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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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Thursday, 12 November 09
GANGAVARAM PORT SETS RECORD BY DISCHARGING 80,514 TONNE OF COAL CARGO
Gangavaram Port, the deepest port in the country with water depth of 20 meters, has achieved an unprecedented milestone by discharging 80,514 metric ...
Thursday, 12 November 09
FOREIGN INVESTMENT IN RUSSIAN COAL SECTOR
Reuters reported that, Russia's coal mines, particularly in the Arctic and Far East, are attracting interest from foreign investors as commodity pr ...
Thursday, 12 November 09
BANPU TO INVEST US$ 466 M
Plan targets 33.5m tonnes of coal per year
Bangkok Post reported that, Banpu Plc, Asean's largest coal miner, is planning capital investments of ...
Wednesday, 11 November 09
NORTHSTAR TAKES 40 PER CENT OF INDONESIAN MINING COMPANY
AltAssets reported that, PT Northstar Pacific Partners, the Indonesian affiliate of US private equity firm TPG, has taken a 40 per cent stake in Ind ...
Wednesday, 11 November 09
INDONESIAN COAL MINERS SOLD BIG VOLUMES OF 2010 TO CHINA
* China has scooped up large volumes of Indonesian coal
* Total exports to China in 2010 seen to exceed 20 million T
* Chinese, Indian demand may ...
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- TeaM Sual Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- AsiaOL BioFuels Corp., Philippines
- Energy Link Ltd, New Zealand
- Baramulti Group, Indonesia
- Agrawal Coal Company - India
- Attock Cement Pakistan Limited
- Aboitiz Power Corporation - Philippines
- Central Java Power - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- Vizag Seaport Private Limited - India
- Malabar Cements Ltd - India
- Bhatia International Limited - India
- PNOC Exploration Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- Coalindo Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Kumho Petrochemical, South Korea
- Savvy Resources Ltd - HongKong
- Jorong Barutama Greston.PT - Indonesia
- Uttam Galva Steels Limited - India
- McConnell Dowell - Australia
- Global Green Power PLC Corporation, Philippines
- GVK Power & Infra Limited - India
- Indika Energy - Indonesia
- IEA Clean Coal Centre - UK
- Sinarmas Energy and Mining - Indonesia
- The State Trading Corporation of India Ltd
- Salva Resources Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Mjunction Services Limited - India
- SMG Consultants - Indonesia
- OPG Power Generation Pvt Ltd - India
- Indian Oil Corporation Limited
- The University of Queensland
- Australian Coal Association
- Tata Chemicals Ltd - India
- Tamil Nadu electricity Board
- Manunggal Multi Energi - Indonesia
- MS Steel International - UAE
- Dalmia Cement Bharat India
- Bahari Cakrawala Sebuku - Indonesia
- Intertek Mineral Services - Indonesia
- Wood Mackenzie - Singapore
- Posco Energy - South Korea
- Semirara Mining Corp, Philippines
- SN Aboitiz Power Inc, Philippines
- Maheswari Brothers Coal Limited - India
- European Bulk Services B.V. - Netherlands
- Petron Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Cigading International Bulk Terminal - Indonesia
- Eastern Coal Council - USA
- Heidelberg Cement - Germany
- Parliament of New Zealand
- Miang Besar Coal Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Planning Commission, India
- Gujarat Mineral Development Corp Ltd - India
- Price Waterhouse Coopers - Russia
- Siam City Cement PLC, Thailand
- Gujarat Electricity Regulatory Commission - India
- Orica Mining Services - Indonesia
- Larsen & Toubro Limited - India
- Timah Investasi Mineral - Indoneisa
- PTC India Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Kartika Selabumi Mining - Indonesia
- Bukit Baiduri Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- ASAPP Information Group - India
- Leighton Contractors Pty Ltd - Australia
- Ambuja Cements Ltd - India
- Samtan Co., Ltd - South Korea
- Lanco Infratech Ltd - India
- Power Finance Corporation Ltd., India
- Medco Energi Mining Internasional
- Karbindo Abesyapradhi - Indoneisa
- San Jose City I Power Corp, Philippines
- Borneo Indobara - Indonesia
- Minerals Council of Australia
- Simpson Spence & Young - Indonesia
- Ind-Barath Power Infra Limited - India
- Altura Mining Limited, Indonesia
- London Commodity Brokers - England
- Anglo American - United Kingdom
- Marubeni Corporation - India
- Meenaskhi Energy Private Limited - India
