Coal Age

NOV 2012

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

Contents of this Issue

Navigation

Page 7 of 67

news continued Continued from pg 5... from 1,600 to just under 2,000 Chinese nationals could find full- time work in four projects being proposed in coming years for northeast B.C., due to the shortage of underground mining skills in Canada.Canadians "just don't have the experience" operating the equipment needed to safely extract coal in underground mines, said John Cavanagh, chief executive of Vancouver-based Canadian Dehua International Mines Group Inc., a company founded by China-born Vancouver businessman Naishun Liu. L&L; Acquires Two More Chinese Mines L&L; Energy expects to finalize the acquisition of two new mines, the LuoZhou mine and LaShu mine, in the next 30 days. Both LuoZhou and LaShu are newly constructed mines located in HeZhang County, Guizhou Province China, near L&L;'s Weishe mine. The two mines produce low sulfur, high-Btu, anthracite coal with approximately 34.2 million tons of combined coal reserves. LuoZhou has 27 mil- lion tons of reserves and is expected to expand from 300,000 to 450,000 tons per year (tpy) by the end of 2013. A smaller operation, LaShu is starting its trial production process and will initially pro- duce at a rate of 150,000 tpy and ramp up to its approved rate of 300,000 tpy. Both mines are currently owned by Union Energy. NWR Sets Prices for Met Coal Czech coal operator New World Resources (NWR) recently negotiat- ed sales agreements with customers for coking coal and coke. For delivery in the fourth quarter of 2012, coking coal will be priced at €102 per metric ton (mt), a 20% decrease compared to the third quarter. This average coking coal price is based on the expectation that coking coal sales for the fourth quarter 2012 will be split approximately 47% hard coking coal (mid-volatility), 45% semi- soft coking coal and 8% PCI coking coal. The company will produce more than 11 million mt of coal (50:50, thermal vs. met) and 700,000 mt of coke. NWR will sell coke for €264/mt, an 8% decrease compared to the third quarter realized price. Yinfu Acquires Mine in Indonesia Yinfu Gold has agreed to purchase a 51% interest in Hitric Resources for $1.25 million. Hitric owns (80%) a coal mine located in Tanah Bumbu, South Kalimantan, Indonesia. An 1,116-hectare, seven-year exploration license, granted in 2010, and consists of 1,116 hectares, has been upgraded into a full production license with an expected approval period of 15 years from the Indonesian Government. Initial mine plans project 150,000 metric tons (mt) per year beginning in 2013. Harum Energy Acquires Another Coal Mining Firm Thermal coal producer PT Harum Energy (HRUM) acquired a 50.5% stake in PT Karya Usaha Pertiwi, a coal mining company in East Kalimantan, to help secure its coal reserves. According to The Jakarta Post, the publicly-listed Harum acquired Karya Usaha's shares for $2 million from mining firm PT Karya Wijaya Aneka Mineral in September. After the acquisition, Karya Wijaya now holds 49.5% of Karya Usaha's shares. Karya Usaha's mining site is expected to begin operations in the second half of 2013. Continued on pg 8... 6 www.coalage.com Alpha, based in Bristol, Va., has not decided whether the new mine will serve the export market, domestic market, or both. The mine's planned location, adjacent to the Monongahela River near the small community of Clarksville, provides the company with shipping flexibility. According to the company's application to the Corps, the mine project would include construction of a vertical shaft and slope for the transportation of employees, supplies and small equipment to the new mine workings, as well as surface parking, warehouses, administrative buildings, shops and a bathhouse. A prep plant, material handling system that includes an overland conveyor also would be built. In addition, a 147-acre coal refuse dis- posal area would be located adjacent to the proposed surface facilities. Alpha, one of the largest met and thermal coal producers in the United States, is no stranger to Greene County. The company owns two large steam coal mines there—Cumberland and Emerald. Cumberland, the larger of the two, produced 4.6 million tons in the first three quarters of 2012 and 6.1 million tons in 2011. Emerald produced 3.3 million tons in the first three quarters of 2012 and 3.7 million tons in 2011. Blackhawk Production Doubles after Acquiring Pine Branch Coal Central Appalachian coal producer Blackhawk Mining more than doubled its production in October by acquiring privately-owned Pine Branch Coal Sales Inc., which had been owned and operated for decades by the Duff family of eastern Kentucky. Blackhawk, which operates four underground and two surface mines in Floyd County, Ky., produced about 1.5 million tons annually of PCI coal, high quality thermal coal, and stoker and industrial coals prior to the transaction. Pine Branch produces about 1.7 million tons of coal annually from three surface mines in Perry and Breathitt counties in eastern Kentucky. Pine Branch has been operated by David Duff and Ryan Duff and their family for more than 40 years. Terms of the transaction were not disclosed. Blackhawk also operates a 900-tph prep plant and 120-car unit train loading facility on the CSX railroad near Spurlock in Floyd County. Nicholas Glancy, president of Lexington, Ky.-based Blackhawk, said his company is excited about combining "the low-cost, well respected operations of Pine Branch with the high quality reserve base and low-cost operations of Blackhawk. We believe this acquisition will establish Blackhawk as a company positioned for success in the new and challenging environment for Central Appalachian coal producers." Coal production in Central App has been on the decline in recent years, and some analysts think it will continue on a down- ward spiral because of higher mining costs and increasingly thin- ner coal seams in the region. Blackhawk was formed in 2010 to acquire and operate idled coal reserves, mines, a prep plant and loading facilities formerly owned by the defunct Black Diamond Mining in Floyd County. Black Diamond, which was forced into bankruptcy by its creditors in 2008, sold its assets during federal bankruptcy court-sanctioned auctions. Blackhawk, founded by Mitch Potter and Tom Potter of Pike County, Ky., operates a series of underground continuous miner sections and contour surface mines with a high wall miner in high quality Elkhorn Nos. 1, 2 and 3 and Fireclay coal seams. November 2012

Articles in this issue

Links on this page

Archives of this issue

view archives of Coal Age - NOV 2012