HVCR 3614 - Hunter Valley Coal Report

HUNTER VALLEY COAL REPORT
The Hunter Valley Coal Report is published weekly by C Randall & Associates Pty Ltd
P O Box 683, Newcastle NSW 2300, Australia - Phone 61-2-4926 1275
Email: [email protected]
© Copyright C Randall & Associates Pty Ltd Inc. in NSW ACN 003 813 689
All rights reserved ISSN 1036-7454
08 September 2014
Number: 36/14
Shenhua Watermark Coal Project recommended for approval by PAC ................................................................ 2
Rio Tinto say ‘time is ticking’ on plans to continue mining at Mount Thorley Warkworth .................................. 2
Angus Place Colliery Modification 4 referred to PAC .......................................................................................... 3
Centennial Springvale JV granted Mining Lease No. 1699 ................................................................................... 3
Queensland Mineral and Energy Resources (Common Provisions) Bill passed .................................................... 4
Abbot Point dredge material to be beneficially re-used on land ............................................................................ 5
Unemployment among minerals professionals at 12.2 per cent ............................................................................. 5
NSW Minerals Council Trade Fair a great success ................................................................................................ 6
Newcastle to be the base for the NSW Energy Innovation Knowledge Hub ......................................................... 6
Federal and Victorian Governments draft assessment bilateral agreement open for comment ............................. 7
Deloitte Mining Services Index highlights volatility in the industry ..................................................................... 8
Moreton Resources clarify South Burnett Times region media coverage .............................................................. 9
Aspire Mining to benefit from agreements to develop Mongolian rail infrastructure ........................................... 9
Arrow Energy granted approval of EIS for Bowen Gas Project .......................................................................... 10
Company News – Tiaro Coal, Anglo Pacific Group, Port of Brisbane, NSW Minerals Council, Ascot
Resources, Newera Resources, Prairie Mining, Viking Mines, Movember Mining Challenge, Independent
Commission Against Corruption, Coal Fe, Queensland Coal Corporation, Joy Global, Macmahon Holdings,
Wollongong Coal.................................................................................................................................................. 10
Safety .................................................................................................................................................................... 13
Diary Dates ........................................................................................................................................................... 13
Personnel .............................................................................................................................................................. 15
Port Waratah Coal Services .................................................................................................................................. 15
Transcoal Port Congestion Graph East Coast Australia ....................................................................................... 16
Braemar Seascope Weekly Focus ........................................................................................................................ 17
Hunter Valley Coal Report
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08 September 2014
Hunter Valley Coal Report No 36/14
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Shenhua Watermark Coal Project recommended for approval by PAC
The Shenhua Watermark Coal Project has been recommended for approval by the NSW Planning Assessment
Commission (PAC).
The proposal is for a new open cut pit mine on the slopes adjoining the Liverpool Plains. The mine would
consist of three pits, to be mined sequentially over 30 years. The mine would extract up to 10 million tonnes
per annum of coal.
Following careful consideration of issues raised, the Commission said that it was generally satisfied that the site
of this proposal on the less fertile higher ground of the Liverpool Plains should be able to be mined without
significant impacts to the agricultural productivity of the Liverpool Plains. Nonetheless, the management of
water impacts will be critically important to ensure the groundwater aquifers which support the agricultural
sector are sustained into the long term.
View the full report at
http://www.pac.nsw.gov.au/Projects/tabid/77/ctl/viewreview/mid/462/pac/308/view/readonly/myctl/rev/Default
.aspx
Rio Tinto say ‘time is ticking’ on plans to continue mining at Mount Thorley Warkworth
Rio Tinto is warning that ‘time is ticking’ on its plans to continue mining at its Mount Thorley Warkworth mine
in the Hunter Valley.
It is another warning to the NSW Government about the seriousness of the situation in the Hunter Valley where
thousands of jobs in mining and the supply chain have been lost and another 1300 jobs at this mine are at risk if
the project is not approved ‘expeditiously.”
Addressing the Australian British Chamber of Commerce in Sydney, Rio Tinto’s Chief Executive, Energy,
Harry Kenyon-Slaney, said that it has been a very challenging process to have the mine's extension approved.
“We have been in a process now for just over five years, trying to extend the life of Mount Thorley Warkworth.
We thought we had achieved that a while ago, but that decision was overturned by The Land and Environment
Court and we are now back into having submitted another application into extending the life of that mine,” he
said.
“It is a big and important mine in the Hunter Valley employing 1300 people and a significant number of
contractors and makes a significant contribution not only to the NSW economy but also to the local Singleton
region.”
We have submitted our application, we are hopeful that will be considered expeditiously, and we are
encouraging the NSW Government to consider it because the time is ticking on Mount Thorley Warkworth.
We have a brief extension that has kept the operation alive but we really do need to see these issues resolved.
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Mr Kenyon-Slaney said Rio Tinto still sees a “bright future” for thermal coal in the years ahead, given the need
for large-scale, reliable and affordable energy as demand for energy continues to grow along with
industrialising economies in Asia and Africa.
“Collectively we must understand that the world needs big increases in energy generation to support the
economic and social development of huge sections of humanity - and to maintain our own standards of living.
“Without it the world’s political, social and economic stability will evaporate with consequences that don’t bear
contemplation.”
We have to acknowledge that the ‘iron laws of arithmetic’, in former Prime Minister Howard’s immortal
phrase, dictate that coal will remain a mainstay of that energy supply. Moreover, we simply have to make that
equation square with greatly reduced CO2 emissions.
