B06 Coal Mining

BHP says black lung levy not needed

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Original article by James Thomson
The Australian Financial Review – Page: 23 : 13-Oct-16

The Construction, Forestry, Mining & Energy Union has proposed compensating Queensland coal miners who have contracted black lung disease via a levy on coal output. However, BHP Billiton argues that the state’s workers’ compensation scheme is sufficient and the he levy of $A0.10 per tonne is unnecessary. Three of the resources group’s employees have contracted black lung disease, and 16 cases have been confirmed across the state’s coal mining sector since 2015.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, QUEENSLAND. DEPT OF NATURAL RESOURCES AND MINES

Commodities surge lifts outlook

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Original article by Barry FitzGerald, David Rogers, Sue Neales
The Australian – Page: 19 & 31 : 13-Oct-16

Copper and uranium are Australia’s only major resources commodity exports that have not posted strong gains in 2016. Coking and thermal coal in particular have rallied in the year to date, and Paul Bloxham of HSBC believes that the nation’s "income recession" is over. He estimates that nominal GDP could be boosted by around two per cent if the rise in coal prices is sustained, a view shared by the ANZ Bank. There has also been a big rise in the export price of beef, although drought caused Australian shipment to fall in 2015-16.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MOODY’S INVESTORS SERVICE INCORPORATED, PEABODY ENERGY AUSTRALIA COAL PTY LTD, NIPPON STEEL AND SUMITOMO METAL CORPORATION, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, RABOBANK AUSTRALIA LIMITED

Worst is behind us: Forrest calls bottom of cycle

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Original article by Jacob Greber
The Australian Financial Review – Page: 6 : 13-Oct-16

Andrew Forrest has used a National Press Club speech to forecast an upturn in commodity prices, expressing his view that the sector is near the bottom of a major cycle. Forrest’s comments follow revelations that Japanese steel mills have settled coking coal price negotiations for the December 2016 quarter at $US200 per tonne. The Department of Industry, Innovation & Science recently forecast that the benchmark price for coal contracts will average $US99/tonne in 2016 and $US108 in 2017.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, NATIONAL PRESS CLUB (AUSTRALIA), PEABODY ENERGY AUSTRALIA COAL PTY LTD, NIPPON STEEL AND SUMITOMO METAL CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED

Miners say water bill to cost jobs

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Original article by Michael McKenna
The Australian – Page: 2 : 12-Oct-16

New Hope Coal has warned that the Queensland Government’s proposed new water licence regime for existing resources projects will affect the timetable for the expansion of its Acland mine. MD Shane Stephan has told state MPs that the company will have to begin laying off workers at the mine in 2017 if the legislation is passed. The Queensland Resources Council has criticised the proposed legislation, which would subject resources projects to an additional environmental approval process in order to obtain a water licence.

CORPORATES
NEW HOPE COAL AUSTRALIA, NEW HOPE CORPORATION LIMITED – ASX NHC, QUEENSLAND RESOURCES COUNCIL LIMITED, ADANI MINING PTY LTD, QUEENSLAND. DEPT OF ENVIRONMENT AND HERITAGE PROTECTION

Surging coal puts pricing system in peril

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Original article by Matt Chambers
The Australian – Page: 17 & 18 : 10-Oct-16

The spot price of Australian coking coal has risen by 155 since early June 2016, to $US213 per tonne. This compares with a contract price of just $US92.50 per tonne for the September quarter. The spike in the spot price has prompted Japanese steel mills to delay the settlement of contract prices for the December quarter. Macquarie notes that there is a growing push to phase out the quarterly contract system in favour of index pricing, although Whitehaven Coal Paul Flynn says this is unlikely to occur in the near-term.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, WHITEHAVEN COAL LIMITED – ASX WHC, NIPPON STEEL AND SUMITOMO METAL CORPORATION, ANGLO AMERICAN PLC, THE STEEL INDEX LIMITED

Morgan Stanley calls coal price peak as controls relax

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Original article by Peter Ker
The Australian Financial Review – Page: 29 : 5-Oct-16

The price of coking coal has risen by 177 per cent in 2016, and the price of thermal coal is up 55 per cent. However, Morgan Stanley believes that the Chinese Government’s move to further ease restrictions on the nation’s coal production may rein in coal prices. Meanwhile, the Singapore Exchange’s Adrian Lunt says the large difference between the contract price for coking coal in the September quarter and the spot price may prompt more producers to abandon quarterly pricing in favour of index-linked pricing.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, SINGAPORE EXCHANGE LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WHITEHAVEN COAL LIMITED – ASX WHC, STANMORE COAL LIMITED – ASX SMR, NEW HOPE COAL AUSTRALIA, AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, GLENCORE PLC, ANGLO AMERICAN PLC, TECK CORPORATION

BHP Coal ordered to reinstate miner after scab comment

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Original article by Ewin Hannan
The Australian – Page: 8 : 29-Sep-16

The Fair Work Commission has ruled that BHP Billiton’s coal division must reinstate an employee at its Saraji mine in Queensland, who was sacked for using the word "scab". A mine manager had argued that the use of the word "scab" was much worse in the industrial relations context than using certain swear words in the workplace.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. FAIR WORK COMMISSION

Major derailment disrupts supply side of coking coal

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 16-Sep-16

Shipments from the Abbot Point coal terminal in Queensland will be affected by a derailment on Aurizon Holdings’ Northern train line in the Bowen Basin. The incident will affect Glencore’s Newlands coking coal mine and BHP Billiton’s Goonyella/Riverside mine. Damage to the train line is expected to take about a week to repair, and the reduced supply could put upward pressure on the coking coal price, which has risen by 100 so far in 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, GLENCORE PLC, AURIZON HOLDINGS LIMITED – ASX AZJ, AURIZON NETWORK PTY LTD, ANGLO AMERICAN COAL, QCOAL PTY LTD, SOUTH32 LIMITED – ASX S32, MITSUBISHI CORPORATION, UBS HOLDINGS PTY LTD, PACIFIC NATIONAL PTY LTD

Savvy mine buyers benefit from coal price lift

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Original article by Peter Ker
The Australian Financial Review – Page: 27 : 9-Sep-16

The price of coking coal has risen 47 per cent in the last month, and 105 per cent so far in 2016. Macquarie Group notes that only 510,000 tonnes of coking coal has been traded via the globalCOAL platform in the last month, and it says the low volumes have been a major driver of the spot price in recent weeks. The spot price is currently significantly higher than the contract price, which has benefited major spot price traders such as BHP Billiton.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, BHP BILLITON LIMITED – ASX BHP, GLOBAL COAL LIMITED, STANMORE COAL LIMITED – ASX SMR, VALE SA, TAURUS FUNDS MANAGEMENT PTY LTD, ANGLO AMERICAN PLC, AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT

Another big miner in $1.2b ATO dispute

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Original article by Peter Ker
The Australian Financial Review – Page: 3 : 30-Aug-16

An Australian subsidiary of Japan’s Mitsubishi claimed a $A1.22bn income tax deduction in 2009, which related to its acquisition of a coal tenement by the company’s joint venture with BHP Billiton in 2008. The Australian Taxation Office subsequently served Mitsubishi with a notice of amended assessment regarding the tax deduction. The tax dispute has yet to be resolved, although the ATO recently offered a settlement to Mitsubishi.

CORPORATES
MITSUBISHI CORPORATION, MITSUBISHI DEVELOPMENT PTY LTD, AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP, BM ALLIANCE COAL OPERATIONS PTY LTD, NEW HOPE CORPORATION LIMITED – ASX NHC, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC