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