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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, 09 November 09
SAM'S SEAFOOD HOLDINGS SET TO COMMENCE DRILLING AT INDONESIAN COAL PROJECT
Proactive Investors reported that, Sam's Seafood Holdings is preparing to kick off diamond drilling at the company's Indonesian coal project after ...
Saturday, 07 November 09
THE STEAM COAL MOVEMENT FROM INDONESIA TO INDIA REMAINED QUITE STRONG - CAPT. REDDY
COALspot.com (Singapore): The BDI continued rising this week and was up by 290 points up by almost 9 pct and the index closed at 3,393 points.
B ...
Friday, 06 November 09
COAL INDIA ABANDONS PLAN TO BUY ASSET IN AUSTRALIA
Coal India’s efforts to acquire a mid-sized virgin thermal coal block from a private party in Australia have drawn a blank.
The effort was ...
Friday, 06 November 09
NTPC TO APPOINT MERCHANT BANKER FOR S AFRICA COAL MINE
State-run power producer NTPC, which is eyeing coal mines in South Africa to meet the gap in domestic fuel supply, will appoint a merchant banker ne ...
Thursday, 05 November 09
MERCATOR LINES AIMS TO BECOME A $5 BILLION COMPANY
Mercator Lines, India’s second largest private sector shipping line, plans to invest and expand, riding India’s next wave of growth, the ...
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- International Coal Ventures Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Sindya Power Generating Company Private Ltd
- ICICI Bank Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Ceylon Electricity Board - Sri Lanka
- Mjunction Services Limited - India
- Meenaskhi Energy Private Limited - India
- Bukit Baiduri Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meralco Power Generation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Cement Manufacturers Association - India
- Miang Besar Coal Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- Sical Logistics Limited - India
- Standard Chartered Bank - UAE
- Aditya Birla Group - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Larsen & Toubro Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Power Finance Corporation Ltd., India
- Global Business Power Corporation, Philippines
- Australian Coal Association
- Siam City Cement - Thailand
- Sojitz Corporation - Japan
- Parliament of New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- European Bulk Services B.V. - Netherlands
- San Jose City I Power Corp, Philippines
- The Treasury - Australian Government
- Asmin Koalindo Tuhup - Indonesia
- IHS Mccloskey Coal Group - USA
- Savvy Resources Ltd - HongKong
- Rashtriya Ispat Nigam Limited - India
- Port Waratah Coal Services - Australia
- Oldendorff Carriers - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Mintek Dendrill Indonesia
- Mercuria Energy - Indonesia
- Baramulti Group, Indonesia
- The State Trading Corporation of India Ltd
- Orica Mining Services - Indonesia
- Bharathi Cement Corporation - India
- Maheswari Brothers Coal Limited - India
- Siam City Cement PLC, Thailand
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- Eastern Energy - Thailand
- Chettinad Cement Corporation Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Romanian Commodities Exchange
- Parry Sugars Refinery, India
- Kapuas Tunggal Persada - Indonesia
- Gujarat Sidhee Cement - India
- Petrochimia International Co. Ltd.- Taiwan
- Indika Energy - Indonesia
- India Bulls Power Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Merrill Lynch Commodities Europe
- Global Coal Blending Company Limited - Australia
- Samtan Co., Ltd - South Korea
- Salva Resources Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Economic Council, Georgia
- Xindia Steels Limited - India
- OPG Power Generation Pvt Ltd - India
- GMR Energy Limited - India
- Medco Energi Mining Internasional
- Coalindo Energy - Indonesia
- Attock Cement Pakistan Limited
- Kalimantan Lumbung Energi - Indonesia
- Marubeni Corporation - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Wilmar Investment Holdings
- Toyota Tsusho Corporation, Japan
- LBH Netherlands Bv - Netherlands
- Orica Australia Pty. Ltd.
