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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, 04 November 09
BINANI HOPES TO BUY INDONESIAN COAL MINE IN 2-3 MONTHS
"We are still negotiating, but hope to conclude the deal in the next two to three months," Binani Cement Managing Director Vinod Juneja to ...
Tuesday, 03 November 09
CHINA TO BE NET COAL IMPORTER IN 2009
China is accelerating its importation of coal to cope with fallen output caused by the consolidation of small coalmines, and is likely to become a n ...
Monday, 02 November 09
RIO TINTO WARNS ON CHEAP MONGOLIAN COAL
The Age reported that, Mining giant Rio Tinto has warned that cheap coal from Mongolia as well as congestion at the Port of Newcastle in NSW could u ...
Monday, 02 November 09
ESSAR SEEKS COAL ASSETS IN SOUTH AFRICA
Paguntaka reported that, Essar Group plans to acquire coal assets in South Africa to help boost its power business in India. A senior executive of E ...
Sunday, 01 November 09
MINES REGULATION AMENDMENT BILL TO BE TABLED IN PARLIAMENT
Thaindia News reported that, A bill seeking to amend the Mines and Minerals Development Regulation Act, 1957, will be introduced in the winter sessi ...
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- SMG Consultants - Indonesia
- Sindya Power Generating Company Private Ltd
- Jaiprakash Power Ventures ltd
- Agrawal Coal Company - India
- Aboitiz Power Corporation - Philippines
- Eastern Energy - Thailand
- Sarangani Energy Corporation, Philippines
- Riau Bara Harum - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Makmur.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Sakthi Sugars Limited - India
- Orica Mining Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Maharashtra Electricity Regulatory Commission - India
- Bukit Asam (Persero) Tbk - Indonesia
- South Luzon Thermal Energy Corporation
- Ind-Barath Power Infra Limited - India
- India Bulls Power Limited - India
- International Coal Ventures Pvt Ltd - India
- Uttam Galva Steels Limited - India
- IHS Mccloskey Coal Group - USA
- Coalindo Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Latin American Coal - Colombia
- Samtan Co., Ltd - South Korea
- Grasim Industreis Ltd - India
- Planning Commission, India
- Sinarmas Energy and Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Salva Resources Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Merrill Lynch Commodities Europe
- Economic Council, Georgia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mintek Dendrill Indonesia
- CNBM International Corporation - China
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ceylon Electricity Board - Sri Lanka
- Electricity Authority, New Zealand
- Aditya Birla Group - India
- Asmin Koalindo Tuhup - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indonesian Coal Mining Association
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Baramulti Group, Indonesia
- Georgia Ports Authority, United States
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Attock Cement Pakistan Limited
- Vizag Seaport Private Limited - India
- Miang Besar Coal Terminal - Indonesia
- Oldendorff Carriers - Singapore
- Orica Australia Pty. Ltd.
- Tamil Nadu electricity Board
- Heidelberg Cement - Germany
- Central Electricity Authority - India
- Kalimantan Lumbung Energi - Indonesia
- Indogreen Group - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Global Coal Blending Company Limited - Australia
- Globalindo Alam Lestari - Indonesia
- Chettinad Cement Corporation Ltd - India
- TeaM Sual Corporation - Philippines
- Bhushan Steel Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Videocon Industries ltd - India
- The Treasury - Australian Government
- Indian Oil Corporation Limited
- Global Business Power Corporation, Philippines
- Dalmia Cement Bharat India
- MS Steel International - UAE
- Karaikal Port Pvt Ltd - India
- Larsen & Toubro Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Posco Energy - South Korea
- GAC Shipping (India) Pvt Ltd
- Toyota Tsusho Corporation, Japan
- Kumho Petrochemical, South Korea
- Madhucon Powers Ltd - India
- Trasteel International SA, Italy
- Independent Power Producers Association of India
- Deloitte Consulting - India
- Makarim & Taira - Indonesia
- Bhoruka Overseas - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Goldman Sachs - Singapore
- Thiess Contractors Indonesia
- Billiton Holdings Pty Ltd - Australia
- OPG Power Generation Pvt Ltd - India
- Interocean Group of Companies - India
