Coal Mining News

Mongolia close to offering Tavan Tolgoi mine to 3 or 4 bidders

Mongolia may share its Tavan Tolgoi coal mining project between a majority of the six bidders shortlisted by the government and ask them to work together, Prime Minister Sukhbaatar Batbold told Bloomberg in an interview adding that the final decision is “very close.” Coal production in Mongolia doubled last year to become the nation’s top export earner, spurring the government to push through development of one of the world’s biggest unexploited deposits of the mineral. Peabody Energy Corp., a Shenhua Group Corp.-Mitsui & Co. venture, Vale SA, a Russia-Japan-South Korea group, ArcelorMittal, and Xstrata Plc were all shortlisted.

BHP Australia coal miners hold third day of strikes before starting talks

More than 1,000 workers at two BHP Billiton coking coal mines in Australia staged a third day of strikes in a dispute that is disrupting production from the world’s largest exporter of the steelmaking commodity. Analysts believe the industrial action, added to the 15% cut in annual production caused by monsoon rains and a cyclone, will support rampant prices for steel-making coal which hit an all-time high in April of $330 per tonne. Metallurgical coal accounts for A$24.5bn of the Australia’s A$202.17bn in total annual goods exports.

US coal ash industry sees $110bn and 300,000 jobs lost if new environment rules implemented

A report released this week suggests that US federal regulation of coal combustion residuals, or coal ash, currently being considered by the Environmental Protection Agency would result in as many as 316,000 lost jobs and as much as $110bn in lost economic activity over a 20-year period. Power-generating coal is coming under fire from many quarters including Australia where a proposed carbon tax in 2012 could see coal mining profits fall and lead to thousands of job losses. This despite a new report showing that worldwide coal consumption is at its highest relative to other sources in 40 years.

Royal Coal Announces Convertible Debenture Financing

Royal Coal announces that it has agreed to a term sheet for a private placement financing (the "Offering") of CAD 10,000,000 of secured convertible debentures. Under the terms of the Offering, Royal Coal will issue to Mercuria Energy Group Limited or a designated affiliate ("Mercuria") CAD 10,000,000 of secured convertible debentures, which will bear interest at a rate of 9% per annum, payable semi-annually in arrears and will be due on or about July 1, 2013. The Offering is expected to close on or about July 1, 2011, unless otherwise agreed by the parties.

Global Earth Energy and Modern Coal Sign Purchasing Agreement to Acquire Samuel Coal

Global Earth Energy, Inc. (OTCBB: GLER) (OTCQB:GLER) announced, along with its joint venture partner Modern Coal, LLC, a Texas major contract mining company, that they have executed a purchasing agreement to acquire Samuel Coal, Inc. based […]

Prospect Capital Provides $26.5 Million in Senior Secured Financing to Support Quilvest Private Equity and Malakand Capital's Purchase of ST Products, Plus Invests Nearly $60 Million in Two Additional Transactions, Plus Reaps Significant Prince Monetization With More Than 100% IRR

Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has made a senior secured debt investment of $26.5 million to support the acquisition of ST Products, LLC ("STP") by Quilvest Private Equity and Malakand Capital.

Tata Steel sells Riversdale stake to Rio Tinto

India's Tata Steel on Thursday agreed to sell its 26 percent stake in Australia's Riversdale to Rio Tinto for $1.1 billion, giving the Anglo-Australian giant full control of the coal miner. Tata, the world's No 7 steelmaker, will sell shares in an open offer at A$16.5 each. Riversdale shares closed little changed at A$16.50 in Sydney on Thursday before Tata Steel's announcement.

Drummond, Itochu to market Colombian coal to Asia

Japan's Itochu Corp (8001.T: Quote) has teamed up with U.S. Drummond Coal [DRMND.UL] in a $1.5 billion deal under which it will market Colombian coal in Asia. Drummond had been in a protracted search for a partner in its Colombian mines and transport infrastructure, including a new port required by the government there. Itochu will take a 20 percent stake in a new company, Drummond International, with the privately owned U.S. firm holding the rest, the companies said.

Forbes Coal Reports 45% Production Increase for First Fiscal Quarter 2012 (March-May 2012)

Forbes & Manhattan provided an operations update for the first quarter of fiscal 2012 (ended May 31, 2011). Total Run of mine ("ROM") monthly coal production increased 45% when compared to the fourth quarter of fiscal 2011 and export sales rose 61% compared to the quarterly average of fiscal 2011.

SouthGobi Selects Modular for mine management solution

Modular Mining Systems, one of the world leaders in information management solutions for mining operations, has announced that SouthGobi Resources has chosen to implement the Modular IntelliMine Integrated Asset Management Suite at its Ovoot Tolgoi coal operation in southern Mongolia. The installation will include the DISPATCH fleet management system, PowerView reporting software, MineCare maintenance management system, and ProVision machine guidance solution for shovels, dozers, and drills. “We chose Modular because the IntelliMine suite covers all aspects of our business,” said Justin Kapla, General Manager, Ovoot Tolgoi Operations. “From safety, to asset management, to increased productivity, they have solutions that meet all of our needs. We look forward to the value their products will add to our business.”

Arch Coal completes acquisition of International Coal Group

Arch Coal has completed its acquisition of International Coal Group through a merger, with ICG becoming a wholly owned subsidiary of Arch. The aggregate value of the transaction totalled $3.4 billion. The acquisition adds nearly 13 Mt of low-cost Appalachian thermal coal production to Arch’s vast domestic thermal coal portfolio, solidifying the company’s number two position among US-based coal miners. With expected metallurgical coal sales of 11 Mt in 2011, Arch also becomes the second largest US metallurgical coal producer and a top ten global supplier to steelmakers. By capitalising on expansion opportunities, Arch expects to boost its metallurgical coal output to nearly 15 Mt by 2015.

