B06 Coal Mining

Shareholders approve fire sale of Russian mines to tycoon with former links to sanctioned oligarchs

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Original article by Sumeyya Ilanbey
The Age – Page: Online : 29-May-24

Some 99 per cent of Tigers Realm Coal’s shareholders have voted in favour of a deal to sell all of its assets to APM Invest, which is owned by Russian businessman Mark Buzuk. The $US49m ($74m) deal to sell two coking coal mines and an export terminal in Russia follows a court ruling in April that the company was in breach of trade sanctions imposed following the invasion of Ukraine. Tigers Realm chairman Craig Wiggill says Buzuk was carefully screened and was found to have no current links to the Russian state or any entities that are subject to the trade sanctions. However, he is a former business associate of two Russian oligarchs who have been sanctioned.

CORPORATES
TIGERS REALM COAL LIMITED – ASX TIG, APM INVEST

Tigers Realm sells out of Russia

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Original article by Cameron England
The Australian – Page: 18 : 16-Apr-24

Tigers Realm Coal has advised that it will divest its sole operating assets and return the proceeds of the $US49m transaction to shareholders. Tigers Realm has agreed to sell its coking coal projects in Siberia and an associated coal export terminal to APM-Invest, a company that is owned by Russian businessman Mark Buzuk. Tigers Realm says its board was of the view that selling its assets is in the best interests of shareholders. The move follows the Federal Court’s recent ruling that Tigers Realm was in breach of sanctions imposed on Russia in response to the invasion of Ukraine.

CORPORATES
TIGERS REALM COAL LIMITED – ASX TIG, APM-INVEST, FEDERAL COURT OF AUSTRALIA

Whitehaven wraps up BHP mines deal

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Original article by Glen Norris
The Australian – Page: 16 : 3-Apr-24

Whitehaven Coal MD Paul Flynn says the company is committed to Australia’s coal sector "for the long haul", following the completion of its deal to acquire two coal mines in Queensland’s Bowen Basin. Whitehaven announced the $6.4bn deal to buy the Blackwater and Daunia coking mines in October, and Flynn says 95 per cent of their employees have agreed to stay on under the mines’ new ownership. Whitehaven has also advised that global steelmakers have expressed strong interest in the proposed sale of a 20 per cent stake in the Blackwater mine.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC

Rio Tinto pays $43m in Mozambique settlement

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 21-Nov-23

Rio Tinto has reached a settlement with the US Securities & Exchange Commission regarding impairment charges arising from the acquisition of Riversdale Mining in 2011. The $US28 million ($42.7 million) settlement means that Rio Tinto and former executives Tom Albanese and Guy Elliott will not face any fraud charges. Rio Tinto paid $US3.7bn for Riversdale, and subsequently found that the quality of the company’s coking coal in Mozambique was lower than anticipated. Rio Tinto announced writedowns associated with Riversdale in early 2013, but it had been alleged that it should have done so much earlier.

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

Glencore captures Teck Resources’ coal operations in $14bn deal

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Original article by Nick Evans
The Australian – Page: 15 : 15-Nov-23

Glencore CEO Gary Nagle expects its $US8.9bn ($14bn) deal to acquire a majority stake in Teck Resources’ coking coal business to be finalised in the September 2024 quarter. Glencore will own 77 per cent of Elk Valley Resources if the deal is approved by Canadian regulators, while steelmakers Nippon Steel and Posco will be minority shareholders. Glencore is still proposing to demerge its coal division, which would include the Elk Valley mines as well as Glencore’s coal mines in Australia; Nagle says the process of hiving off the coal assets is likely to take about two years. Teck will in turn focus on copper and nickel production.

CORPORATES
GLENCORE PLC, TECK RESOURCES LIMITED, ELK VALLEY RESOURCES LIMITED, NIPPON STEEL CORPORATION, POSCO

New Hope cautious as China lifts coal ban

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 20-Sep-23

New Hope Corporation has posted a net profit of $1.08bn for the year to 31 July, which is 11 per cent higher than previously. Underlying EBITDA was also up 11 per cent to $1.75bn, and revenue rose by 7.9 per cent. The coal miner has advised that it received an average realised price of $346.73 per tonne, a year-on-year increase of 23 per cent. New Hope sold just $79.6m worth of coal to Chinese buyers in its 2022-23 financial year, despite the removal of the ban on Australia coal imports; CEO Rob Bishop says New Hope will continue to prioritise its major customers in Japan and Taiwan.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC

Critical minerals exports set to soar past coal

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Original article by Elouise Fowler
The Australian Financial Review – Page: 6 : 3-Jul-23

The Department of Industry, Science & Resources has forecast that the value of Australia’s critical minerals exports will top $40bn by 2025. Demand for lithium and copper in particular is expected to be strong as the world transitions to clean energy sources. In contrast, the value of thermal coal exports is forecast to fall to $30bn in 2025, compared with expectations of $64bn for 2023; thermal coal prices rose sharply following the invasion of Ukraine, but are expected to fall back to around pre-invasion levels. Meanwhile, lower demand for steel in China is expected to result in the value of Australia’s iron ore exports falling to $93bn in 2024-25, down from $123bn in 2022-23.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE AND RESOURCES

Cashed-up New Hope to double coal volumes

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 22-Mar-23

New Hope Corporation has posted a 2022-23 interim net profit of $668.6m, which is 102 per cent higher than previously. New Hope received an average of $467.40 a tonne for its thermal coal during the six months to 31 January. Shareholders will receive an interim dividend of $0.30 per share and a special dividend of $0.10 a share. Meanwhile, New Hope expects coal production from its existing mines to exceed 14 million tonnes in 2026, compared with 7.6 million tonnes in 2022. However, CEO Rob Bishop warns that a coal shortage is looming, given that the new mines that are opening in Australia will not be sufficient to offset the number of mines that are slated to close in coming years.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC

Coal plan could mean supplying at cost

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Original article by Nick Evans, Perry Williams
The Australian – Page: 2 : 20-Jan-23

BHP’s production report for the December quarter shows that it expects each tonne of coal produced at its Mt Arthur mine in NSW to cost up to $US91 ($132) per tonne in 2022-23. This compares with the price cap of $125 per tonne that the state government has imposed on thermal coal that is supplied to the Liddell and Bayswater power stations. BHP may be forced to supply up to 1.5 million tonne of coal at cost to the power stations under the state government’s domestic coal reservation policy. The existing policy implemented in late 2022 applied to a small number of thermal coal producers, but it will be broadened to include major producers such as BHP and Whitehaven Coal.

CORPORATES
BHP GROUP LIMITED – ASX BHP, WHITEHAVEN COAL LIMITED – ASX WHC

WA Government won’t stand in way of South32 coal imports

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Original article by Sean Smith
The West Australian – Page: Online : 16-Sep-22

South32 uses coal supplied by Griffin Coal to help generate steam used to make alumina at its Worsley refinery in Western Australia. Griffin is having trouble meeting its supply contracts for Worsley and the Bluewaters Power plant, and was placed into administration by its bankers in the week commencing 12 September. South32 has indicated it plans to import some of Worsley’s coal needs until domestic supplies can resume, and WA Energy Minister Bill Johnston has indicated he will not stand in its way. His comments are in contrast to those made by him in 2019 when he indicated the WA government would not allow coal imports.

CORPORATES
SOUTH32 LIMITED – ASX S32, THE GRIFFIN COAL MINING COMPANY PTY LTD