trending Market Intelligence /marketintelligence/en/news-insights/trending/djrnkyl8v-n851itusjs_q2 content esgSubNav
In This List

Global coal roundup: China's utilities, miners urged to help ease coal prices

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


Global coal roundup: China's utilities, miners urged to help ease coal prices

A roundup of international coal news from May 21 to May 28.

South America

Colombia: Colombia's coal production for the first quarter dropped 11.7% year-over-year to 19.6 million tonnes, Reuters reported May 23, citing data from the country's Energy and Mining Ministry. The world's fifth largest producer, in the same period 2017, produced 22.2 million tonnes of coal, the report said. For the full year 2017, the country produced 89.4 million tonnes of coal, dipping by around 1% from the previous year's production of 90.5 million tonnes.

Europe

United Kingdom: EMR Capital is said to be marketing its hard coking coal asset West Cumbria Mining Ltd. in the U.K. to potential investors, The Australian Financial Review's Street Talk blog wrote May 28. The private equity firm would consider equity and debt financing options as it looks to advance the asset into production in the near term. According to the report, EMR holds a 70% stake in West Cumbria.

Asia

China: China's National Development and Reform Commission ordered utilities to keep inventories at lower levels and told miners to slash prices in a bid to ease burgeoning coal prices, Reuters reported May 22. The commission urged utilities to stop buying coal for the next two to three weeks and asked miners to bring spot coal prices back under 570 Chinese yuan per tonne by June 10. Miners were also encouraged to increase supplies under long-term contract by 200 million to 300 million tonnes.

India: Coal India Ltd.'s coal stockpiles are set to rise by 15 million tonnes annually as three new rail projects linked to high-capacity mines near completion, The Economic Times reported May 22, citing company executives. The additional supply could fuel almost 4,000 MW of power plants annually and comes amid increased demand for power during the summer cooling season.

Samir Cairae, CEO of Vedanta Ltd.'s metals business in India, warned that the company may reduce aluminum output if limits on coal supplies to the country's nonpower sectors continue for another week, Bloomberg News reported May 24. The limited coal supply is a result of a government directive to prioritize coal deliveries to power stations as India's private and public thermal power plants face severe coal shortages amid rising electricity demand, Mining Weekly reported the same day.

Australia

Stanmore Coal Ltd. declared a maiden JORC-compliant reserve for its Isaac Plains underground mine at the Isaac Plains coal complex in Queensland's Bowen Basin region in Australia. The JORC-compliant estimate includes probable run-of-mine reserves of about 13 million tonnes, according to the May 28 release.

Whitehaven Coal Ltd. said May 24 that it has signed a deal to acquire the remaining 25% stake in the Winchester South coal development project in Queensland, Australia, after it agreed in March to pay US$200 million for acquisition of a 75% interest in the project from Rio Tinto. The acquisition price will be consistent with the previous deal and the company expected to complete both transactions in the second half and to start project development afterward.

Adani Enterprises Ltd. enlisted Rothschild to help sell a stake in its Abbot Point port operations in Queensland, Australia, a move that sources familiar with the matter said could help the company raise funds for the Carmichael coal project in the same state, The Sydney Morning Herald reported May 22. Sources said Adani is also understood to be looking for a second investment bank to help with the stake sale, but they did not give further details on potential candidates or the planned sale.

Australia's federal environment department has decided to evaluate the development proposal for Waratah Coal Pty. Ltd.'s Alpha North coal project in Queensland. The proposal includes construction and operation of a coal mine, comprising underground longwalls and open-cut pits, and associated infrastructure.

Bowen Coking Coal Ltd. said May 21 that it will sell its Comet Ridge coal project in Queensland, Australia, to Springsure Creek Coal Pty. Ltd. Springsure Creek is required to pay A$100,000 in cash and grant a royalty stream of 1.25% of free on rail revenue from the first 2.8 million tonnes of coal produced from the project.

As of May 25, US$1 was equivalent to 6.39 yuan.

This feature was updated as of 11:50 a.m. ET on May 28. Some external links may require a subscription.