South32 abandons plans to acquire Peabody’s Metropolitan Mine - Hunter … · 2017-05-05 · 20...

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HUNTER VALLEY COAL REPORT The Hunter Valley Coal Report is published weekly by Nadine Brierley

ABN 92 506 051 400

© Copyright Nadine Brierley All rights reserved ISSN 1036-7454

20 April 2017 Number: 16/17

Rio Tinto thermal coal production up as HVO benefits from higher productivity ................................................ 2

Yancoal US$2.45 billion acquisition of Coal & Allied approved by FIRB ........................................................... 2

South32 abandons plans to acquire Peabody’s Metropolitan Mine ....................................................................... 3

Whitehaven Coal experiences high demand for metallurgical coal following Cyclone Debbie ............................ 3

ACCC issues draft decision not to accept ARTC proposed Hunter Valley rail network access undertaking ....... 4

Thiess awarded MACH Energy Mount Pleasant services contract ........................................................................ 5

Coal & Allied and HVO Resources lodge application to renew Exploration Licence No. 5418........................... 5

Stanmore Coal expects cyclone Debbie to have a strong impact in 2Q2017 contracts ......................................... 5

Aurizon coal systems re-opened and operating under strict conditions ................................................................. 7

NSW Resources Regulator seeks Deputy Chief Inspectors ................................................................................... 8

Federal Government plans replace 457 visa with Temporary Skill Shortage visa................................................. 8

Caledon Resources longwall face area successfully dewatered ............................................................................. 9

Queensland Government seeks funding through NAIF to progress gas supply ..................................................... 9

Safety .................................................................................................................................................................... 10

Company News – Acacia Coal, Altona Energy, Aspire Mining, Caterpillar, Comet Ridge, Hume Coal, NERA,

New Hope Corporation, NQBP, Prairie Mining, Solid Energy, Tian Po Resources, Universal Coal, ................ 14

Diary Dates ........................................................................................................................................................... 17

Personnel .............................................................................................................................................................. 18

HVCCC Weekly Performance Report .................................................................................................................. 19

Port of Newcastle Monthly Coal Trade Report .................................................................................................... 19

Transcoal Port Congestion Graph East Coast Australia ....................................................................................... 20

Braemar ACM Weekly Focus .............................................................................................................................. 21

Exchange Rates .................................................................................................................................................... 23

Thermal Coal Swap Bids ...................................................................................................................................... 23

In it’s 28th year of publication

20 April 2017 Hunter Valley Coal Report No 16/17 2

Bank buying rates for US dollars as at 8.15am each morning for week ending 13 April 2017

Exchange Rates Monday Tuesday Wednesday Thursday Friday

Bank Buy $US 0.7506 0.7506 0.7502 0.7537 Holiday

Rio Tinto thermal coal production up as HVO benefits from higher productivity

Rio Tinto Limited has announced in it’s first quarter production results that thermal coal production was 11 per

cent higher than the same quarter of 2016, as it’s Hunter Valley Operations (HVO) benefitted from higher

productivity.

Hard coking coal production in the quarter was 20 per cent below the first quarter of 2016 due to the timing of

the longwall changeover at Kestrel as well as processing rates at Hail Creek.

Rio Tinto said that damage to rail lines caused by Cyclone Debbie is expected to impact the timing, and

potentially volume, of shipments from Hail Creek over the course of the year.

Kestrel, whilst impacted, is not expected to experience significant sales disruption.

Rio Tinto guidance for coking coal remains unchanged. First quarter semi-soft coking coal production was 18

per cent lower than the same quarter of 2016, reflecting mine production sequencing at Hunter Valley

Operations (HVO) and Mount Thorley Warkworth.

In 2017, guidance for Rio Tinto’s expected share of production remains unchanged at 7.8 to 8.4 million tonnes

of hard coking coal, 3.3 to 3.9 million tonnes of semi-soft coking coal and 17 to 18 million tonnes of thermal

coal.

