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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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Wednesday, 11 November 09
INDIAN COAL IMPORT FROM SA IN OCTOBER
Reuters reported that India imported 2.4 million tonnes of coal from South Africa's Richards Bay Coal Terminal in October 2009, 35% of the total of ...
Wednesday, 11 November 09
INDONESIA ASKS DOMESTIC COAL FIRMS TO SET ASIDE 30PCT OF OUTPUT
Indonesian government said that it had asked domestic coal producers to set aside 30% of their output next year to meet demand from new coal fired p ...
Wednesday, 11 November 09
MINING ACQUISITIONS BECOMING MORE STRATEGIC - E&Y
Mining Weekly reported that, Although miners around the world are looking to position themselves for growth, companies are being more selective when ...
Tuesday, 10 November 09
THAI COAL MINER BANPU Q3 NET UP, BEATS FORECAST
Reuters reported that, Thailand's top coal miner, Banpu, said on Tuesday its third-quarter net earnings rose a higher-than-expected 22 percent, hel ...
Monday, 09 November 09
NAPOCOR DEFERS 50,000 T COAL TENDER
Top Philippine electricity producer National Power Corp. (Napocor) has indefinitely postponed a tender for supply of 50,000 tons of steam coal sched ...
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- Riau Bara Harum - Indonesia
- Mjunction Services Limited - India
- International Coal Ventures Pvt Ltd - India
- Indika Energy - Indonesia
- Ambuja Cements Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bangladesh Power Developement Board
- Port Waratah Coal Services - Australia
- Tamil Nadu electricity Board
- Georgia Ports Authority, United States
- Wood Mackenzie - Singapore
- CIMB Investment Bank - Malaysia
- Directorate Of Revenue Intelligence - India
- Minerals Council of Australia
- Therma Luzon, Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Xindia Steels Limited - India
- VISA Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Alfred C Toepfer International GmbH - Germany
- IEA Clean Coal Centre - UK
- Meralco Power Generation, Philippines
- Marubeni Corporation - India
- Indonesian Coal Mining Association
- Lanco Infratech Ltd - India
- Samtan Co., Ltd - South Korea
- Larsen & Toubro Limited - India
- Karaikal Port Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Eastern Coal Council - USA
- Sarangani Energy Corporation, Philippines
- Makarim & Taira - Indonesia
- Grasim Industreis Ltd - India
- Planning Commission, India
- White Energy Company Limited
- Bahari Cakrawala Sebuku - Indonesia
- London Commodity Brokers - England
- Gujarat Mineral Development Corp Ltd - India
- Sojitz Corporation - Japan
- Indian Oil Corporation Limited
- The State Trading Corporation of India Ltd
- Wilmar Investment Holdings
- Cement Manufacturers Association - India
- Bhatia International Limited - India
- The Treasury - Australian Government
- Heidelberg Cement - Germany
- Aditya Birla Group - India
- South Luzon Thermal Energy Corporation
- Baramulti Group, Indonesia
- Global Coal Blending Company Limited - Australia
- Videocon Industries ltd - India
- Electricity Authority, New Zealand
- Intertek Mineral Services - Indonesia
- Rio Tinto Coal - Australia
- GN Power Mariveles Coal Plant, Philippines
- Renaissance Capital - South Africa
- Thai Mozambique Logistica
- ICICI Bank Limited - India
- LBH Netherlands Bv - Netherlands
- Simpson Spence & Young - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Kumho Petrochemical, South Korea
- Africa Commodities Group - South Africa
- Tata Chemicals Ltd - India
- PTC India Limited - India
- Trasteel International SA, Italy
- Miang Besar Coal Terminal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Chamber of Mines of South Africa
- Kobexindo Tractors - Indoneisa
- Essar Steel Hazira Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Parliament of New Zealand
- Carbofer General Trading SA - India
- Indo Tambangraya Megah - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Central Java Power - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Finance - Indonesia
- Banpu Public Company Limited - Thailand
- Altura Mining Limited, Indonesia
- Australian Coal Association
- Dalmia Cement Bharat India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Uttam Galva Steels Limited - India
- Orica Mining Services - Indonesia
- Economic Council, Georgia
- Mercator Lines Limited - India
- Formosa Plastics Group - Taiwan
- Gujarat Sidhee Cement - India
- Barasentosa Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- PowerSource Philippines DevCo
- Jaiprakash Power Ventures ltd
- IHS Mccloskey Coal Group - USA
- Gujarat Electricity Regulatory Commission - India
- Anglo American - United Kingdom
- Semirara Mining and Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thiess Contractors Indonesia
- Pendopo Energi Batubara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Standard Chartered Bank - UAE
- Coalindo Energy - Indonesia
- Bhoruka Overseas - Indonesia
- Latin American Coal - Colombia
- GVK Power & Infra Limited - India
- TeaM Sual Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Salva Resources Pvt Ltd - India
- Medco Energi Mining Internasional
- SN Aboitiz Power Inc, Philippines
- New Zealand Coal & Carbon
- Edison Trading Spa - Italy
- Malabar Cements Ltd - India
- MS Steel International - UAE
- Madhucon Powers Ltd - India
- Mintek Dendrill Indonesia
- Ministry of Transport, Egypt
- Sical Logistics Limited - India
- Kartika Selabumi Mining - Indonesia
- Straits Asia Resources Limited - Singapore
- San Jose City I Power Corp, Philippines
- Posco Energy - South Korea
- Sakthi Sugars Limited - India
- Bukit Makmur.PT - Indonesia
- Mercuria Energy - Indonesia
- Interocean Group of Companies - India
- Power Finance Corporation Ltd., India
- India Bulls Power Limited - India
- Bukit Baiduri Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- Merrill Lynch Commodities Europe
- Independent Power Producers Association of India
- Commonwealth Bank - Australia
- Energy Development Corp, Philippines
- Orica Australia Pty. Ltd.
- Sindya Power Generating Company Private Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Meenaskhi Energy Private Limited - India
- Directorate General of MIneral and Coal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- CNBM International Corporation - China
- Price Waterhouse Coopers - Russia
- Metalloyd Limited - United Kingdom
- ASAPP Information Group - India
- Asmin Koalindo Tuhup - Indonesia
- Romanian Commodities Exchange
- Timah Investasi Mineral - Indoneisa
- Ministry of Mines - Canada
- Vedanta Resources Plc - India
- Cigading International Bulk Terminal - Indonesia
- Toyota Tsusho Corporation, Japan
- Iligan Light & Power Inc, Philippines
- Semirara Mining Corp, Philippines
- Antam Resourcindo - Indonesia
- Vizag Seaport Private Limited - India
- Siam City Cement PLC, Thailand
- Electricity Generating Authority of Thailand
- Binh Thuan Hamico - Vietnam
- Kepco SPC Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Kaltim Prima Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhushan Steel Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Agrawal Coal Company - India
- The University of Queensland
- Siam City Cement - Thailand
- Coastal Gujarat Power Limited - India
- GMR Energy Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Star Paper Mills Limited - India
- Holcim Trading Pte Ltd - Singapore
- Coal and Oil Company - UAE
- Parry Sugars Refinery, India
- Kideco Jaya Agung - Indonesia
- Oldendorff Carriers - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Jindal Steel & Power Ltd - India
- SMG Consultants - Indonesia
- Chettinad Cement Corporation Ltd - India
- Borneo Indobara - Indonesia
- PNOC Exploration Corporation - Philippines
- Australian Commodity Traders Exchange
- Bulk Trading Sa - Switzerland
- Savvy Resources Ltd - HongKong
- Jorong Barutama Greston.PT - Indonesia
- Bharathi Cement Corporation - India
- Kalimantan Lumbung Energi - Indonesia
- Central Electricity Authority - India
- Indogreen Group - Indonesia
- Aboitiz Power Corporation - Philippines
- Goldman Sachs - Singapore
- McConnell Dowell - Australia
- Global Business Power Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Energy Link Ltd, New Zealand
- Global Green Power PLC Corporation, Philippines
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- European Bulk Services B.V. - Netherlands
- Pipit Mutiara Jaya. PT, Indonesia
- Globalindo Alam Lestari - Indonesia
- Petron Corporation, Philippines
- Singapore Mercantile Exchange
- SMC Global Power, Philippines
- Attock Cement Pakistan Limited
- Ind-Barath Power Infra Limited - India
- Eastern Energy - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Deloitte Consulting - India
- Leighton Contractors Pty Ltd - Australia
- OPG Power Generation Pvt Ltd - India
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