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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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Tuesday, 20 October 09
COAL PRICES TO SURGE IN 2010 DESPITE AMPLE SUPPLY
Commodity Online reported that, Coal prices are indeed destined to go higher as they follow the rise of ‘coal currencies’ such as Austra ...
Tuesday, 20 October 09
INDIA MAY CUT STAKE IN NTPC BY DECEMBER, POWER SECRETARY SAYS
Bloomberg reported that, India’s government may sell a 5 percent stake in NTPC Ltd., the country’s biggest power producer, as early as D ...
Monday, 19 October 09
COAL PRICE UP AGAIN - RICHARDS BAY TERMINAL
Export prices rose 45 cents, or 0.7%, to an average of 64.05 a metric ton in the week ended Oct. 16, according to McCloskey Group.
The week was & ...
Monday, 19 October 09
COAL MINISTRY SEEKS EXPLANATION FROM AP GENCO
The Hindu Business reported that, the Coal Ministry has asked the Power Generation Corporation of Andhra Pradesh (AP Genco) to explain why there was ...
Monday, 19 October 09
CEMENT UNLIKELY TO COST MORE DESPITE COAL PRICE HIKE
Business-Standard reported that, Cement manufacturers will not immediately hike prices of the construction material, despite a surge in their input ...
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- PTC India Limited - India
- Alfred C Toepfer International GmbH - Germany
- Mintek Dendrill Indonesia
- Pendopo Energi Batubara - Indonesia
- Bangladesh Power Developement Board
- Altura Mining Limited, Indonesia
- Bhushan Steel Limited - India
- Bayan Resources Tbk. - Indonesia
- Agrawal Coal Company - India
- GVK Power & Infra Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Jorong Barutama Greston.PT - Indonesia
- Lanco Infratech Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Indian Oil Corporation Limited
- Kohat Cement Company Ltd. - Pakistan
- Singapore Mercantile Exchange
- Coastal Gujarat Power Limited - India
- Simpson Spence & Young - Indonesia
- Bukit Baiduri Energy - Indonesia
- White Energy Company Limited
- Orica Mining Services - Indonesia
- Intertek Mineral Services - Indonesia
- Banpu Public Company Limited - Thailand
- VISA Power Limited - India
- Latin American Coal - Colombia
- Global Green Power PLC Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Therma Luzon, Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sinarmas Energy and Mining - Indonesia
- McConnell Dowell - Australia
- Trasteel International SA, Italy
- Xindia Steels Limited - India
- CNBM International Corporation - China
- Tamil Nadu electricity Board
- Chamber of Mines of South Africa
- Deloitte Consulting - India
- Miang Besar Coal Terminal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Business Power Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Leighton Contractors Pty Ltd - Australia
- European Bulk Services B.V. - Netherlands
- Star Paper Mills Limited - India
- India Bulls Power Limited - India
- ICICI Bank Limited - India
- Makarim & Taira - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Sojitz Corporation - Japan
- Karbindo Abesyapradhi - Indoneisa
- Australian Commodity Traders Exchange
- SN Aboitiz Power Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Kartika Selabumi Mining - Indonesia
- ASAPP Information Group - India
- Madhucon Powers Ltd - India
- Samtan Co., Ltd - South Korea
- GAC Shipping (India) Pvt Ltd
- Electricity Generating Authority of Thailand
- Oldendorff Carriers - Singapore
- Chettinad Cement Corporation Ltd - India
- Goldman Sachs - Singapore
- Indo Tambangraya Megah - Indonesia
- Posco Energy - South Korea
- Meralco Power Generation, Philippines
- Siam City Cement PLC, Thailand
- Larsen & Toubro Limited - India
- Kumho Petrochemical, South Korea
- The State Trading Corporation of India Ltd
- Bulk Trading Sa - Switzerland
- Meenaskhi Energy Private Limited - India
- PowerSource Philippines DevCo
- Carbofer General Trading SA - India
- Manunggal Multi Energi - Indonesia
- Commonwealth Bank - Australia
- Eastern Energy - Thailand
- CIMB Investment Bank - Malaysia
- Karaikal Port Pvt Ltd - India
- Coalindo Energy - Indonesia
- Malabar Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Neyveli Lignite Corporation Ltd, - India
- Heidelberg Cement - Germany
- Sindya Power Generating Company Private Ltd
- Orica Australia Pty. Ltd.