Mr Kenyon-Slaney said that it was "hard to overstate the futility" of the stance of those who insisted all exports
of coal cease.
Angus Place Colliery Modification 4 referred to PAC
The Department of Planning and Environment (DP&E) has completed its assessment of the Angus Place
Colliery Modification 4, Lithgow proposal.
The application has been referred to the Planning Assessment Commission for determination, under the terms
of the Minister’s delegation.
Due to the level of public interest in the proposal, the Commission will be meeting to hear public views on the
Assessment Report and recommendation, prior to determining the proposal. This is a final opportunity for
interested parties to comment on the DP&E’s assessment and recommended conditions of approval, before a
decision is made.
The Commission meeting is scheduled to commence at 9:00am on Thursday, 16 October 2014 at the
Wallerawang Memorial Hall, Tweedie Street, Wallerawang. The meeting is open to the public to observe the
proceedings.
Angus Place Colliery is an underground coal mine located 5 km North East of the village of Lidsdale and 15
km North of Lithgow. Angus Place is owned by a joint venture between Centennial Springvale Pty Ltd. and
Springvale SK Kores Pty Ltd., and is operated by Centennial Angus Place Pty Ltd.
Centennial Springvale JV granted Mining Lease No. 1699
Orange No. 424, now Mining Lease No. 1699 (Act 1992),Centennial Springvale Pty Limited (ACN 052 096
812) and Springvale SK Kores Pty Limited (ACN 051 015 402), Parish of Cook, County of Cook, Map Sheet
(8931-3-N), area of 30.6 hectares, for the purpose of any bin, magazine or fuel chute, any building or mining
plant, any cable, conveyor, pipeline, telephone line or signal, communications, conveyance of electricity,
conveyance of materials, any drillhole or shaft for ventilation, drainage, access, emergency access to
underground workings and any reservoir, dam, drain or water race, dated 26 June 2014, for a term until 26 June
2035. As a result of the grant of this title, Exploration Licence No. 6856 has partly ceased to have effect.
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Queensland Mineral and Energy Resources (Common Provisions) Bill passed
The Queensland Government has passed the Mineral and Energy Resources (Common Provisions) Bill.
Queensland landholders affected by resources activities and their direct neighbours will retain the right to
object to low-impact mining proposals under legislation passed through Queensland Parliament.
Queensland Mines Minister Andrew Cripps said the Mineral and Energy Resources (Common Provisions) Act
2014 included amendments to the notification and objection process for mining lease applications and
environmental authorities.
Landholders whose properties share a boundary with a site directly affected by a proposed resource project will
have the same notification and objection rights as those who own or lease the site of the proposal.
“The Queensland Government is implementing a more streamlined, efficient mining lease notification and
objection process to reduce red tape and provide greater certainty to both landholders and resources
companies,” Mr Cripps said.
“The amendments ensure that a mining project is subject to objection and notification processes that take into
account the size, risk and impact of the proposed operation.
The legislation also amends the requirement for public notification of environmental authority (EA)
applications for mining leases.
Mr Cripps said that the Queensland Government had reduced red tape for the resources sector by ensuring lowimpact mines, which meet certain eligibility criteria, will no longer be subject to notification requirements or
potential objections to an EA.
“Our common sense approach means smaller mining operations, which make up the majority of all mining
leases in Queensland and have little impact on landholders or the environment, do not have to follow the same
process as large-scale projects.
“With large scale mines all notification rights are preserved and the broader public will retain their right to have
their say.”
Mr Cripps said that objection rights were also preserved for any person who has made a submission on a sitespecific application for an EA, either through the notification process for that EA or an associated
Environmental Impact Statement process.
“Environmental authorities for mines with potential impacts on the wider community and the environment will
always be publicly notified, so anyone, including landholders, councils and the community, can lodge a
submission for that proposal,” he said.
The Act also includes amendments to clearly identify the Land Court’s jurisdiction to ensure any issues
considered by the Court relate to impacts of the proposed mine on those more directly impacted by the
proposed mining lease application.
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Abbot Point dredge material to be beneficially re-used on land
The Queensland Government has revealed a long term port development strategy that will see dredge material
produced at Abbot Point beneficially re-used on land.
Queensland Premier Campbell Newman said the Queensland Government had been working on the Abbot
Point Beneficial Reuse Strategy since coming to office in 2012 and will now ask the Federal Government to
expedite the plan’s approval.
“The strategy approved by State Cabinet will create a win-win situation – it will protect the unique values of the
Great Barrier Reef and allow for the staged development of the important port of Abbot Point,” Mr Newman
said.
Queensland Deputy Premier and Minister for State Development and Planning Jeff Seeney said that under the
Strategy, the Queensland Government will make application to the Federal Government for three million cubic
metres of dredge material to be beneficially disposed of on land.
“We will now ask Federal Environment Minister Greg Hunt to fast-track approval of our strategy under the
Environmental Protection and Biodiversity Conservation Act 1999 to ensure dredging for the expansion of
Abbot Point can begin on schedule.”
“The dredge material is likely to be deposited at an existing site within the Abbot Point State Development
Area to enhance port development, in the same way that expansions are successfully occurring at the Port of
Brisbane,” he said.
Unemployment among minerals professionals at 12.2 per cent
Australia’s minerals industry professionals (including geologists and mining engineers) are experiencing double
the average national unemployment rate.
Research released by the Australasian Institute of Mining and Metallurgy (AusIMM) shows high
unemployment among minerals industry professionals that is in double-digits and remains stubbornly high.
The annual AusIMM Professional Employment Survey, conducted across the Institute’s 14,000 members,
revealed:
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Unemployment among Australian minerals professionals is 12.2 per cent.
Minerals professionals now face double Australia’s national unemployment rate (Australia’s trend
unemployment rate was 6.1 per cent in July 2014, ABS Cat 6202.0).
Geology professionals are facing the highest level of unemployment at 15.1 per cent.
One in 10 minerals professionals were made redundant in the 2013-14 year, reflecting a highly volatile
employment market.
Minerals professionals commonly report strong pressures to work more hours for the same pay (17.5 per
cent); to accept lower pay or conditions for the same job (16.6 per cent); and to accept reduced working
hours (8.4 per cent).
Less than half (49.1 per cent) of AusIMM’s Student Members are confident they will find work as a
minerals professional when they graduate.
More than half of AusIMM members (50.8 per cent) believe there will be fewer professional job
opportunities in the minerals sector in the coming year.
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AusIMM President Geoff Sharrock said that the research shows the depth of the downturn in the minerals
sector and the high levels of disruption and uncertainty faced by mining industry professionals.
“Sustained high levels of unemployment are being felt across all minerals professional disciplines and all
Australian states and territories. The impacts of cost-cutting in the minerals sector have been particularly
broad, deep and sustained. There are minerals professionals with many years’ experience who are struggling to
find work,” Mr Sharrock said.
“The mining sector relies on its minerals professionals to drive innovation and productivity improvements. The
Australian economy relies on minerals professionals to find and develop the resources that will become the
mines of the future. It is distressing to see these highly trained professionals out of work.”
NSW Minerals Council Trade Fair a great success
A regional trade fair organised by the NSW Minerals Council has been a great success with over 38 Aboriginal
businesses, organisations and key stakeholders coming together in Dubbo this August.
Attendees heard from Mike Sutherland of Alkane Resources and Bob Sutherland of Whitehaven Coal about the
opportunities for Aboriginal businesses with their respective companies and the work that they are currently
doing with Aboriginal businesses.
Brad Draper from Kenjarhy Aboriginal Services spoke about the number of reputable businesses within the
Indigenous space that can compete on commercial terms with others if given the opportunity and how Kenjarhy
would like to promote what they do further afield, to industry members so as that they have a genuine option
when considering indigenous engagement.
Debbie Barwick from the NSW Indigenous Chamber of Commerce spoke about the number of Aboriginal
Enterprise within NSW and the work they are currently doing within the Health, Construction, Education
industries.
Debbie said that Aboriginal Businesses have been operating and competing on the open market for contracts
over many years, we need the opportunity to be able to compete more so within the mining industry.
This regional trade fair was a key action under the Aboriginal Employment and Enterprise Development
Industry Based Agreement (IBA) - an agreement signed by the NSW Minerals Council and the NSW
Government aiming at increasing Aboriginal employment and enterprise development opportunities.
The trade fairs have been established to increase the number of Aboriginal Enterprises providing goods and
services to the NSW mining industry and communities in which they operate. They will be run twice a year
with the aim of sharing knowledge about the capacity of Aboriginal Enterprises to via for contracts within the
mining and associated industries.
The second Trade Fair scheduled for late November 2014.
Newcastle to be the base for the NSW Energy Innovation Knowledge Hub
The NSW Government has welcomed the establishment of the first of a series of industry-led NSW Knowledge
Hubs set to boost competitiveness in key sectors with better access to world class research, information sharing
and collaboration.
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Acting Premier and Minister for Trade and Investment Andrew Stoner and Minister for Resources and Energy
Anthony Roberts said that the NSW Energy Innovation Knowledge Hub, based at the Newcastle Institute for
Energy and Resources (NIER), would leverage the State’s innovative strengths in the sector.
“The NSW energy industry makes a major contribution to the State’s economy in terms of business activity,
investment, regional development, job creation and export revenue,” Mr Stoner said.
“The new NSW Energy Innovation Knowledge Hub will seek to leverage the sector’s strengths and develop a
new market for smaller scale energy efficiency technologies that provide significant opportunities for small and
medium enterprises (SMEs).”
Mr Roberts said that the new Hub would bring major research organisations and key energy industry players
together.
“SMEs in the energy innovation sector will also help drive productivity and competitiveness with greater
collaboration and knowledge sharing,” Mr Roberts said.
NIER Director Dr Alan Broadfoot said the establishment of a Hunter-based Energy Innovation Knowledge hub
within the University of Newcastle’s NIER precinct would address local industry challenges, by creating new
opportunities and market access for clean and efficient energy technologies.
“The Hub will serve as a vehicle to further enhance those opportunities, and NIER is proud to play a key role in
driving collaboration and innovation across the sector,” Dr Broadfoot said.
“The Newcastle Hub will foster a new energy sector in the Hunter, with the potential for NSW to help meet
global needs through the exportation of innovative, newly developed technologies.”
As part of its efforts to position the NSW economy for long-term economic and jobs growth, the NSW
Government is working with industry to develop industry-led Knowledge Hubs in five key sectors, including
Creative Digital; Energy; Financial Services; MedTech; Transport, Logistics & Rail.
Federal and Victorian Governments draft assessment bilateral agreement open for comment
The Federal and Victorian Governments have today taken the next step towards streamlining environmental
assessments and establishing a One-Stop Shop with the release of a draft assessment bilateral agreement.
