Coal Age

MAR 2019

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March 2019 9 worldwide news continued approximately 2 million tons of sales from North Goonyella in 2020. As part of Peabody's recovery plan for North Goonyella, which suffered a fire last year, the team is execut- ing a multiphased re-ventilation and re-entry project targeted to com- mence in the first quarter 2019. The stage-gate approach, according to company, provides an opportunity to periodically re-evaluate progress, costs and investments. NTPC Plans on Becoming India's Second Largest Coal Producer by ajoy k. das India's largest power generation com- pany, NTPC Ltd. has joined the race to become the country's second-larg- est coal producer within the next five years targeting 111 million metric tons (mt) per year.. Having bagged 10 coal blocks with estimated reserves of 7.3 billion mt, NTPC was aiming to not only be- come the second-largest producer af- ter state-run Coal India Ltd. (CIL), but also float a dedicated mining subsid- iary for greater focus on coal mining and even lists the subsidiary at the bourses subsequently. Not only would NTPC's coal min- ing be for captive consumption of thermal power plants, the power util- ity would also enter into commercial mining and the merchant sale of coal in the open market by the subsidiary. This would leverage the recent relax- ation of rules by the Coal Ministry that permits captive coal miners to sell 25% of its production to other do- mestic coal consumers. Currently, the power company was working on five coal blocks with estimated reserves of 3.8 billion mt with mining capacity of 56 million mt/y of production. Apart from entering commercial coal mining, ramping up coal pro- duction from its own mines would be critical for NTPC's plans to add new thermal power generation capacity in 2019-2020. According to company officials, NTPC was planning to put 4,880 mega- watts (MW ) of additional thermal power generation capacity into opera- tion the next fiscal year, which would entail an additional coal requirement of 18 million mt/y to 20 million mt/y. China Builds World's Largest Low-emission Coal Plant China has established the world's largest low-emission coal power gen- eration system, setting a new mile- stone in cutting emissions and saving energy, the National Energy Admin- istration (NEA) said. The country has beaten its target of ultra-low emission and energy conservation and trans- formation outlined in the country's 13th Five-Year Plan (2016-2020) two years in advance, the NEA said. By the end of the third quarter of 2018, the capacity of the coal power generators with ultra-low emission in China reached more than 750 million kilowatts, accounting for more than 75% of the country's total installed ca- pacity of coal power generating units, data from the NEA showed. Transformation of coal power gen- erators resulted in an 86% decrease in sulfur dioxide emissions, 89% cut in nitrogen oxides, and 85% less smoke dust from 2012 to 2017, according to the China Electricity Council. The NEA said it will continue to promote energy conservation and ul- tra-low emissions and speed up build- ing a relatively clean, efficient, and sustainable coal-fired power industry. Glencore to Lay Bare Details of Optimum Deal With Guptas, Eskom Former chief executive of Glencore Plc, Clinton Ephron, is expected to present testimony to the Zondo com- mission about how the Gupta family bullied and ended one of the world's largest coal miners' business with Es- kom, according to ANA News. In 2016, the Gupta family's Tege- ta Resources bought Optimum Coal Mine from Glencore for ZAR 2.15 bil- lion after Eskom extended a R586 mil- lion prepayment for coal. This was the same amount Tegeta was short to com- plete its purchase of the coal mine. The deal is believed to have been orches- trated by former mineral resources minister Mosebenzi Zwane just days after he was appointed by then presi- dent, Jacob Zuma, a close friend of the Gupta family, ANA News said. Optimum had been put on busi- ness rescue after Eskom imposed a ZAR 2.1 billion fine based on out of spec historic coal deliveries provided to Eskom. Optimum had a long-term coal contract with Eskom. The mine had a capacity to produce more than 200,000 tons of coal each month, but its contract with Eskom has allowed it to double the number to 470,000 tons per month. The Judicial Commission of In- quiry headed by Deputy Chief Justice Raymond Zondo is probing allega- tions of state capture, corruption and fraud in the public sector, including organs of state. Eskom executive Daniel Mashi- go told the inquiry that the financial evaluation of Tegeta Resources was done "just to tick the box" after a mul- tibillion rand contract with Eskom had already been signed. In 2014, Eskom entered into a 10- year coal supply agreement worth R4.3 billion, with Tegeta Exploration and Resources to supply 50% of the coal at Majuba power station from its Brakfontein mine in Mpumalanga. Mashigo, Eskom's acting senior general manager for primary energy division, said financial evaluation was one of the critical components when awarding a contract, such as ensuring an auto-mechanic sampler to oversee the quality of the coal supplied. He said the financial assessment done on Tegeta showed that the company was not in the position to deliver to the set requirements of the contract. The coal supplied by Tegeta was also found to be substandard. The coal failed nu- merous quality assurance tests.

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