Coal Age Magazine - For nearly 100 years, Coal Age has been the magazine that readers can trust for guidance and insight on this important industry.
Issue link: https://coal.epubxp.com/i/95257
news continued Continued from pg 8... This is a "pit to port" project being built at a cost of $10 bil- lion. The first phase of the project involves a 30 million mtpy mine, a 500 km railway line and a 60 million mtpy port. The other con- struction contracts for the project such as mine infrastructure, the wash plant and rail will be announced in the next few months. The port of Abbot Point is situated 25 km north of Bowen. It will be serviced by GVK Hancock's new 500 km standard gauge railway, which will deliver 25,000 mt per train load of coal. Once fully con- structed, the port will consist of a stockyard, two rail receiving dump- stations, and a piled jetty structure extending 3.8 km north-north east from the shoreline. This will also consist of two berths and civil infra- structure to support the port project, as well as shiploaders and stacker reclaimers. It is expected to be ready to deliver first coal 36 months from the commencement of construction. Logistics Constrain Vale's Moatize Operations Multinational Brazilian miner Vale said that coal production from its surface mine in Moatize, in the western Mozambique. Output during third quarter dropped to 624,000 metric tons (mt) of metal- lurgical coal and 365,000 mt of steam coal from the 728,000 mt of met coal and 390,000 mt of steam coal produced in the second quarter. Vale hoped to grow production to 11 million mtpy. Then in 2014, it intends to ramp up production to 22 million mtpy. Unfortunately, the Sena railway line will not have the capacity to transport Vale's production, let alone the coal produced by other companies in the region. Year to date, production is a little more than 3 million mt. Yancoal Australia Considers Idling Production During the Holidays China backed Yancoal Australia will consider shutting production at some of its operations over the Christmas period as stockpiles of the commodity rise because of slower sales in a volatile market, according to The Australian. Yancoal, the largest Chinese con- trolled entity listed on the share market joined its industry peers in outlining the significant impact that lower prices and demand were having on its operations. The miner, which this year completed a merger with Gloucester Coal to form Australia's largest listed coal play, said while production had risen by more than 20% over the quarter, sales had fallen 6% which was blamed on the effect of weak thermal and metallurgical coal markets. The miner will also take a financial hit on the lower sales because the sales for the group are less than the port and rail take or pay obligations the company is locked into. Indonesian Coal Production to Rise 5% in 2013 Indonesian Coal Mining Association Chairman Bob Kamandanu has estimated that Indonesian coal production will increase in 2013. The association has set a production target of between 360 million and 370 million metric tons for 2013. In 2012, Indonesia's coal production only reached 240 million mt, below the expectation of coal production of 370 million mt. According to Tempo Interactive, the government, on the other hand, has set the 2013 coal produc- tion target at 366 million mt or 10.25% higher than this year's pro- jection at 322 million mt. ˛ 10 www.coalage.com incremental reserves with a mine permit at Mine 12, a wash plant and refuse facility at Smokey Junction, and control of a load-out facility at Turley, located on the Norfolk Southern railroad, posi- tions the company for improved market access. The acquisition will be completed through a newly incorporated company (Newco) to be initially owned by Sandstorm and by Novadx, based on their relative contribution to the purchase price. Novadx will have full control over management and operation of Newco. Hallador Receives Financing for Coal-related Projects A Hallador Energy subsidiary has entered into a $165 million credit agreement with PNC Bank and other lenders to help finance future coal-related projects, including a new underground mine planned for Vermilion County in east-central Illinois. In a mid-October filing with the U.S. Securities and Exchange Commission, Hallador said the senior revolving credit facility secured by its Sunrise Coal subsidiary matures in five years. "The facility is col- lateralized by substantially all of Sunrise's assets and we are the guar- antor," Hallador said. "We will draw on the facility as needed for development of our new projects in Illinois and Indiana." Those projects are expected to include the new Bulldog steam coal mine in Vermilion County. Sunrise applied to the Illinois Department of Natural Resources' Office of Mines and Minerals for a permit earlier this year. A department spokesman said the agency's review is just getting started and it probably will be sometime in 2013 before a final decision is made. Hallador/Sunrise officials say Bulldog will be a relatively large mine, producing up to 3 million tons annually. Bulldog will draw upon a reserve base of at least 32.3 million tons of recoverable coal with an average content of 11,700 Btu/lb and less than 5% sulfur. By Illinois Basin standards, the reserves also are low in chlorine. Bulldog is planned to be a continuous miner operation, unlike several longwall mines being developed or operating in Illinois that are owned by Cline Group's Foresight Energy Partners. Depending on market conditions, Bulldog could be producing coal in 2014 or 2015. Hallador currently owns only one coal mine, the Carlisle under- ground mine operated by Sunrise in Sullivan County, Ind. Carlisle produces about 3 million tons of high-sulfur steam coal annually. The new Sunrise credit agreement replaces the company's previous credit facility with PNC. Other lenders participating in the new credit arrangement include Old National Bank, Union Bank, UMB Bank, BB&T;, First Financial and First Commonwealth. Patriot Closes Bluegrass Complex Patriot Coal will close the Bluegrass mine complex by the end of 2012. The operation currently employs 89 people and includes the Patriot surface mine, which is expected to produce approximately 1.2 million tons of thermal coal in 2012, and the Grand Eagle prep plant, both located near Henderson, Ky. Reclamation work will continue as the site is restored to meet regulatory requirements LG&E; Moves Timetable Up for Cane Run Closure, Scrubbing Mill Creek Louisville Gas & Electric Co. is shutting three older coal-burning units totaling 563 mw of capacity at its Cane Run power plant eight months earlier than planned and plans to install a new November 2012