The One-Stop Shop reform is a key Coalition election commitment. The introduction of this critical reform will
save Australian businesses around $420 million nationally every year.
It will create a single assessment and approval process that satisfies both state and Australian Government
requirements.
This will reduce the regulatory burden on business by streamlining the environmental assessment and approvals
process, while still maintaining high environmental standards.
It is about removing duplication across jurisdictions and creating a more efficient process.
This new agreement will replace the assessment bilateral agreement currently in place, and will significantly
increase the number of projects in Victoria that will be eligible for single assessment.
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The elimination of unnecessary duplication will boost business, create jobs and help grow the Victorian
economy. Importantly, this can be achieved while still protecting the environment.
The draft assessment bilateral agreement is open for public comment until 3 October 2014.
Further information is available online: www.environment.gov.au/topics/environment-protection/environmentassessments/bilateral-agreements/vic
Deloitte Mining Services Index highlights volatility in the industry
The ongoing decline in major resources projects, and delays in commencing committed projects, continues to
impact mining services operators, with cost reduction and efficiency programs increasingly critical for longterm viability.
Releasing the Q2 2014 Deloitte Mining Services Index, Deloitte Financial Advisory Services partner Nicholas
Harwood said: “Changes in the market capitalisation values of many operators from Q1 to Q2 highlight
continuing volatility in the industry.”
Compared to the first quarter of 2014:
•The Index declined by 4.71 points to 84.23 ($1.89b market capitalisation)
•The benchmark ASX200 increased by 1.37 points to 132.98.
Deloitte Mining Services Index – Q2 2014
Harwood said that many of the market capitalisation swings are double digit in percentage terms – and as much
as 50%-75%. Of the top 10 participants – those with market cap over $1b – eight experienced decreases. Only
Worley Parsons, up 12%, and ALS, up 18%, experienced increases.
“Common themes across the sector include participants reporting the continued decline in major projects and
delays in commencing committed projects.”
“Many are implementing cost reduction and efficiency programs and are advising progress is in line with
expectations.”
“It is clear that service providers and contractors need to continue to adapt to current and emerging market
circumstances, as it appears these will predominate for some time,” said Mr Harwood.
The Index includes a Deloitte Access Economics overview of factors disrupting the sector.
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Deloitte Access Economics’ partner Stephen Smith said: “The Deloitte Access Economics Investment Monitor
tracks major investment projects around Australia, including in the resources sector. Data from the June quarter
2014 issue shows that the total value of major projects is currently in a holding pattern – it’s barely budged
since June 2013, mainly due to the relatively static value of resources projects under construction.”
“Notwithstanding this, there have been some recent project approvals, but the short to medium-term outlook for
infrastructure spending remains one of declining investment levels amid softer commodity prices,” said Mr
Smith.
Moreton Resources clarify South Burnett Times region media coverage
Moreton Resources Limited (MRV) advises as follows, in respect of an article appearing in the South Burnett
Times on 2 September 2014 (“Article”), in which certain statements have been attributed to the Honourable
Deputy Premier of Queensland, Mr Jeff Seeney and separately to the Company.
The Company confirms that no application for development of a mine has been filed by the Company for
consideration by the Minister or his Department in respect of Kingaroy tenement MDL385 (“Asset”) (to which
the Article refers to as the “Moreton Resources project at Goodger”). Accordingly, the Company is not aware
of any basis for the making of any predetermination (as per the comments attributed to the Honourable Deputy
Premier in the Article) in the absence of a submission and due consideration of a detailed and complete
application for a mine development. It is the Company’s intention to follow due process.
The Company re-affirms that it continues to progress this Asset through a prudent, staged, orderly process, and
whilst to date, we continue to be encouraged by our results, we are aware of the considerable technical,
legislative and social matters that need to be addressed prior to any such application for development. The
Company is at the very early stages of these processes and will keep the market informed regarding any
material developments.
Aspire Mining to benefit from agreements to develop Mongolian rail infrastructure
Aspire Mining Limited (AKM) has announced that 15 agreements have been signed covering co-operation in
transport and infrastructure, mining, education and communications.
Specifically, an agreement between Mongolia’s Ministry of Roads and Transportation (“MRT”) and JSC
Russian Railways (“RZD”) was signed whereby both parties agreed to a process to modernise and expand the
operations and capabilities of Ulaanbaatar Railways, (“UBTZ”) in Mongolia.
Under the agreement, UBTZ and RZD agree on the need for large scale expansion of rail capacity in
Mongolia, and will jointly fund feasibility studies to look at a range of rail projects prioritising the following:
 The dual tracking of the main Trans-Mongolian Railway, which will lift capacity to 100Mtpa, and in
addition, examine the feasibility of electrification of this line. The Trans-Mongolian Railway is already
being upgraded to 34Mtpa from a current 20Mtpa capacity, following tripartite agreements between
Mongolia, Russia and China entered into late 2013.
 The extension of the existing Ulaanbaatar Railways (UBTZ) railway in northern Mongolia from Erdenet
- Ovoot (547 km), and from Ovoot - Arts Suuri (215 km) on the Russian border. The studies will also
assess a Russian connection which would extend the railway from Arts Suuri to link with the Kyzyl Kuragino Railway, thereby establishing a new transit rail corridor connecting Russia with China.
