CoalWatch study questions benefits of Raven coal mine

CoalWatch Comox Valley is releasing a report entitled Does the Comox Valley need the Raven Underground Coal Mine? Prepared by Dr Joan Kuyek, the document is a socio-economic review of the costs and benefits to communities near the proposed project.

CoalWatch president Mr John Snyder said that “The proponents of the Raven project have only jobs and local economic impacts to offer as benefits to the Comox Valley for this proposed coal mine.” He said that “Dr Kuyek’s report calls both of those into serious question.”

Some of the issues discussed in the seven-page report include jobs, local government revenues and costs, and likely impacts of the Raven project on specific components of the region’s economic development plan.

Mr Synder further said that “We are very fortunate in having someone with Dr. Kuyek’s expertise in preparing this report. Joan’s past work with MiningWatch Canada gives her the qualifications to review mining projects and their socio-economic impacts on communities.”

Dr Kuyek has also been retained by CoalWatch and the Alberni Environmental Coalition to review the mine proponents’ socio-economic impact study when it is made public as part of the environmental assessment review process.

Mr Snyder said that “With the limited amount of socio-economic impact information available in the environmental review process, this report is a good start in beginning a public dialogue on the socio-economic impacts of this massive coal mine project in our communities.”

Source - comoxvalleyrecord.com

(www.steelguru.com)

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Xstrata Coal seeks partner for Donkin Coal

Xstrata Coal Donkin Management Limited and Erdene Resource Development Corp announced that Xstrata Coal is seeking an operating coal company to assume its interest in the Donkin Coal project.

Xstrata Coal holds a 75% interest and Erdene holds a 25% interest in the Donkin Coal project joint venture, a proposed multi continuous miner underground operation at the site of the existing Donkin Mine located in Cape Breton, Nova Scotia, Canada.

Mr Peter Freyberg CEO of Xstrata Coal said that "Over the past decade, Xstrata Coal has evolved, as has our business strategy, and core to that is a focus on larger volume mining complexes. We believe the Donkin Coal project is a valuable asset to a qualified partner and remain positive about its viability. We will continue to work closely with Erdene and the Province of Nova Scotia to secure an operating partner to advance the project to production.”

Erdene president and CEO, Mr Peter Akerley said that "We would like to thank Xstrata for their contribution to the project and look forward to working with a new operating partner that will continue to advance the project towards production. The Donkin Coal project has unique attributes including its location on tidewater, its production readiness and its ability to deliver both a very high energy thermal coal and metallurgical grade coal with a proven track record of use in global steel manufacturing."

It is anticipated that the sale process will be concluded during 2012, with the selection of an entity with the mining experience, technical expertise and financial capability to operate this underground mine safely and efficiently. Erdene has a 60-day right of first refusal on the sale by Xstrata Coal of its interest in the Donkin project.

During this process the project timelines will be maintained with the planned completion of the environmental assessment, progression of engineering work and obtaining the necessary approvals for commencement of the underground exploration phase. The Canadian Environmental Assessment Agency approval process, which is required for project permission, is on track and full environmental approval is anticipated in early 2013. It's estimated the Donkin mine will produce 2.75 million washed product tonnes per year and will directly employ about 300 people, targeting commencement of coal production by mid 2014.

Xstrata Coal, under the joint venture agreement, is committed to fund the first $10 million of Erdene's development funding requirement. Xstrata Coal will bring forward up to USD 1 million of this to cover Erdene's share of expenditure on the project during the sales process.

Source - Xstrata Coal

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Lexington Energy update on Chilean coal project option

Lexington Energy Services Inc reports that as per the agreement signed on April 19th 2012 with Maria Ines Moraga Latapiat of Santiago, Chile, it has an exclusive option to acquire 100% interest in a Minor Maritime Concession, issued by the Republic of Chile, Ministry of National Defense, located in a sector of the seabed in the area known as Bahia de Lota, Municipality of Lota, Province of Concepcion, 8th Region of Bio-Bio, Chile.

Under the terms of the option the Company will make payments totaling USD 408,000 over a three year period, incur exploration/development expenditures of $500,000 and upon exercise of the option, issue to Ms Latapiat 5,000,000 shares of the Company's common stock. Ms Latapiat will also retain a 3% Net Profits Interest from all revenue generated by the concession.

