This Month in Coal

Morien Wants to Move Forward with Donkin Coal Project

Morien Resources Corp. is determined to bring big time coal mining back to Nova Scotia even if it has to do much of the heavy lifting itself. The company, spun off from Erdene Resource Development Corp. late last year, was negotiating this spring to buy Xstrata Coal Donkin’s 75% ownership stake in the $500 million Donkin coal project proposed for Cape Breton on the Canadian province’s northeast coast.

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D.C. Appellate Court Rules in Favor of Permit Revocation

The National Mining Association has condemned a ruling by the U.S. Court of Appeals for the D.C. Circuit allowing the U.S. Environmental Protection Agency officials to “clearly and unambiguously” revoke Clean Water Act 404 (c) permits after prior issuance by the U.S. Army Corps of Engineers. The move reversed a lower court ruling annulling the EPA’s authority to void the Spruce No. 1 permit held by the Mingo Logan Coal Co., an Arch Coal subsidiary in West Virginia.

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Walter Energy Curtails Production at Willow Creek

Walter Energy recently decided to curtail production at its Willow Creek mine in Canada. A surface mine, located near Chetwynd, B.C., it produces metallurgical coal with production plans of one-third hard coking coal and two-thirds low-volatile PCI coal over the mine’s expected 20-year life. The operation has approximately 19 million metric tons of recoverable coal reserves.

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CONSOL Energy Plans to Re-enter Blacksville No. 2

CONSOL Energy has received approval from the Mine Safety and Health Administration (MSHA) for its plan to re-enter the Blacksville No. 2 mine, evacuated March 12 when smoke was detected from the Orndoff shaft. Since then CONSOL Energy, in conjunction with federal and state authorities, pumped enough water into the mine to complete the seal operation and remotely pump eight isolation walls from the surface to seal off the fire area.

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CIAB Issues Report; Boyce Named Chairman

Peabody Energy CEO Gregory H. Boyce has been named chairman of the International Energy Agency’s (IEA) Coal Industry Advisory Board (CIAB) along with the release of its newest report, 21st Century Coal: Advanced Technology and Global Energy Solution. The CIAB is a group of chief executives and senior-level officials from coal-related industrial enterprises worldwide established in 1979 by the IEA, a Paris-based organization operating under the Organization for Economic Cooperation and Development (OECD).

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Brazil’s Vale Lifts Force Majeure in Mozambique

Officials at Vale have lifted force majeure on several coal sales contracts in Mozambique following disruption by severe rainfall.

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Peabody Energy, WCA Call Bloomberg Out

Peabody Energy and the World Coal Association (WCA) have presented an open letter to New York City Mayor and anti-coal activist Michael Bloomberg through an ad in The New York Times “outlining unmatched growth and benefits of coal.”

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Vale Declares Force Majeure in Mozambique

Vale declared force majeure on Mozambique coal export shipments in Tete province after heavy rains hampered transport operations, according to a securities filing. In a press release, Brazilian company officials further cited “operational difficulties” since early February preventing coal from its Moatize mine reaching Beira Port via the Sena rail line. In all, the company has reported that Zambezi River flooding thwarted the delivery of 250,000 metric tons of coking coal.

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Walter Energy Makes Progress

In its fourth quarter earnings report, U.S.-based Walter Energy, the world’s largest publicly-traded “pure-play” met coal producer announced results that reflect cost control initiatives, aggressive production management and disciplined capital spending, in light of significantly lower global pricing levels.

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CPE Announces Export Agreement with SSA Marine

Cloud Peak Energy (CPE) recently reached an agreement with SSA Marine to export up to 16 million tons of coal annually through the Washington state dry bulk cargo Gateway Pacific Terminal. The Cherry Point Port would accommodate cape-size vessels and export up to 48 million t/y.

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Methane Ignition Kills 16 Russian Miners

The second methane explosion in a Russian coal mine in three years has killed 16 men and left five others injured in the remote Vorkutinskaya mine far north of the Arctic Circle. A total of 259 miners were underground and 23 in the section when the explosion erupted, emergency ministry officials reported.

Read more: Methane Ignition Kills 16 Russian Miners