 Upgrading the Erdenet to Darhan rail line to take account of the sharply higher freight volumes that will
be passing through Erdenet along the Northern Rail Line.
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This agreement is consistent with previous announcements regarding increasing trade between Russia,
Mongolia and China and improving the transport infrastructure required to do so.
It was reported that Russia and Mongolia are aiming to improve Russian transit freight to China through
Mongolia’s rail network, increasing it from the current relatively nominal amount to 20Mtpa by 2020.
AKM has also announced that it has received a Coal Blending Facility Concept Study which was commissioned
in order to investigate the establishment of a coal blending facility at the Sainshand Industrial park adjacent to
Ulaanbaatar Railway’s Trans Mongolian Railway in Southern Mongolia.
Arrow Energy granted approval of EIS for Bowen Gas Project
Arrow Energy Limited has welcomed the Queensland State Government’s approval of the environmental
impact statement (EIS) for Arrow’s Bowen Gas Project (BGP).
The decision supports Arrow’s announcement that it is commencing front-end engineering and design (FEED)
work for the proposed Bowen upstream gas project.
Arrow Energy CEO Andrew Faulkner said that both decisions were critical milestones in progressing the
development of Arrow’s significant Bowen Basin gas reserves.
Mr Faulkner said that Arrow had been safely developing coal seam gas (CSG) from the Bowen Basin since
2000 and supplying it commercially since 2004.
He said that the proposed Arrow Bowen Gas Project would involve extracting gas from Arrow’s petroleum
tenures and represented a major expansion in CSG production volumes.
The Bowen Gas Project lies adjacent to Arrow’s existing Moranbah Gas Project (MGP), one of the oldest and
largest (in acreage) gas fields in Australia, which has been producing CSG for the domestic market since 2004.
The MGP is a 50/50 joint venture with AGL.
Chief Executive of the Queensland Resources Council, Michael Roche, said that Arrow Energy’s Bowen Gas
Project (BGP) project will provide more than 1500 jobs during the construction phase from 2016, and about
700 permanent jobs.
BGP involves developing Arrow’s tenements near its existing gas fields with staged expansion of about 4000
gas wells and gas infrastructure in an 8000km2 area.
The project will supply local and export markets.
Company News – Tiaro Coal, Anglo Pacific Group, Port of Brisbane, NSW Minerals Council, Ascot
Resources, Newera Resources, Prairie Mining, Viking Mines, Movember Mining Challenge, Independent
Commission Against Corruption, Coal Fe, Queensland Coal Corporation, Joy Global, Macmahon Holdings,
Wollongong Coal
Tiaro Coal Limited has advised that the Company’s Share Purchase Plan (SPP) has closed. Funds raised
through the SPP were to be used to progress the company’s exploration activities and to provide working
capital. However, given the volume of shares, shareholders have agreed to take up under the SPP, the Directors
Australian Coal and Iron Ore Community
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Hunter Valley Coal Report No 36/14
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are of the view that insufficient funds were raised through the SPP to realise this objective and accordingly that
the SPP should be withdrawn.
Anglo Pacific Group PLC has entered into a definitive agreement with Atrum Coal to sell its interest in the
Panorama Coal Project. The total consideration comprises US$500,000 cash payable to Anglo Pacific on
completion, together with 1,000,000 Atrum shares and a deferred consideration of US$2.0m in the form of a
12-month promissory note with an interest coupon of 8%. In addition, the Company will retain a royalty on
coal sales from the assets being sold equivalent to the higher of 1% of gross revenue on a “mine gate” basis or
US$1/tonne. Completion is anticipated to occur by September 2, 2014. The Panorama Coal Project lies
approximately 15km west of Atrum Coal’s Groundhog Anthracite Project in British Columbia, Canada and is
believed to have anthracite-bearing potential.
Port of Brisbane Pty Ltd (PBPL) has announced more than $80,000 for local community initiatives as part of
its Community Grants Programme. First launched in 2013, the programme supports initiatives that make
valuable contributions to the fields of environmental management, community welfare, school education and
youth leadership. This year, PBPL is supporting a range of local environmental initiatives to benefit Moreton
Bay and local waterways by providing $10,000 towards Healthy Waterways’ Clean Up Programme; $9,000 to
support a Moreton Bay-focussed research programme by the Reef Check Foundation; and $10,000 to help the
Wildlife Preservation Society Australia continue its seagrass/mangrove watch programme. A number of local
schools will also benefit, including Wynnum West State School, who received $5,000 towards an innovative
edible garden and fruit orchard project to teach school children about sustainability, as well as Brisbane
Bayside State College, who received funding towards a positive behaviours programme as well as a
technology-inspired Human Powered Vehicle challenge.
NSW Minerals Council has announced that it will sponsor the 2015 Hunter Valley Coal Festival. NSW
Minerals Council CEO, Stephen Galilee said that the NSW Minerals Council strongly endorses the Festival and
is looking forward to a very successful community event.
Ascot Resources Limited has executed a Share Placement Agreement with Resource Capital Funds V L.P.
(RCF) pursuant to which RCF will subscribe for 20 million shares in Ascot at an issue price of A$0.25 per
share, representing an investment of A$5 million.
Newera Resources Limited has advised that it has received valid applications from Shareholders for
226,120,121 Shares (together with one free attaching New Option for every two shares subscribed for and
issued) pursuant to the Non-Renounceable Entitlements Issue Prospectus lodged on 5 August 2014.
