HMS Weekly Coal and Energy Resources News
Week #19, week ending 14 May 2010
- globalCOAL weekly index DES ARA: 89.60 USD (RB 89.25 USD)
- Prophecy Resources, a Canadian Coal developer, has commissioned at Leighton Asia construction of infrastructure, leasing of equpment and leasing operations at Ulaan Ovoo Coal project in Northern Mongolia. By December 2010 the mine should reach capacity of 100kt/m, while target for 2011 is 2 Million mts of low ash low sulphur 5,200 kcal/kg NAR Steam Coal.
- Finland has opened a 240 Million EUR wood burning plant at UPM's Kaukas mill, with the capacity of 125 MW electricity and 385 MW thermal power, thus increasing its biomass energy production capacity and confirming its leader position together with Sweden. The new plant will be fired mainly with wood, bark, branches, stumps and peat.
Source: globalCoal, Energy Publishing, Argus Media.
Week #18, week ending 7 May 2010
- globalCOAL weekly index DES ARA: 90.29 USD (RB 94.67 USD)
- Port Waratah Coal Services (PWCS), owned by major Coal producers in Australia, is pushing ahead with construction of another Coal terminal to handle projected doubling of Coal exports within the next five years. Active investment in Coal export facilities in Australia is necessary to keep pace with steadily growing electricity production forecasts in Asia.
- South Korea is considering investment in Coal development projects in Africa. Korea Resources Corp. has signed a MoU with SA Continental Coal and a feasibility study is expected in three months.
- India's Minister of State for Coal has announced that after last national inventory Coal resources were estimated at 267 Billion mts, out of which 106 Billion mts are proven resources. This domestic resources should be able to cover projected national Coal demand. So far the country is resorting to imports of both coking Coal and Steam Coal.
Source: globalCoal, en.sxcoal.com, Dow Jones.
Week #17, week ending 30 April 2010
- globalCOAL weekly index DES ARA: 88.52 USD (RB 96.13 USD)
- Indian NTPC plans to acquire Coal mines in Kazakhstan. Furthermore, reconstruction and operation of two thermal power plants in Ekibastuz are under consideration. This plans are well in line with activities of other Indian energy giants, like NMDC, Coal India and RINL, GMR and TATA, who look for securing Coal sourcing abroad and take stakes in Coal production projects. India is deemed to become a net Coal importer soon and to take second place after Japan with respect to the volume of Coal imported.
- Supplies of Russian coking Coal to Ukraine have been in a steady decline; also the quality of delivered material has deteriorated. Russia is still the biggest supplier of coking Coal to Ukraine (77% Q42009, 59% in 2010), yet due to increased domestic consumption in Russia Ukraine has to search for alternative suppliers, like Australia, Canada, USA. In Q1 2010 2,2 Million of coking Coal has been imported to Ukraine, almost 40% increase y/y.
- BHP Billiton to start discussion with Australia Queensland state government on construction of a new Coal terminal in Abbot Point to meet demands of steadily rising metallurgical Coal demand projections. The current capacity of the port is 25 Million mts and is expected to double with commissioning of the new rail system. The expansion in question would cost 1,85 Billion USD and bring the port capacity at the level of 80 Million mts/y.
Source: globalCoal, Telegraph India, Deccan Chronicle, en.sxcoal.com, Reuters.
Week #16, week ending 23 April 2010
- globalCOAL weekly index DES ARA: 78.65 USD (RB 91.63 USD)
• Bangladesh and India have agreed to locate a new 1310 MW Coal power plant in Chalna, a port town in South-west Bangladesh. The joint JV project between The Bangladesh Power Development Board (BPDB) and the National Thermal Power Corporation (NTPC) will further extend cooperation in the area of energy production and energy transmission. - Indonesian PLN is looking to work directly with Coal producers or companies owning Coal concessions to secure steady supply for its plants. Considering an increase in Coal consumption from 22 Millions mts (2008) to 30 Million mts (2009) and projections showing 38 Million mts in 2011, this move towards strengthening its sourcing position seems to be justified.
- A number of investors from various countries are interested in taking part in a 1,5 USD Billion Coal railway project in Central Kalimantan. The 185km railway will connect Puruk Cahu to Bangkuang and is the first of four railway projects aiming at creating over 1800km long network connecting Coal mines with the ports, able to transport 10 Million mts of Coal in the first 10 years. The completion of the project is planned for 2012.
Source: globalCoal, Mangalorean News, The Jakarta Post, Energy Publishing.
Week #15, week ending 16 April 2010
- globalCOAL weekly index DES ARA: 77.24 USD (RB 85.25 USD)
- Fourth of India's Coal power generating capacity is running on critically low stocks (less than 4 days reserves), meaning that any delay in Coal delivery may cause a shutdown of roughly 10% of national generating capacity. Due to insufficient domestic production, railroad bottlenecks for supplies of domestic Coal and increased demand for electricity India ahs been significantly increasing its Coal imports (100% increase 2008/2009).
- COAL India Ltd. admitted to be in advanced stages of negotiations with Peabody Energy about taking up a stake in mining assets worth about 1,1 Million USD. The deal is expected to be finalized within next few months and may include assets in the USA, Indonesia and Australia.
- China coke demand to grow by 13% within next 5 years, estimates China Metallurgical Industry Planning Research Institute. The country may face shortages of coking Coal and have to import 20-30 Million mts of prime coking Coal and fat Coal in fife years' time.
Source: globalCoal, Oilprice.com, The Age, en.sxcoal.com.
Week #14, week ending 9 April 2010
- globalCOAL weekly index DES ARA: 78.96 USD (RB 86.97 USD)
- Export bottlenecks in Coal industry in Australia are reported to cause Millions USD losses due to demurrage and lost exports. A record 223 delayed vessels last week indicate the scale of the problem and delays of 40-50 days are not rare. This amounts to loss of 4 to 8 Millions of exports of Australian Coal, with Coking Coal being especially affected.
- Richards Bay Coal terminal shipments rose by 17% in March as compared to 2009. This one of world biggest Coal terminals supplies Europe and increasingly India is owned by mining giants like BHP Billiton Ltd., Anglo American Plc and Xstrata Plc.
Source: globalCoal, Lloydslistdcn.com, Business Week.
Week #13, week ending 2 April 2010
- globalCOAL weekly index DES ARA: 75.21 USD (RB 83.97 USD)
- A 2.5 Billion A$ Coal gasification project in Queensland, Australia has been awarded major project facilitation status, which should speed the construction process. The facility which is to turn Coal into urea is expected to be ready in the second half of 2013 and to bring around 600 Million USD annually.
- China's coke demand is expected to rise up to 380 Million mts in 2010, changing the last year's trend. This development is connected with a revival on the steel market, where China, the world biggest steel producer, is steadily increasing its production.
- Arcelor Mittal considers a JV with Donetskstal aiming at coking Coal production in Kemerovo region. Donetskstal has won the license for 1,5 Million mts of Coking Coal and Arcelor Mittal could carry the project form the financing side. Furthermore, in order to increase its raw materials base Arcelor Mittal considers to buy some mines from Evraz Group, thus adding further mining capacities to its portfolio.
Source: globalCoal, Energy Publishing, China Knowledge, en.sxcoal.com.
Week #12, week ending 26 March 2010
- globalCOAL weekly index DES ARA: 73.66 USD (RB 81.68 USD)
- First time Coal shipment from Colombia to India to take place on India's insatiable appetite for Coal. Adani Enterprises Ltd, India's biggest Coal importer has agreed on a 110,000 DWT panamax shipment form Colombia. India's Coal imports in 2009 have doubled as compared y/y, reaching 60 Million mts. Considering ambitious plans to double Coal energy production by 2012 analysts predict a shortage of 200 Million mts per year, which will have to be covered by imports.
- A new Chinese Coal port planned in Huludao, Liaoning Province should start in 2012 offering an initial capacity of 50 Million mts. Further capacity expansion reaching 230 Million mts and a 300 km long railway will link the rich in fossil fuels inner Mongolia with the coastline and contribute to expansion of the region to one of main Coal production centres.
- Indian Coal port facilities expand massively thanks to engagement of private companies teaming up with government entities. Projections for imports of over 80 Million mts of Coal in 2010-2011 and a significant expansion of Coal power generation capacity makes investing in handling capacities very attractive.
Source: globalCoal, Bloomberg, china economic Net, Reuters.
