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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, 12 November 09
GANGAVARAM PORT SETS RECORD BY DISCHARGING 80,514 TONNE OF COAL CARGO
Gangavaram Port, the deepest port in the country with water depth of 20 meters, has achieved an unprecedented milestone by discharging 80,514 metric ...
Thursday, 12 November 09
FOREIGN INVESTMENT IN RUSSIAN COAL SECTOR
Reuters reported that, Russia's coal mines, particularly in the Arctic and Far East, are attracting interest from foreign investors as commodity pr ...
Thursday, 12 November 09
BANPU TO INVEST US$ 466 M
Plan targets 33.5m tonnes of coal per year
Bangkok Post reported that, Banpu Plc, Asean's largest coal miner, is planning capital investments of ...
Wednesday, 11 November 09
NORTHSTAR TAKES 40 PER CENT OF INDONESIAN MINING COMPANY
AltAssets reported that, PT Northstar Pacific Partners, the Indonesian affiliate of US private equity firm TPG, has taken a 40 per cent stake in Ind ...
Wednesday, 11 November 09
INDONESIAN COAL MINERS SOLD BIG VOLUMES OF 2010 TO CHINA
* China has scooped up large volumes of Indonesian coal
* Total exports to China in 2010 seen to exceed 20 million T
* Chinese, Indian demand may ...
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- Globalindo Alam Lestari - Indonesia
- Chettinad Cement Corporation Ltd - India
- Coalindo Energy - Indonesia
- Borneo Indobara - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Ambuja Cements Ltd - India
- Kumho Petrochemical, South Korea
- Renaissance Capital - South Africa
- Tata Chemicals Ltd - India
- Mjunction Services Limited - India
- Holcim Trading Pte Ltd - Singapore
- Metalloyd Limited - United Kingdom
- Standard Chartered Bank - UAE
- TNB Fuel Sdn Bhd - Malaysia
- Aboitiz Power Corporation - Philippines
- India Bulls Power Limited - India
- Baramulti Group, Indonesia
- Australian Coal Association
- Central Java Power - Indonesia
- Medco Energi Mining Internasional
- Wood Mackenzie - Singapore
- Pendopo Energi Batubara - Indonesia
- Economic Council, Georgia
- Neyveli Lignite Corporation Ltd, - India
- Vijayanagar Sugar Pvt Ltd - India
- GMR Energy Limited - India
- Kaltim Prima Coal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Singapore Mercantile Exchange
- Jorong Barutama Greston.PT - Indonesia
- Eastern Coal Council - USA
- Coal and Oil Company - UAE
- Trasteel International SA, Italy
- Energy Development Corp, Philippines
- Power Finance Corporation Ltd., India
- Global Green Power PLC Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Bukit Baiduri Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Formosa Plastics Group - Taiwan
- Energy Link Ltd, New Zealand
- Binh Thuan Hamico - Vietnam
- Indonesian Coal Mining Association
- Altura Mining Limited, Indonesia
- Semirara Mining Corp, Philippines
- Mercator Lines Limited - India
- IEA Clean Coal Centre - UK
- Petrochimia International Co. Ltd.- Taiwan
- Sinarmas Energy and Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- LBH Netherlands Bv - Netherlands
- Bhatia International Limited - India
- European Bulk Services B.V. - Netherlands
- London Commodity Brokers - England
- Jindal Steel & Power Ltd - India
- Videocon Industries ltd - India
- Gujarat Sidhee Cement - India
- Central Electricity Authority - India
- Siam City Cement PLC, Thailand
- Merrill Lynch Commodities Europe
- Global Coal Blending Company Limited - Australia
- ASAPP Information Group - India
- Malabar Cements Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Tamil Nadu electricity Board
- Kepco SPC Power Corporation, Philippines
- The University of Queensland
- Kideco Jaya Agung - Indonesia
- The State Trading Corporation of India Ltd
- CIMB Investment Bank - Malaysia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ministry of Mines - Canada
- Attock Cement Pakistan Limited
- Sindya Power Generating Company Private Ltd
- Aditya Birla Group - India
- Barasentosa Lestari - Indonesia
- OPG Power Generation Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Indogreen Group - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Carbofer General Trading SA - India
- International Coal Ventures Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Xindia Steels Limited - India
- San Jose City I Power Corp, Philippines
- Parliament of New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Toyota Tsusho Corporation, Japan
- Leighton Contractors Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Vizag Seaport Private Limited - India