The Company said that coal guidance may be adjusted depending on the timing of the completion of the Coal &

Allied transaction.

Yancoal US$2.45 billion acquisition of Coal & Allied approved by FIRB

Yancoal Australia Limited has received confirmation from the Foreign Investment Review Board (FIRB) that

the Commonwealth has no objection to Yancoal acquiring 100 percent of Rio Tinto Coal & Allied Industries

Limited which owns an interest in the Hunter Valley Operations mine and the Mount Thorley Warkworth mines

(together with associated assets), subject to compliance with existing governance conditions.

Reinhold Schmidt, Chief Executive Officer of Yancoal said that satisfaction of the FIRB condition precedent

represents a critical milestone and is a positive step forward for Yancoal, it’s shareholders and the Hunter

Valley, demonstrating the Australian Government’s support for continued investment into the local resources

sector.”

The Transaction remains subject to a number of further closing conditions, including Rio Tinto plc and Rio

Tinto Limited shareholder approval and Yanzhou Coal Mining Company shareholder approval. The

Transaction is expected to complete in the 3rd quarter of 2017.


South32 abandons plans to acquire Peabody’s Metropolitan Mine

South32 Limited’s proposed acquisition of the Metropolitan Colliery and associated 16.67% interest in the Port

Kembla Coal Terminal from an Australian subsidiary of Peabody Energy Corporation will not proceed.

The ACCC issued a Statement of Issues on 23 February 2017, voicing it’s concerns that the proposed

acquisition may substantially lessen competition in the supply of metallurgical coal to Australian steelmakers.

South32 stated that it has always maintained that metallurgical coal is a globally traded commodity and that it is

not prepared to make significant concessions in favour of Australian steelmakers that would likely be required

to mitigate the competition concerns.

South32 Chief Executive Officer Graham Kerr said that to do so would be contrary to the global market in

which metallurgical coal producers compete and would adversely affect the value proposition of the

acquisition.

The Metropolitan Mine, which exports coal from Port Kembla in New South Wales, sold 2 million tonnes of

hard coking coal in 2016 and has approximately 26 million tonnes of proven and probable reserves at Dec. 31,

2016. The mine employs approximately 250 employees and contractors.

In a statement, Peabody Energy said that as a result of South32 not completing the acquisition of the mine,

Peabody will retain the previously negotiated deposit.

“The termination of the transaction has no effect on operations, and Metropolitan intends to fully resume

shipments following scheduled completion of a longwall move to a new coal panel at the end of May,” Peabody

said.

Whitehaven Coal experiences high demand for metallurgical coal following Cyclone Debbie

Whitehaven Coal Limited has stated in it’s quarterly report for March 2017 that following the impact of

Cyclone Debbie, enquiries for metallurgical coal have increased substantially and that given existing committed

sales volumes, the Company is expecting an increase in metallurgical coal sales in the final quarter of the year.

Managed coal sales in the March quarter were 4.9 million tonnes (Mt), excluding sales of purchased coal. The

level of sales was as expected as production from Narrabri was impacted by the scheduled longwall changeout.

Equity coal sales (excluding purchased coal) in the March quarter were 3.6Mt comprising 64% high CV

thermal, 22% metallurgical coal and 14% low CV thermal coal.

Whitehaven said that the sales mix for the quarter was influenced by higher than usual volume of low CV coal

sales from Werris Creek compared to the first half of the year when low CV sales made up 8% of total sales.

Metallurgical coal prices were pushed higher during the quarter against a backdrop of supply/demand tightness

promoted by Chinese production reform, strong demand for metallurgical coal by steelmakers during the

December quarter and anticipation of weather related disruptions in Australia.

Subsequent to the calendar year-end and with a relaxation of Chinese supply restraint driving metallurgical coal

production, demand for metallurgical coal fell and spot prices weakened considerably.