- Holcim Trading Pte Ltd - Singapore
- SMC Global Power, Philippines
- Directorate Of Revenue Intelligence - India
- Vizag Seaport Private Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Videocon Industries ltd - India
- Mercator Lines Limited - India
- Semirara Mining Corp, Philippines
- Power Finance Corporation Ltd., India
- Planning Commission, India
- Bhatia International Limited - India
- Binh Thuan Hamico - Vietnam
- Eastern Coal Council - USA
- Global Coal Blending Company Limited - Australia
- LBH Netherlands Bv - Netherlands
- Medco Energi Mining Internasional
- Riau Bara Harum - Indonesia
- Globalindo Alam Lestari - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Edison Trading Spa - Italy
- Antam Resourcindo - Indonesia
- Port Waratah Coal Services - Australia
- Savvy Resources Ltd - HongKong
- Bhoruka Overseas - Indonesia
- Price Waterhouse Coopers - Russia
- Aditya Birla Group - India
- Semirara Mining and Power Corporation, Philippines
- Ministry of Finance - Indonesia
- IEA Clean Coal Centre - UK
- Directorate General of MIneral and Coal - Indonesia
- Tata Chemicals Ltd - India
- IHS Mccloskey Coal Group - USA
- Baramulti Group, Indonesia
- SMG Consultants - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Marubeni Corporation - India
- Economic Council, Georgia
- Sarangani Energy Corporation, Philippines
- Minerals Council of Australia
- Mjunction Services Limited - India
- Billiton Holdings Pty Ltd - Australia
- Jindal Steel & Power Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Timah Investasi Mineral - Indoneisa
- Cement Manufacturers Association - India
- Kideco Jaya Agung - Indonesia
- Central Electricity Authority - India
- Ambuja Cements Ltd - India
- Australian Coal Association
- Ind-Barath Power Infra Limited - India
- Bharathi Cement Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- The University of Queensland
- Kobexindo Tractors - Indoneisa
- Indogreen Group - Indonesia
- GMR Energy Limited - India
- Salva Resources Pvt Ltd - India
- Thai Mozambique Logistica
- Formosa Plastics Group - Taiwan
- Rashtriya Ispat Nigam Limited - India
- Georgia Ports Authority, United States
- Maheswari Brothers Coal Limited - India
- International Coal Ventures Pvt Ltd - India
- Coal and Oil Company - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kepco SPC Power Corporation, Philippines
- The Treasury - Australian Government
- MS Steel International - UAE
- Barasentosa Lestari - Indonesia
- Toyota Tsusho Corporation, Japan
- Indika Energy - Indonesia
- Grasim Industreis Ltd - India
- Electricity Authority, New Zealand
- Energy Development Corp, Philippines
- Merrill Lynch Commodities Europe
- Bukit Asam (Persero) Tbk - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Mines - Canada
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kaltim Prima Coal - Indonesia
- South Luzon Thermal Energy Corporation
- Sree Jayajothi Cements Limited - India
- Rio Tinto Coal - Australia
- Wilmar Investment Holdings
- Indonesian Coal Mining Association
- Essar Steel Hazira Ltd - India
- Attock Cement Pakistan Limited
- Mercuria Energy - Indonesia
- Gujarat Sidhee Cement - India
- Metalloyd Limited - United Kingdom
- Straits Asia Resources Limited - Singapore
- Standard Chartered Bank - UAE
- Renaissance Capital - South Africa
- New Zealand Coal & Carbon
- Central Java Power - Indonesia
- Parry Sugars Refinery, India
- Anglo American - United Kingdom
- Uttam Galva Steels Limited - India
- Borneo Indobara - Indonesia
- Ministry of Transport, Egypt
- San Jose City I Power Corp, Philippines
- Indian Energy Exchange, India
- Gujarat Electricity Regulatory Commission - India
- OPG Power Generation Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- London Commodity Brokers - England
- Petron Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Africa Commodities Group - South Africa
- Thiess Contractors Indonesia
- TeaM Sual Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Parliament of New Zealand
- Romanian Commodities Exchange
- Interocean Group of Companies - India
- Siam City Cement - Thailand
- Independent Power Producers Association of India
- Dalmia Cement Bharat India
- TNB Fuel Sdn Bhd - Malaysia
- Wood Mackenzie - Singapore
- Sakthi Sugars Limited - India
- Vedanta Resources Plc - India
- Bahari Cakrawala Sebuku - Indonesia
- Sical Logistics Limited - India
- Energy Link Ltd, New Zealand
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