COAL MINES AND MINING – AUSTRALIA

Aussie mine focus as Peabody beats bankruptcy

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Original article by Matt Chambers
The Australian – Page: 18 : 10-Apr-17

Peabody Energy Corporation has been reinstated to the New York Stock Exchange after emerging from Chapter 11 bankruptcy protection. Peabody has reduced costs, sold or shut down coal mines and slashed its debt by $US5bn since filing for bankruptcy in April 2016. CEO Glenn Kellow has stressed the importance of Peabody’s coking and thermal coal mines in Queensland and New South Wales, noting that its Australian operations provides the company with access to the Asia-Pacific market. He adds that Australia should consider building clean coal power stations.

CORPORATES
PEABODY ENERGY CORPORATION, NEW YORK STOCK EXCHANGE, BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Coal shares tumble as China abandons limits

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Original article by Peter Ker, Lisa Murray
The Australian Financial Review – Page: 13 & 18 : 9-Mar-17

China’s National Development & Reform Commission has advised that it might not reinstate restrictions on the number of days the nation’s coal mines can operate. The NDRC has indicated that this will depend on the outlook for coal prices. Shares in Australian coal producers have fallen in response to the NDRC’s statement, including Yancoal Australia and Whitehaven Coal. Thermal and coking coal prices rallied in the wake of China’s decision to limit production to 276 days year in early 2016.

CORPORATES
CHINA. NATIONAL DEVELOPMENT AND REFORM COMMISSION, YANCOAL AUSTRALIA LIMITED – ASX YAL, WHITEHAVEN COAL LIMITED – ASX WHC, STANMORE COAL LIMITED – ASX SMR, NEW HOPE CORPORATION LIMITED – ASX NHC, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SDIC INVEST, RBC CAPITAL MARKETS, TERRACOM LIMITED – ASX TER, REALM RESOURCES LIMITED – ASX RRP, AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, ANGLO AMERICAN PLC, SOUTH32 LIMITED – ASX S32

Mining exports reignite boom

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Original article by Paul Garvey
The Australian – Page: 19 & 32 : 3-Feb-17

Data from the Australian Bureau of Statistics shows that the value of coal and metals exports reached a new monthly high of $A13.4bn in December, compared with just $A6.4bn in January 2016. The value of coal exports rose to $A5.7bn, which is the highest level since November 2008. Iron ore exports topped $A7.7bn, which is the second-highest monthly total on record. BHP Billiton and Rio Tinto are tipped to post bumper half-year and full-year profits in coming weeks.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, WHITEHAVEN COAL LIMITED – ASX WHC, RESOLUTE MINING LIMITED – ASX RSG, NEW SOUTH WALES MINERALS COUNCIL, DEUTSCHE BANK AG

Wesfarmers explores $2b coal mine sales

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 17-Nov-16

Australian-listed conglomerate Wesfarmers has advised that it is considering a range of options for its coal assets, including divestment. It has called for expressions of interest from potential buyers of the Curragh mine, as well as its 40 per cent stake in the Bengalla mine. However, Wesfarmers has stressed that a deal may not eventuate. The sale price of Curragh is likely to be boosted after the recent approval of an expansion plan, which will extend its mine life until around 2038.

CORPORATES
WESFARMERS LIMITED – ASX WES, NEW HOPE CORPORATION LIMITED – ASX NHC, BHP BILLITON LIMITED – ASX BHP, APOLLO GLOBAL MANAGEMENT LLC, ANGLO AMERICAN PLC, PEMBROKE RESOURCES PTY LTD, DENHAM CAPITAL MANAGEMENT LP, JELLINBAH GROUP, MACH ENERGY, SALIM GROUP, RIO TINTO LIMITED – ASX RIO, MITSUI AND COMPANY LIMITED, TAIWAN POWER COMPANY, UBS HOLDINGS PTY LTD, BLOOMBERG LP

Coal contract prices expected to stay high

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 20 : 9-Nov-16

The spot price of premium hard coking coal has risen to more than $US289 per tonne in early November 2016. Coal producers and buyers recently settled on a contract price of $US200/tonne for the December quarter. Whitehaven Coal CEO Paul Flynn says the spike in the spot price should ensure that contract prices rise again in the March 2017 quarter. He also anticipates a rise in the price of thermal and semi-soft coking coal.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC, MACQUARIE GROUP LIMITED – ASX MQG, GLENCORE PLC

Tinkler enjoys $35m windfall as coal surges

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 19-Oct-16

Businessman Nathan Tinkler and associated entities are believed to control some 37.25 per cent of the listed Australian Pacific Coal’s shares. The stock has benefited from the rally in the thermal coal price in 2016, which has seen the value of Tinkler’s July 2015 investment of $A6.6m in APC rise to more than $A41m. Tinkler stepped down as MD of the company earlier in 2016, after he was declared bankrupt.

CORPORATES
AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, ANGLO AMERICAN PLC, WHITEHAVEN COAL LIMITED – ASX WHC, BENTLEY RESOURCES PTE LTD, VG SUPERANNUATION FUND, L&Z TINKLER FAMILY SUPERANNUATION FUND, RJ TINKLER FAMILY TRUST, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Whitehaven ramps up coking coal output

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 25 : 18-Oct-16

The rise in the price of coking coal has prompted Whitehaven Coal to lift production in the December 2016 quarter and scale back output of thermal coal. The proportion of semi-soft coking coal produced at its Maules Creek mine will rise to 30 per cent during the period. The price of this coal has risen more strongly than thermal coal in 2016, although growth in the price of premium hard coking coal has significantly outpaced both. Peter O’Connor of Shaw & Partners says other miners could move to lift production, which could in turn put pressure on the coking coal price.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC, SHAW AND PARTNERS LIMITED, PRUDENTIAL INVESTMENTS PTY LTD

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

Peabody to trim Australian coal output

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 12-Aug-16

Peabody Energy Corporation has flagged the potential sale of non-core coal assets in Australia, the US and Canada as part of its turnaround strategy. The group, which filed for bankruptcy protection in April 2016, has also advised that its annual coking coal output in Australia is likely to fall to seven million tonnes in 2021, compared with expectations of 15 million tonnes in 2016. However, thermal coal production is expected to be maintained at around current levels for the next five years.

CORPORATES
PEABODY ENERGY CORPORATION, PEABODY ENERGY AUSTRALIA COAL PTY LTD, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD

PM urged to tread carefully on steel

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Original article by Phillip Coorey, John Kehoe
The Australian Financial Review – Page: 4 : 13-May-16

The Minerals Council of Australia (MCA) wants Prime Minister Malcolm Turnbull to proceed cautiously when dealing with the problem of the overproduction of steel in China. Turnbull said he spoke about the issue with US President Barack Obama on 12 May 2016. The Chinese Government is under pressure globally to prevent steel makers from flooding the market with their products. MCA CEO Brendan Pearson said Turnbull should also pay attention to the interests of Australian mining companies engaged in the production of iron ore and metallurgical coal used in steel production in China.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, WORLD TRADE ORGANIZATION, US STEEL CORPORATION, ALLEGHENY TECHNOLOGIES INCORPORATED, EUROPEAN UNION CHAMBER OF COMMERCE IN CHINA, CHINA. MINISTRY OF FOREIGN AFFAIRS