Coal Age

OCT 2018

Coal Age Magazine - For more than 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/1045409

Contents of this Issue

Navigation

Page 6 of 51

October 2018 www.coalage.com 5 news continued w o r l d n e w s Peabody Fights Fire at Australian Longwall Mine Peabody has developed a multitiered plan in an effort to extinguish a fire at its North Goonyella mine in Queensland and contain the impacts. The plan was reviewed by the Queensland Mine Inspec- torate and is undergoing implementation at this time. The under- ground mine and surface areas remain restricted to access through exclusion zones while the work continues. The elements of the plan include implementing use of a mobile GAG unit, a specialist piece of equipment that generates high-moisture inert gases to displace oxygen supply at a fire zone; and installing temporary seals into mine openings following completion of risk assessments and using remote-control equip- ment to pump a fire-resistant expandable material called Rocsil. The plan also includes additional drilling and sealing of the old longwall panel to ensure the area is further isolated. The company will work with air quality monitoring experts on a voluntary pro- gram of environmental monitoring at North Goonyella, including regular site visits and boundary inspections to assess and ana- lyze air quality data from key points. The company will also make sure all safety protocols are in place and strict risk assessments are performed. "Working in consultation with the inspectorate and third- party experts, we're moving safely and as quickly as possible to address the situation," said President Peabody Australia George J. Schuller Jr. "Peabody appreciates the ongoing work of the team at North Goonyella, the inspectorate, independent technical experts, Queensland Mines Rescue Service, union representatives and all of the people who are engaged in the response to this issue." The company noted that the fire is ongoing, and it is too early to assess the extent of impacts. Peabody does not expect any production from North Goonyella in the fourth quarter of 2018 and has a small amount of coal in inventory to ship. The company said it is too early to assess the full financial impact to future periods as a result of the ongoing issue, however, with strong performance from other mines, the company is maintaining its full-year 2018 metallurgical coal sales volume targets of 11 million to 12 million tons. The mine shipped 1.6 million tons in 2016 and 2.9 million tons in 2017. North Goonyella ships a high-quality hard-coking coal that typically realizes at or near the premium hard-coking coal benchmark. Kameron Faces Pushback From Fishermen in Nova Scotia Canada's Kameron Collieries is facing strong pushback from fishermen on Nova Scotia's Cape Breton Island over plans to con- struct a marine facility in Morien Bay to barge coal from its Donkin underground coal mine to ocean-going vessels docked several miles offshore. Kameron, a subsidiary of U.S.-owned Cline Group, recently began exporting an undisclosed amount of Donkin coal through Provincial Energy Ventures' bulk terminal in Sydney, Nova Scotia, more than an hour's drive from the mine, to Rotterdam in the Neth- erlands, according to terminal officials. Kameron officials, who were not available for comment, have talked with the Nova Scotia provincial government about building the company's own barging facility, a move that could save the company on transportation costs. Currently, Kameron trucks coal from Donkin to Sydney harbor for shipping. Continued on p. 6... top 10 coal-producing states term loan, approximately 57.9% of its senior secured notes, and approximately 79.1% of its bridge loan. To implement the RSA, the company filed voluntary petitions for relief under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. "After months of thoughtful and productive conversations with our creditors, we have developed a plan that allows Westmoreland to operate as usual while positioning Westmoreland for long-term success," said Michael Hutchinson, Westmoreland interim CEO. "We will continue to work constructively with the ad hoc group and serve our customers in the normal course as we progress through an expe- dited process to restructure our long-term debt and other liabilities. "Our goal is to emerge as a stronger Westmoreland, better po- sitioned to grow and thrive." Westmoreland's coal operations include surface coal mines in the United States and Canada, underground coal mines in Ohio and New Mexico, a char production facility, and a 50% interest in an activated carbon plant. In addition, Westmoreland affiliate Westmoreland Resource Partners LP simultaneously filed for relief under chapter 11 of the Bankruptcy Code. WMLP has agreed to terms with its secured creditors on the use of cash collateral to fund WMLP's normal course operations and allow WMLP to serve its customers during the course of WMLP's chapter 11 case. Westmoreland's Canadian entities and Westmoreland Risk Management Inc. are excluded from the voluntary petitions. Westmoreland's operations in the U.S. and Canada are cash flow positive and liquidity from operations combined with the com- pany's Debtor-In-Possession (DIP) financing is sufficient to con- tinue operating its mines, without any expected impact to current output levels. Westmoreland anticipates no staff reductions as a result of the restructuring announcement. Contura Energy, Alpha Natural Resources Amend Merger Contura Energy Inc., along with ANR Inc. and Alpha Natural Resources Holdings Inc. announced the companies have entered into an amended and restated merger agreement, which provides an increase in merger consideration to Alpha stockholders and the payment of a special dividend by Alpha. The transaction is expected (in Thousand Short Tons) Week Ending (9/29/18) YTD '18 YTD '17 % Change Wyoming 223,744 237,569 -5.8 West Virginia 72,562 68,320 6.2 Pennsylvania 37,402 36,802 1.6 Illinois 36,934 36,787 0.4 Kentucky 29,830 32,339 -7.8 Montana 28,793 25,391 13.4 Indiana 25,352 23,729 6.8 North Dakota 21,996 21,209 3.7 Texas 21,131 26,342 -19.8 Alabama 10,917 9,572 14.0 U.S. Total 562,408 578,373 -2.8

Articles in this issue

Links on this page

Archives of this issue

view archives of Coal Age - OCT 2018