Teck Resources goes from dud to darling as coal makes a comeback

The Charleston Gazette reports on Tuesday that the families of seven miners who died in the Upper Big Branch Mine Disaster in West Virginia have filed a new lawsuit against owners Massey Energy, challenging Massey's proposed acquisition by Alpha Natural Resources. The suit alleges that the CEO and other Massey insiders "will receive tremendous financial benefit" – estimated at some $196m – from the $8.5bn deal, while victims of the disaster "will be subject to great risk and uncertainty." Massey has put its estimated losses from any suits or settlements with the disaster's victims at $78m, or $3m per victim.

South African coal miner Exxaro Resources has agreed to pay AUD$123 million for Territory Resources with the goal of producing 10 million metric tonnes of iron ore a year, Bloomberg reported Monday: Exxaro offered A$0.46 a share for the iron-ore miner based in Perth, Western Australia, the companies said in a statement today. The bid, at a 64 percent premium to the closing price on May 20, was recommended by Territory’s board, they said.

Bloomberg reported that a drop in coal exports following Australia’s floods pushed up exports from the US. The market news is quoted as saying: Queensland Resources Council, representing miners in the Australian state, said in January 85 percent of mines were “impaired by excess water.” Further rains delayed a production recovery, RBS Morgans Ltd. said last month.

Mining Weekly reported that Hunnu Coal (ASX:HUN) bought a majority stake in the Altai Nuurs coal project from Rio Tinto (ASX:RIO). The market news is quoted as saying: Hunnu said in a statement that it would now start Jorc modelling at the Altai Nuurs project, with a major drilling programme planned for the remainder of 2011.

South Africa's National Union of Mineworkers (NUM) said on Monday it would seek a 14 percent rise in salaries from the country's gold and coal miners in upcoming wage talks. "We are asking for a 14 percent (increase) across the board for companies in gold mining and coal mining," said spokesman Lesiba Seshoka, adding that more details would be provided later.

Indonesia will audit over 8,000 existing mining permits to make sure they are in line with mining and environmental laws, the country's finance minister said on Monday, days after the country passed new regulations on environmental protection. President Susilo Bambang Yudhoyono last week signed a two-year moratorium on permits for logging and another decree allowing underground mining in protected forests if conditions such as an environmental assessment had been met.

The U.K. has committed to halving its carbon emissions before 2027 following the publication of its ambitious fourth carbon budget. The rollout and development of renewable energy technologies, as well as the construction of new nuclear power plants, will play a key part in reducing the country's carbon emissions 50% when compared to 1990 levels. This will mean that net emissions for 2023-27 should not exceed 1.95 billion tonnes of carbon dioxide equivalent.

Forbes reported that demand for Appalachian coal should drive up profits for US producers. The market news is quoted as saying: India and Europe will likely to import more of the plentiful, dirtier-burning coal used by electric plants, Brean Murray Carret & Co. analyst Jeremy Sussman said in a research note Friday.

The Sydney Morning Herald reports on Friday that the state of New South Wales announced a 60-day freeze on new exploration licences for coal, coal seam gas and petroleum in a push to resolve the escalating conflict between farmers, miners and conservationists over land use. The need for a moratorium was questioned by the state's mining industry, which said billions of dollars in investment were at stake, but it said it broadly supported the development of a new approach to avoid conflict over valuable land.