This Month In Coal - September 2017

Cloud Peak Hosts EPA Administrator

Environmental Protection Agency (EPA) Administrator Scott Pruitt visited the Cloud Peak Energy’s headquarters in Broomfield, Colorado, last month to discuss the agency’s priorities and steps taken during the first six months of the administration and also to hear how the end of the former President Barack Obama administration’s “war on coal” has positively impacted coal jobs and the outlook for the industry.

Pruitt’s remarks focused on his efforts to return the rule of law to the EPA, to bring “a degree of humility” to governance, and to demonstrate that strong and effective environmental stewardship can be achieved without restricting economic growth or negating America’s energy advantage.

Read the Whole Article in our Digital Edition


Contura Withdraws IPO

Contura Energy has withdrawn the initial public offering (IPO) of its shares of common stock due to capital market conditions. The company’s principal selling stockholders unanimously determined that proceeding with the offering under current market conditions would undervalue the company.

Read the Whole Article in our Digital Edition


Glencore Acquires Interest in Hunter Valley Operations

Glencore has signed agreements with Yancoal Australia regarding the acquisition of a 49% interest in the Hunter Valley Operations (HVO) coal mine in New South Wales and forming a joint venture (JV) following Yancoal’s acquisition of Coal & Allied (C&A) from Rio Tinto.

Glencore will pay cash consideration of $1.139 billion plus a 27.9% share of $240 million non-contingent royalties over five years and 49% of price contingent royalties payable by Yancoal to Rio Tinto on production from HVO in respect of the C&A acquisition.

Read the Whole Article in our Digital Edition

 

This Month In Coal - August 2017

Alpha to Transfer Idle Assets, Eliminate Self-bonding in West Virginia

Alpha Natural Resources plans to pay Lexington Coal Co. (LCC) to take its idled assets. Included with these properties, which are located in Kentucky, Illinois, Tennessee and West Virginia, are approximately 280 permits, substantial reclamation equipment, ongoing royalty payments associated with these properties and 100 million tons of reserves. While the specific economic terms were not disclosed, LCC will receive approximately $204 million in cash at the time of closing and $112 million in installment payments to assist in the fulfillment of bonding, reclamation, water treatment and other obligations associated with the conveyed properties and permits.

Read the whole article in our Digital Edition


CONSOL Files Plans to Spin Off Coal Business

In mind-July, CONSOL Energy filed the necessary paperwork with the U.S. Securities and Exchange Commission (SEC) to split the company into two publicly traded companies, a coal company and a natural gas exploration and production (E&P) company. The spin-off would provide current shareholders ownership in two companies, each positioned to capitalize on distinct opportunities for future growth and profitability, the company said.

“Today’s filing represents a significant step toward completing the company’s separation, with both entities being well-capitalized 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.”

Read the whole article in our Digital Edition


India’s Utility NTPC Bets Big on Coal

Contrary to the government’s avowed policy, coal will continue to remain the mainstay of India’s largest power generation company, NTPC Ltd. The company is forging ahead to become the country’s second largest coal miner after Coal India Ltd. with plans for large 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 (mt/y) over the next few years.

Read the whole article in our Digital Edition

 

This Month In Coal - July 2017

Rio Tinto Agrees to Sell C&A to Yancoal

After receiving a competitive bid from Glencore and a counter offer from Yancoal, Rio Tinto has ultimately decided to sell its wholly-owned subsidiary Coal and Allied Industries Ltd. to Yancoal. Rio Tinto said it felt Yancoal Australia Ltd.’s offer of $2.69 million had a higher level of completion certainty. The sale is still contingent on a vote by the company’s shareholders.

The recommendation follows consideration by the board of a revised offer from Glencore plc received on June 23, and a revised offer from Yancoal received on June 25 comprising further improved terms. Yancoal’s most recent offer includes total consideration of $2.69 billion, comprising $2.45 billion in cash payable in full on completion, as well as $240 million via unconditional guaranteed royalty payments of which $200 million will be received before the end of 2018. It also includes an increased break fee amount provided by Yancoal’s parent company, Yankuang, from $100 million to $225 million and the receipt or waiver of all regulatory approvals required to close the transaction.

Read the Whole Article in our Digital Edition


Clean Coal Technologies Signs Agreement for Pristine M Plant in Wyoming

Clean Coal Technologies Inc. (CCTI), an emerging cleaner-energy company using technology to convert untreated coal into a cleaner burning and more efficient fuel, announced they have signed a binding agreement with Wyoming New Energy Corp. (WNEC) for the build-out of its first commercial facility in Wyoming.

WNEC has recently entered into an engagement agreement with Piper Jaffray to raise up to $80 million in debt financing to build a 2-million-ton CCTI Pristine M Plant in the Powder River Basin.

Read the Whole Article in our Digital Edition


Coal Operator is Fined for Obed Mountain Mine Spill in Canada

Prairie Mines & Royalty ULC (formerly known as Coal Valley Resources Inc.) pleaded guilty in Alberta Provincial Court to two counts of violating the Fisheries Act. Judge C.D. Gardner sentenced the company to pay monetary penalties totaling $3.5 million.

