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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, 05 November 09
HMS BERGBAU AG OPENING INDIAN OFFICE
Further step on internationalization track Office in Mumbai Participation in demand for coal imports
HMS Bergbau AG, is an international coal tra ...
Thursday, 05 November 09
SAM'S SEAFOOD HOLDINGS MOVES STEP CLOSER TO COAL EXPLORATION IN INDONESIA
Sam’s Seafood Holdings Limited, which is proposed to be renamed Pan Asia Corporation Limited, is moving closer to becoming an exploration and ...
Wednesday, 04 November 09
INDONESIA CAP ON COAL EXPORTS MAY HIT INDIAN POWER SECTOR
BL reported that Karnataka power sector is likely to be partially impacted by the Indonesian Government move to restrict coal exports.
Private se ...
Wednesday, 04 November 09
SA 2010 COAL EXPORTS SEEN AT 65M TO 68M TONS - ANALYSTS
South Africa's thermal coal exports could rise to as high as 68 million tonnes in 2010 but are more likely to be 64-65 million compared to 60 milli ...
Wednesday, 04 November 09
BAKRIE MAY WIN BERAU COAL BID FROM ARMADIAN
The Bakrie group is likely to be selected as buyer of PT Berau Coal, the country’s fifth-largest coal producer, two people familiar with the m ...
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- Jorong Barutama Greston.PT - Indonesia
- Siam City Cement - Thailand
- Siam City Cement PLC, Thailand
- Jaiprakash Power Ventures ltd
- Bhoruka Overseas - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Chettinad Cement Corporation Ltd - India
- The University of Queensland
- Kartika Selabumi Mining - Indonesia
- Larsen & Toubro Limited - India
- The State Trading Corporation of India Ltd
- Latin American Coal - Colombia
- Mercuria Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Orica Mining Services - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Samtan Co., Ltd - South Korea
- Attock Cement Pakistan Limited
- Leighton Contractors Pty Ltd - Australia
- Minerals Council of Australia
- Bangladesh Power Developement Board
- Economic Council, Georgia
- Neyveli Lignite Corporation Ltd, - India
- Miang Besar Coal Terminal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Global Green Power PLC Corporation, Philippines
- Power Finance Corporation Ltd., India
- Marubeni Corporation - India
- Vizag Seaport Private Limited - India
- Kumho Petrochemical, South Korea
- Chamber of Mines of South Africa
- Coastal Gujarat Power Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Edison Trading Spa - Italy
- Asmin Koalindo Tuhup - Indonesia
- Indonesian Coal Mining Association
- India Bulls Power Limited - India
- Ambuja Cements Ltd - India
- Bulk Trading Sa - Switzerland
- Sinarmas Energy and Mining - Indonesia
- Electricity Generating Authority of Thailand
- Posco Energy - South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Vedanta Resources Plc - India
- Petron Corporation, Philippines
- Borneo Indobara - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Intertek Mineral Services - Indonesia
- Mercator Lines Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Riau Bara Harum - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Savvy Resources Ltd - HongKong
- Malabar Cements Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Ind-Barath Power Infra Limited - India
- Energy Link Ltd, New Zealand
- Altura Mining Limited, Indonesia
- Gujarat Sidhee Cement - India
- Ministry of Mines - Canada
- Singapore Mercantile Exchange
- Wood Mackenzie - Singapore
- Indian Oil Corporation Limited
- Timah Investasi Mineral - Indoneisa
- Therma Luzon, Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Kapuas Tunggal Persada - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Wilmar Investment Holdings
- SN Aboitiz Power Inc, Philippines
- Orica Australia Pty. Ltd.
