Coal Age

JUN 2019

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June 2019 9 worldwide news continued offset the decrease in Australian arrivals. The U.S. shipped 71,778 mt to Turkey in April, down by 52%, following zero shipments in January and February and 77,803 mt in March. This is down from a monthly average of 198,977 mt in 2018. Coal India Draws Up $1.45B Mining Equipment Shopping List for 5 Years by ajoy k. das State-run miner Coal India Ltd. (CIL) has drawn up plans to procure $290 million worth of high-capacity mining equipment every year over the next five years to reverse the falling trend of over- burden removal and falling production since the start of the current fiscal year. The $1.45 billion shopping list for the next five years has been drawn up against the backdrop of a 1.1% drop in coal production at 46.59 million tons during May, largely attributed by the miner for failure to achieve over- burden removal. In March, the last month for fiscal year 2018-2019, CIL had been able to ramp up daily production to 2.55 mil- lion tons per day, which in subsequent months had fallen to a daily average of 1.46 million tons in April and 1.5 million tons per day in May. At this time, CIL had signed an agreement to achieve a production target of 660 million tons during the current fiscal year, which would require a growth of 8% over pro- duction achieved in 2018-2019. Company officials said that with open-cast mining accounting for more than 90% of the miner's total production, overburden removal had to keep pace with rising production and this would require faster de- ployment of higher capacity mining equipment if the 660-million produc- tion target can be achieved. The officials said the decision to procure high-capacity mining equip- ment worth $1 billion has already been made and the process of pur- chasing the equipment through do- mestic sourcing and imports would start over the next few months. It was pointed out that past attempts of large-scale equipment procurement by CIL faced roadblocks and were of- ten nipped in the bud as there were few, large global mining equipment manufacturers. The selection of one led to competitors lodging complaints with oversight agencies for Indian gov- ernment companies. Hence, all large equipment sourcing over the next five years would be through e-procurement. CIL's shopping list included dump- ers with capacity up to 240 tons, elec- tric-rope shovels of 20 to 42 cubic me- ters, hydraulic-face shovels of 15 cubic meters, 460-HP wheel dozers, 850-HP crawler dozers and high-capacity drag- lines, and aggregate orders would be at least 360 pieces each, officials said. Canadian Utilities Sells Canadian Generation Business for $835M Canadian Utilities Ltd. (CU), an ATCO company, has entered into definitive agreements to sell its entire Canadian fossil fuel-based electricity generation portfolio for aggregate proceeds of ap- proximately $835 million, subject to customary closing adjustments. The agreement with Heartland Generation Ltd., an affiliate of Energy Capital Part- ners, includes 11 partly or fully owned natural gas-fired and coal-fired elec- tricity generation assets located in Al- berta, British Columbia, and Ontario, with a combined generating capacity of approximately 2,100 megawatts (MW). The sale is expected to close in the second half of 2019. In a separate transaction, CU has entered into an agreement to sell its 50% ownership interest in the 260- MW Cory Cogeneration Station, lo- cated outside Saskatoon, Saskatche- wan, to SaskPower International. "These assets provide reliable and affordable energy to customers across Canada and I want to thank our em- ployees for their commitment and ded- ication to operating these assets to the highest standards," said Siegfried Kief- er, president and chief executive officer, Canadian Utilities. "We are focused on building a globally diversified portfolio of energy-related infrastructure assets. Continually evaluating our business model and strategies ensures we are well-positioned to capture opportuni- ties in markets at home and abroad." The sale agreements do not include ASHCOR Technologies, the Oldman Riv- er Hydro Facility, or international pro- jects, which are being retained by CU. Following the closing of the sale agreements, CU will have approxi- mately 250 MW of electricity genera- tion assets located in Canada, Mexico and Australia. MC Mining Completes Makhado Phase 1 Off-take Agreement MC Mining Ltd. announced the com- pletion of a major milestone for the company through the signing of an off-take agreement with ArcelorMit- tal South Africa Ltd. (AMSA). The agreement results in AMSA purchas- ing hard-coking coal that will be pro- duced from Phase 1 of the Makhado coking coal project. The agreement reaffirms the qual- ity of Makhado's hard-coking coal and follows the April announcement of an off-take with one of the world's larg- est producers and marketers of sea- borne-traded coal for all the byproduct thermal coal to be produced by Phase 1. South Africa has a limited produc- tion of high-quality metallurgical coal, resulting in AMSA and other coke pro- ducers having to import hard-coking coal for the manufacture of metallurgi- cal coke. AMSA will purchase a minimum of 350,000 metric tons (mt) of Phase 1 HCC annually and has the right to ac- quire a further 100,000 mt per year. The agreement will endure for the shorter of 10 years or the Phase 1 life of mine. The agreement is subject to various conditions precedent, including confir- mation by December 15 that requisite funding for the development of Phase 1 has been secured, and confirmation by June 30, 2020, that delivery will com- mence within six months.

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