The Concession, which encompasses 660,000 square meters of sea floor to retrieve bituminous thermal coal in stratum as well as two hectares of industrial land, holds a current resource of 275,000 proven and 90,000 probable metric tones of recoverable bituminous thermal coal in zone 1, according to a geological report dated September 2011, and is believed to be open on all sides for expansion. The current trading price average of the coal is USD 113 per tonne based on Australian thermal coal fob. Newcastle/Port Kembla. Adjacent zones are believed to contain additional recoverable resources of similar grade coal. The Company plans to explore those zones as part of its ongoing exploration activities.

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Indian white coal gains popularity in Europe

Commodity Online reported that the white Coal produced from agricultural waste in Rajasthan has gained popularity in European countries.

The white coal produces very low level of carbon which helps to protect the environment as result the demand for the commodity has been rising in Europe

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Zimbabwe Hwange Colliery plans to ship coal through Maputo

Bloomberg cited Mr Oliver Maponga Business Development Manager as saying that Hwange Colliery Ltd Zimbabwe largest coal miner plans to ship 30,000 to 50,000 tonnes of coal a month through Mozambique’s port of Maputo.

Mr Maponga said Hwange is in talks with port authorities after starting to use Mozambique central Beira port last year. The company which produces 400,000 tons of coal a month is studying markets in India China and Western Europe.

(Sourced from Reuters)

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Afferro Mining identifies significant iron ore target at Ntem in Cameroon

Shares in Afferro Mining said that it has identified a significant target within its Ntem iron ore permit in south west Cameroon.

Following interpretation of the latest airborne geophysical survey over the property, the company said it has identified a number of prospective targets at Ntem.

The strongest of these displays magnetic properties similar to those of the company projects in Putu in Liberia and Nkout in Cameroon. The target has a strike length of approximately two kilometres and is one kilometer wide.

Afferro said it will undertake a systematic geological exploration program leading to reconnaissance drilling in the first quarter of 2012.

Mr Luis da Silva CEO of Afferro Mining said "This latest interpretation is significant for the company in terms of strengthening our project portfolio and implementing our strategy in Cameroon, where we have already made considerable progress with our Nkout iron ore project.”

He said that “The Ntem project is located 80 kilometres from the coast and close to the same proposed railway infrastructure that the company's Nkout project is expected to use. We look forward to the results of the grab sampling and subsequent reconnaissance drilling in early 2012."

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Coal shortage hits power generation at NTPC Ramagundam unit

It is reported that power generation at NTPC Ramagundam super thermal power project located in Andhra Pradesh has been adversely impacted due to shortage of coal supply from Singareni Collieries Company Ltd.

SCCL miners are agitating in support for separate statehood of Telangana. Of the 2,600-MW of installed capacity at Ramagundam, NTPC plant is able to generate about 1,520 MW from the six units of 2,100 MW. It has shut down the seventh unit of 500 MW from Saturday due to coal shortage as it does not make sense to generate power with low plant load factor.

A spokesperson of NTPC told Business Line that "In spite of making alterative arrangements from Mahanadi Coalfields, South Eastern Coalfields and from mines in Chhattisgarh and Orissa and making other alternative arrangements from Coal India Ltd, we are able to generate only about 1,520 MW today."

As against average requirement of about 36,000 tonnes per day, NTPC now has supplies for about 18,000 tonnes.

The power generated from NTPC Ramagundam is supplied as per the allocation made to various southern States. Accordingly Andhra Pradesh gets about 31.5%, Tamil Nadu 25%, Karnataka 19%, Kerala 15%, Puducherry and Goa about 5% respectively.

(Sourced from www.thehindubusinessline.com)

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CIL maintains stand on bonus issue

Press Trust of India reported that Coal India stands firm on its decision of bonus payment to the workers despite their threat of a one-day strike on October 10.

Mr NC Jha Coal India Chairman said "There is no plan to review the bonus offer from us."

He said if the unions go ahead with the strike, the miner would lose 0.8 million tonne to 1 million tonne in coal production, while the revenue loss would be INR 120 crore.