- Gujarat Electricity Regulatory Commission - India
- Planning Commission, India
- Bukit Makmur.PT - Indonesia
- Madhucon Powers Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Kobexindo Tractors - Indoneisa
- OPG Power Generation Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Meralco Power Generation, Philippines
- Standard Chartered Bank - UAE
- Salva Resources Pvt Ltd - India
- Bharathi Cement Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- Sarangani Energy Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Ministry of Transport, Egypt
- Renaissance Capital - South Africa
- International Coal Ventures Pvt Ltd - India
- Xindia Steels Limited - India
- Videocon Industries ltd - India
- London Commodity Brokers - England
- Global Coal Blending Company Limited - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Romanian Commodities Exchange
- European Bulk Services B.V. - Netherlands
- Manunggal Multi Energi - Indonesia
- Coalindo Energy - Indonesia
- Sojitz Corporation - Japan
- Interocean Group of Companies - India
- VISA Power Limited - India
- McConnell Dowell - Australia
- Alfred C Toepfer International GmbH - Germany
- SMC Global Power, Philippines
- Star Paper Mills Limited - India
- Global Business Power Corporation, Philippines
- Australian Coal Association
- Uttam Galva Steels Limited - India
- GAC Shipping (India) Pvt Ltd
- ASAPP Information Group - India
- PTC India Limited - India
- Indo Tambangraya Megah - Indonesia
- TeaM Sual Corporation - Philippines
- Trasteel International SA, Italy
- Central Java Power - Indonesia
- Pendopo Energi Batubara - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Grasim Industreis Ltd - India
- Semirara Mining Corp, Philippines
- Barasentosa Lestari - Indonesia
- Karaikal Port Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Jindal Steel & Power Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Agrawal Coal Company - India
- Georgia Ports Authority, United States
- GN Power Mariveles Coal Plant, Philippines
- Electricity Authority, New Zealand
- Antam Resourcindo - Indonesia
- Bhushan Steel Limited - India
- PNOC Exploration Corporation - Philippines
- Heidelberg Cement - Germany
- CNBM International Corporation - China
- Parliament of New Zealand
- LBH Netherlands Bv - Netherlands
- Price Waterhouse Coopers - Russia
- Medco Energi Mining Internasional
- Independent Power Producers Association of India
- Merrill Lynch Commodities Europe
- Aditya Birla Group - India
- Baramulti Group, Indonesia
- Bayan Resources Tbk. - Indonesia
- IHS Mccloskey Coal Group - USA
- Eastern Coal Council - USA
- Banpu Public Company Limited - Thailand
- Thiess Contractors Indonesia
- GVK Power & Infra Limited - India
- Anglo American - United Kingdom
- Ministry of Finance - Indonesia
- Goldman Sachs - Singapore
- Indogreen Group - Indonesia
- Toyota Tsusho Corporation, Japan
- Tamil Nadu electricity Board
- Kepco SPC Power Corporation, Philippines
- GMR Energy Limited - India
- Aboitiz Power Corporation - Philippines
- MS Steel International - UAE
- Indian Energy Exchange, India
- CIMB Investment Bank - Malaysia
- IEA Clean Coal Centre - UK
- Makarim & Taira - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Carbofer General Trading SA - India
- New Zealand Coal & Carbon
- Sindya Power Generating Company Private Ltd
- Simpson Spence & Young - Indonesia
- Central Electricity Authority - India
- Sree Jayajothi Cements Limited - India
- Thai Mozambique Logistica
- Tata Chemicals Ltd - India
- Sakthi Sugars Limited - India
- Oldendorff Carriers - Singapore
- Coal and Oil Company - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- ICICI Bank Limited - India
- Bhatia International Limited - India
- Eastern Energy - Thailand
- Deloitte Consulting - India
- Rio Tinto Coal - Australia
- Maheswari Brothers Coal Limited - India
- Lanco Infratech Ltd - India
- Cement Manufacturers Association - India
- Binh Thuan Hamico - Vietnam
- South Luzon Thermal Energy Corporation
- Meenaskhi Energy Private Limited - India
- Semirara Mining and Power Corporation, Philippines
- White Energy Company Limited
- Globalindo Alam Lestari - Indonesia
- San Jose City I Power Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Commonwealth Bank - Australia
- Dalmia Cement Bharat India
- Australian Commodity Traders Exchange
- Port Waratah Coal Services - Australia
- Energy Development Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Africa Commodities Group - South Africa
- PowerSource Philippines DevCo
- Krishnapatnam Port Company Ltd. - India
- Formosa Plastics Group - Taiwan
- Kaltim Prima Coal - Indonesia
- Mintek Dendrill Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Parry Sugars Refinery, India
- Bukit Asam (Persero) Tbk - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- SMG Consultants - Indonesia
- Directorate Of Revenue Intelligence - India
- Mjunction Services Limited - India
- Indika Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Sical Logistics Limited - India
- Holcim Trading Pte Ltd - Singapore
- Metalloyd Limited - United Kingdom
- Bukit Baiduri Energy - Indonesia
- The Treasury - Australian Government
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