Coal Age Magazine - For more than 100 years, Coal Age has been the magazine that readers can trust for guidance and insight on this important industry.
Issue link: https://coal.epubxp.com/i/863175
6 www.coalage.com July/August 2017 news continued italized and free cash flow generating," said Nicholas J. DeIuliis, president and CEO. "This strategic separation will enable both businesses to focus on their inherent strengths and unlock value for their shareholders." The initial Form 10, which was filed by CONSOL Mining Corp., a subsidiary of the company that will hold the coal business at the time of the spin-off, includes detailed information about the coal business, including historical financial information. The coal business will be comprised of the Pennsylvania Mining Complex, consisting of the Bailey mine, the Enlow Fork mine and the Harvey mine and the related coal preparation plant; the company's own- ership interest in CNX Coal Resources LP, a publicly traded mas- ter limited partnership that owns a 25% undivided interest in the Pennsylvania Mining Complex; the coal export terminal at the Port of Baltimore; undeveloped coal reserves located in the Northern Appalachian, Central Appalachian and Illinois basins; and certain related coal assets and liabilities. The initial Form 10 is preliminary and subject to change prior to completion of the separation. Jimmy Brock has been appointed as CEO of the coal business and Katharine Fredriksen as president of the coal business. Effec- tive August 2, David Khani will serve as CFO of the coal business and Don Rush, a current vice president of the company, will as- sume the role of executive vice president and CFO of the compa- ny. After the separation, Nick DeIuliis will serve as the president and CEO of the E&P; business and Rush will serve as the executive vice president and CFO of the E&P; business. The Form 10 also contemplates that the coal business will op- erate under the name CONSOL Energy Inc. after the spin-off, and that the E&P; company will operate under a new name that will be announced at a later date. The spin-off remains subject to the satisfaction of certain con- ditions, including obtaining final approval from the company's board of directors and the SEC declaring the Form 10 effective. Roof Fall Accidents Decline, Remain Leading Cause of Injuries Improvements in roof control technology in underground coal mines have significantly reduced accidents involving roof and rib falls or coal bursts, but such accidents remain a leading cause of injuries, the Mine Safety and Health Administration (MSHA) reported. Since 2013, roof and rib falls or coal bursts led to the deaths of five continu- ous mining machine operators, and injured 83 other operators. To increase awareness among coal miners and mine opera- tors of roof and rib fall hazards, MSHA recently launched its an- nual Preventive Roof/Rib Outreach Program (PROP). The 2017 PROP — which runs through September — focuses on contin- uous mining machine operator safety. It includes informational posters developed by MSHA and distributed to underground coal mines during regular inspections, and discussions with groups of working miners on mine safety. Agency inspectors are specifi- cally addressing best practices for preventing roof fall accidents, which include the following: closely monitor coal rib deteriora- tion that may occur after mining; install rib bolts, which provide the best protection against rib falls; follow the approved roof con- trol plan to address adverse conditions that may be present; use straps, pizza pans or screen wire mesh where loose roof/ribs may be encountered; conduct thorough examinations and watch for changing roof/rib conditions; and ensure that pillar dimensions ministration pulling out of it, NTPC is forging ahead to become the country's second largest coal miner after Coal India Ltd. with plans for mega-buck investments in new coal-fired thermal power plants. Having made a mark as a coal producer from its captive coal mines in the current fiscal year, NTPC Ltd. aims to achieve coal production of 107 million metric tons per year (mtpy) over the next few years. In tandem, the power utility is planning to invest $10 billion on constructing three new coal-fired thermal plants with aggregate generating capacity of 5 gigawatts (GW), although officials said this investment was yet to be approved by the government and NTPC board of directors. NTPC was allocated 10 new coal blocks under the government's preferential allotment dispensation for government-owned com- panies. With an estimated coal reserve of 7.3 billion tons of coal in the 10 allotted captive mines, NTPC commenced its own coal production in the current fiscal year, targeting to extract 3 million tons by March 31, 2018, and ramp this up to 107 million tons over the next five years as more greenfield captive mines progressively get into production. "Coal mining has become integral to NTPC's fuel security strat- egy," officials said. "Reliance on coal will go a long way in ensur- ing sustainable growth of generation." It was pointed out that the combined generation of the three planned coal-fired plants would be double that of the combined capacity of older plants that NTPC planned to mothball over the next few years owing to the plants completing their lifecycle. NTPC's mining and generation expansion plans were signifi- cant against the backdrop of regulator Central Electricity Author- ity's forecast that operational thermal power plants and projects already under construction would be sufficient to meet India's projected power demand until 2027 given slow growth in power demand at 5%. However, analysts observed that rationale of NTPC's expansion was not misplaced as the slow demand for power was only a short- term trend considering that 300 million of India's population was still not connected by a power grid. The additional demand from unconnected households coupled with industrial growth could not be met through ramping up re- newable generation capacity and reliance on coal would continue in the foreseeable future. As per the Renewable Energy Ministry vision document, India has set a target of achieving 100 GW of grid-connected solar pow- er by 2030 with phased targets laid down for each subsequent target ranging between 15,000 MW in 2017-2018 and going up to 17,500 MW by 2021-2022. NTPC currently operated 20 coal-based thermal power plants with aggregate generation capacity of 38,755 MW. Its strategic plan included a generation target of 128,000 MW by 2030. In the shorter term, the power producer would add 10,000 MW of renewable power generation capacity over the next four years. Currently, it operated nine solar power plants with aggregate ca- pacity of 360 MW. Losses May Spur Shanxi Coal Recast Mergers or restructuring will dominate the coal industry in the northern province of Shanxi after three major mining groups re- ported first-quarter losses, China Daily reported. Out of the seven leading companies in the sector, Datong Coal Mine Group, Lu'an Continued from p. 5... Continued on p. 7..