DTE Energy to convert California coal-fired power plant to biomass

DTE Energy has received approval from the San Joaquin Valley Air Pollution Control District in California to convert a coal-fired power plant to biomass fuel. In July 2010, DTE bought the plant, which was closed […]

Mechel drops 4% after halting operations at Siberian mine

Shares of giant Russian steel and coking coal producer Mechel OAO fell over 4% in midday trade in New York on Wednesday on news it has halted operations at its Sibirginskaya mine due to high gas levels in a mined-out area. Mining works at the site were halted and all miners returned to the surface.

Coal now accounts for 30% of global energy use, highest since 1970

According to the latest BP Statistical Review of World Energy coal consumption grew by 7.6% in 2010, the fastest global growth since 2003. Coal now accounts for 29.6% of global energy consumption, up from 25.6% 10 years ago and the highest since 1970. Chinese consumption grew by over 10% and China last year consumed nearly half of the world’s coal. In contrast just 1.8% of global energy consumption comes from renewable sources such as hydroelectricity, biofuels, wind and nuclear power stations. The comparative figure a decade ago was 0.6%.

Astra plans Frankfurt listing, inks Nigerian deal

Diversified Australian miner Astra Mining announced on Wednesday plans to list on the Frankfurt Stock Exchange before the end of August after two days earlier inking a deal to enter the Nigerian market and further expand its global presence. Deal-hungry Astra Mining’s global portfolio includes gold and tin interests in south east Asia and southern India, coal mines in Australia, iron ore in India, manganese in Africa and the commercialisation of a new high-strength steel technology from a base in Hungary.

Interior leasing review worries US coal industry

Argus Media reports the US coal industry is concerned the federal government may change how it determines the value of coal reserves leased on federal lands in a way that could raise producers' costs. Coal producers and other industry members are evaluating an advanced notice of proposed rulemaking the Department of the Interior released on 27 May, questioning how a possible restructuring of the department's coal valuation process could affect leasing costs.

New Indonesia coal pricing policy worries India power firms

The Financial Chronicle reports on Tuesday Tata Power, Adani group, Lanco Infratech and Reliance Power, among other Indian coal importers, are waiting to assess the impact of the Indonesian government attempts to benchmark its coal prices to international indices. The new method that will come into effect from September attempts to link the royalties paid to the Indonesian government to an index of coal prices for Australian and South African coal in addition to others, a move that could lead to higher prices.

Queensland coalminers on strike for the first time in a decade

More than 400 workers at Melbourne-based BHP Billiton coking coalmines began strikes on Tuesday for the first time in a decade, disrupting production from the world’s largest exporter and adding to the woes of an industry already hard hit by summer floods. Analysts believe the industrial action, added to the 15% cut in annual production caused by monsoon rains and a cyclone, will support rampant prices for steel-making coal which hit an all-time high in April of $330 per tonne.

Prophecy secures Far East Russian port allocation, investing $25m in Ulaan Ovoo mine

Prophecy Coal Corp. announced on Tuesday it has entered into an arrangement with the Port of Sovgavan in the State of Khabarovsk, Russia whereby Prophecy will have initial access to port allocation of 25,000 tonnes per month starting in June, potentially expandable to 50,000 tonnes per month. Prophecy's Ulaan Ovoo mine commenced production in 2011 and year to date the mine has produced a total of 200,000 tonnes of coal, currently being stockpiled. In total, over $25 million has been committed or invested in the equipment and commissioning of the mine.

Xstrata to begin iron ore shipments from Australia

Xstrata Plc will start exporting iron ore concentrate to Asian buyers from Australia on Wednesday as part of a A$589 million redesign of its Ernest Henry copper and gold mine, the company said on Tuesday. Exports of the magnetite-type material at a rate of 1.2 million tonnes a year are a key component of Xstrata plan to transform the Ernest Henry mine from an open-cut design to an underground one, the company said.

Carbon tax will create jobs says Gillard

As a coal industry study points to up to 14,000 jobs at risk, Prime Minister Julia Gillard says a carbon price will create more jobs in mining. An Australian Coal Association (ACA) survey of 82 […]

India invites Czech investments in Coal sector

New Delhi, June 14 (PTI) Coal Minister Sriprakash Jaiswal has invited Czech Republic firms to invest in the coal sector in India.

China's asset managers rushing to launch resource investment funds

Chinese asset managers are rushing to launch funds that invest in natural resources and precious metals overseas, responding to feverish domestic demand for inflation-hedging tools.

Czech miner OKD sticks with production mix, targets

Central Europe’s biggest hard coal mining company OKD says it is sticking to a low-risk production portfolio in spite of ‘booming demand’ for coke to make steel. General Manager Klaus-Dieter Beck told a press conference on Monday that two years ago the company could hardly sell its coking coal, largely used for steelmaking. Now, it can barely keep up with demand. OKD last year produced jut over 6 million tonnes of coking coal, or 52% of total production.

Glencore said to be mulling $20 billion ENRC takeover

According to a detailed report in the U.K.'s Sunday times newspaper, Global mega commodities group, Glencore, which recently listed in the London stock Exchange's largest ever IPO, is considering a what appears to be a £12 billion (US$20 billion) friendly takeover of European-based diversified mining and metals company, ENRC (Eurasian Natural Resources Corporation). If such a move takes place this would convert Glencore from the world's largest commodities trading group into one of the globe's biggest integrated mining and metals companies - even without taking into account its 35% stake in Xstrata.