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Issue link: https://coal.epubxp.com/i/174138
news continued Continued from pg 8... imported in June 2012. Local supplies typically fall during the June to September monsoon season due to lower production, prompting coal traders and consumers to stock up before restrictions kick in at several ports due to squally weather conditions. Yancoal Reports Huge Loss Yancoal Australia, controlled by one of China's biggest coal miners, reported a first-half loss of $688 million. During the same period last year, the company saw profits of $410 million. Yancoal, which is 78%owned by Yanzhou Coal Mining Co., will bring a net loss of about $534 million to its parent company. Falling coal prices and the depreciation of the Australian currency were two factors for the huge loss. Mechel Begins Shipping Coal to China Mechel started supplying coal to the People's Republic of China by rail through a new border checkpoint at Makhalino to Hunchun. The first cargo train was dispatched in early August along the international transport corridor linking the south of Russia's Primorye Region with China's Jilin Province. The first 30 wagon convoy delivered Yakutugol Holding Co.'s coal to Chinese recipients. More than 200 officials from Primorye Region, Khasan District, the Far East Railroad, Russian Railways OAO and Chinese Railways attended the opening ceremony for the new border checkpoint. "Until now, Mechel made major coal deliveries to Chinese customers only through sea ports," said Pavel Shtark, CEO Mechel Mining. "The opening of this railroad route will enable Mechel to diversify its logistics and make better time on deliveries to China. In related news, Mechel held successful tests of equipment producing coking coal concentrate at the Elga coal deposit's seasonal washing plant in the Republic of Sakha (Yakutia). The plant was launched at full capacity before the end of August. Before the end of this year's season, the plant will process about 50,000 metric tons of raw coal. The test batch produced at the washing plant will be tested at Mechel Coke. Next year the company will consider the possibility of exporting coking coal concentrate. Transnet Freight Rail Ramps Up its Coal Capacity South Africa's Transnet Freight Rail is ramping up its capacity to move 30% more export coal with a new 200 wagon train that will run between the Mpumalanga coal fields and the Richards Bay Coal Terminal (RBCT). Transnet, which has been criticized in recent years for failing to facilitate export opportunities, has also introduced a new scheduling system to improve reliability and cut turnaround times. Kazakhstan Celebrates Coal Miners in Karaganda Oblast Tengrinews reported that more than 17 million metric tons of coal was mined in Karaganda oblast in the first 7 months of 2013, KazTAG reports citing the Akim (governor) of Karaganda Oblast Baurzhan Abdishev. At a meeting dedicated to Miner's Day, Abdishev said that "coal mining is the core industry of Karaganda Oblast. We extract an average of 30 million metric tons per year. This is a quarter of all the coal mined in Kazakhstan and 100% of the coking grades coal mined in Kazakhstan." ˛ 10 www.coalage.com The Russellville reserve is located about 20 miles southwest of the Carlisle mine. Initial testing indicates the reserve's mineability and coal quality is very similar to the Carlisle reserve. In the first half of 2013, Hallador sold 1.61 million tons at an average price of $42.22/ton. That compared with sales of 1.44 million tons at an average price of $43/ton in the first six months of 2012. The lower average price for the first six months of this year was attributed by the company to the mix of its various contracts. Operating costs and expenses averaged $28.22/ton in the first half of 2013, versus $26.79/ton in the comparable period of 2012. The increase primarily was due to poor mining conditions in March and May, although these problems since have improved, the company said. Illinois Coal Export Sales Likely to Decrease With coal grabbing a bigger piece of the U.S. electric generation pie this year, steam coal producers in the high-sulfur Illinois coalfield appear to be focusing more on domestic sales than the export market. "Last year, the export market was the big move" for major IB producers such as Forersight Energy Partners, said Bill Hoback, director of the Illinois Office of Coal Development. "This year, it's being able to do it domestically." Coal's share of the nation's generation market has grown to about 42% in 2013, up from 38% last year, according to the U.S. Energy Information Administration. Rising natural gas prices— they hit historic lows early last year—are credited for much of coal's domestic rebound. Shipping coal overseas was all the rage in Illinois last year. Led by Foresight, a company owned by billionaire Christopher Cline, the state's coal companies sent more than 13 million tons, more than 25% of the state's total output of 48 million tons, to foreign customers in 2012. This year, Foresight has pulled back somewhat from the export market, several coal industry analysts said. A Foresight executive suggested recently "there was better demand domestically in 2013" in the U.S., and the company has been able to capitalize on more favorable pricing, one analyst said. Peabody Energy was Illinois' primary exporter "before Foresight showed up" several years ago, Hoback recalled. Foresight quickly has evolved into the largest coal producer in Illinois with estimates the company's four underground mining complexes eventually could turn out more than 30 million tons annually. Almost single-handedly, Foresight has reversed a twodecade decline in Illinois' coal fortunes, placing the state on a trajectory to return by mid-decade to the 60 million tons a year it was producing in 1990. But after an aggressive ramp-up during the past couple of years, the company's sizzling rate of production growth appears to be cooling off a bit in 2013. According to Alex Turnbull, a Goldman Sachs analyst based in Singapore, Foresight sold 35-40% of its coal into the export market in 2012. But this year, he said, the company has been less able to compete for foreign sales despite its reputation as perhaps the IB's lowestcost producer. Foresight spokeswoman Jennifer Kroen declined to comment about the company's production and sales. September 2013