- SN Aboitiz Power Inc, Philippines
- Dalmia Cement Bharat India
- ASAPP Information Group - India
- Bangladesh Power Developement Board
- Intertek Mineral Services - Indonesia
- Africa Commodities Group - South Africa
- Semirara Mining Corp, Philippines
- Bhushan Steel Limited - India
- Ambuja Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Holcim Trading Pte Ltd - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Kideco Jaya Agung - Indonesia
- Directorate Of Revenue Intelligence - India
- Bukit Asam (Persero) Tbk - Indonesia
- TeaM Sual Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- Uttam Galva Steels Limited - India
- Petron Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Barasentosa Lestari - Indonesia
- Coastal Gujarat Power Limited - India
- Wood Mackenzie - Singapore
- IEA Clean Coal Centre - UK
- Indogreen Group - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Iligan Light & Power Inc, Philippines
- Grasim Industreis Ltd - India
- Essar Steel Hazira Ltd - India
- Edison Trading Spa - Italy
- Bayan Resources Tbk. - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Australian Commodity Traders Exchange
- Globalindo Alam Lestari - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Goldman Sachs - Singapore
- Kumho Petrochemical, South Korea
- Eastern Coal Council - USA
- Binh Thuan Hamico - Vietnam
- Posco Energy - South Korea
- GAC Shipping (India) Pvt Ltd
- PowerSource Philippines DevCo
- Timah Investasi Mineral - Indoneisa
- Price Waterhouse Coopers - Russia
- Kobexindo Tractors - Indoneisa
- Thiess Contractors Indonesia
- Videocon Industries ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Altura Mining Limited, Indonesia
- Commonwealth Bank - Australia
- Indo Tambangraya Megah - Indonesia
- Central Electricity Authority - India
- PTC India Limited - India
- Renaissance Capital - South Africa
- Ministry of Finance - Indonesia
- CNBM International Corporation - China
- Madhucon Powers Ltd - India
- PNOC Exploration Corporation - Philippines
- Electricity Generating Authority of Thailand
- Heidelberg Cement - Germany
- Kepco SPC Power Corporation, Philippines
- Chamber of Mines of South Africa
- Karaikal Port Pvt Ltd - India
- Anglo American - United Kingdom
- Independent Power Producers Association of India
- Bahari Cakrawala Sebuku - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Alfred C Toepfer International GmbH - Germany
- Borneo Indobara - Indonesia
- SMC Global Power, Philippines
- White Energy Company Limited
- Straits Asia Resources Limited - Singapore
- Sakthi Sugars Limited - India
- Billiton Holdings Pty Ltd - Australia
- Gujarat Mineral Development Corp Ltd - India
- Coal and Oil Company - UAE
- MS Steel International - UAE
- Bulk Trading Sa - Switzerland
- Tamil Nadu electricity Board
- Riau Bara Harum - Indonesia
- Ministry of Transport, Egypt
- McConnell Dowell - Australia
- New Zealand Coal & Carbon
- Karbindo Abesyapradhi - Indoneisa
- Vedanta Resources Plc - India
- Kartika Selabumi Mining - Indonesia
- Sarangani Energy Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Carbofer General Trading SA - India
- Trasteel International SA, Italy
- Sree Jayajothi Cements Limited - India
- Sinarmas Energy and Mining - Indonesia
- Electricity Authority, New Zealand
- SMG Consultants - Indonesia
- Formosa Plastics Group - Taiwan
- VISA Power Limited - India
- London Commodity Brokers - England
- Jaiprakash Power Ventures ltd
- Malabar Cements Ltd - India
- Indian Oil Corporation Limited
- Vijayanagar Sugar Pvt Ltd - India
- Deloitte Consulting - India
- Manunggal Multi Energi - Indonesia
- Aboitiz Power Corporation - Philippines
- Planning Commission, India
- Mercator Lines Limited - India
- Rio Tinto Coal - Australia
- Metalloyd Limited - United Kingdom
- Indian Energy Exchange, India
- Central Java Power - Indonesia
- Energy Link Ltd, New Zealand
- Ministry of Mines - Canada
- Kaltim Prima Coal - Indonesia
- Georgia Ports Authority, United States
- Singapore Mercantile Exchange
- Makarim & Taira - Indonesia
- Energy Development Corp, Philippines
- Banpu Public Company Limited - Thailand
- Ind-Barath Power Infra Limited - India
- Bhatia International Limited - India
- The University of Queensland
- Krishnapatnam Port Company Ltd. - India
- Agrawal Coal Company - India
- Tata Chemicals Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Indonesian Coal Mining Association
- Latin American Coal - Colombia
- CIMB Investment Bank - Malaysia
- Minerals Council of Australia
- Global Green Power PLC Corporation, Philippines
- Star Paper Mills Limited - India
- Interocean Group of Companies - India
- GVK Power & Infra Limited - India
- Lanco Infratech Ltd - India
- Thai Mozambique Logistica
- Simpson Spence & Young - Indonesia
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