source - Strategic Research Institute
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Chinese Coal Imports in H1 of 2021 Shrink by 20% YoY

General Administration of Customs fata showed that China’s coal imports in June 2021 rose 35% MoM to 28.39 million tonnes, highest level in 2021, driven by robust demand from power generation and industrial activity in the country. For the first six months this year, China imported a total of 139.56 million tonnes of coal, down 19.7% YoY

Several regions in southern China, including Guangdong and Yunnan, ordered factories to stagger operations amid tighter power supply conditions in the second quarter.

Coal fired-power plants are building up inventory as peak summer season kicks off in the country. The Chinese state planner has also been urging power plants, coal miners and transportation hubs to build around 100 million tonnes of deployable coal reserves by the year end.

Source - Strategic Research Institute
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BHP Suspends Operations at Goonyella Coking Coal Mine

S&P Global reported that operations at BHP's Goonyella Riverside coking coal mine in Australia's Queensland state were temporarily suspended after a worker died from a medical emergency at site on July 12 night. ABHP spokesperson said "A worker at Goonyella Riverside Mine had a medical emergency at site last night and has sadly passed away. The worker reported feeling unwell and the site Emergency Response Team responded and was supported by the Queensland Ambulance Service.”

BHP did not provide a specific timeline on the resumption of operations.

Market participants said impact on supply was expected to be minimum.

Source - Strategic Research Institute
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China to Release 10 Million Tonnes of Coal from Reserves

Reuters reported that National Development and Reform Commission said hat China will release more than 10 million tonnes of coal from state reserves to ensure steady supply to the market. The fifth such release this year will come from dozens of reserve hubs and key ports nationwide and the government would arrange further releases in line with market demand.

The four previous releases this year totalled more than 5 million tonnes.

The state planner in April urged power plants, coal miners and major coal transport hubs to boost reserves of the fuel because of concerns over tight supplies and an expected demand surge. It had vowed to build coal stockpiles to more than 120 million tonnes in government-deployable reserves in 2021.

Source - Strategic Research Institute
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Vostochnaya Mining Building Substations for Coal Conveyor

Russian Vostochnaya Mining Company continues construction of the main coal conveyor and its infrastructure. Simultaneously with the installation of the conveyor structures, equipment is being installed at the Konveyernaya-1 and Maiskaya-1 transformer substations. They are designed to provide uninterrupted power supply to the entire conveyor line system, the total power consumption of which is 16 MVA.

The construction of substations involves the use of modern and energy efficient equipment, which reduces power losses. To control electricity consumption for auxiliary needs, the substation will be equipped with electricity meters, information from which will be transmitted to an automated information and measurement system for commercial electricity metering. Also, this system is designed to register energy consumption parameters, generate reporting documents and transfer information to collection centers.

The capacity of the Mayskaya-1 substation is 16 MVA. According to the project, the substation will be able to supply electricity to the crushing and screening complex, a warehouse at the Solntsevsky coal mine, a technopark and part of a conveyor. The Konveyernaya substation has a capacity of 20.1 MVA. According to the project, it will feed the coal terminal, as well as the main conveyors of the Shakhtersk Coal seaport.

The project of the main coal conveyor of the Eastern Mining Company provides for the transportation of coal from the Solntsevsky coal mine to the coal seaport of Shakhtersk. It will allow replacing the use of road transport for coal transportation with logistics in an environmentally friendly way. Its production capacity will be 4,000 tons per hour. The conveyor under construction will be the longest in Russia, its length will be 23 km. The construction of a coal main conveyor is included in the list of priority projects in the Sakhalin Region.

Source - Strategic Research Institute
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Indian Coal Imports in Apr-May 2021 Surge by 25% YoY

According to data compiled by mjunction Services, India’s coal import rose 20.4 per cent to 19.92 million tonnes in the month of May 2021 as compared to 16.54 million tonnes in May 2020. Of the total import in May, non-coking coal was at 13.64 million tonnes, against 10.54 million tonnes imported in May last financial year. Coking coal import was at 4.41 million tonnes, up against 3.18 million tonnes imported in May last fiscal.

India’s coal import also rose 25.4% to 42.19 million tonnes in the first two months of the ongoing fiscal, against 33.63 million tonnes of coal imported in the corresponding period of previous financial year. During April-May, non-coking coal import was at 28.96 million tonnes as compared to 22.82 million tonnes imported during April-May period of the last financial year.

Source - Strategic Research Institute
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Polish JSW Group’s Operating Activity in Q2 2021

Polish coal giant JSW SA’s total coal production in Q2 of 2021 was 3.45 million tonnes while coke production was 0.93 million tonnes.

Total coal production: 3.45 million tonnes, up 1% QoQ & up 33% YoY

Coking coal production: 2.78 million tonnes, up 0% QoQ & up 32% YoY

Steam coal production: 0.67 million tonnes, up 6% QoQ & up 34% YoY

Total coal sales: 3.77 million tonnes, down 1% QoQ & up 27% YoY

Coking coal sales: 3.07 million tonnes, up 3% QoQ & up 26% YoY

Including internal sales: 1.21 million tonnes, down 1% QoQ & up 21 YoY %

Steam coal sales: 0.7 million tonnes, up down 16% QoQ & up 32% YoY

Total coke production: 0.93 million tonnes, up 1% QoQ & up 27% YoY

Sales of coke: 0.87 million tonnes, down 14% QoQ & up 34% YoY

Source - Strategic Research Institute
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Tata Steel Modernises Jharia Coal Preparation Plant

In line with its mechanisation and modernisation programme, Tata Steel’s Jharia Division has commissioned the state-of-the-art 2 million tonnes per annum Coal Preparation Plant and 400 kilovolt-ampere (kVA) Uninterrupted Power Supply for Main Mechanical Ventilator at Jamadoba Colliery.

The modern beneficiation plant not only addresses issues such as productivity, safety and environment but also production of coal at a competitive price, he said.

Source - Strategic Research Institute
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Indonesian Coal Exports to Surge in Q3 of 2021

As per the IHS Markit's Commodities, Indonesian coal shipments during June 2021 stood at 35.3 million tonnes, up 25% YoY. In terms of regions, shipments from East Kalimantan, South Kalimantan, and Sumatra stood at 18.9 million tonnes up 9% YoY, 11.0 million tonnes up 56% YoY and 3.7 million tonnes up 61% YoY respectively. Indonesian coal shipments during June 2021, to Mainland China, which accounts for 53% of total Indonesian coal export, stood at 18.6 million tonnes up 15 p% MoM & 70% YoY. While shipments to India stood at 4.5 million tonnes down 25 % MoM & 14% YoY. Shipments to South Korea, Japan, Malaysia, and Taiwan stood at 1.5 million tonnes up 20% MoM but still down 13% YoY, 1.1 million tonnes down 21 % MoM & 39 % YoY, 2.2 million tonnes up 22% MoM & 31% YoY and 1.9 million tonnes down 13% MoM & 7% YoY, respectively.

Renewed COVID-19 outbreaks are slowing the economic recovery in the country and putting pressure on fiscal shortfalls. However, there is an increase in taxes from coal exports due to an increase in international demand in addition to the surge in coal prices. As per the Ministry of Energy and Mineral Resources of Indonesia, the monthly benchmark coal price HBA basis, 6300 GAR surged further in July 2021 and announced at USD 115.35, up 15% MoM and 121% YoY. HBA prices after bottoming out in September 2020 have been on an upward trajectory driven by strong demand from China (Mainland) and lately from Japan and South Korea.

For 3Q21 and full 2021, Indonesian coal exports are forecast at 109 million tonnes up 33 percent y/y) and 414 million tonnes up 10 percent y/y), respectively. In terms of imports countries during 3Q21 and 2021, shipments to Mainland China, India, South Korea, and Japan are forecast at 50.9 million tonne/174 million tonnes, 14.5 million tonnes /77 million tonnes, 6.6 million tonnes /22 million tonnes and 7 million tonnes /25 million tonnes, respectively.

Source - Strategic Research Institute
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Abandoned Coal Mining Clean Up in Appalachia to Cost Billions

AP reported that the clean up and reclaiming of coal mines in seven Appalachian states will cost billions, and Kentucky and West Virginia have the largest bills coming due. According to estimates in the report by Appalachian Voices, total reclamation liability for the two states is between USD 4.1 and USD 5.8 billion, with less than half of that covered by existing bonds. The seven states, which a include Alabama, Ohio, Pennsylvania, Kentucky, Tennessee and Virginia, have about 633,000 acres in need of reclamation.

The report, titled "Repairing the Damage: The Costs of Delaying Reclamation at Modern-Era Mines," draws attention to the funding gap, which could cause environmental damage, water contamination and pose safety hazards if mines aren't cleaned up. It said “As the coal mining industry has declined over the last decade, corporate bankruptcies have increased, and "large-scale mine abandonment by several companies has occurred in Kentucky and West Virginia. As more coal companies declare bankruptcy, fewer companies remain to take over mines, so the number of companies forfeiting reclamation bonds and deserting their clean up responsibilities will only increase.”

Source - Strategic Research Institute
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Opencast Coal Mining in UK Abolished after 80 Years

Desmog reported that last December, a cross-party council planning committee unanimously rejected what could very well be the last opencast coal application in the UK, proposed at Dewley Hill, an area of greenbelt outside Newcastle. The developer has just declared it will not be appealing the decision, while its latest financial statement indicates the company, Banks Group, does not expect to get permission for any new mines, because of a lack of political will.

So after 80 years, it is an end to the ecologically ruinous method of opencast coal extraction. The mining technique was originally introduced in the 1940s as an extreme wartime measure, with minimal labour needed and maximum pace. It involves ripping up huge areas of land, replacing diverse ecology and vital habitats with a vast pit, and industrialising the countryside. It expanded under Margaret Thatcher, and some of the first people to contest new opencasts were coal miners, since it was seen to hasten job losses at traditional pit mines and ruined the places miners lived in.

Over the past 20 years, as awareness of climate change has grown and word of the local injustices from opencast coal mining spread, thousands of people across the country and beyond have travelled to support the battles to stop opencast coal. These campaigns had been quietly fought for decades, in isolated pockets in the Welsh Valleys, the Pennines, the Scottish Highlands, by people who don’t identify as activists.

Since 2008, at least 23 applications to stop opencast coal in the UK have been stopped by grassroots campaigns, with many more going unrecorded. Currently, only two opencast mines operate in the UK thanks to the resistance of ordinary people standing up for their local environment and climate justice.

Source - Strategic Research Institute
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Whitehaven Coal Production Report for Apr-Jun 2021 Quarter

Whitehaven Coal announced that

June quarter managed run-of-mine production of 5.4 million tonne

June quarter managed saleable coal production of 3.8 million tonne

June quarter total managed coal sales 4.5 million tonne, managed own coal sales 4.0 million tonne, total equity coal sales 3.7 million tonne and equity sales of own coal 3.2 million tonne

FY21 managed ROM coal production of 20.6 million tonne

Maules Creek achieved record annual managed ROM production of 12.7 million tonne

FY21 managed coal sales of 19.8 million tonne, including 2.0 million tonne of purchased coal, equity coal sales of produced coal 14.4 million tonne

Managed coal stocks of 3.3 million tonne at period end

No known cases of COVID-19 at any of our sites to date and operations remain largely unaffected but for distancing and hygiene measures

Whitehaven Coal Managing Director and CEO Paul Flynn said “Coal prices staged a remarkable recovery over the quarter, responding to increased economic activity as well as continuing supply-side constraints. “Prices for high-CV thermal are at 10-year highs, and we will begin to see this materialise into strong free cash flow over the coming months. Our largest mine, Maules Creek, finished with a solid quarter and demonstrated its full potential over the course of the year, delivering a record annual ROM production. Unfortunately difficult geological conditions persisted at Narrabri through the second half and, having now navigated through this area, we are focused on finishing the balance of the panel expeditiously and getting to the change out scheduled for Q2 of FY22.”

Source - Strategic Research Institute
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Shakhtersk Port Sets Record for Monthly Coal Shipments

The coal seaport of Shakhtersk, a key logistics asset of the Eastern Mining Company, has updated its production record for monthly shipments. At the end of June 2021, the company shipped 1.9 million tons of coal to ships, which is 7% higher than the previous record in August 2020. The new achievement became the third record this year. On June 20, the coal seaport of Shakhtersk shipped a record daily volume of coal over 100 thousand tons. In addition, in April, the enterprise for the first time in Russia carried out a record one-time shipment of coal in the volume of 188,119 tons.

The increase in monthly shipments is the result of the systematic work of previous years to increase the port's capacity and expand the fleet. In particular, the network of belt conveyors was lengthened, two ship-loading machines were installed on the quay. In 2020, warehouse capacity increased to 3.3 million tons. The port's throughput capacity has also increased due to the appearance in the fleet of two new self-propelled barges with a total deadweight of 15 thousand tons.

The large-scale modernization of the Shakhtersk Coal Seaport provides for an increase in the storage volume of the warehouse and the installation of modern technological lines with stacker-reclaimers. At the same time, it is necessary to install a new transport conveyor system with a shelter, as well as a dust suppression system in the process of forming stacks using mobile units. This will reduce the amount of harmful emissions into the environment. The port modernization project is scheduled to be completed by 2022.

