B06 Coal Mining

Coal demand resilient in face of risks

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 19-Dec-18

A new report from the International Energy Agency shows that coal-fired power generation increased by three per cent in 2017 and is expected to grow again in 2018. The IEA’s annual coal outlook also notes that coal’s share of the global energy mix was steady at 38 per cent in 2017. IEA executive director Fatih Birol says coal will remain a major source of power generation for some time. Meanwhile, the IEA forecasts that Australia’s thermal coal exports will rise over the next five years.

CORPORATES
INTERNATIONAL ENERGY AGENCY, ADANI MINING PTY LTD

Stop demonising us, says Adani chief

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Original article by Mark Ludlow
The Australian Financial Review – Page: 11 : 4-Dec-18

Adani Mining CEO Lucas Dow has called for the "demonisation" of its controversial Carmichael coal mining project in Queensland to end. Adani announced in the week ending 30 November that the project will finally go ahead, albeit on a much reduced scale, and that it will be self-funded. Dow says Adani accepts that some people are against the Carmichael project, but the debate about it proceeding or not should be based around facts, not "myths, half-truths and deceptions". He says Adani is sick of being used as a "political football".

CORPORATES
ADANI MINING PTY LTD, AUSTRALIAN LABOR PARTY, BHP GROUP LIMITED – ASX BHP, QUEENSLAND RESOURCES COUNCIL LIMITED, GETUP LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Coal boom looms after Adani start

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Original article by Michael McKenna, Jared Owens, Perry Williams
The Australian – Page: 1 & 2 : 30-Nov-18

India-based Adani will commence construction work on the Carmichael thermal coal project in Queensland’s Galilee Basin before the end of 2018. The mine and associated rail infrastructure is slated to cost less than $2bn, compared with initial expectations of $16.5bn. The scale of the project has been pared back from 60 million tonnes per annum to just 10 million in its first year, although this will gradually increase to 27.5 million tonnes. Queensland Resources Council CEO Ian Macfarlane says that up to five other coal projects in the basin could now proceed.

CORPORATES
ADANI MINING PTY LTD, QUEENSLAND RESOURCES COUNCIL LIMITED, MACMINES AUSTASIA PTY LTD, QUEENSLAND. OFFICE OF THE CO-ORDINATOR GENERAL, GVK INDUSTRIES LIMITED, HANCOCK PROSPECTING PTY LTD, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, SEW-EURODRIVE PTY LTD, AUSTRALIAN CONSERVATION FOUNDATION INCORPORATED

Rio execs say good faith in assets call

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Original article by Ben Butler
The Australian – Page: 22 : 14-Nov-18

Rio Tinto and former executives Tom Albanese and Guy Elliott have denied any wrongdoing over the 2013 write-down of its coking coal assets in Mozambique. Albanese and Elliott have argued that they had acted in good faith and therefore should be excused from any liability. Both the Australian Securities & Investments Commission and the US Securities & Exchange Commission have launched legal action over the write-down.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, RIVERSDALE MINING LIMITED, FEDERAL COURT OF AUSTRALIA, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION

Adani’s cut-price Carmichael coal

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 28 : 6-Nov-18

Adani recently gave indications that thermal coal from its Carmichael mine in Queensland is likely to boast energy content of around 5,500 kilocalories per kilogram. Rory Simington of Wood Mackenzie estimates that if the coal were offered to buyers at current market prices, it would be likely to fetch between $US50 and $U55 per tonne. This compares with $US106 per tonne at present for higher-grade coal from the Hunter Valley. Simington expects Adani’s coal to have an energy content of 4,800 kilocalories per kilogram, although he adds that washing the coal could increase this to around 5,500 kilocalories.

CORPORATES
ADANI MINING PTY LTD, WOOD MACKENZIE, WHITEHAVEN COAL LIMITED – ASX WHC, BHP BILLITON LIMITED – ASX BHP, MACQUARIE GROUP LIMITED – ASX MQG

Adani close to action on scaled-back Carmichael mine

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Original article by Mark Ludlow
The Australian Financial Review – Page: 2 : 1-Nov-18

Adani Mining CEO Lucas Dow has declined to comment on speculation that the company will make a final investment decision on the Carmichael thermal coal mine in coming weeks. However, Adani is believed to be planning for annual production of 10-15 million tonnes in the first stage of the project, at a cost of less $2bn. The mine is now expected to have maximum production capacity of about 27 million tonnes a year, compared with initial plans for 60 million tonnes. The project is forecast to generate 1,500 jobs.