- International Coal Ventures Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Oldendorff Carriers - Singapore
- Riau Bara Harum - Indonesia
- Iligan Light & Power Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Asmin Koalindo Tuhup - Indonesia
- Economic Council, Georgia
- Bayan Resources Tbk. - Indonesia
- Coal and Oil Company - UAE
- LBH Netherlands Bv - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- SMC Global Power, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Eastern Energy - Thailand
- GAC Shipping (India) Pvt Ltd
- Georgia Ports Authority, United States
- Madhucon Powers Ltd - India
- PowerSource Philippines DevCo
- Banpu Public Company Limited - Thailand
- Chettinad Cement Corporation Ltd - India
- Renaissance Capital - South Africa
- Pendopo Energi Batubara - Indonesia
- Sakthi Sugars Limited - India
- Mintek Dendrill Indonesia
- Binh Thuan Hamico - Vietnam
- Xindia Steels Limited - India
- Ceylon Electricity Board - Sri Lanka
- Energy Development Corp, Philippines
- Kepco SPC Power Corporation, Philippines
- New Zealand Coal & Carbon
- Grasim Industreis Ltd - India
- Star Paper Mills Limited - India
- Ministry of Mines - Canada
- Mercator Lines Limited - India
- Makarim & Taira - Indonesia
- Kobexindo Tractors - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sical Logistics Limited - India
- Sarangani Energy Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Edison Trading Spa - Italy
- Orica Australia Pty. Ltd.
- Directorate Of Revenue Intelligence - India
- Bhoruka Overseas - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Rio Tinto Coal - Australia
- Independent Power Producers Association of India
- Electricity Authority, New Zealand
- Ministry of Finance - Indonesia
- White Energy Company Limited
- Ministry of Transport, Egypt
- Meralco Power Generation, Philippines
- Singapore Mercantile Exchange
- Bangladesh Power Developement Board
- Globalindo Alam Lestari - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Romanian Commodities Exchange
- Coastal Gujarat Power Limited - India
- Sojitz Corporation - Japan
- Deloitte Consulting - India
- Carbofer General Trading SA - India
- Port Waratah Coal Services - Australia
- ICICI Bank Limited - India
- Mercuria Energy - Indonesia
- The Treasury - Australian Government
- VISA Power Limited - India
- Antam Resourcindo - Indonesia
- Parry Sugars Refinery, India
- Metalloyd Limited - United Kingdom
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Sidhee Cement - India
- Bhushan Steel Limited - India
- Sindya Power Generating Company Private Ltd
- Thai Mozambique Logistica
- Alfred C Toepfer International GmbH - Germany
- Bulk Trading Sa - Switzerland
- Essar Steel Hazira Ltd - India
- Sree Jayajothi Cements Limited - India
- Thiess Contractors Indonesia
- Indian Energy Exchange, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Latin American Coal - Colombia
- Central Electricity Authority - India
- Barasentosa Lestari - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indonesian Coal Mining Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- CIMB Investment Bank - Malaysia
- Goldman Sachs - Singapore
- Trasteel International SA, Italy
- Global Business Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement - Thailand
- Vedanta Resources Plc - India
- CNBM International Corporation - China
- Videocon Industries ltd - India
- India Bulls Power Limited - India
- Australian Commodity Traders Exchange
- Toyota Tsusho Corporation, Japan
- Aditya Birla Group - India
- Jaiprakash Power Ventures ltd
- Cement Manufacturers Association - India
- Jindal Steel & Power Ltd - India
- Merrill Lynch Commodities Europe
- Therma Luzon, Inc, Philippines
- GMR Energy Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Commonwealth Bank - Australia
- Standard Chartered Bank - UAE
- Africa Commodities Group - South Africa
- Kapuas Tunggal Persada - Indonesia
- Bharathi Cement Corporation - India
- Kaltim Prima Coal - Indonesia
- Straits Asia Resources Limited - Singapore
- Wilmar Investment Holdings
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Interocean Group of Companies - India
- Indogreen Group - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Billiton Holdings Pty Ltd - Australia
- Chamber of Mines of South Africa
- Vijayanagar Sugar Pvt Ltd - India
- South Luzon Thermal Energy Corporation
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