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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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- Energy Development Corp, Philippines
- Sindya Power Generating Company Private Ltd
- MS Steel International - UAE
- Global Coal Blending Company Limited - Australia
- Anglo American - United Kingdom
- Asia Pacific Energy Resources Ventures Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Iligan Light & Power Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- GVK Power & Infra Limited - India
- Lanco Infratech Ltd - India
- Indo Tambangraya Megah - Indonesia
- Globalindo Alam Lestari - Indonesia
- Xindia Steels Limited - India
- Alfred C Toepfer International GmbH - Germany
- Kartika Selabumi Mining - Indonesia
- Mercator Lines Limited - India
- European Bulk Services B.V. - Netherlands
- Sarangani Energy Corporation, Philippines
- Africa Commodities Group - South Africa
- Coalindo Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Goldman Sachs - Singapore
- Mercuria Energy - Indonesia
- Deloitte Consulting - India
- Australian Coal Association
- Miang Besar Coal Terminal - Indonesia
- Simpson Spence & Young - Indonesia
- VISA Power Limited - India
- Indian Oil Corporation Limited
- Intertek Mineral Services - Indonesia
- Formosa Plastics Group - Taiwan
- Barasentosa Lestari - Indonesia
- Grasim Industreis Ltd - India
- Cement Manufacturers Association - India
- Vijayanagar Sugar Pvt Ltd - India
- ICICI Bank Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Bhatia International Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Krishnapatnam Port Company Ltd. - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Cigading International Bulk Terminal - Indonesia
- Jindal Steel & Power Ltd - India
- Ambuja Cements Ltd - India
- Kepco SPC Power Corporation, Philippines
- Siam City Cement - Thailand
- Eastern Coal Council - USA
- Minerals Council of Australia
- Independent Power Producers Association of India
- Antam Resourcindo - Indonesia
- Pendopo Energi Batubara - Indonesia
- Thai Mozambique Logistica
- Rashtriya Ispat Nigam Limited - India
- Essar Steel Hazira Ltd - India
- Global Green Power PLC Corporation, Philippines
- Port Waratah Coal Services - Australia
- Jaiprakash Power Ventures ltd
- Aditya Birla Group - India
- Baramulti Group, Indonesia
- SMC Global Power, Philippines
- Wilmar Investment Holdings
- Mintek Dendrill Indonesia
- Merrill Lynch Commodities Europe
- Semirara Mining Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- IEA Clean Coal Centre - UK
- Ceylon Electricity Board - Sri Lanka
- Economic Council, Georgia
- Videocon Industries ltd - India
- Larsen & Toubro Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Latin American Coal - Colombia
- Price Waterhouse Coopers - Russia
- The University of Queensland
- Orica Mining Services - Indonesia
- London Commodity Brokers - England
- McConnell Dowell - Australia
- Karaikal Port Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Meralco Power Generation, Philippines
- Sojitz Corporation - Japan
- CNBM International Corporation - China
- South Luzon Thermal Energy Corporation
- Georgia Ports Authority, United States
- Planning Commission, India
- LBH Netherlands Bv - Netherlands
- Electricity Generating Authority of Thailand
- Kaltim Prima Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- GN Power Mariveles Coal Plant, Philippines
- Manunggal Multi Energi - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Siam City Cement PLC, Thailand
- TeaM Sual Corporation - Philippines
- Riau Bara Harum - Indonesia
- Ministry of Mines - Canada
- Dalmia Cement Bharat India
- Wood Mackenzie - Singapore
- Global Business Power Corporation, Philippines
- New Zealand Coal & Carbon
- Parliament of New Zealand
- Borneo Indobara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Vedanta Resources Plc - India
- Altura Mining Limited, Indonesia
- Kobexindo Tractors - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Renaissance Capital - South Africa
- Chettinad Cement Corporation Ltd - India
- Central Electricity Authority - India
- Bukit Makmur.PT - Indonesia
- Star Paper Mills Limited - India
- CIMB Investment Bank - Malaysia
- Thiess Contractors Indonesia
- Tamil Nadu electricity Board
- Timah Investasi Mineral - Indoneisa
- Sical Logistics Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Ind-Barath Power Infra Limited - India
- Interocean Group of Companies - India
- Salva Resources Pvt Ltd - India
- GMR Energy Limited - India
- Orica Australia Pty. Ltd.
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indonesian Coal Mining Association
- Kumho Petrochemical, South Korea
- Rio Tinto Coal - Australia
- White Energy Company Limited
- Indian Energy Exchange, India
- Aboitiz Power Corporation - Philippines
- Indika Energy - Indonesia
- Marubeni Corporation - India
- Chamber of Mines of South Africa
- Karbindo Abesyapradhi - Indoneisa
- Singapore Mercantile Exchange
- Directorate General of MIneral and Coal - Indonesia
- Bulk Trading Sa - Switzerland
- Trasteel International SA, Italy
- Toyota Tsusho Corporation, Japan
- Uttam Galva Steels Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SN Aboitiz Power Inc, Philippines
- Bharathi Cement Corporation - India
- Neyveli Lignite Corporation Ltd, - India
- Kideco Jaya Agung - Indonesia
- Agrawal Coal Company - India
- Binh Thuan Hamico - Vietnam
- GAC Shipping (India) Pvt Ltd
- Kapuas Tunggal Persada - Indonesia
- Ministry of Transport, Egypt
- Vizag Seaport Private Limited - India
- Makarim & Taira - Indonesia
- Romanian Commodities Exchange
- Central Java Power - Indonesia
- Savvy Resources Ltd - HongKong
- Oldendorff Carriers - Singapore
- Australian Commodity Traders Exchange
- Bhushan Steel Limited - India
- Medco Energi Mining Internasional
- Electricity Authority, New Zealand
- Sakthi Sugars Limited - India
- Gujarat Sidhee Cement - India
- Carbofer General Trading SA - India
- Sinarmas Energy and Mining - Indonesia
- Straits Asia Resources Limited - Singapore
- Malabar Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Tata Chemicals Ltd - India
- The Treasury - Australian Government
- Directorate Of Revenue Intelligence - India
- Pipit Mutiara Jaya. PT, Indonesia
- Heidelberg Cement - Germany
- Bahari Cakrawala Sebuku - Indonesia
- Samtan Co., Ltd - South Korea
- Indogreen Group - Indonesia
- Petron Corporation, Philippines
- Coal and Oil Company - UAE
- Gujarat Electricity Regulatory Commission - India
- San Jose City I Power Corp, Philippines
- Bhoruka Overseas - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Holcim Trading Pte Ltd - Singapore
- Madhucon Powers Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Mjunction Services Limited - India
- Ministry of Finance - Indonesia
- India Bulls Power Limited - India
- Posco Energy - South Korea
- Therma Luzon, Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Bangladesh Power Developement Board
- Standard Chartered Bank - UAE
- Eastern Energy - Thailand
- Banpu Public Company Limited - Thailand
- Energy Link Ltd, New Zealand
- PTC India Limited - India
- Meenaskhi Energy Private Limited - India
- Coastal Gujarat Power Limited - India
- Maheswari Brothers Coal Limited - India
- PowerSource Philippines DevCo
- PNOC Exploration Corporation - Philippines
- SMG Consultants - Indonesia
- Attock Cement Pakistan Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Power Finance Corporation Ltd., India
- Edison Trading Spa - Italy
- OPG Power Generation Pvt Ltd - India
- ASAPP Information Group - India
- IHS Mccloskey Coal Group - USA
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Commonwealth Bank - Australia
- Parry Sugars Refinery, India
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