Prairie Mining Limited has commenced work on a Pre-Feasibility Study (“PFS”) at the Lublin Coal Project
(“LCP”) located in south eastern Poland. The LCP is a large scale premium thermal and semi-soft coking coal
project located in the Lublin Coal Basin, adjacent to the Bogdanka mine. The Project is located close to well
established regional rail and port infrastructure with under-utilised bulk cargo capacity for low transportation
costs within Poland, to regional European markets by rail, and to the seaborne export market through ports in
the north of Poland. The PFS is expected to be completed during the first half of 2015.
Viking Mines Limited has Viking Mines Limited has issued a letter of intent to drilling contractor Ellehcor
LLC for the provision of drilling services for the Berkh Uul coal project in northern Mongolia. The proposed
drilling programme will involve vertical precollar and HQ/PQ size diamond core drilling to maximum depth of
200m, on a grid based pattern infilling and extending the existing drilling coverage. Planned total drilling
metreage will be a minimum of 2,000m.
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Results from the drilling programme, scheduled to commence in the next three weeks, will contribute to an
update of the existing JORC (2012) 38.3 Mt coal resource, provide additional information for input into the
approvals process for a Mining Licence for Berkh Uul, and provide further coal quality information for input
into the planned Berkh Uul feasibility study.
Movember Mining Challenge 2014 is just around the corner. To join the 2014 Mining Challenge, sign up at
Movember.com and search for the ‘Mining Challenge’ Network, or email [email protected]
Independent Commission Against Corruption (ICAC) will be relocating to Level 7, 255 Elizabeth Street in
Sydney’s CBD. It is anticipated that the move will take place from 5 pm on Thursday, 18 September, with
business resuming normally at the new address at 9 am on Tuesday, 23 September. For any further information
please go to http://www.icac.nsw.gov.au/about-the-icac/contact-us
Coal Fe Resources Limited has undertaken a further review of the existing assets following ongoing dialogue
with the Company’s auditors, and in the face of ongoing current weakness in the coal prices for the low grade
Abadi project. With the immediate forecast for the coal prices to remain supressed, and with ongoing delays in
payment of royalties by the Joint Venture partner, the board deems it prudent to take this step and write down
the full value of the Abadi project. Under the Joint Venture Agreement, the Joint Venture partner is required to
remit the royalty payment to Coal Fe within five business days of the coal being sold. At present the payment of
this royalty is being delayed. Coal Fe has been making attempts to ensure the timely payment of the royalty.
While Coal Fe notes that the asset has been impaired, the tenure of the Abadi project continues until March
2024, where the Board hopes that production can resume should coal prices increase in the future.
Queensland Coal Corporation announced an updated JORC Resource (2012 Edition) for its Togara West
Coal Project (EPC 1231 and 1858), a project comprising 48 sub-blocks covering 164 km2 with 13.54 million
tonnes (Mt) of Measured, 50.76Mt of Indicated and 693.8Mt of Inferred Resource, in both the Rangal Coal
Measures and Mantuan formations. The Company has also announced that the Norwich Park East project (EPC
1730) has passed a significant milestone with the award of Mineral Development Licence (“MDL”) 466
recognising the potential of the project. In accordance with the award of the MDL, the approved work
programme will comprise of 5 years of activities.
Joy Global Inc. has announced in its Third Quarter Fiscal 2014 Operating Results that consolidated bookings
in the third quarter totalled US$923 million, an increase of 33 percent versus the third quarter of last year.
Original equipment orders increased 195 percent when compared to a weak third quarter a year ago and service
orders increased 7 percent compared to the prior year. Current quarter bookings were reduced by US$13
million from the impact of foreign currency exchange movements versus the year ago period, a US$3 million
decrease for original equipment and a US $10 million decrease for service bookings. When adjusting for
foreign currency exchange, orders were up 35 percent compared to the third quarter of last year, with original
equipment orders up 199 percent and service orders up 8 percent. Bookings for underground mining machinery
increased 37 percent in comparison to the third quarter of last year. Original equipment orders increased 130
percent compared to the prior year. Original equipment orders increased in North America, Australia and Africa
with declines in all other regions. Bookings for surface mining equipment increased 36 percent in comparison
to the third quarter of last year. Original equipment orders increased 551 percent compared to the prior year.
Original equipment orders increased in South America, Australia and China and were partially offset by
reductions in all other regions. Service orders increased 3 percent compared to the prior year, with increases in
North America, South America and Australia partially offset by reductions in all other regions.
Australian Coal and Iron Ore Community
08 September 2014
Hunter Valley Coal Report No 36/14
13
Macmahon Holdings Limited has secured a new three year funding facility. The book-build closed
oversubscribed with the facility upsized from A$280 million to A$317.5 million. Commonwealth Bank of
Australia and The Hong Kong and Shanghai Banking Corporation Limited acted as Mandated Lead Arrangers
and Book runners of the facility which comprises three tranches, covering working capital, bank guarantees and
equipment financing. Macmahon Chief Financial Officer, Sybrandt van Dyk, said the new facility provided the
Company with the stability and certainty of funding to enable future growth.
Wollongong Coal Limited has advised that the winding-up proceeding originally commenced in October 2013
by RUS Mining Services Pty Ltd (RUS) was dismissed by the Supreme Court of New South Wales on Friday
the 5th September 2014.
Safety
There have been no Safety Alerts released.