Coal unions have said they'll go on a strike across mines including in Singareni Coal Companies, if their demand for a minimum INR 25,000 bonus is not accepted by the management. CIL on the other hand has offered INR 17,000 against INR 15,000 offered last year.

With the company registering a shortfall in production in August and September due to rains, the strike would make it difficult for the company to meet the projected production target of 452 million tonnes for the current fiscal.

Meanwhile, Mr Alok Perti Coal Secretary while addressing the seminar said there is need for simplification of the procedures in acquisition norms to help the PSUs in buying overseas energy assets.

He said that "Time is essence. In this aspect, private sector has an advantage over the PSUs to take quick decisions," he said.

CIL in the past has failed to act swiftly due to procedural hindrances and some of the overseas coal assets went to other bidders.

(Sourced from Press Trust of India)

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Shenhua Energy coal output in Aug up by 20pct YoY

It is reported that China Shenhua Energy posted a 20.3%YoY rise in commercial coal output in August to 23.7 million tonnes.

Coal sales in August rose 21.9%YoY to 30.6 million tonne of which exports hit 500,000 tons down by 44.4%. The railway network owned by Shenhua Energy posted a 6.3%YoY increase in throughput to 13.6 billion tonne kilometers.

The company recorded a 34.6%YoY rise in power sales in August to 16.84 billion kWh while power output totalled 18.1 billion kWh.

(Sourced from sina.com)

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Indian power utilities import 8pct more coal in August

Bloomberg quoted India Coal Market Watch said electric utilities in India increased coal imports in August to 3.19 million tonnes up by 8% from July.

It said the Central Electricity Authority a supervisory body set a target to import 4.6 million tonnes of coal for power plants last month.

It said imports rose 81%YoY to 17.9 million tonnes in the first five month of the year. That compares with a government target of 35 million tonnes.

(Sourced from Bloomberg)

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Bureau of Meteorology- Rain risks for Queensland Bowen and Galilee coal basins

According to the Bureau of Meteorology said posing a threat to recovery of coal supplies from the region this year that the chance of above median rainfall in the coal-producing Bowen and Galilee basins in Queensland is about 60% to 70%.

Maps released as part of the bureau seasonal outlook for October to December this year showed most of the Bowen with a 65% chance of above-median rainfall while the developing Galilee basin has a 70% chance of above median rains.

Heavy rainfall throughout the last southern tropical wet season caused severe disruptions to Queensland coal exports with knock on effects in the global markets for coking coal and the steel which uses it as a raw material.

Australia accounts for about 56% of coking coal traded by sea with the Bowen accounting for the vast majority of that total and the previous year rains caused the price of premium hard coking coal to spike 50% as high as USD 330 a tonne.

According to CoalPortal coking coal is trading around USD 285 per tonne at Australian ports.

Around 350 millimeters of rain fell at Moranbah at the heart of the Bowen during peak months during the 2010-11 and 2007-08 wet seasons. The bureau rainfall outlook suggests that isn't yet likely with the chance of at least 200 millimeters of rain little over 50% for October to December in most parts of the Bowen.

(Sourced from www.theaustralian.com.au)

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Indian coal ministry seeks status report on captive blocks from firms

Having already issued a warning to coal block allottees that have failed to develop mines awarded to them in a timely fashion, the government has now asked these firms to furnish a status report on progress made on these delayed projects in the July to September quarter.

The Coal Ministry said "You are requested to send detailed information for the quarter ending September 2011 in respect of allocated coal/lignite blocks and associated end use projects along with the reasons for delays in implementation of the coal/lignite project to this office by September 30."

In May, the coal ministry took a decision to deallocate 14 coal blocks and one lignite block and issued warnings in respect to 29 coal and three lignite mine allottees asking the concerned companies to commence production in time.

The companies whose coal blocks were deallocated include NTPC, Andhra Pradesh Power Generation Corporation, Bhatia International, Shree Bhaidyanath Ayurved Bhavan, Jharkhand State Electricity Board, Damodar Valley Corporation and Gondawana Ispat Ltd among others.

(Sourced from Economic Times)

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Coal towns urged to consider renewable future

It is reported that a new USD 100,000 report has identified Muswellbrook and Singleton as future renewable energy hubs.

The Upper Hunter Diversification Report was commissioned by the six Upper Hunter councils, co funded by the State Government and is being released to Singleton councillors this week.

It attempts to signal where the Hunter jobs will come from over the next 25 years and as the coal boom subsides.

Singleton Council Ms Salena Avard said because of the skilled mine labour force in Muswellbrook and Singleton, the towns would be perfect for the production of renewable energy technologies.

She said "Singleton has a really fantastic set of skills that are associated both with the mining industry but professional services and all sorts of support industries."

She added that "I think there is an opportunity for us to have a look at where we can transfer those skills. Everyone recognizes that the mining industry is going to be here for some time yet but certainly life after mining is a consideration of this report."

(Sourced from www.abc.net.au)

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Prophecy Coal receives Mongolian government endorsement for power plant project

Prophecy Coal announced that the Mongolian Ministry of Natural Resources and Energy has officially endorsed its proposed Chandgana Power Plant project.
Last August, the company which is focused on energy, nickel and platinum group metals projects, appointed local Mongolian consultants to initiate feasibility and other studies on the planned 600MW Chandgana mine power plant as Prophecy holds the Chandgana coal deposit in central Mongolia.

The thermal power plant will be connected with Mongolia's existing Central and Eastern energy systems, part of the long-term development policy of the country to supply cleaner energy. It will be built directly beside Prophecy's permitted Chandgana Tal coal project.

The company said that as the power plant project scales up to 4,200MW there is potential to export the surplus power to China, with Beijing located just 1,000 kilometres to the south.

In April 2011, Prophecy submitted its application for power plant licensing to the Mongolian Energy Regulatory Authority which has also received the endorsement. Prophecy said it expects for the ERA to issue its final decision with regards to its application in the fourth quarter of the year.

Prophecy also said that it has been in discussions with several engineering, procurement and construction contractors in the hopes of finalizing an EPC contract immediately following the receipt of the power plant license.

(Sourced from www.steelguru.com)

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SinoCoking Coal and Coke Chemical announces results

SinoCoking Coal and Coke Chemical Industries Inc a vertically integrated coal and coke processor announced its financial results for the fourth quarter and fiscal year ended June 30 2011.

1. Fourth Quarter 2011 vs. 2010

I. Revenue increased by 126% to USD 24,661,738 from USD 10,886,577 mainly due to increased coke sales as well as the increased overall prices for all products.

II. Pre-tax income decreased to USD 15,892,450 as compared to USD 64,831,078.

III. Net income was USD 14,277,144 or USD 0.68 per diluted share as compared to a net income of USD 64,527,083 or USD 3.08 per diluted share.

2. Fiscal Year 2011 vs. 2010

I. Total revenue increased by 26% to USD 74,287,993 from USD 59,027,490 mainly due to increased coke and washed coal sales.

II. Revenue from the sale of coal products increased by 16% to approximately USD 35 million.

III. Revenue from the sale of raw coal products decreased 34% from a year earlier, in spite of the 17% increase in average selling price. As a result of the mining moratorium, we were unable to produce or secure sufficient raw coal from other producers to sell.

IV. Revenue from the sale of washed coal products increased 180% from a year earlier, as we sold some of our washed coal inventory to take advantage of the 40% increase in average selling prices resulting from the increase in raw coal price.

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India and Turkey to cooperate in coal sector

Mr Sriprakash Jaiswal minister of coal met Mr Taner YILDIZ minister for energy and natural resources government of Turkey and other officials on the sidelines of the 22nd World Mining Congress inaugural session on September 12th 2011 at Istanbul, Turkey.

Mr Jaiswal is leading an Indian delegation there to participate in World Mining Congress. Both the ministers discussed about the energy situation in the two countries, particularly the field of coal mining.

India’s coal minister offered technical cooperation to develop coal and lignite deposits and coal washing in Turkey. Turkey’s Energy Minister evinced keen interest for technical cooperation with India in coal mining and clean coal technologies. He said that Turkey is planning to set up some 15000 MW coal based power generation plants and requested Indian companies to participate in the tenders. Both the ministers agreed for future cooperation in coal related areas.