- PNOC Exploration Corporation - Philippines
- Planning Commission, India
- Samtan Co., Ltd - South Korea
- Indo Tambangraya Megah - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Bharathi Cement Corporation - India
- Antam Resourcindo - Indonesia
- Interocean Group of Companies - India
- Global Business Power Corporation, Philippines
- Lanco Infratech Ltd - India
- SMC Global Power, Philippines
- Sarangani Energy Corporation, Philippines
- Ministry of Transport, Egypt
- Bangladesh Power Developement Board
- Bukit Asam (Persero) Tbk - Indonesia
- Ind-Barath Power Infra Limited - India
- Kobexindo Tractors - Indoneisa
- Directorate General of MIneral and Coal - Indonesia
- Uttam Galva Steels Limited - India
- Semirara Mining and Power Corporation, Philippines
- Indika Energy - Indonesia
- Goldman Sachs - Singapore
- Australian Commodity Traders Exchange
- Thiess Contractors Indonesia
- Price Waterhouse Coopers - Russia
- Bhushan Steel Limited - India
- Savvy Resources Ltd - HongKong
- Vedanta Resources Plc - India
- Essar Steel Hazira Ltd - India
- GAC Shipping (India) Pvt Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Port Waratah Coal Services - Australia
- Georgia Ports Authority, United States
- Therma Luzon, Inc, Philippines
- Petron Corporation, Philippines
- Dalmia Cement Bharat India
- Billiton Holdings Pty Ltd - Australia
- Chamber of Mines of South Africa
- CNBM International Corporation - China
- Salva Resources Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Africa Commodities Group - South Africa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bulk Trading Sa - Switzerland
- Orica Mining Services - Indonesia
- Simpson Spence & Young - Indonesia
- Siam City Cement - Thailand
- Maheswari Brothers Coal Limited - India
- MS Steel International - UAE
- VISA Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- Rio Tinto Coal - Australia
- Kartika Selabumi Mining - Indonesia
- Parry Sugars Refinery, India
- Electricity Authority, New Zealand
- Kapuas Tunggal Persada - Indonesia
- Sical Logistics Limited - India
- Meralco Power Generation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Coastal Gujarat Power Limited - India
- Indian Energy Exchange, India
- Latin American Coal - Colombia
- Timah Investasi Mineral - Indoneisa
- PetroVietnam Power Coal Import and Supply Company
- Pipit Mutiara Jaya. PT, Indonesia
- Edison Trading Spa - Italy
- Anglo American - United Kingdom
- Heidelberg Cement - Germany
- IHS Mccloskey Coal Group - USA
- Sojitz Corporation - Japan
- Independent Power Producers Association of India
- Gujarat Mineral Development Corp Ltd - India
- Mercuria Energy - Indonesia
- White Energy Company Limited
- Indian Oil Corporation Limited
- ICICI Bank Limited - India
- Deloitte Consulting - India
- Intertek Mineral Services - Indonesia
- Makarim & Taira - Indonesia
- Marubeni Corporation - India
- Straits Asia Resources Limited - Singapore
- Bhoruka Overseas - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Eastern Energy - Thailand
- Alfred C Toepfer International GmbH - Germany
- Minerals Council of Australia
- Cigading International Bulk Terminal - Indonesia
- Grasim Industreis Ltd - India
- Mintek Dendrill Indonesia
- Manunggal Multi Energi - Indonesia
- Banpu Public Company Limited - Thailand
- Sree Jayajothi Cements Limited - India
- PowerSource Philippines DevCo
- Maharashtra Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- Directorate Of Revenue Intelligence - India
- Jaiprakash Power Ventures ltd
- Orica Australia Pty. Ltd.
- Thai Mozambique Logistica
- SMG Consultants - Indonesia
- Larsen & Toubro Limited - India
- Bayan Resources Tbk. - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- The Treasury - Australian Government
- Romanian Commodities Exchange
- Miang Besar Coal Terminal - Indonesia
- Riau Bara Harum - Indonesia
- Agrawal Coal Company - India
- Posco Energy - South Korea
- SN Aboitiz Power Inc, Philippines
- New Zealand Coal & Carbon
- Electricity Generating Authority of Thailand
- Wilmar Investment Holdings
- Madhucon Powers Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Cement Manufacturers Association - India
- GVK Power & Infra Limited - India
- South Luzon Thermal Energy Corporation
- Karaikal Port Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Commonwealth Bank - Australia
- PTC India Limited - India
- McConnell Dowell - Australia
- Star Paper Mills Limited - India
- Asmin Koalindo Tuhup - Indonesia
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