Coal Age

MAY 2013

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news continued Continued from pg 8... compared to the same period last year. Japan was the largest export destination (52.8%), while coal exports to China made up 18.2% of the total. Ukraine Imposes Coking-Coal Import Quota Ukraine's government imposed a quota on imports of coking coal, used to make steel, and banned inbound shipments of coke this year to aid domestic producers. Coking-coal imports were set at 10.2 million metric tons this year, according to a decree published on the cabinet's website. Local producers supply about 37% of the nation's coking coal, Interfax reported. Beacon Hill Commissions Minas Moatize Prep Plant Mozambique coal miner Beacon Hill Resources recently commissioned the Minas Moatize wash plant. Coking coal production began in May. Phase 2A of the Minas Moatize project sees the plant capacity increased to 1.8 million metric tons (mt) run of mine coal with the saleable product transported to port by rail. The plant, built and designed in South Africa and transported to Tete, was redesigned in November 2012 to be more capital efficient. Notably, its design took into account the consultants collective experience from Vale and Rio Tinto's wash plants with regard to maximizing the coke fraction in the fine coal. Indonesia Coal Output Meets First Quarter Target Indonesia, currently among the world's largest thermal coal exporters, met its target for coal output during the first quarter of this year, an official said. Energy and Mineral Resources Ministry Coal Director Edi Prasodjo said Indonesia produced 99 million metric tons (mt) of coal in the first three months of this year. Roughly 80% of the coal produced in the period had been exported. He said Indonesia aims to produce a total of 391 million mt in 2013. Raspadskaya's Raw Coal Output Up by 42% Reuters reported that Russian coking coal miner Raspadskaya said it produced 2.3 million metric tons (mt) of raw coal in the first quarter of 2013, a 42% year-on-year rise helped by increased capacity. The company, controlled by steelmaker Evraz, said sales of semihard coking coal rose 49%, year-on-year, to 1.4 million mt, while sales of hard coking coal fell 38% to 85,000 mt. South African Continental Coal Acquired South African junior miner Continental Coal has acquired all of the outstanding shares in Mashala Resources, bringing its ownership of the Ferreira and Penumbra thermal coal mines to 100%, according to Platts . Continental first acquired 64.1% of the unlisted miner in September 2010, with plans to acquire the 35.9% balance in the future under the terms of the option agreements in cash or with the issuance of ordinary shares in the company up to an equivalent value. ˛ 10 www.coalage.com the state, through its resources, has contributed 176 quadrillion Btus to the nation's energy supply. "This is enough to power the entire nation's electricity grids for more than eight years," said Chris Carroll, a WSGS coal geologist. "Our estimates for recoverable reserves show we can continue to produce this valuable resource long into the future, as well as expand into other potential international and economically viable markets." Current production data, via historical and other records, also reveals 9.86 billion tons of coal has been mined in Wyoming through Q1 2013, Carroll said. Wyoming's North Antelope Rochelle and Black Thunder mines alone, for instance, accounted for 20% of U.S. coal production in 2012 tons. Last year, according to Carroll, Wyoming mines produced 401 million tons, worth more than $4 billion. Despite the difficulties facing the industry, people like Marion Loomis, executive director of the Wyoming Mining Association, are optimistic about the industry in his home state for decades to come. "The industry looks forward to supplying power from Wyoming coal—affordably, reliably—for the next 100 years," he said. OSM Budget Strengthens Compliance and Invests in Scientific Studies President Obama's proposed $143.1 million in discretionary funding for the Office of Surface Mining Reclamation and Enforcement (OSM) in fiscal year (FY) 2014 focuses funding on improving compliance with coal production laws and "reducing federal subsidies to the coal industry." The budget request also provides $1.6 million for "scientific studies" and proposes changes in mandatory funding to address the most critical needs for reclaiming abandoned coal mine sites. The proposed discretionary budget is a decrease of $7.1 million from the bureau's FY 2012 enacted level, reflecting cost-cutting measures and tough budget priorities. The new budget provides an increase of $4 million to improve enforcement. Overall, state and tribal regulatory grants are funded at $57.7 million, a reduction of $11 million from 2012. The FY 2014 budget encourages primacy states to maintain funding levels for their regulatory programs by increasing the fees that each state charges the coal industry for reviewing, administering and inspecting permits. Likewise, where OSM is the regulatory authority for coal mining operations (Tennessee, Washington, and on Indian lands), the budget calls for a reduction in the costs of administration, which will be offset by $2.4 million in fees that OSM proposes to collect from industry for the permitting and inspection services OSM provides. In FY 2014, OSM will distribute an estimated $468.5 million in mandatory funds under the Abandoned Mine Land (AML) program. These funds are not subject to an annual appropriation. Of this total, the budget proposes $273.5 million for high-priority abandoned coal mine reclamation and provides $195 million for payments to the United Mine Workers of America Health Plans. With regard to the reclamation fee that mine operators pay on each ton of coal produced, the FY 2014 budget proposes to return rates to the levels in effect before Congress reduced the fee in 2006. The president's budget will focus the additional funds on the highest priority remaining AML sites. To reduce the deficit, the administration will submit legislation to terminate mandatory payments to the states and tribes that May 2013

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