- Electricity Generating Authority of Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Wilmar Investment Holdings
- Parliament of New Zealand
- Meenaskhi Energy Private Limited - India
- Therma Luzon, Inc, Philippines
- VISA Power Limited - India
- Kartika Selabumi Mining - Indonesia
- Semirara Mining Corp, Philippines
- Ministry of Finance - Indonesia
- Marubeni Corporation - India
- New Zealand Coal & Carbon
- Altura Mining Limited, Indonesia
- Indo Tambangraya Megah - Indonesia
- Edison Trading Spa - Italy
- Pendopo Energi Batubara - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Singapore Mercantile Exchange
- Rashtriya Ispat Nigam Limited - India
- Simpson Spence & Young - Indonesia
- Kideco Jaya Agung - Indonesia
- Siam City Cement - Thailand
- Binh Thuan Hamico - Vietnam
- Africa Commodities Group - South Africa
- Gujarat Electricity Regulatory Commission - India
- Kobexindo Tractors - Indoneisa
- Renaissance Capital - South Africa
- Iligan Light & Power Inc, Philippines
- Energy Development Corp, Philippines
- Cigading International Bulk Terminal - Indonesia
- Ambuja Cements Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Malabar Cements Ltd - India
- Gujarat Sidhee Cement - India
- Directorate Of Revenue Intelligence - India
- Bulk Trading Sa - Switzerland
- PTC India Limited - India
- Rio Tinto Coal - Australia
- Anglo American - United Kingdom
- Kapuas Tunggal Persada - Indonesia
- Metalloyd Limited - United Kingdom
- Sojitz Corporation - Japan
- PetroVietnam Power Coal Import and Supply Company
- Australian Commodity Traders Exchange
- Port Waratah Coal Services - Australia
- Leighton Contractors Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- GVK Power & Infra Limited - India
- Xindia Steels Limited - India
- Mercator Lines Limited - India
- ASAPP Information Group - India
- Formosa Plastics Group - Taiwan
- Lanco Infratech Ltd - India
- Petron Corporation, Philippines
- Commonwealth Bank - Australia
- The State Trading Corporation of India Ltd
- Cement Manufacturers Association - India
- Coastal Gujarat Power Limited - India
- Siam City Cement PLC, Thailand
- Straits Asia Resources Limited - Singapore
- Bayan Resources Tbk. - Indonesia
- White Energy Company Limited
- Price Waterhouse Coopers - Russia
- Intertek Mineral Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Ministry of Transport, Egypt
- Global Green Power PLC Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Vedanta Resources Plc - India
- Wood Mackenzie - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- LBH Netherlands Bv - Netherlands
- Mjunction Services Limited - India
- Banpu Public Company Limited - Thailand
- Maheswari Brothers Coal Limited - India
- Essar Steel Hazira Ltd - India
- GMR Energy Limited - India
- Sree Jayajothi Cements Limited - India
- Romanian Commodities Exchange
- Chamber of Mines of South Africa
- Power Finance Corporation Ltd., India
- Indian Energy Exchange, India
- PNOC Exploration Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Barasentosa Lestari - Indonesia
- Medco Energi Mining Internasional
- Jindal Steel & Power Ltd - India
- Sical Logistics Limited - India
- Mercuria Energy - Indonesia
- The University of Queensland
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Borneo Indobara - Indonesia
- Minerals Council of Australia
- Thai Mozambique Logistica
- ICICI Bank Limited - India
- Australian Coal Association
- Indika Energy - Indonesia
- Central Java Power - Indonesia
- London Commodity Brokers - England
- Bhatia International Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Kaltim Prima Coal - Indonesia
- IEA Clean Coal Centre - UK
- Eastern Coal Council - USA
- Alfred C Toepfer International GmbH - Germany
- Coal and Oil Company - UAE
- Karbindo Abesyapradhi - Indoneisa
- Star Paper Mills Limited - India
- Bangladesh Power Developement Board
- Meralco Power Generation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Tata Chemicals Ltd - India
- Savvy Resources Ltd - HongKong
- Parry Sugars Refinery, India
- Standard Chartered Bank - UAE
- PowerSource Philippines DevCo
- Krishnapatnam Port Company Ltd. - India
- Timah Investasi Mineral - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Antam Resourcindo - Indonesia
- SMC Global Power, Philippines
- Bharathi Cement Corporation - India
- SN Aboitiz Power Inc, Philippines
- Carbofer General Trading SA - India
- Ministry of Mines - Canada
- McConnell Dowell - Australia
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