Coal project updates
- BC Anthracite has been awarded 36 coal licences in the Groundhog Coalfield in British Columbia, Canada.
- Adani has concluded the final landholder compensation agreement relating to its Carmichael coal project in Queensland, Australia.
- Aurizon has secured a long-term contract extension with BHP Billiton for its Mt Arthur coal mine in the Hunter Valley, Australia, to June 2028.
Mining and coal production
- Mining groups have criticised proposed laws that would limit the use of fly-in fly-out (FIFO) workers in Queensland.
- US coal production to register its largest percentage fall since 1958 in 2016, dropping 12% on low utility consumption, declining exports and high utility stockpiles.
- Continued weakness in global oil prices remains positive for the mining industry, reducing operating costs by 4 – 5% this year.
- Coal stockpiles at Indian power plants have hit record highs as domestic coal production continues to grow strongly.
Half year reports
- China Shenhua Energy Co., the listed arm of Chinese largest coal company, Shenhua Group, has recorded a 21.2% fall in sales in February.
- Canada-focused anthracite development company, Atrum, has posted a half-year loss as it continues to progress development of its Groundhog project.
- TerraCom posts a AUS$71.4 million loss in 2H15 on asset impairments and foreign currency exchange losses.
- Lower production at Kangala and a falling rand has hit Universal Coal’s half-year results.
- Australian Pacific Coal announces a US$2.1 million loss in 2H15 but continues to progress its acquisition of the Dartbrook coal mine.
- Australian mining contractor, Mastermyne, has reported improved half-year results for its mining division, but the going remains tough for its engineering and maintenance division.
- Coal of Africa had a busy six months between July and December 2015 as its progressed development at Makhado and bid for Universal Coal.
- Coal carloads fell by over a third y/y in the week ending 12 March to hit another low.
- Aspire Mining is working to secure bridge funding to predevelopment work on the Erdenet-to-Ovoot rail line.
- Glencore is looking to sell its GTrain coal haulage business as part of a global push to reduce its massive debt pile.
- China thermal and metallurgical coal prices could rebound this year on the back of a government campaign to cut production.
- Thermal and metallurgical coal prices are expected to continue their downward slide this year with thermal coal facing significant potential challenge from global LNG glut.
US coal industry reacts to Clinton’s comments
- The US coal industry has hit back after Hillary Clinton said a lot of coal companies would be put out of business should she become president.
- Murray Energy Corp. responds to Hillary Clinton's statement that "we're gonna put a lot of coal miners and coal companies outta business."
Not to be missed …
- Peabody looked to be on the brink of Chapter 11 bankruptcy as it delayed interested payments under a 30-day grace period.
- The decline in US metallurgical coal exports is presenting a challenge to steelmakers.
- The EIA's Short-Term Energy Outlook is forecasting that 2016 will be the first year that natural gas-fired generation exceeds coal generation in the US on an annual basis.
Read the article online at: https://www.worldcoal.com/coal/18032016/a-week-in-coal-14-18-march-2016-428/