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Cobalt Coal announces private placement financing to raise USD 6 million

Cobalt Coal Ltd announced that it has engaged Mackie Research Capital Corporation to act as lead agent on a financing for the Company to raise USD 6,000,000 through the completion of a brokered private placement. The Offering will be in the form of common shares of the Company at a price of USD 0.12 per Share.


The entering into of the engagement letter with Mackie to act as lead agent of Cobalt for the Offering is in furtherance of previous press releases made by Cobalt over the last three months including the June 8 2011 and July 21 2011 press releases regarding the restructuring initiatives that management of Cobalt has determined are necessary to transition the Company into a profitable, producing metallurgical coal mining company.

The Offering is subject to the approval of the TSX Venture Exchange. Pursuant to applicable securities laws, all securities issued pursuant to the Offering will be subject to a hold period of four months following the closing of the Offering.

With the closing of certain restructuring transactions and the completion of a minimum private placement of $2,078,500 on August 19, 2011, Cobalt has
I). Retired certain of its senior debt
II). Acquired the Westchester Coal Limited Partnership
III). Acquired a continuous miner
IV). Reduced the amount of Cobalt debentures outstanding such that the balance of the remaining outstanding debentures are expected to be repaid from Cobalt's cash flow by December 15 2011.
As a result of the decrease in the outstanding debt only USD 1,000,000 of the proceeds raised through the Offering will be used to retire debt, specifically the residual indebtedness to Cobalt senior lender. The remainder of the proceeds of the Offering will be used to acquire mining equipment to perform infrastructure upgrades at Cobalt Westchester/Westchester Expansion mine and for working capital purposes.

Management of Cobalt remains confident that production volumes will increase and operating costs will be materially reduced as a result of the addition of the new equipment and the completion of the proposed infrastructure upgrades.

In connection with the Offering, Cobalt will pay cash commission and grant compensation options to Mackie to purchase 8% of the number of Shares sold under the Offering with each Compensation Option entitling the holder to purchase one Share at USD 0.12 per Share for a period of 18 months from the closing of the Offering.

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Banks Group calls for changes in planning regulations on coal mining

A county Durham Mining and development firm has called for changes in the planning regulations on coal mining, so it can invest more in renewable energy.

The family owned Banks Group has called on the Government to remove the presumption against coal mining which presently exists, as it reviews planning regulations. The Durham City based firm, which runs surface mines across northern England and Scotland, also has an expanding renewable energy division which has secured a number of multi million pound onshore wind farm projects.

Mr Mark Dowdall, environment and community director at the Banks Group, employing 400, said it was partly through its coal mining operations that it was able to afford to invest in renewable energy research. The firm put its concerns to planning minister Mr Bob Neill, who visited one of its mines in Northumberland, and called for the presumption against coal mining to be removed.

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Lanco termination of coal supply pact wrong - Perdaman

After Lanco Infratech announced recently the formal termination of coal supply pact with the company, Australia's Perdaman Industries termed the Indian group's move as "wrongful".

Perdaman in a statement said that "Immediately upon receipt of the purported notice of termination Perdaman gave notice to Griffin Coal and Lanco that the purported termination was wrongful and a further breach of the Coal Supply Agreement (CSA) by Griffin.”

Amid the two companies locked in a AUD 3.5 billion legal tussle in Australia, Griffin Coal a subsidiary of Lanco has terminated the coal supply agreement with Perdaman Chemicals and Fertilizers.

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Dynegy takes full ownership of coal holding co

Reuters reported that Independent power producer Dynegy Inc has bought Dynegy Coal Holdco, the indirect parent of its coal fueled unit a division it had recently formed as a part of its debt restructuring process.

The value of Dynegy equity stake in Coal Holdco is USD 1.25 billion including debt. Dynegy bought the ownership of Coal Holdco from its former direct parent Dynegy Gas Investments.

Dynegy in August completed a USD 1.7 billion debt restructuring deal and separated its coal fueled and gas fueled units to help pay off maturing debt. The refinancing comprised a USD 1.1 billion loan to its gas unit Dynegy Power and a USD 600 million loan to its coal unit.

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