Diary Dates
06-13 Sept
2014
9th International Mines Rescue Competition
Poland
10-12 Sept
2014
Mining Australia Expo 2014
Perth Convention and Exhibition Centre
Perth
WA
12 Sep 2014
MMAA AGM and Technical Seminar
Mercure Hunter Valley Gardens
NSW
14-18 Sep
2014
ACPS 15th Conference and Exhibition
“Continuing Excellence in Coal Preparation”
Gold Coast Convention & Exhibition Centre
Broadbeach
QLD
16 Sept 2014
Upper Hunter 2014 Breakfast Series
Local, national economic update and opportunities for diversification and
innovation
Muswellbrook RSL
NSW
http://hvrf.com.au/
17-19 Sept
2014
15th Australian Tunnelling Conference 2014
Sydney
NSW
19 Sept 2014
Miners Memorial Day 2014
Australian Coal and Iron Ore Community
08 September 2014
Hunter Valley Coal Report No 36/14
14
22-26 Sept
2014
International Mining and Resources Conference (IMARC) 2014
Melbourne Convention and Exhibition Centre
VIC
25 Sept 2014
4th Annual Best Practice Ecological Rehabilitation of Mined Lands Conference
Singleton Diggers
York Street
Singleton
NSW
http://bit.ly/18mPzhm
Oct 7-9 2014
Mining and Engineering Exhibition New South Wales 2014
Newcastle Entertainment Centre
Broadmeadow
NSW
23 Oct 2014
52nd Annual Mines Rescue Competition
Oaky North
QLD
24 Oct 2014
Australian Mining Prospect Awards 2014
http://www.miningaustralia.com.au/awards
29-30 Oct
2014
Mining Resources Convention 2014
Hilton Hotel
Brisbane
QLD
5-6 Nov 2014
AusRock 2014-Third Australian Ground Control in Mining Conference
Sydney
NSW
5-6 Nov 2014
24th Electrical Engineering Safety Seminar
Waterview Convention Centre
Sydney
NSW
12-14 Mar
2015
Hunter Mining Show 2015
Singleton Council Civic Centre
Singleton
NSW
http://www.huntermining.com.au/
12-29 Mar
2015
Hunter Coal Festival 2015
http://www.huntermining.com.au/hunter-coal-festival-2015/
Australian Coal and Iron Ore Community
08 September 2014
Hunter Valley Coal Report No 36/14
15
Australian Coal Chain Partners can offer you an opportunity to tailor a course on the Coal Industry to suit
your needs. Our Instructors and course design team can prepare a customised course and deliver it for you in a
time and place that is convenient to you and your organisation. Australian Coal Chain Partners have an
established history of successfully delivering courses in a customised format to many organisations and can
develop an intensive, extended course for you, combining customised lectures, site tours & guest speakers. If
you have a group interested in attending any of our courses, please feel free to contact us to discuss if a
targetted customised solution is the best option for you and your team. Please go to www.coalchain.com.au for
further information.
Personnel
Titan Energy Services Limited has appointed Christine Hayward as Chief Financial Officer and Company
Secretary commencing Monday 8 September 2014. Previous Chief Financial Officer, David Thornton has
moved into an operational role as General Manager of the Resources Camp Hire temporary accommodation
business.
UGL Limited has announced the resignation of Murray McArdle as Company Secretary. Pryce Dale will
assume the role. Lyn Nikolopoulos will continue as joint Company Secretary.
Port Waratah Coal Services
Week Ending 31 August 2014.
Source: Port Waratah Coal Services
Total receivables were2,234,886 tonnes (116.53Mt annualised). Shiploading was 1,752,747 tonnes belt weight
(91.39Mt annualised). Twenty eight vessels arrived during the week with a contract tonnage of 2,441,867
(127.33Mt annualised). The vessel queue was 3 vessels at the berth with 32 vessels waiting offshore. The
Average Vessel Turnaround Time was 8.29 days. The Average total Time at Berth was 1.35 days. Stocks at
the port were 275,400 tonnes at Carrington and 1,755,851 tonnes at Kooragang. Total port stocks 2,031,251
tonnes. Forecast Average Vessel Queue Days 9.77.
Australian Coal and Iron Ore Community
08 September 2014
Hunter Valley Coal Report No 36/14
16
Transcoal Port Congestion Graph East Coast Australia
Transcoal Report 8 September 2014: The overall vessel queue increased from 71 last week to 75 this week.
Queensland queue decreased from 44 last week to 38 this week, whilst New South Wales increased from 27 to
37.
Australian Coal and Iron Ore Community
08 September 2014
Hunter Valley Coal Report No 36/14
17
Braemar Seascope Weekly Focus
10 – 16 September 2014
Vessel
DWT
Australian Round Voyage
Far East –
Mediterranean/Continent
Last
This
Change
Week
Week
Mediterranean/Continent – Far
East
Last
This
Change
Week
Week
Last
This
Change
Week
Week
24,000 $5,500
$6,000
$500
28,000 $6,750
$7,000
$250 $5,250
$5,500
$250
45,000 $8,500
$8,750
$250 $7,000
$7,250
$250 $13,250 $13,250
$0
52,000 $9,000 $10,000
$1,000 $7,500
$7,750
$250 $14,250 $14,250
$0
74,000 $6,000
$7,000
$1,000
$180
$280
$100 $15,700 $15,750
$50
172,000 $15,950 $15,500
-$450 $3,750
$3,250
-$500 $34,000 $35,000 $1,000
Note: The relevant trades from 24K and 28K DWT sizes rates are assumed to be DOP South East Asia. All
other sizes are assumed DOP North Asia.
