B06 Coal Mining

Japan coal threat could cost jobs and billions

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Original article by Jared Owens, Matt Chambers
The Australian – Page: 1 & 2 : 30-May-18

Nippon Steel & Sumitomo Metal Corporation recently warned the Queensland Government that it may be forced to find alternative sources for coal due to a dispute between Aurizon Holdings and coal producers. It centres on the Queensland Competition Authority’s draft ruling on Aurizon’s coal rail network. Aurizon estimates that the ruling could reduce its coal haulage volumes by up to 20 million tonnes a year. Premier Annastacia Palaszczuk will give assurances to Japanese steel buyers that the state’s coal shipments will not be affected.

CORPORATES
AURIZON HOLDINGS LIMITED – ASX AZJ, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, NIPPON STEEL AND SUMITOMO METAL CORPORATION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, QUEENSLAND. COMPETITION AUTHORITY, QUEENSLAND RESOURCES COUNCIL LIMITED, LIBERAL-NATIONAL PARTY OF QUEENSLAND

BHP, Queensland settle royalty stoush

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Original article by Matt Chambers, Ben Butler, Charlie Peel
The Australian – Page: 24 : 30-May-18

BHP Billiton has secured a confidential out-of-court settlement with the Queensland Government over a $A329m coal royalties dispute that centred on the miner’s marketing hub in Singapore. The case had been slated to be heard by the Supreme Court in coming days, and the settlement will enable BHP to avoid disclosing details of the Singapore hub. BHP also faces legal action from the Australian Taxation Office over a disputed tax bill of $A87m. The case will be heard in the Federal Court in Melbourne on 31 May.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SUPREME COURT OF QUEENSLAND, QUEENSLAND. TREASURY, AUSTRALIAN TAXATION OFFICE, FEDERAL COURT OF AUSTRALIA, MITSUBISHI CORPORATION, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, NEW SOUTH WALES. THE TREASURY, AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL

Quarterly coal deals are dead, buried: BHP

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Original article by Peter Ker
The Australian Financial Review – Page: 26 : 8-May-18

BHP Billiton executive Arnoud Balhuizen says coal producers and buyers are unlikely to return to the quarterly contract pricing system. The shift away from the traditional pricing system gained momentum in mid-2017 when coking coal buyer Nippon Steel commenced a trial of a new system whereby contract prices were determined on the basis of the average spot price over the previous three months. Meanwhile, Balhuizen believes that the rise in the price of higher-grade coal and iron ore is likely to be structural rather than cyclical.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, NIPPON STEEL AND SUMITOMO METAL CORPORATION, MITSUBISHI CORPORATION

Rio faces new ASIC claims over Riversdale

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Original article by Matt Chambers
The Australian – Page: 22 : 2-May-18

A Rio Tinto spokesman says the mining giant will "vigorously" contest the latest allegations regarding a writedown of its coking coal assets in Mozambique. The Australian Securities & Investments Commission has alleged that a delay in writing down the value of the assets constituted misleading and deceptive conduct. Rio Tinto, former CEO Tom Albanese and ex-CFO Guy Elliott were already facing allegations that they had not informed shareholders of a significant downgrade in the resource estimate for the Mozambique assets.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, RIVERSDALE MINING LIMITED, FEDERAL COURT OF AUSTRALIA, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, MINERALS COUNCIL OF AUSTRALIA, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY, BHP BILLITON LIMITED – ASX BHP, THE AUSTRALIA INSTITUTE LIMITED

Revitalised Peabody sees wider role for coal

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Original article by Matt Chambers
The Australian – Page: 17 & 20 : 17-Apr-18

US-based Peabody Energy has a market capitalisation of around $US4.7bn ($A6bn) just over a year after it emerged from Chapter 11 bankruptcy protection. Peabody’s Australian operations in particular have performed well in the last year, having achieved a pre-tax operating profit margins of nearly 40 per cent in the March quarter. There has been speculation about potential acquisitions, but Peabody CEO Glenn Kellow says the company’s priority is to return capital to investors via share buybacks and dividends.

CORPORATES
PEABODY ENERGY CORPORATION, PEABODY ENERGY AUSTRALIA COAL PTY LTD, ELLIOTT MANAGEMENT CORPORATION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, REALM RESOURCES LIMITED – ASX RRP, AGL ENERGY LIMITED – ASX AGL, NEW YORK STOCK EXCHANGE

Coking coal’s future bright

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Original article by Eli Greenblat
The Australian – Page: 17 & 26 : 29-Mar-18

Rio Tinto has completed its exit from the coal sector with the sale of its 80 per cent stake in the Kestrel coking coal mine in Queensland for $US2.5bn ($A3.2bn). The stake was sold to a consortium of EMR Capital and Indonesia-based Adaro Energy, and follows the recent sale of Rio Tinto’s Hail Creek and ­Valeria coal projects. EMR Capital CEO Jason Cheng is upbeat about the outlook for coking coal, arguing that demand will remain strong as there is no alternative to it for the steel industry.

CORPORATES
RIO TINTO LIMITED – ASX RIO, EMR CAPITAL PTY LTD, PT ADARO INDONESIA, SOUTH32 LIMITED – ASX S32, GLENCORE PLC

Rio Tinto sells Hail Creek to Glencore

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 21-Mar-18

Glencore will acquire Rio Tinto’s 82 per cent stake in the Hail Creek coking coal mine and its stake in the Valeria coal project in Queensland. The $US1.7bn ($A2.2bn) deal follows Rio Tinto’s sale of its Hunter Valley coal assets in New South Wales to Yancoal Australia for $US2.69bn in 2017. The sale of the Queensland assets has prompted speculation that Rio Tinto could use the proceeds to return capital to shareholders, as it did after the Yancoal deal.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, YANCOAL AUSTRALIA LIMITED – ASX YAL, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, NEW HOPE CORPORATION LIMITED – ASX NHC, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, WHITEHAVEN COAL LIMITED – ASX WHC, EMR CAPITAL PTY LTD, ADARO ENERGY

Renewables must be low-cost, says Adani local executive

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 15-Mar-18

India-based Adani will start generating renewable energy in Australia later in 2018, when the first stage of its Rugby Run solar farm in Queensland begins operating. It is part of a push by the coal miner to have 1,500 megawatts of renewable energy capacity in Australia by 2022. Adani has indicated that it could invest in other renewables in Australia, such as pumped hydro and wind power, while it may also invest in renewable energy production in Western Australia. Rugby Run has a long-term supply contract with Alinta Energy.

CORPORATES
ADANI ENTERPRISES LIMITED, ADANI MINING PTY LTD, ALINTA ENERGY (AUSTRALIA) PTY LTD, AURIZON HOLDINGS LIMITED – ASX AZJ

Critics won’t stop Carmichael coal mine: Adani Australia boss Jeyakumar Janakaraj

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Original article by Mark Ludlow
The Australian Financial Review – Page: Online : 12-Mar-18

Adani Australia CEO Jeyakumar Janakaraj has attacked the amount of misinformation being spread by opponents of its proposed $A16.5 billion Carmichael coal mine. He notes that the mine has already secured over 100 approvals, and that Australia’s investment reputation would be at risk if a future government scrapped a project that had already secured appropriate government approvals. Janakaraj noted that forecast strong global energy demand over the next two decades made the Carmichael mine an economically viable project.

CORPORATES
ADANI MINING PTY LTD, AUSTRALIAN LABOR PARTY, NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY

Coal price forecasts slowed Rio Mozambique impairment

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 26 : 7-Mar-18

Rio Tinto announced a $US2.86bn write-down in the value of its Mozambique coal assets in February 2013, less than 18 months after they were acquired for $US3.7bn in August 2011. The US Securities & Exchange Commission contends that a write-down should have been made much sooner. It also alleges that former Rio Tinto executives Tom Albanese and Guy Elliott had been aware that the value of the Mozambique assets had declined only months after their acquisition.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, RIVERSDALE MINING LIMITED, ALCAN INCORPORATED