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Friday, 06 November 09
NEW ASSETS WILL INCREASE COKING AND THERMAL COAL PRODUCTION
 Coal and metals processing company Coal of Africa Limited (CoAL) aims to produce 10-million tons a year of coking coal and two-million tons a year of thermal coal, when it brings its two coking coal assets, Vele and Makhado, into production alongside its Mooiplaats thermal coal mine, in Mpumalanga province.
Mooiplaats thermal coal mine started production in 2008 and is ramping up to produce two-million tons of product a year, while Vele and Makhado are expected to start production in the first half of 2010 and 2011, respectively. CoAL expects to produce a total of 12-million tons a year by 2015.
Growth and Challenges
CoAL MD Simon Farrell says that the most significant growth potential for coal lies in steel manufacture.
“The increasing global demand for steel is the biggest factor in the growth of coking coal demand. While demand for steel has fallen in the last 12 months, we are now seeing positive signs that demand from Asia is returning. The spot price for coking coal has recovered from $120/t to $160/t, and thermal coal has recovered from $55/t to $65/t,” he asserts.
Further, power generation also holds growth potential. Farrell points out that South Africa has experienced severe power shortages, like the rest of Africa, and this is set to continue unless there is investment in new power stations. This signifies increased demand for thermal coal when Eskom begins
to construct additional power stations to meet the rising domestic demand for power.
Farrell says that the biggest challenge facing the coal industry is securing rail and port
allocation. However, CoAL is in a strong position as it has secured rail and port allocation for both its thermal and coking coal products.
“At Vele and Makhado, we have a memorandum of understanding with steel producer ArcelorMittal for it to take 2,5-million tons a year to five-million tons a year of CoAL’s coking coal from Musina for consumption at its Vanderbijlpark and Newcastle steelworks,” he says.
To cater for the export market, CoAL has secured a one-million-ton-a-year allocation at Maputo, in Mozambique, and has signed an agreement with the Matola terminal to assist in its future expansion.
A feasibility study is currently under way for a new terminal that can handle a
further 10-million tons a year, taking the total CoAL allocation to potentially 13-million tons a year.
Industry Issues
Farrell says that coal markets have experienced a dramatic fall from the highs seen in early 2008 when coking coal spot prices reached $300/t and thermal reached $190/t.
He adds that the fundamentals for domestic thermal coal remain strong. However,
insufficient investment in power stations has led to South Africa suffering further power shortages. In response, Eskom has pledged R150-billion to increase power generation over the next five years, which will require thermal coal.
Further, Farrell asserts that there is a huge demand for education and technical skills development in the coal industry. CoAL has committed R10-million as part of its training and skills development programme.
“As a key stakeholder, CoAL has taken the initiative to contribute to the education and skills development through the King Mphephu Ramabulana bursary fund, which provides bursaries to members of communities in the areas where CoAL has operations. To date, 30 bursaries have been awarded in the studies of engineering, geology and medicine,” he says.
Projects
The first phase of the Mooiplaats colliery is almost complete. The total capital expenditure for the mine is R1-billion, with the first-phase development estimated at R739-million, of which R574-million has already been spent. Farrell describes bringing the Mooiplaats mine into production on schedule and under budget as a milestone for CoAL. The majority of the raw
materials sourced for the Mooiplaats mine have come from South Africa.
“At Mooiplaats, we have sufficient rail and port agreements in place to rail the coal through the Matola terminal, in Maputo, where we currently have a one-million-ton- a-year allocation. An extra two-million tons a year will come on stream in the third quarter of 2010, following the completion of a current expansion programme,” Farrell says.
Meanwhile, the company is still waiting for new-order mining rights for its Vele coking coal mine to be granted.
“Construction is expected to start in the fourth quarter of this year, and we have
already ordered key equipment for Vele to enable us to begin construction immediately
following approval.
“Vele will start production in the first quarter of 2010, and phase one of the mining
operations will be complete by the middle of 2010, producing an expected one-million tons a year. The timing of phase two is dependent on demand,” he explains.
Vele is a R3-billion project, with phase one estimated at R350-million and producing one-million tons a year, while phase two will cost R2,65-billion.
Makhado’s new-order mining rights
application will be lodged in the fourth quarter of this year, pending the Section 11
approval, and construction will start in the second half of 2010, immediately after the granting of the new-order mining rights. The project will be completed with the
option to adopt a phased model, depending on market conditions. Makhado is a R2,7-billion project.
The company currently employs about 330 people and Vele alone will generate 800 jobs in the construction phase. Farrell adds that about 28 000 direct and indirect jobs will be created when both Vele and Makhado
become fully operational.
Source:Mining Weekly
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Monday, 23 November 09
INDONESIA MINING RULE THREATENS INVESTMENT DRIVE
A new Indonesian mining rule, limiting contract work that can be outsourced and favouring local players, is shaping up as a new blow to plans ...
Sunday, 22 November 09
SHORT PERIOD RATES FOR SUPRAMAX WAS AT US$ 25,000/26,000 PER DAY FOR VESSELS OPENING FAR EAST / SE ASIA - VISTAAR ANALYSIS
COALspot.com (Singapore): Analyised by Capt. Radhakrishnan Reddy, Managing Director of Vistaar Shipping Services, Singapore.
BDI hits a new high ...
Friday, 20 November 09
INDONESIA UNITED TRACTORS PLANS $430 MLN CAPEX IN 2010
Reuters reported that, Indonesian heavy equipment distributor and mining contractor PT United Tractors Tbk plans capital expenditure of $430 million ...
Friday, 20 November 09
DRY BULK SHIP OWNERS HOPE RALLY WILL LAST
Boon times are still on the daily agenda of every dry bulk ship owner these days after one of the toughest year in the industry’s century-old ...
Friday, 20 November 09
NTPC LOOKING FOR LONG TERM CONTRACTS FOR COAL IMPORT
Business Standard of India reported that, State run power firm NTPC today said it is looking for long-term supply of coal from overseas market to me ...
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- Directorate Of Revenue Intelligence - India
- Price Waterhouse Coopers - Russia
- Bhushan Steel Limited - India
- Baramulti Group, Indonesia
- Medco Energi Mining Internasional
- Larsen & Toubro Limited - India
- Minerals Council of Australia
- Gujarat Sidhee Cement - India
- Petron Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Indika Energy - Indonesia
- Orica Mining Services - Indonesia
- Vizag Seaport Private Limited - India
- Banpu Public Company Limited - Thailand
- Orica Australia Pty. Ltd.
- Anglo American - United Kingdom
- Maharashtra Electricity Regulatory Commission - India
- The Treasury - Australian Government
- ASAPP Information Group - India
- Chamber of Mines of South Africa
- Xindia Steels Limited - India
- Standard Chartered Bank - UAE
- Rashtriya Ispat Nigam Limited - India
- Semirara Mining Corp, Philippines
- Global Coal Blending Company Limited - Australia
- Savvy Resources Ltd - HongKong
- Posco Energy - South Korea
- Bukit Baiduri Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- White Energy Company Limited
- Kumho Petrochemical, South Korea
- Billiton Holdings Pty Ltd - Australia
- Formosa Plastics Group - Taiwan
- Economic Council, Georgia
- Gujarat Mineral Development Corp Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Malabar Cements Ltd - India
- San Jose City I Power Corp, Philippines
- MS Steel International - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Kaltim Prima Coal - Indonesia
- Sakthi Sugars Limited - India
- CIMB Investment Bank - Malaysia
- Vedanta Resources Plc - India
- Kideco Jaya Agung - Indonesia
- Pendopo Energi Batubara - Indonesia
- Port Waratah Coal Services - Australia
- Ministry of Mines - Canada
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Latin American Coal - Colombia
- PTC India Limited - India
- Mintek Dendrill Indonesia
- Edison Trading Spa - Italy
- Bayan Resources Tbk. - Indonesia
- Manunggal Multi Energi - Indonesia
- Ambuja Cements Ltd - India
- OPG Power Generation Pvt Ltd - India
- Thiess Contractors Indonesia
- Indian Oil Corporation Limited
- GMR Energy Limited - India
- Videocon Industries ltd - India
- Mercator Lines Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Electricity Generating Authority of Thailand
- Indogreen Group - Indonesia
- Meralco Power Generation, Philippines
- Madhucon Powers Ltd - India
- Indo Tambangraya Megah - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- Alfred C Toepfer International GmbH - Germany
- Leighton Contractors Pty Ltd - Australia
- Holcim Trading Pte Ltd - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Cement Manufacturers Association - India
- Heidelberg Cement - Germany
- Tata Chemicals Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Singapore Mercantile Exchange
- Aditya Birla Group - India
- Asmin Koalindo Tuhup - Indonesia
- Attock Cement Pakistan Limited
- PetroVietnam Power Coal Import and Supply Company
- Rio Tinto Coal - Australia
- IHS Mccloskey Coal Group - USA