A portion of the fine ($1.15 million) will be placed into a trust to be managed by the University of Alberta to create the Alberta East Slopes Fish Habitat and Native Fish Recovery Research Fund. A total of $2.15 million will be directed to the Environmental Damages Fund.

Read the Whole Article in our Digital Edition


NMA Urges Reform of Broken Program for Abandoned Coal Mines

The chief executive of the National Mining Association (NMA) representing the U.S. coal industry recently told a congressional panel that the federal program funded by the coal industry to help clean up old abandoned coal mines has been plagued by an inefficient structure and lax management leading to billions of dollars spent for other purposes.

Read the Whole Article in our Digital Edition


MSHA Launches Initiative to Address Injuries

Data recently compiled between October 2015 and March 2017 by the U.S. Department of Labor’s Mine Safety and Health Administration shows that less experienced miners — both at a mine and at a specific occupation — suffer injuries at a higher rate than more experienced miners. Over this 18-month period, miners with one year or less of experience at a mine suffered 903 injuries, compared to 418 for those who had worked at a mine between one and two years. Miners with one year or less job experience suffered 603 injuries, compared to 409 for those with between one and two years job experience.

Read the Whole Article in our Digital Edition


Alpha Divests Green Valley

Alpha Natural Resources (ANR) has sold substantially all of the assets of two separate operations, a coal mining complex and a natural gas operation, both located in central West Virginia. The Green Valley mining assets in Nicholas and Greenbrier counties are being sold to Quinwood Coal Co. The divestiture includes the Green Valley No. 1 prep plant and related permits, which have been idle since the second quarter of 2014.

Read the Whole Article in our Digital Edition

 

This Month In Coal - June 2017

Warrior Met Coal Ramping Up to Historical Levels

In its first quarter earnings reports, Alabama-based metallurgical coal producer Warrior Met Coal defines its strength and position in the market. “We are pleased with our strong performance in this first quarter reporting as a newly listed company,” Walt Scheller, CEO of Warrior Met Coal, said. “Over the past year, we have established Warrior as the premier and only ‘pure-play’ met coal producer in the U.S. Warrior’s unique value proposition is based on two principal factors: the strength of our met coal assets, and our competitive positioning as a formidable operator in the era of ‘new coal.’” Warrior began trading on the NYSE on April 13.

Read the Whole Article in our Digital Edition


Peabody to Keep Metropolitan Operation

Peabody has decided to retain the Metropolitan metallurgical coal mine and its associated 16.67% interest in the Port Kembla Coal Terminal after proposed purchaser South32 terminated the purchase contract. South32 was unable to obtain clearance from the Australian Competition and Consumer Commission (ACCC) within the timeframe required under the contract.

Read the Whole Article in our Digital Edition


Committee to Probe Coal Mine Incident in Iran

The Fars News Agency in Tehran reported that Iranian Industry Minister Mohammad Reza Nematzadeh declared that a special team will probe into a deadly coal mine explosion in the northern part of the country. “A fact-finding committee has been set up to look into the incident caused by a deadly blast in Zemestanyurt coal mine in the northern city of Azadshahr in Golestan province,” Nematzadeh said.

Read the Whole Article in our Digital Edition


Foresight Asks to Re-enter Deer Run Longwall Mine

More than a year after its Deer Run longwall mine in southern Illinois was temporarily sealed to put out a stubborn underground fire or hotspot, Foresight Energy LP may have plans to reopen the mine later this year. In April, the St. Louis-based company formally asked the federal Mine Safety and Health Administration (MSHA) for authorization to re-enter the mine near Hillsboro in Montgomery County to check on its status, a MSHA spokeswoman said. As of early May, there was no indication the federal agency had given its okay.

Read the Whole Article in our Digital Edition


China to Further Consolidate Coal Operations

China plans to create about 10 mega coal companies by 2020 through mergers and reorganizations, as part of its long-standing efforts to cut overcapacity, according to China Daily. The country is preparing guidelines to overhaul the sector and it hopes to create several new large coal companies with annual capacity of 100 million metric tons (mt) by 2020, explained Wang Xiaolin, deputy director of the National Energy Administration (NEA).

Six Chinese producers have already attained that production level, said Zhang Hong, deputy secretary-general of the China National Coal Association.

 


Anglo to Sell its Interest in Drayton in Australia

Anglo American confirmed it has entered into an agreement with Malabar Coal Ltd. to sell its 88.17% interest in the Drayton thermal coal mine and Drayton South project, located in New South Wales, Australia.

Malabar Coal Ltd.’s primary focus up until now has been the development of its Spur Hill underground coking coal project in the upper Hunter Valley of New South Wales. The Drayton transaction remains subject to several conditions and its terms are confidential. Anglo American ceased mining activities at the Drayton mine during 2016.

 


Zinke Lifts Federal Coal Leasing Moratorium

In late March, U.S. Secretary of the Interior Ryan Zinke issued Secretarial Order 3348 revoking the January 16, 2016, order 3338 issued by former Secretary Sally Jewell that placed a moratorium on federal coal leases. Order 3338 imposed a three-year moratorium, with exceptions, on further coal lease sales pending completion of a Programmatic Environmental Impact Statement (PEIS) analyzing potential leasing and management reforms of the federal coal program.

Read the Whole Article in our Digital Edition

Resource Center Whitepapers, Videos, Case Studies