Coal mine gets $175m federal loan

Original article by Mark Ludlow
The Australian Financial Review – Page: 10 : 2-Jul-21

The $5 billion Northern Australian Infrastructure Facility has approved a $175 million loan to Pembroke Resources for its proposed Olive Downs coking coal mine in Queensland. The mine will support up to 700 jobs during its construction phase and over 500 jobs when it is up and running. Approval of the loan for the Olive Downs project comes only two months after federal Resources Minister Keith Pitt vetoed a $280 million loan by the NAIF for a wind farm project in North Queensland.

CORPORATES
NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY, PEMBROKE RESOURCES PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES

Canadians blow up Rinehart’s coal plans

Original article by Nick Evans
The Australian – Page: 13 & 16 : 23-Jun-21

Regulators in Canada have rejected environmental approval of Riversdale Resources’ proposed Grassy Mountain coking coal project in Alberta. Riversdale Resources is owned by Gina Rinehart’s Hancock Prospecting, which paid $800 million to acquire it in 2019. News of the rejection of the Grassy Mountain project had a significant impact on the share price of Montem Resources and Atrum Coal on 22 June, with both companies having projects in the vicinity of Grassy Mountain; Montem’s shares fell 52.8 per cent, while Atrum’s shares were down by 40.4 per cent.

CORPORATES
RIVERSDALE RESOURCES, HANCOCK PROSPECTING PTY LTD, MONTEM RESOURCES LIMITED.- ASX MR1, ATRUM COAL LIMITED – ASX ATU

Pleas for Premier to back mine extension

Original article by Michael McKenna
The Australian – Page: 4 : 26-May-21

New Hope Corporation recently advised that production at the New Acland coal mine in Queensland will end later in 2021 unless a long-delayed expansion is approved. The approvals process has been stalled for nearly 13 years due to a series of legal challenges and the state government’s inertia. The mine’s workforce has been reduced from 320 to just 120 since 2019, and the remaining workers face retrenchment. Federal Labor MP Joel Fitzgibbon has urged the state government to approve the expansion; he has also accused Labor of turning its back on coal workers.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC, AUSTRALIAN LABOR PARTY

China tensions threaten LNG, coal exports

Original article by Perry Williams
The Weekend Australian – Page: 20 : 15-May-21

China has imposed an informal ban on Australian thermal coal since 2020, and consultancy Wood Mackenzie expects the ban to remain in place until 2022. There are now also suggestions that the ongoing tensions could see China pull back from agreeing to sign long-term LNG deals with Australia, which supplies 45 per cent of China’s LNG requirements. Woodside Petroleum advised in February that it had been forced to delay talks to sell LNG to China, citing the economic rift between the two nations.

CORPORATES
WOOD MACKENZIE, WOODSIDE PETROLEUM LIMITED – ASX WPL

Coal exports to steady before a slide

Original article by Joe Kelly
The Australian – Page: 4 : 9-Feb-21

The New South Wales government has forecast that demand for the state’s thermal coal in Asia will remain strong at more than 600 million metric tonnes a year until 2030. However, this is expected to gradually decline to about 470 million metric tonnes in 2050 as the global transition to alternative sources of energy generation gathers pace. The government document also notes that the industry contributes about 22,000 direct jobs to the state economy, as well as some 89,000 indirect jobs.

CORPORATES

Emerging Asia’s appetite for coal may be fading

Original article by Elouise Fowler
The Australian Financial Review – Page: 17 : 15-Jan-21

A report from the Global Energy Monitor on future demand for thermal coal in Asia may have implications for one of Australia’s biggest sources of export revenue. The report concludes that developing nations in the region may build just 25 gigawatts of new coal-fired power stations in 2021, compared with the 125GW that was planned five years ago. Australia’s thermal coal exports to developing countries in Asia have increased significantly in recent years, offsetting a decline in demand from traditional buyers in the region as they adopt net zero emission targets.

CORPORATES
GLOBAL ENERGY MONITOR

South32 set to dump coal mine project

Original article by Nick Evans
The Australian – Page: 16 : 12-Jan-21

Diversified miner South32 is believed to be seeking a buyer for its 50 per cent stake in the Eagle Downs coking coal project in Queensland after deciding not to proceed with the partially-built mine. South32 acquired its stake in the project from Vale in 2018, several years after Eagle Downs was mothballed amid a fall in coal prices. South32 recently received a feasibility study on the project. Chinese steelmaker Baowu owns the other half of the Eagle Downs project.

CORPORATES
SOUTH32 LIMITED – ASX S32, CHINA BAOWU STEEL GROUP CORPORATION LIMITED, VALE SA

80 coal ships in China stand-off

Original article by Perry Williams, Will Glasgow
The Australian – Page: 1 & 4 : 27-Nov-20

Australia’s coal exports to China fell by 96 per cent in the first three weeks of November. Industry sources have indicated that 82 bulk carriers are currently in Chinese waters and awaiting permission to unload 8.8 million tonnes of Australian coal. China’s ban on coal imports from Australia has forced producers to find alternative markets for their coal, often at a discount. Meanwhile, North American coal is now being sold to China at a premium to Australian coal.

CORPORATES

BHP joins Baowu to explore green steel

Original article by Jared Lynch
The Australian – Page: 16 : 9-Nov-20

BHP will work with Chinese steel producer Baowu to develop low-carbon technologies for the global steel industry. BHP’s memorandum of understanding with Baowu includes provision for an investment of up to $US35m ($48m) in technologies aimed at reducing the industry’s carbon emissions. However, BHP still expects coking coal to remain a key steel-making input for many years. Coking coal accounted for $US1.9bn of BHP’s earnings in 2019-20.

CORPORATES
BHP GROUP LIMITED – ASX BHP, CHINA BAOWU STEEL GROUP CORPORATION LIMITED

Whitehaven won’t alter dividend policy despite setbacks

Original article by Peter Ker
The Australian Financial Review – Page: 16 : 26-Oct-20

Whitehaven Coal’s lenders recently agreed to relax its debt covenants after the company sought relief due to a severe downturn in coal prices. However, a condition of that relaxation will constrain the company’s ability to pay dividends until its debt levels fall below certain thresholds. Whitehaven had paid out a record final dividend of $298 million in August 2019, and chairman Mark Vaile says he has no regrets about the payment. He says the company may need to be a bit more conservative about capital management in the future, while he notes that the 2019 payout followed two successive years of record profits.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC