B06 Coal Mining

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

Glencore’s carbon cash cow: coal prices rising

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Original article by Paul Garvey, Perry Williams
The Australian – Page: 19 & 30 : 22-Feb-19

Glencore CEO Ivan Glasenberg says the Switzerland-based miner’s decision to cap annual coal production is likely to put upward pressure on coal prices, particular if global demand continues to increase. He notes that many other mining companies are also curbing coal output or seeking to divest coal assets. Dominic O’Kane of JP Morgan agrees that Glencore’s move could bolster coal prices, as well Glencore shareholders’ returns. Glencore has indicated that it has no plans to sell any of its coal mines or buy additional mines, although it has not ruled out increasing its stake in existing joint ventures.

CORPORATES
GLENCORE PLC, JP MORGAN AUSTRALIA LIMITED, DEUTSCHE BANK AG, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, CLIMATE ACTION 100+, CHURCH OF ENGLAND, MINERALS COUNCIL OF AUSTRALIA, WORLD COAL COUNCIL, AUSTRALIAN GREENS

Thermal coal prices set to rebound this year

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

New figures from the Australian Bureau of Statistics show that the value of the nation’s coal exports rose to a record $66.2bn in 2018. Meanwhile, Viktor Tanevski of Wood Mackenzie forecasts that demand for bituminous thermal coal in the Asia-Pacific region will rise by three million tonnes in 2019. He also expects the price of high-energy Australian thermal coal to recover to $US98 per tonne after testing the $US88 level earlier in 2019.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, WOOD MACKENZIE, MACH ENERGY, GLENCORE PLC, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32

South32 warns of strike risk if ALP wins poll

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Original article by Brad Thompson
The Australian Financial Review – Page: 13 & 18 : 18-Feb-19

South32 CEO Graham Kerr is concerned that Labor’s workplace reform agenda could lead to increased industrial action, particularly in the resources sector. He says the outcome of the upcoming federal election could affect business confidence for at least 12 months. Kerr notes that stability of supply is a major priority for buyers of Australia’s metallurgical coal buyers. He adds that if supply is disrupted they will source coal elsewhere, and it is very hard to regain a customer’s trust once it has been lost. Employers’ groups are also concerned about any move to reinstate industry-wide bargaining.

CORPORATES
SOUTH32 LIMITED – ASX S32, AUSTRALIAN LABOR PARTY, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. REGISTERED ORGANISATIONS COMMISSION, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, TAHMOOR COAL PTY LTD, CENTENNIAL COAL COMPANY LIMITED, WOLLONGONG COAL LIMITED – ASX WLC, PEABODY ENERGY AUSTRALIA COAL PTY LTD, PORT KEMBLA COAL TERMINAL LIMITED

Bird derails Adani’s mine

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Original article by Jared Owens
The Australian – Page: 1 & 2 : 15-Feb-19

Professor Brendan Wintle has claimed in a draft report that Adani’s measures for protecting the endangered black-throated finch at its proposed Carmichael coal mine in Queensland are inadequate. Wintle’s review of Adani’s measures to protect the finch was commissioned only recently by the State Government, and it was announced not long after Adani advised that it had finally secured funding for the project. Adani’s management plan for the finch was developed in close consultation with the Queensland Department of the Environment, and it has been endorsed by federal environment officials.

CORPORATES
ADANI MINING PTY LTD, QUEENSLAND. DEPT OF ENVIRONMENT AND HERITAGE PROTECTION, AUSTRALIAN LABOR PARTY, UNIVERSITY OF MELBOURNE, MINERALS COUNCIL OF AUSTRALIA

King coal now tops export earners

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Original article by Paul Garvey
The Australian – Page: 24 : 6-Feb-19

Data from the Australian Bureau of Statistics shows that the nation’s minerals and energy exports rose to a record $193bn in 2018. The value of coal exports topped $66.2bn, surpassing iron ore as Australia’s biggest export earner for the first time. Mining companies benefited from a rally in thermal and coking coal prices in 2018. However, prices have since fallen, while the iron ore price has rallied in 2019.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SOUTH32 LIMITED – ASX S32, MINERALS COUNCIL OF AUSTRALIA

Offers flood in as South32 readies for South Africa coal exit

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Original article by Paul Garvey
The Australian – Page: 15 & 16 : 18-Jan-19

Diversified miner South32 expects final bids for its South African thermal coal assets to be submitted by the end of July. CEO Graham Kerr says the assets have attracted strong interest from potential bidders, and this is likely to result in 2-3 firm offers. Meanwhile, South32 has advised that CFO Brendan Harris has become its chief marketing officer, while Katie Tovich in turn has been appointed CFO.

CORPORATES
SOUTH32 LIMITED – ASX S32, ALUMINA LIMITED – ASX AWC, ALCOA INCORPORATED, WHITEHAVEN COAL LIMITED – ASX WHC

Whitehaven on track for record profit in 2019

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Original article by Luke Housego
The Australian Financial Review – Page: 21 : 18-Jan-19

Whitehaven Coal has advised that it still expects to meet its 2018-19 production guidance of 22-23 million tonnes. Production rose by 11 per cent year-on-year in the December quarter, although sales were seven per cent lower than previously. Whitehaven has indicated that its full-year costs are expected to increase by 4.7 per cent to $67 per tonne. Whitehaven shares closed 3.7 per cent higher at $4.71 on 17 January.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC, MORGANS FINANCIAL LIMITED

Yancoal moves on Hunter mines

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Original article by Eric Johnston
The Australian – Page: 15 : 7-Jan-19

A group of Chinese lenders assumed ownership of the Ashton, Austar and Donaldson coal mines in the Hunter Valley in February 2016, after Yancoal Australia secured a debt funding deal. Yancoal remained operator of the mines, and its Chinese parent Yankuang Group has advised that one of the bond holders has exercised a put option to sell its bonds to Yankuang. Yancoal has indicated that the move is unlikely to have any significant implications for it.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, YANKUANG CORPORATION GROUP LIMITED, BANK OF CHINA GROUP, INDUSTRIAL BANK COMPANY LIMITED, BOHAI HARVEST RST (SHANHAI) EQUITY INVESTMENT MANAGEMENT COMPANY LIMITED

Adani tries to get things moving at Carmichael

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Original article by Jared Owens
The Australian – Page: 4 : 21-Dec-18

India-based Adani has commenced construction work on the rail component of its Carmichael coal project in Queensland. However, CEO Lucas Dow says work on the mine has been stalled by delays in gaining state government approvals for managements plans to protect groundwater and endan­gered species. Adani intends to fully finance the rail link, which could potentially be used by other mining companies.

CORPORATES
ADANI MINING PTY LTD, QUEENSLAND. DEPT OF ENVIRONMENT AND HERITAGE PROTECTION, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, GVK HANCOCK, WARATAH COAL PTY LTD, MACMINES AUSTASIA PTY LTD