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6 www.coalage.com July 2016 news continued Murray Energy spokesperson Gary Broadbent noted in an Associated Press interview that the WARN letters are con- sidered a precautionary measure to comply with federal re- quirements. "[No] layoffs are contemplated or expected at this time," he said. Just three days before the announcement, members of the United Mine Workers of American (UMWA) rejected a new five- year labor deal with Murray and the Bituminous Coal Operators Association (BCOA). The details of the deal were never publicly released, though the BCOA and UMWA both confirmed it would have gone into effect June 30 had it been ratified. MEC employed about 8,400 one year ago; that figure is now 5,356. About 1,500 of those are union-represented workers. Prior to this announcement, MEC said in May it expects to produce and sell about 53 million tons of steam coal in 2016, a figure that excludes output and sales from Foresight Energy in Illinois, in which Murray owns a significant stake, but includes a Colombian mining operation (3 million tons) acquired by Murray in 2015 from Goldman Sachs. That figures compares to the roughly 65 million tons Murray produced in 2015 and 62.8 million tons in 2014. Robert E. Murray, the company's founder and namesake, misses few opportunities to blame the Obama administra- tion's "war on coal" for shrinking coal production and de- mand as many electric utilities have retired older coal-fired generating units rather than spend the money necessary on environmental upgrades to meet new Environmental Protec- tion Agency (EPA) regulations. Later this year, Murray was already planning to close two underground mines, New Era in Illinois and Powhatan No. 6 in Ohio, that have been major producers for the company in the past. In 2014, New Era produced 5.5 million tons of coal, making it one of Illinois' largest underground mines. But Mur- ray's American Coal Co. subsidiary, which operates the two- mine Galatia complex in Saline County, is shifting production to the lower-cost New Future mine. In Belmont County, Ohio, another Murray subsidiary, Ohio Valley Coal Co., intends to cease production in November at the Powhatan No. 6 mine because its high-sulfur coal reserves finally have played out after nearly 50 years. New Era produced 939,591 tons of coal in the first quar- ter of 2016 while No. 6 turned out 1.2 million tons, according to the Mine Safety and Health Administration. In 2013, No. 6 produced 5.5 million tons. UMWA Rejects Deal With BCOA Just days after the leaders of the Bituminous Coal Operators Asso- ciation (BCOA) and the United Mine Workers of America (UMWA) negotiated a five-year labor deal for about 4,500 active and fur- loughed workers, the latter's membership rejected the proposal. UMWA officials said a vote to ratify the new deal, which would have extended from June 30, 2016, to December 31, 2021, failed at a June 28 meeting. "This is a democratic union. The membership has had their say and I respect their decision," UMWA International President Cecil Roberts said. "This is a very hard time for everyone in the coal industry, especially those who actually mine the coal. Thou- sands are laid off and those who remain at work confront ev- figures for the first five months alone showed a jump of about 10%. He also noted that the Asia-Pacific region is its highest priority looking ahead. Deputy Energy Minister Anatoly Yanovsky had previously said Russia would meet last year's production levels of 373 million mt. In 2014, it produced 358.2 million mt. The government-approved Economic Development Min- istry forecast had projected 2016 production of 375 million mt, an increase istry forecast had projected 2016 production of 375 million mt, an increase of just 0.8% year-on-year. That report also indicated a1.3% rise in exports of just 0.8% year-on-year. That report also indicated a1.3% rise in exports of just 0.8% year-on-year. That report also indicated a1.3% rise in exports versus 2015 to 158 million mt. Zimbabwe's Hwange Colliery Considers Cutting Workforce Zimbabwe's Hwange Colliery Considers Cutting Workforce To revamp operations, the Hwange Colliery Co. in Zimbabwe is thinking about To revamp operations, the Hwange Colliery Co. in Zimbabwe is thinking about cutting a third of its 3,000 workforce, according to Reuters. Hwange is the second largest coal producer and the government owns 37% of the company. It supplies coal to state-owned electricity generating firm Zimbabwe Power It supplies coal to state-owned electricity generating firm Zimbabwe Power Co. Hwange produces 150,000 metric tons of coal a month and Moyo said the company was working to double the output by end of year. India Asks Government-owned Power Plants to Stop Importing Coal According to an official in the Ministry of Coal, the Indian goverment has According to an official in the Ministry of Coal, the Indian goverment has According to an official in the Ministry of Coal, the Indian goverment has issued a directive to all thermal power generating companies owned and operated by the federal and state governments to stop importing coal operated by the federal and state governments to stop importing coal feedstock for their plants in a bid to tide over mounting coal stocks with Coal India Ltd. (CIL), which accounted for more than 80% of domestic coal supplies. He said CIL has sufficient stocks of coal to meet entire thermal supplies. He said CIL has sufficient stocks of coal to meet entire thermal coal demand and power generating companies did not need to meet their requirements through imports. He said the government put in place an requirements through imports. He said the government put in place an effective process of auctioning coal for private companies and 8 million metric tons (mt) per month would be offered to the power sector where electricity tariffs were regulated. Significantly in a more drastic step to reduce coal imports, the Indian Significantly in a more drastic step to reduce coal imports, the Indian government has scrapped plans for construction of at least four large ther- mal power plants categorized as ultra mega thermal power plants (UMPP) with aggregate generating capacity of 16 gigawatts. The four proposed plants to be located in provinces of Chhattisgarh, Karnataka, Maharashtra and Odisha, would have together required 46 million metric tons per year of coal half of which to be sourced through imports. of coal half of which to be sourced through imports. According to a CIL statement, the miner achieved 95% of its target- ed coal production at 126 million during the period April-June 2016 and achieved 89% of targeted off-take at 133 million ton during the period. Anglo Close to Selling Australian Mines Anglo American is reportedly close to selling off two of its mines in Austra- Anglo American is reportedly close to selling off two of its mines in Austra- lia, and operator contemporary BHP Billiton is projected to be one of the top lia, and operator contemporary BHP Billiton is projected to be one of the top bidders. Citing unidentified sources, the Financial Times reported that the bidders. Citing unidentified sources, the Financial Times reported that the bidders. Citing unidentified sources, the Financial Times reported that the deal to the Moranbah and Grosvenor coking coal mines was "close to con- cluding" as of June 26, and BHP's interest is said to follow its commitment to coal's long-term future. Swedish State Confirms Vattenfall's Lignite Divestment Swedish State Confirms Vattenfall's Lignite Divestment During April, Swedish power producer Vattenfall submitted a proposal to sell its German lignite operations to Czech energy company EPH and its financial partner PPF Investments. After having reviewed the proposal, the financial partner PPF Investments. After having reviewed the proposal, the owner (Sweden) has now confirmed that it stands behind the divestment. The deal is expected to close on August 31. It is subject to merger clearance by the European Commission. SUEK's Daltransugol Hits Exporting Milestone Russia's largest coal terminal, SUEK's Daltransugol in the Khabarovsk Territory, announced July 1 it had met a first-time record — 10 million Territory, announced July 1 it had met a first-time record — 10 million Continued from p. 5... Continued on p. 8...