- Bhatia International Limited - India
- PowerSource Philippines DevCo
- PNOC Exploration Corporation - Philippines
- Romanian Commodities Exchange
- Star Paper Mills Limited - India
- Eastern Coal Council - USA
- Bhoruka Overseas - Indonesia
- Ministry of Finance - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Sarangani Energy Corporation, Philippines
- Australian Coal Association
- Merrill Lynch Commodities Europe
- Mercuria Energy - Indonesia
- Agrawal Coal Company - India
- Central Electricity Authority - India
- GVK Power & Infra Limited - India
- The State Trading Corporation of India Ltd
- Independent Power Producers Association of India
- The University of Queensland
- Parliament of New Zealand
- Trasteel International SA, Italy
- Kartika Selabumi Mining - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Coalindo Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Carbofer General Trading SA - India
- SMC Global Power, Philippines
- Samtan Co., Ltd - South Korea
- Bukit Makmur.PT - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Thai Mozambique Logistica
- Goldman Sachs - Singapore
- India Bulls Power Limited - India
- International Coal Ventures Pvt Ltd - India
- Parry Sugars Refinery, India
- Borneo Indobara - Indonesia
- Karaikal Port Pvt Ltd - India
- Siam City Cement - Thailand
- Coal and Oil Company - UAE
- Marubeni Corporation - India
- Makarim & Taira - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Sindya Power Generating Company Private Ltd
- Uttam Galva Steels Limited - India
- Tamil Nadu electricity Board
- Altura Mining Limited, Indonesia
- Chettinad Cement Corporation Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- South Luzon Thermal Energy Corporation
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Jorong Barutama Greston.PT - Indonesia
- Planning Commission, India
- London Commodity Brokers - England
- LBH Netherlands Bv - Netherlands
- Mjunction Services Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Barasentosa Lestari - Indonesia
- Sojitz Corporation - Japan
- Wood Mackenzie - Singapore
- Bangladesh Power Developement Board
- Deloitte Consulting - India
- Wilmar Investment Holdings
- ICICI Bank Limited - India
- Global Business Power Corporation, Philippines
- Sical Logistics Limited - India
- Central Java Power - Indonesia
- Eastern Energy - Thailand
- Toyota Tsusho Corporation, Japan
- CNBM International Corporation - China
- Africa Commodities Group - South Africa
- Georgia Ports Authority, United States
- Energy Link Ltd, New Zealand
- Interocean Group of Companies - India
- Globalindo Alam Lestari - Indonesia
- Antam Resourcindo - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petrochimia International Co. Ltd.- Taiwan
- TeaM Sual Corporation - Philippines
- IEA Clean Coal Centre - UK
- GAC Shipping (India) Pvt Ltd
- Ind-Barath Power Infra Limited - India
- Salva Resources Pvt Ltd - India
- Indonesian Coal Mining Association
- Simpson Spence & Young - Indonesia
- Bulk Trading Sa - Switzerland
- VISA Power Limited - India
- Dalmia Cement Bharat India
- Kohat Cement Company Ltd. - Pakistan
- Oldendorff Carriers - Singapore
- Energy Development Corp, Philippines
- SMG Consultants - Indonesia
- McConnell Dowell - Australia
- Coastal Gujarat Power Limited - India
- Indian Energy Exchange, India
- Australian Commodity Traders Exchange
- Siam City Cement PLC, Thailand
- Sree Jayajothi Cements Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Cigading International Bulk Terminal - Indonesia
- Commonwealth Bank - Australia
- Jaiprakash Power Ventures ltd
- Lanco Infratech Ltd - India
- Binh Thuan Hamico - Vietnam
- European Bulk Services B.V. - Netherlands
- Iligan Light & Power Inc, Philippines
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
- AsiaOL BioFuels Corp., Philippines
- Sinarmas Energy and Mining - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Aboitiz Power Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Electricity Authority, New Zealand
- New Zealand Coal & Carbon
- Straits Asia Resources Limited - Singapore
- Renaissance Capital - South Africa
- Power Finance Corporation Ltd., India
- Metalloyd Limited - United Kingdom
- Kepco SPC Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Timah Investasi Mineral - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Krishnapatnam Port Company Ltd. - India
- Miang Besar Coal Terminal - Indonesia
- Grasim Industreis Ltd - India
- Therma Luzon, Inc, Philippines
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