CORPORATES
ADANI MINING PTY LTD, AUSTRALIAN LABOR PARTY, NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY, BHP BILLITON LIMITED – ASX BHP

Coronado Coal burnt as shares dip on debut

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Original article by Matt Chambers, Samantha Bailey
The Australian – Page: 21 : 24-Oct-18

Coronado Coal has a market capitalisation of around $3.5bn after the stock closed at $3.60 on its first day of trading on the Australian sharemarket. Shares in Coronado were issued at $4 apiece, at the bottom end of the indicative range of between $4 and $4.80 in its prospectus. Coronado acquired the Curragh coking and thermal coal mine in Queensland from Wesfarmers earlier in 2018, while it also owns coking coal mines in the US.

CORPORATES
CORONADO GLOBAL RESOURCES INCORPORATED – ASX CRN, WESFARMERS LIMITED – ASX WES, SHAW AND PARTNERS LIMITED, WHITEHAVEN COAL LIMITED – ASX WHC, YANCOAL AUSTRALIA LIMITED – ASX YAL, NEW HOPE CORPORATION LIMITED – ASX NHC, STANMORE COAL LIMITED – ASX SMR, ENERGY AND MINERALS GROUP, ATLAS FUNDS MANAGEMENT PTY LTD, BHP BILLITON LIMITED – ASX BHP, STANWELL CORPORATION LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, BELL POTTER SECURITIES LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD

Why Coronado was shunned by big fundies

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 23-Oct-18

Many Australian fund managers chose not to participate in the IPO of Coronado Global Resources, forcing private equity firm Energy & Minerals Group to scale back the size of the raising and the issue price of Coronado share. Some resources-focused fund managers are said to have taken the view that Coronado’s offer price was less compelling than similar IPOs, while its commitment to pay out all free cash flows in its first year as dividends is also believed to have been a concern.

CORPORATES
CORONADO GLOBAL RESOURCES INCORPORATED – ASX CRN, ENERGY AND MINERALS GROUP, SHAW AND PARTNERS LIMITED, JANUS HENDERSON GROUP PLC – ASX JHG, PEABODY ENERGY CORPORATION

Coronado pushes past IPO blow

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Original article by James Frost
The Australian Financial Review – Page: 18 : 22-Oct-18

Coronado Global Resources is slated to commence trading on the Australian sharemarket on 23 October. The IPO raised $774m and was oversubscribed, although Coronado had scaled back the size of the offering from an initial target of $1.4m. Metallurgical coal accounted for about 75 per cent of Coronado’s total production in 2017. The company owns coal mines in Queensland’s Bowen Basin and the US state of Virginia. Energy & Minerals Group (EMG) will retain a stake of up to 78.9 per cent in Coronado.

CORPORATES
CORONADO GLOBAL RESOURCES INCORPORATED – ASX CRN, ENERGY AND MINERALS GROUP, THE GOLDMAN SACHS GROUP INCORPORATED, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, BELL POTTER SECURITIES LIMITED, HERBERT SMITH FREEHILLS PTY LTD, SULLIVAN AND CROMWELL, WHITEHALL ASSOCIATES, NEW HOPE COAL AUSTRALIA, YANCOAL AUSTRALIA LIMITED – ASX YAL

China’s coal clamps no surprise, says Yancoal

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 9-Oct-18

James Rickards, Yancoal Australia’s general manager of investor relations, does not expect coal prices to be significantly affected by China’s move to reduce thermal coal imports. He argues that it had been widely anticipated, as the Chinese government tends to curb coal imports every year in order to support local producers. Meanwhile, Lachlan Shaw of UBS says Chinese demand for thermal coal is likely to remain strong during the upcoming northern winter.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, UBS HOLDINGS PTY LTD, RIO TINTO LIMITED – ASX RIO, INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE