B06 Coal Mining

Adani downsizes, cuts new job numbers to as low as 800

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Original article by Sarah Elks
The Australian – Page: Online : 4-Jun-19

Doubts have emerged as to how many ongoing jobs would be created at Adani’s Carmichael coal mine if the $2bn project goes ahead. A spokeswoman says the project would create 1,500 direct jobs and 6,750 indirect jobs during the ramp-up and construction phases. She adds that the number of jobs when the mine becomes operational will be in line with open-cut coal mines of a similar size in Queensland, which is between 800 and 1,500. Adani had originally flagged the creation of about 5,000 operational jobs at Carmichael, before the size of the project was scaled back.

CORPORATES
ADANI MINING PTY LTD, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, THE AUSTRALIA INSTITUTE LIMITED

Coal being phased out faster than expected, BHP warns investors

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Original article by Killian Plastow
The New Daily – Page: Online : 24-May-19

BHP has indicated that it has no plans to increase its thermal coal portfolio. CFO Peter Beaven says it expects the thermal coal market to plateau over time, before declining. Jason Aravanis of IBISWorld says demand for black coal is expected to fall by around six per cent a year by 2024, with most of that fall coming from thermal coal. Demand for coking coal, which is used to make steel, is expected to remain sound. The Department of Industry, Innovation & Science’s Resources and Energy Quarterly report for March had forecast that thermal coal export earnings are likely to hit a record $27 billion in 2018-19, before falling to $20 billion by 2023-24.

CORPORATES
BHP GROUP LIMITED – ASX BHP, IBISWORLD PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, GLENCORE PLC, RIO TINTO LIMITED – ASX RIO, MINERAL COUNCIL OF AUSTRALIA

Chinese prefer Indonesian coal

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Original article by Glenda Korporaal, Nick Evans
The Australian – Page: 17 & 20 : 15-Apr-19

Michael Cooper of S&P Global Platts says new tenders being issued by China’s state-owned power stations are specifying lower-grade thermal coal of the type that is produced by Indonesia. He adds that traders have indicated that the preference for coal from Indonesia rather than Australia is politically motivated. He also notes that Chinese power stations are also favouring coal sourced from Colombia, despite much longer shipping times. There has been speculation that restrictions on Australian coal imports could be lifted at the end of May, but it has not been confirmed by the Chinese government.

CORPORATES
S&P GLOBAL PLATTS, RBC CAPITAL MARKETS

Whitehaven to roll out driverless trucks

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Original article by Nick Evans
The Australian – Page: 21 : 12-Apr-19

Whitehaven Coal has downgraded its sales expectations for 2018-19 to between 20.5 and 21 million tonnes, compared with previous guidance of 21.5 to 22.5 million tonnes. It follows a three per cent fall in production during the March quarter, with output affected by lower yields at its Maules Creek mine in New South Wales. Meanwhile, Whitehaven has advised that it aims to deploy six autonomous haulage trucks at the Maules Creek mine by October. It will be the first time driverless trucks have been used at an Australian coal mine.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, MORGANS FINANCIAL LIMITED

Rio lashed over probe records

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Original article by Paul Garvey
The Australian – Page: 20 : 5-Apr-19

Rio Tinto has admitted that it had failed to provide the US Securities & Exchange Commission with a large number of documents relating to its ill-fated investment in Mozambique-focused coal producer Riversdale Mining. The SEC is investigating the conduct of Rio Tinto executives – including former CEO Tom Albanese – regarding the timing of a write-down of the Riversdale assets. Rio Tinto has blamed "technical problems" for its failure to provide some 25,000 documents to the SEC.

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

Demand for coal doubles exports

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Original article by Joe Kelly
The Australian – Page: 2 : 1-Apr-19

Data from Coal Services shows that the volume of coal exports from New South Wales has risen by 118 per cent since 2001. Annual exports peaked at 172 million tonnes in 2014, compared with just 75 million tonnes in 2001 and more than 164 million tonnes in 2018. NSW Minerals Council CEO Stephen Galilee notes that state government revenue from mining royalties is expected to top $8bn over the next four years. He adds that coal, gold and copper generate more than $17bn in export revenue for the state each year.