The coal sea port of Shakhtersk is the largest sea coal terminal in the Sakhalin Region, one of the ten Russian ports in terms of dry cargo transshipment. The capacity of the UMPSh onshore transshipment complex is 10 thousand tons per hour. Roads are transshipped in the port. Today, the terminal is equipped with modern ships and transshipment equipment. The fleet includes 6 self-propelled barges with a total deadweight of 45 thousand tons, 3 barges with a deadweight of 600 tons each, 7 tugs and 2 reloaders. One of Genova's offshore cranes is unique for Russia - the capacity of the transshipment equipment is 4,000 tons of coal.

Source - Strategic Research Institute
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Accenture to Digitalise Mining Process at 7 Coal Mines of CIL

FE reported that Indian state owned miner Coal India has roped in Accenture Solutions as consultant to digitalise mining process in seven open cast mines. The process digitalisation of the 7 identified mines, which accounted for nearly 32% of CIL’s 596 million tonne output in FY21, could increase production by another 100 million tonne at a much lower cost as Accenture has assured. Digitalisation will take place at the mines in Kusmunda, Gevra, Dipka of South Eastern Coalfields and Nigahi, Jayant, Dudhichua, Khadia of Northern Coalfields.

Accenture’s success fee shall be paid only on achievement of more than a minimum threshold level of the assured quantity. On crossing the threshold level, the consultant would be paid an agreed sum for every additional tonne of coal produced

The aim is to fit together and use the available data analytic techniques to raise mine productivity and efficiency from planning, project monitoring and operations to despatch. Among many measures, the heavy earth moving machineries deployed would be fitted with digital sensors to monitor the efficiency of their performance at every level. This would bring about a more effective system management and dynamic monitoring.

With the fee linked to the performance, the consultant assures the increased quantity by end of FY23 over the combined production of 7 mines at the closure of FY22. The combined production of the seven identified mines in FY 22 will be taken as baseline figure to measure output enhancement.

Till March FY22, Accenture shall be laying down the digitalisation groundwork in these mines.

Source - Strategic Research Institute
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Miner Killed in Accident at Black Thunder Coal Mine in Wyoming

Gillette News Record reported that man was killed working at Arch Natural Resource’s Black Thunder coal mine in Campbell County in Wyoming in US. The deceased and four other workers were adding a section to the boom of a 200 ton crane, a section fell onto the right side of his shoulder and neck area. A mine employee called the Campbell County Sheriff’s Office around noon requesting an ambulance and an air ambulance. Emergency medical services personnel pronounced him dead at the scene. The cause of death has been determined as asphyxiation with crushing injuries

The deceased worked as a millwright at the mine and had been at Black Thunder for 13 years

Source - Strategic Research Institute
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Approval of 17 Coal Blocks Auction of Triggers Wildlife Concerns

Hindustan Times reported that the Chhattisgarh Cabinet has approved auctioning of 17 out of 18 coal blocks identified by the central government in the state. The 17 blocks, which are expected to generate around 8,000 million tonne of coal, are located in Dharamjaigarh, Sarguja, Surajpur and Koriya forest divisions. An official familiar with the matter said “The nod for the auction was given at a cabinet meeting but Barra coal block, which is in Raigarh district, has been exempted from the auction in view of the presence of a major human settlement in the area.”

It has triggered concerns on the impact of mining activities in wildlife-rich areas that are home to several elephants, sloth bears and leopards. Activists believe the approval was granted despite no increase in demand for coal. Chhattisgarh Bachao Andolan NGO convener Mr Alok Shukla said “The state government should have opposed commercial mining as Chhattisgarh is already facing consequences in the form of environmental destruction and displacements.”

A senior official in the environment ministry said “We can intervene only when the project proponent comes to us for forest clearance or wildlife clearance. We can also comment or study the matter if we are asked to by a court if there is a legal case involved. On the overall issue of mining in the state, we cannot intervene.”

Source - Strategic Research Institute
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US Metallurgical Coal Producers Association Announce Conference

West Virginia US based Metallurgical Coal Producers Association will host its 42nd Annual Conference at the Stonewall Resort in Roanoke in West Virginia on September 26 -28. This year’s conference is the first since the association, formerly known as the Virginia Coal and Energy Alliance, rebranded as the Metallurgical Coal Producers Association and expanded its focus to include both Southwest Virginia and West Virginia.

To highlight the close ties between infrastructure, steel and metallurgical coal, Mr Kevin Dempsey, president and chief executive officer of the American Iron and Steel Institute, will serve as one of the keynote speakers for the conference.

Other speakers will include top executives from MCPA producing members, coal and steel industry market experts, political leaders, and more. Visit www.metcoalproducers.com/events for more information and to register for the annual conference.

Source - Strategic Research Institute
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