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Issue link: https://coal.epubxp.com/i/144796
news continued Continued from pg 5... being slashed as underground and open cut operations are reduced; 150 staff members at the Oaky Creek project will also be let go. "This is a difficult decision, but one that needs to be taken in the current challenging economic conditions," Glencore Xstrata said. The company has cut about 700 jobs since Q4 2012—100 more than originally planned. Previously, Xstrata Coal, a Glencore Xstrata subsidiary, announced 46 layoffs at its Ravensworth underground mine in the NSW Hunter Valley region. In 2012, the site produced 2.2 million metric tons (mt) of coking coal. Peabody Energy announced 450 job cuts at two of its Australian mines, as mining services company Downer EDI sheds 185 employees onsite at the Goonyella Riverside coal mine in central Queensland. Prices for thermal coal, according to analysts, have fallen more than 30% since 2011 to around $80/mt, while coking coal prices have dropped 40% since 2012 to $130/mt. Glencore Xstrata, the product of a recent $70 billion-mega merger, is a top resource company with 90 offices located in 50 countries, a portfolio of more than 100 mining and metallurgical sites and 190,000 employees. Peabody Energy is the world's largest private-sector coal company serving metallurgical and thermal coal customers in more than 25 countries on six continents. Peabody Energy CEO Gregory H. Boyce has called on Australia's incoming government to implement comprehensive policy reform to return the nation's coal industry to global competitiveness. In the industry keynote speech at the Minerals Council of Australia's Minerals Week Seminar, Boyce said the nation's coal sector remains a cornerstone of the economy, but stands at a crucial inflection point. Despite "decades of opportunity" ahead in Asia-Pacific, "all of Australia faces a steep cost if its policymakers get it wrong," said Boyce, threatening two economic pillars: affordable electricity and the country's No. 1 resource position in a decade of growth making it "the envy of the developed world." Irrespective of which party leads Canberra's next government, he added, a new policy blueprint must ensure coal sector regains competitive ground for economic growth. This requires a National Commission on Resource Sector Competitiveness, according to Boyce, devoted to a longterm policy framework. Daunia Begins Mining from Central Queensland's Bowen Basin Located 150 km southwest of Mackay, the A$1.5 billion Daunia mine began operating in March and will continue to ramp up operations this year as it works toward hitting an annual 4.5 million metric ton (mt) target. BHP Billiton Mitsubishi Alliance (BMA) said in a statement that "Our Queensland Coal operations achieved a significant milestone ... with first production achieved at the Daunia mine, ahead of schedule. The continued ramp up of this mine and the future commissioning of Caval Ridge will underpin an expected increase in the capacity of our Queensland Coal business to 66 million mtpy by the end of the 2014 year." The two mines are estimated to cost A$5.8 billion, on top of the A$3.4 billion it is spending to expand its Broadmeadow mine and Hay Point Coal Terminal. India Takes Action on Coal Shortages The Indian government took radical steps in late June in a bid to alleviate coal shortage to keep the power plants running. On June 20, the government allowed Coal India Ltd. to import coal and supply to power producers on a cost-plus basis, which will be ultiContinued on pg 8... 6 www.coalage.com The court agreed that "emergency safety standards are fundamentally different from non-emergency standards because they are designed to apply meaningfully only in times of emergency." Under Section 104(d)(1) of the Mine Act, if the authorized representative finds that there has been a violation of a mandatory health or safety standard and also finds that the violation "is of such nature as could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard," then the inspector is to include that finding in the citation issued for the violation. Such a finding of a S&S; violation is a precondition for enhanced enforcement actions under the Mine Act. The appeal involved Cumberland Coal Resources LP's Cumberland mine in Greene County, Pa. Cumberland argued that the commission applied the wrong standard when it reversed an administrative law judge's determination that the violations were not significant and substantial, and that even if it applied the correct standard, its findings were not supported by substantial evidence. During a December 2007 inspection, an MSHA special investigator inspected four of Cumberland's escape-ways over a four-day period and issued a citation for each, alleging a violation of the lifeline requirement. The investigator designated each violation an S&S;, finding that, in the event of an emergency, requiring miners to use the lifeline and the location of the lifeline would have delayed miners' escape, and that the delay would have been reasonably likely to result in serious injury or death. Trinity Coal Talks to Prospective Buyers Essar Group subsidiary Trinity Coal Corp. is attracting widespread interest from prospective buyers of its six coal mining complexes in West Virginia and eastern Kentucky, potentially setting up a federal bankruptcy court-approved sale later this year. In late June filings with the U.S. Bankruptcy Court for the Eastern District of Kentucky, Trinity asked the court to establish a series of dates and deadlines that could result in the purchase of all or some of its assets. Trinity requested a preliminary bid deadline of July 19, a deadline of July 26 by when all qualified bidders must submit final offers, and a July 30 auction at the offices of its legal counsel, Bingham Greenbaum Doll LLP in Lexington, Ky. The court also was asked to schedule an August 8 sale hearing at which time deals could be approved. In February, creditors of India-based Essar filed involuntary Chapter 11 bankruptcy petitions against Essar's U.S. subsidiaries, primarily Trinity, claiming they owed in excess of $100 million in unpaid bills. Trinity, acquired by Essar for $600 million in 2010, is a Central Appalachian coal producer with holdings in Breathitt, Floyd, Knott, Magoffin and Perry counties in eastern Kentucky and Boone, Fayette, Mingo, McDowell and Wyoming counties in West Virginia. The company's operations have produced both steam and metallurgical coal, although only the Deep Water met coal complex in Fayette County currently is in production. The other operations have been temporarily idled. The creditors—Credit Agricole SA, ING Group NV and Natixis— also joined a separate involuntary Chapter 11 suit filed in the Lexington court by three Frasure Creek Mining creditors: Austin Powder Co., Cecil I. Walker Machinery and Whayne Supply Co. They allege Frasure Creek owes them more than $20 million for goods, services and parts they provided. Frasure Creek is a Trinity affiliate. In early July, Trinity and its affiliates were negotiating with multiple unidentified parties to be a "stalking horse" bidder for July 2013