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Issue link: https://coal.epubxp.com/i/131326
news continued TOP 10 COAL-PRODUCING STATES W O R L D (in Thousand Short Tons) Week Ending (2/23/13) YTD '13 Wyoming 57,431 West Virginia 18,561 Kentucky 14,130 Pennsylvania 8,336 Illinois 6,797 Texas 6,139 Indiana 5,504 North Dakota 4,317 Ohio 4,273 Montana 3,866 Vale Declares Force Majeure in Mozambique Following Heavy Rains Vale declared force majeure on Mozambique coal export shipments in Tete province after heavy rains hampered transport operations, according to a securities filing. In a press release, Brazilian company officials further cited "operational difficulties" since early February preventing coal from its Moatize mine reaching Beira Port via the Sena rail line. In all, the company has reported that Zambezi River flooding thwarted the delivery of 250,000 metric tons of coking coal. Mozambican port and rail company CFM "is taking all necessary measures to re-establish rail traffic, and the situation should be normalized by the end of the month," added the company. Vale hopes to be independent of the Sena line through a new railway across southern Malawi connecting with Mozambique's existing northern line; this will enable access to the Port of Nacala. U.S. Total 145,939 YTD '12 66,569 19,813 15,875 8,936 6,880 5,792 5,788 4,301 4,228 5,705 % Change -13.7 -6.3 -11.0 -6.7 -1.2 6.0 -4.9 0.4 1.1 -32.2 163,739 -10.9 AEP is making some changes of its own, at least some resulting from a recently revised 2007 settlement decree with EPA, eight states and 13 environmental groups. Late last year, AEP's Kentucky Power subsidiary agreed to stop burning coal in 2015 in its 1,078mw Big Sandy power plant near Louisa in Lawrence County. As part of the revised deal, AEP officially will close its 1,529mw Muskingum River coal plant in Ohio, an action the utility indicated last year it would take. And, AEP either will shutter or repower with natural gas a 450-mw coal unit the 995-mw Tanners Creek power plant near Lawrenceburg, Ind., operated by Indiana Michigan Power, an AEP subsidiary. I&M; previously announced plans to retire the other coal units at Tanners Creek. U.S. Senators to Introduce Carbon Emissions Tax Senate Environment and Public Works Committee Chair Barbara Boxer (D-CA) and member Bernie Sanders (I-VT) have introduced the "Climate Protection Act of 2013," according to the National Mining Association (NMA). The legislation would require coal producers— rather than utilities or manufacturers—to pay an initial $20/ton carbon fee, increased by 5.6% each year over 20 years. The legislation seeks to raise $1.2 trillion in new revenue over the next decade. The law also creates a "Pollution Reduction Trust Fund" earmarking $7.5 billion annually over 10 years for energy-intensive and trade-exposed industries—including steel, iron and other sectors generating comparable greenhouse gas emissions. Of the bill's revenue, 60% would be refunded to households, offsetting increased energy costs. Other stipulations include strengthening the Environmental Protection Agency's hydraulic fracturing regulation and a "Sense of Congress" provision stating the U.S. should cut greenhouse gases to 80% of 2005 levels by 2050. The Obama White House has been cool to a carbon tax, while the House couldn't agree on a cap-and-trade to greenhouse gas emissions when the measure previously reached the floor. Nonetheless, Boxer says she hopes to move the bill this summer. Six Fatalities in 25 Days Six different coal mining accidents have occurred within a 25-day period; four in West Virginia, one in Kentucky and one in Illinois. Four of the accidents were at underground mines and two occurred at surface mines. March 2013 N E W S ¸ ˛ ˝ ¸ BHP Locks Out Coal Workers in Australia BHP will lock out its workers at an Australian mine for the third time in four weeks for a 48-hour period from Sunday through Tuesday. Association of Professional Engineers Scientist and Managers Australia (APESMA) Chief Chris Walton said the lockouts were excessive and wouldn't remedy the ongoing dispute. "Every lockout is disruptive and makes resolution more difficult," said Walton. "The easiest way is for BHP to return to the negotiating table and talk to these mining supervisors like adults." BHP last locked out its workers after mining supervisors notified the company of work stoppage plans. Workers seek an 18% pay raise with an additional 4% under a new annual enterprise contract. Illawarra Coal President Troy McDonald called the demands unreasonable "in the current challenging environment in the coal industry with falling prices and a high Australian dollar,'' he said. Strikes have also hit Dendrobium, BHP's other Illawarra coal mine. Methane Ignition Kills 16 Russian Miners The second methane explosion in a Russian coal mine in three years has killed 16 men and left five others injured in the remote Vorkutinskaya mine far north of the Arctic Circle. A total of 259 miners were underground and 23 in the section when the explosion erupted, emergency ministry officials reported. Owned by steel-making giant Severstal and located in the coking coal-heavy region of Vorkuta, the mine has operated since 1973 with an annual output of 1.8 million metric tons with reserves estimated at 40 million metric tons. Vale Offers Update on Its Coal Business In 2012, revenues from coal reached $1.092 billion, breaking its previous record of $1.058 billion in 2011. Total coal shipments were 7.997 million metric tons (mt) in 2012, an increase of 4.2% from 7.672 million mt in 2011, mostly due to the large increase of 2.534 million mt in metallurgical coal volumes, driven by the rampup of Moatize, in Mozambique. The drop in thermal coal volumes (2.208 million mt) was caused by the sale of the thermal coal assets in Colombia. In 2012, metallurgical coal, representing 60.8% of the volumes sold and thermal coal 39.2%. Continued on pg 6... www.coalage.com 5