A roundup of internationalcoal news from Sept. 30 to Oct. 7.
Despiteits 2013 commitment to end essentially all support for the creation ofcoal-burning power plants, the World Bank has been accused of coal projectsin Asia, Al Jazeerareported Oct. 3, citing rights advocacy group Inclusive DevelopmentInternational. The World Bank's private-sector arm, the International FinanceCorporation, is alleged to have indirectly funded 56,127 MW of new coalcapacity in Asia, including the 1,360-MW Rampal power station in Bangladesh.
Indonesia: The in coal has done little tohamper domestic consumption in Indonesia, TheJakarta Post reported Oct. 5, citing BP plc's "Statistical Review 2016," with usagecontinuing toincrease. According to BP, the rise in domestic consumption hasbeen evident since 2010, due, in large part, to constant production despite thesteep decline in global coal demand.
India: India's Coal Ministry hasmade the District Mineral Foundation, or DMF, levy from January2015, a move that would subject Coal India Ltd. to an additional 20 billion Indianrupees to 25 billion rupees in mining taxes, The Hindu wrote Oct. 2. Under the Mines and Mineral Development andRegulation Act of 2015, miners have to pay a further levy on top of royaltypayments toward the DMF to fund development projects in areas affected bymining.
CoalIndia Ltd. produced 35.24 million tonnes and shipped 37.74 million tonnes ofcoal in September, falling 5.2% and 6.6% year on year, respectively, asdemand from the power sector remains weak, effectively creating a glut in thecountry, Bloomberg News reported Oct. 3.
India'sCoal Ministry has postponed future plans to coal blocks as it strugglesto manage high coalproduction and low demand, TheNew Indian Express reported Sept. 28. "Since there were very limitedtakers during the previous round of auction ... we have shelved it for awhile," ministry officials said. "We will wait [until] the marketconditions become conducive for auctions."
China: Newcastle cargo prices forthermal coal have jumped12.8% to $82 per tonne since the end of September, due in largepart to China's production cuts and its recently imposed stringent landtransport rules, Reuters reported Oct. 4. "The new rules are expected toeffectively crack down on freight over-loading by setting up higher standards,imposing stronger penalty and enhancing inspections," the report quotedfinancial services firm Citigroup as stating.
Chinaexpressed high hopesthat it will reach its overcapacity cut target in the coal sector by year-end, Mining.comreported Oct. 3. During the first eight months of 2016, coal production posteda 10.2% contraction year over year to 2.17 billion tons.
declaredforce majeure onfourth-quarter shipments of coking coal from the German Creek underground operation inQueensland, Australia, S&P Global Platts reported Oct. 7. The declarationwas due to a significant weighting event on the longwall roof support, whichimpacted the working height of the longwall and created multiple cavities.
Combinedcoal exports from the Hay Point, Dalrymple Bay and Abbot Point terminals inQueensland posted a 9%rise month on month in September, to a 15-month high of 12.99million tonnes, S&P Global Platts reported Oct. 5, citing data from theNorth Queensland Bulk Ports Corporation. The boost is largely attributable toincreased exports from the Dalrymple Bay Coal Terminal Pty Ltd.'s facility, afterit shipped 6.67 million tonnes of coal in September, climbing 19% from theprior month.
Aconsortium led by Apollo GlobalManagement LLC has reportedly securedexclusivity to acquire Anglo American Plc's Queensland metallurgical coalassets, The Australian Financial Review'sStreet Talk reported Oct. 3, citing sources. Lender sources estimated that adeal to buy the MoranbahNorth and Grosvenor mines, which are expected to more than $1 billion,could be signed within the next two weeks.
Australiaboostedprice forecasts for iron ore and coal as demand from Chinese steelmakers increasedon the back of a construction boom, CNBC.com reported, citing the country'slatest quarterly outlook by the Department of Industry, Innovation and Science.The price forecast for iron ore increased 10% to $48.50 per tonne, from $44.20per tonne, while the price forecast for coking coal surged 16% to $99.40 pertonne, from $85.60 per tonne.
Mozambique: The International Finance Corp., the private lending arm ofthe World Bank, is looking to complete a US$2.7 billion debt refinancing for theNacala Corridor railway project in Mozambique in the first quarter of 2017,Reuters reported Oct. 7. Thefunding arrangement will help ease balance sheet pressure on , which is developinginfrastructure for the Moatize coal mine.
This feature wasupdated as of 1:02 p.m. ET on Oct. 7. Some external links may require asubscription.
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