Vessel
DWT
28,000
52,000
74,000
172,000
1 year period
3 years period
9,000
11,000
9,000
22,000
11,000
11,500
11,500
24,000
CAPESIZE
Holidays in Asia affected trade this week, as all round activity was quieter at the start of the week. Rates for
WA/China swung back from mid usd 8’s to high 8’s pmt, as Owners held out for more in the absence of Asian
Owners in the Pacific market. Despite the presence of Miners and Operators, rates struggled to get past usd 9.00
pmt as Charterers held back on higher numbers. The East Coast of Australia fared slightly better, with high usd
12's pmt reportedly fixed for a Newcastle/Zhuhai cargo for 1-10 Oct dates. A surprising usd 14,400 daily
delivery Bayuquan was also reportedly fixed for an East Coast Australian t/c rv this week, while most Owners
were holding out for higher t/c numbers.
It has been a stand off between Owners and Charterers in the Atlantic market, with Owners reluctant to commit
to lower numbers being bid. A standard 180,000 dw fixed usd 22.80 pmt Brazil/China for 20-30 Sep dates after
some waiting, and it would appear that ships arriving in October will get a slightly better premium as we
approach the final quarter of the year.
A slightly smaller sized 169,000 dw concluded an index linked deal for one year this week, with some
suggesting the average 4TC+3% as the rate. As Owners look to take cover for the first quarter/first half of next
year, most are hoping for a spike in paper before fixing them out for at least a year.
PANAMAX
Fronthaul grain cargo ex USG continued to give the market a lift last week. The Pacific market also enjoyed
this positive momentum as vessels headed off in ballast towards the Atlantic. With the market enduring a few
flat/quiet days since the end of the week, there is a suggestion that it may have peaked with many new vessel
positions appearing and little back up cargo in the way of Transatlantic activity.
A firmer Pacific has been muted by holidays in Asia this week, leading rates to flatten out after last week's
gains.
Australian Coal and Iron Ore Community
08 September 2014
Hunter Valley Coal Report No 36/14
18
HANDY, HANDYMAX & SUPRAMAX
Supramax and Handysize timecharter trip rates are firming in the Pacific this week, as we draw nearer to Q4,
which most Owners are bullish about. Spot vessels in South East Asia and the Far East now seem to be
demanding a premium due to a clear out of prompt tonnage. Timecharter period rates have also followed suit
with some healthy numbers being reported. On the cargo side we are now seeing a number of October parcels
ex Australia coming into the market, as Charterers try to cover forward positions early.
NEWS & VIEWS
Iron ore shipments to China from Port Hedland advanced to another record last month as mining companies
increased production.
Shipments reached 32 million tonnes in August from 30.6 million tons in July and 22.3 million tonnes in
August 2013, according to port authority data. Total exports also rose to an all time high of 37.4 million tonnes
from 36.1 million tonnes in July and 27.4 million tonnes a year earlier.
In its final forecast before farmers start harvesting wheat, barley and canola crops in October, the Australian
Bureau of Agricultural and Resource Economics and Sciences predicts winter crop production to fall 12 per
cent to 38.6 million tonnes, which is slightly lower than its June estimate for 38.8 million tonnes.
This is only just below the five-year average of 39 million tonnes and higher than the decade average of 35.7
million tonnes.
Indices
Bunkers
Date 3.9.14
9.9.14
Change
Port
380 IFO
Change
180 IFO
Change
MDO
Change
BHSI
462
472
10
Singapore
$583.00
-$5.00 $594.00
-$7.00 $844.00 -$16.00
BSI
988
1001
13
Hong Kong $592.00
-$2.00 $599.00
-$5.00 $879.00
$3.00
BPI
919
940
21
Japan
$614.00
-$10.00 $624.00
-$9.00 $890.00 -$10.00
BCI
2489
2596
107
Sth Korea
$610.00
$1.00 $638.00
$4.00
$920.00
$24.00
BDI
1142
1197
55
As at 9 Sept 2014 (Source: Baltic Exchange) Bunkers as at 10 Sept2014 (Source Universal Bunkering Pty Ltd)
Australian Coal and Iron Ore Community
08 September 2014
Hunter Valley Coal Report No 36/14
19
Exchange Rates
Source: ANZ Global Markets
Bank buying rates for US dollars as at 8.15am each morning for week ending 05 September 2014.
Exchange Rates
Monday
Tuesday
Wednesday
Thursday
Friday
Bank Buy US$
0.9328
0.9333
0.9276
0.9338
0.9333
Thermal Coal Swap Bids
Source: ANZ Global Markets
Coal Mid rates for close 08 September 2014.
Bal-14 - US$66.90/mt
Cal-15 - US$70.65/mt
Cal-16 - US$74.75/mt
‘globalCOAL’ is a registered trade mark of Global Coal Ltd in the EU. ‘NEWC’ is a registered trade mark of
Global Coal Ltd in Australia, Austria, Benelux, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Portugal, Spain and Sweden. ANZ is a licenced User of globalCOAL products, globalCOAL does not endorse
the accuracy or reliability of any of the information provided herein and cannot be held liable for any loss or
damage arising from any use or reliance on the information above’
Australian Coal and Iron Ore Community
08 September 2014
Hunter Valley Coal Report No 36/14
20
HUNTER VALLEY COAL REPORT
The Hunter Valley Coal Report is published weekly by C Randall & Associates Pty Ltd
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