CORPORATES
COAL SERVICES PTY LTD, NEW SOUTH WALES MINERALS COUNCIL, MINERALS COUNCIL OF AUSTRALIA, INTERNATIONAL ENERGY AGENCY

Pyne blamed for freeze on coal imports

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Original article by Glenda Korporaal
The Australian – Page: 19 & 20 : 21-Mar-19

Michael Cooper of S&P Global Platts says Chinese buyers have favoured Indonesian coal over Australian coal since January, despite its lower quality. The firm expects China’s restrictions on Australian thermal coal imports to last until the end of May. Meanwhile, Trade Minister Simon Birmingham has rejected suggestions that China’s import restrictions are politically motivated. Some Chinese coal traders have claimed that Australian coal imports have been targeted due to comments made by Defence Minister Christopher Pyne in January regarding China’s presence in the South China Sea.

CORPORATES
S&P GLOBAL PLATTS, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF DEFENCE, HUAWEI TECHNOLOGIES COMPANY LIMITED, AUSTRALIAN LABOR PARTY, CHINA. MINISTRY OF COMMERCE, GLENCORE PLC, NEW HOPE CORPORATION LIMITED – ASX NHC, CHINA. GENERAL ADMINISTRATION OF CUSTOMS

Delays imperil 300 mining jobs

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Original article by Paul Garvey
The Australian – Page: 22 : 20-Mar-19

New Hope Corporation has posted a 2018-19 interim net profit of $159.8m, which is 33 per cent higher than previously. The result was boosted by its increased stake in the Bengalla coal mine in New South Wales. Meanwhile, MD Shane Stephan has warned that the company will have to retrench workers at its New Acland mine in Queensland if it does not gain approval for its third-stage expansion by the September quarter. New Acland boasts 300 direct employees and 500 contractors.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC, MORGANS FINANCIAL LIMITED

Yancoal delivers thumping profit

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 27-Feb-19

Yancoal Australia has posted a 2018 net profit of $852m, compared with $229m previously, while factors such as rising coal prices lifted operating EBIT to $2.18bn. CEO Reinhold Schmidt notes that Yancoal has reduced its dependence on exports to China after increasing its export volumes to other countries in Asia. He has also rejected suggestions that China’s recent coal import restriction were prompted by trade tensions with Australia. Yancoal shareholders will receive a final dividend of $0.126 per share, and a full-year payout of $0.2855.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, COAL AND ALLIED INDUSTRIES LIMITED, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, ADANI MINING PTY LTD

Super fund targets dirty dozen firms

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Original article by Joanna Mather, Tom McIlroy
The Australian Financial Review – Page: 1 & 6 : 22-Feb-19

The Climate Action 100+ investor group has more resources companies in its sights after its lobbying compelled Glencore to restrict its annual coal production to current levels. Australian companies in the sector that it will target include BHP, Rio Tinto, South32 and Woodside Petroleum, as well as other listed companies such as Woolworths, Qantas and Adelaide Brighton. Andrew Gray of industry fund AustralianSuper is a member of the Climate Action 100+ group’s global steering committee.

CORPORATES
CLIMATE ACTION 100+, GLENCORE PLC, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SOUTH32 LIMITED – ASX S32, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, WOOLWORTHS GROUP LIMITED – ASX WOW, QANTAS AIRWAYS LIMITED – ASX QAN, ADELAIDE BRIGHTON LIMITED – ASX ABC, BORAL LIMITED – ASX BLD, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG, BLUESCOPE STEEL LIMITED – ASX BSL, AUSTRALIANSUPER PTY LTD, WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED – ASX SOL, NEW HOPE CORPORATION LIMITED – ASX NHC, WOOD MACKENZIE, DALIAN PORTS GROUP, TRIBECA INVESTMENT PARTNERS PTY LTD, TERRA CAPITAL PTY LTD, ADANI MINING PTY LTD, QUEENSLAND RESOURCES COUNCIL LIMITED, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIAN LABOR PARTY, INVESTOR GROUP ON CLIMATE CHANGE AUSTRALIA AND NEW ZEALAND, MINERALS COUNCIL OF AUSTRALIA, CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, HSBC GLOBAL ASSET MANAGEMENT LIMITED, IRCANTEC, MANULIFE ASSET MANAGEMENT, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, AMP CAPITAL INVESTORS LIMITED, BT FINANCIAL GROUP PTY LTD, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT