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