Maules Creek attained another milestone in the ramp up phase by operating at an annualised rate of 10.5Mt

during the quarter. ROM coal production at Maules Creek was 2.61Mt for the period. Production is on target

to achieve the full year budget range of 9.5Mt to 9.8Mt ROM coal. Saleable coal production for the quarter

was 2.50Mt compared to 1.97Mt in the previous corresponding period. Coal sales for the quarter were 2.19Mt,

up 6% from the previous corresponding period.


Metallurgical coal sales of 0.483Mt from Maules Creek mine in the March quarter represented 23% of the total

coal sales from the mine. The semi soft coking coal output from the mine continues to attract strong market

interest with three term contracts agreed with Asian customers. Additional term business is expected to be

completed in coming months.

At the Narrabri Mine, ROM coal production was 1.37Mt during the quarter. Coal production was constrained

as longwall mining in LW106 was completed in late February, with the remainder of the quarter used for the

longwall changeout. The next longwall changeout is currently scheduled for March 2018.

The three Gunnedah open cuts produced 1.70Mt of ROM coal for the quarter compared to 1.55Mt in the

previous corresponding period.

“Coal markets have been dominated by the aftermath of the cyclone in central Queensland and China coal

industry policy initiatives.” Whitehaven Coal said.

“The disruption caused by the cyclone is significant with the potential loss of about 15Mt of metallurgical and

thermal coal exports from the region. This loss of exports is likely to be positive for coal prices until normal

production and shipments resume and any contract delivery shortfall recovered, which could take some

months,” Whitehaven said.

“Negotiations for the June quarter benchmark prices metallurgical and annual benchmark price for thermal coal

have stalled as both customers and coal miners assess the impact of the cyclone. Price settlement is now likely

to occur late in April at the earliest and is forecast to be at higher prices than were expected some weeks ago.”

“When the Queensland production losses are combined with relatively high China domestic coal prices, the

outlook for coal prices over the next three to six months remains positive.”

Whitehaven confirms it’s full year production guidance of 21Mt to 22Mt of saleable coal production.

ACCC issues draft decision not to accept ARTC proposed Hunter Valley rail network access undertaking

The Australian Competition and Consumer Commission (ACCC) has issued a draft decision not to accept the

proposed Hunter Valley rail network access undertaking lodged by the Australian Rail Track Corporation

(ARTC).

The ACCC states that it considers that the access undertaking is not appropriate in it’s current form as the key

terms, such as the rate of return and approach to calculating weighted average mine life, do not reflect the

regulatory and commercial risks faced by ARTC.

“In making it’s decision the ACCC has recognised a need to balance the economically efficient operation of,

use of, and investment in the Hunter Valley rail network with the legitimate business interests of ARTC and the

interests of all access seekers, including passenger trains, coal and non-coal freight,” ACCC Chairman Rod

Sims said.

The ACCC recognises that since acceptance of the 2011 Hunter Valley access undertaking (HVAU), there has

been a change in market conditions that has influenced the ARTC’s proposed drafting, and the nature of

stakeholders concerns, in relation to the 2017 HVAU. In particular, there has been a change in focus from

capacity investment in the rail network to consolidation, productivity improvements, and a reduction in

operating expenditure.


The ACCC acknowledges the extensive work that has been undertaken by ARTC to date in developing the

2017 HVAU. The ACCC also recognises the contribution of stakeholders throughout the development process.

The ACCC is seeking submissions in relation to this draft decision, which are due by 12 May 2017.

Thiess awarded MACH Energy Mount Pleasant services contract

Thiess has secured a mining services contract with MACH Energy’s new Mount Pleasant coal mine in the

Hunter Valley.

Under the new contract that will generate total revenue of approximately $500 million, Thiess will undertake

total mining operations at Mount Pleasant until 2021, including mine planning and engineering.

The Mount Pleasant coal mine has an estimated 474 million tonnes of total marketable coal reserves to be

mined and will be an open cut mine that will that will include approximately 200 employees and contractors

during operation.

MACH Energy purchased the Mount Pleasant thermal coal assets from Rio Tinto in 2016 for US$220.7 million

plus royalties.

Coal & Allied and HVO Resources lodge application to renew Exploration Licence No. 5418

Coal & Allied Operations Pty Limited (ACN 000 023 656) and HVO Resources Pty Limited (ACN 608 108

952) have lodged an application to renew Exploration Licence No. 5418. The Licence embraces an area of

2039 square metres.

Stanmore Coal expects cyclone Debbie to have a strong impact in 2Q2017 contracts

Stanmore Coal Limited has released it’s report for the March 2017 quarter.

Stanmore sold 97kt of semi-soft coking coal and 107kt of thermal coal during the quarter. The high proportion

of thermal coal sales for the quarter was driven by a vessel loaded in early January that was delayed from

December.

For semi-soft coking coal sales, 85% of these sales were sold on prior quarter benchmarks with 15% sold on the

March quarter benchmark due to contracted carry-over tonnes which need to be delivered before the latest

benchmark quarterly pricing takes effect.

The average shipped price for all coal during the quarter was USD 94 per tonne (AUD 124 per tonne,

accounting basis), including thermal coal sales.



The Isaac Plains Mine was impacted in late March by Tropical Cyclone Debbie. Preventative measures were

put in place prior to the cyclone reaching the site and overall there was no material damage incurred to critical

Company assets or other assets at the site.

The Company said that significant rainfall impact from Tropical Cyclone Debbie at the end of Quarter, with rail

infrastructure constraints are anticipated to impact the business into following quarters.

At it’s Isaac Plains East Project Mine, Stanmore Coal continued planning and feasibility studies, with the

interpretation of the recent drilling and coal quality testing programme nearing completion and alignment of

mine planning against EA conditions such as noise and dust.

The primary purpose of the recent drilling programme was pit limit and fault zone definition. The Company

anticipates an updated JORC statement to be released when the results are available in the June quarter.

The June quarterly 4Q17 benchmark negotiations for semi-soft coking coal price have been delayed given both

miners and end users continue to assess the impact of Cyclone Debbie. The observed increase to spot price,

driven by coal supply issues throughout key Queensland export regions caused by the cyclone, is likely to drive

an improved price outcome for the June quarter compared to prior expectations of the Company.

Stanmore Coal said that it is close to completing negotiations in relation to Japanese Fiscal Year term contracts

for semi soft coking coal. The completion has been impacted by the onset of Cyclone Debbie.

Stanmore Coal has re-contracted with the same major parties from the first year of operations, at a total

contracted volume of approximately 800kt including an improvement in price relativity to the Hunter Valley

Benchmark for semi soft coking coal. The negotiations included agreed terms on shortfall or carry over

tonnage for the contract year ending 31 March 2017 on a customer by customer basis. Of the 200kt of

carryover, the Company achieved a significant portion of the carry-over position, which will be priced at the

March 2017 quarter price.

Aurizon coal systems re-opened and operating under strict conditions

Aurizon Holdings Limited has reopened three of it’s four coal systems, which make up the Central Queensland

Coal Network (CQCN) with coal trains operating under restricted conditions with some reduced capacity.

Aurizon’s Blackwater coal system, which connects into the Port of Gladstone re-opened to coal traffic on

Monday 10 April, the Moura system into the Port of Gladstone on Wednesday 12 April, and the Newlands coal

system into Abbot Point Coal Terminal on Thursday 13 April.

The Goonyella coal system experienced significant damage at multiple sites and was originally expected to take

five weeks to repair. Aurizon now expects this system, which connects into Hay Point Coal Terminal and

Dalrymple Bay Coal Terminal, to re-open on Wednesday 26 April with speed restrictions and reduced capacity.

Due to the period of time the CQCN will be unavailable for haulage, Aurizon expects it’s Above Rail coal

tonnes for FY2017 to be reduced by 12–14 million tonnes. Accordingly, Aurizon now expects a coal haulage

range of 190-200 million tonnes, rather than the previously advised guidance of 200-212 million tonnes.

Aurizon said that as a result, Earnings Before Interest and Tax in the Above Rail businesses will be impacted by

an estimated $30-35 million. This figure includes a minor impact to the bulk and intermodal business.


NSW Resources Regulator seeks Deputy Chief Inspectors

The NSW Resources Regulator is seeking applications for the roles of Deputy Chief Inspectors: Deputy Chief

Inspector Mining Engineering and Deputy Chief Inspector Assessment and Planning to support the Chief

Inspector in his role.

The key focus of the Deputy Chief Inspector Mining Engineering is to provide guidance and technical expertise

on the principal hazards associated with mining engineering. The principle role of the Deputy Chief Inspector

Assessment and Planning is to lead and manage strategic safety programmes applied to all mines with a

particular focus on high-hazard mining operations across NSW.

The Deputy Chief Inspector Mining Engineering and Deputy Chief Inspector Assessment and Planning roles

are in the NSW Resources Regulator branch in the NSW Department of Planning and Environment.

Both roles are based in Maitland in the Hunter Valley.

Federal Government plans replace 457 visa with Temporary Skill Shortage visa

The Federal Government has announced plans to abolish the 457 visa for foreign workers and replace it with

the completely new Temporary Skill Shortage (TSS) visa.

The TSS visa programme will be comprised of a Short-Term stream of up to two years and a Medium-Term

stream of up to four years and will support businesses in addressing genuine skill shortages in their workforce

and will contain a number of safeguards which prioritise Australian workers.

Both streams will include mandatory labour market testing with limited exemptions; a new non-discriminatory

workforce test; mandatory criminal history checks; a market salary rate assessment and a new two-year work

experience requirement.

AMMA Acting Chief Executive, Tara Diamond, has said that resource industry employers welcome any

Australian Government moving to ensure that Australia’s skilled migration systems are fit for current economic

circumstances and have the full confidence of the Australian public.

“In this context, the replacement of the 457 Visa programme with a new temporary immigration programme

will help ensure skilled migrants, and the significant contribution they make to our nation, is no longer

trivialised and leveraged for cheap political point-scoring.”

“However, it should be recognised that the 457 Visa programme has worked as intended. The system was built

to be responsive to changes in our economy and fluctuating labour demand, and has delivered on this

objective.”

“Department of Immigration figures show the resource industry as making 6,630 applications for 457 visas in

2011-12, falling to 2,600 in 2013-14 and just 230 in 2016-17,” she said.

Queensland Resources Council Chief Executive Ian Macfarlane said that the natural resources sector is no

longer a significant employer of 457 visa holders, with further recent decreases since the mining construction

boom days.

“The total number of 457 visas given to workers in the mining industry in 2015/16 was a quarter of that of

industries with health services and a fraction of the hospitality industry.” Mr. Macfarlane said.


“Last financial year, 457 visa holders in the Queensland mining industry decreased by 26.5 percent.

Hospitality, health care, education, construction, manufacturing, IT and professional services are the big users

of 457 visas.”

“QRC is working with the resources industry to build the numbers of young people taking up a resources

career.”

Implementation of the new visa will begin immediately, with full implementation to be completed by March

2018.

Caledon Resources longwall face area successfully dewatered

Caledon Resources Limited has now successfully dewatered the longwall face area at the Cook Colliery

following the significant water inflow event that commenced on 7 March 2017.

The Company said that despite being hindered by road closures caused as a result of ex-Tropical Cyclone

Debbie, the longwall face area has been successfully dewatered and safe access restored through both the

maingate and tailgate roadways. Pumping of residual water from the longwall area continues.

“The Company’s actions following the water inflow event have sought to address the safety of it’s employees

and contractors, regulatory obligations, commercial commitments, it’s owner’s interests and the integrity of the

mine workings and infrastructure.”

“As a result of the water inundation, it was necessary to implement a range of measures to preserve all available

funds for recovery efforts. These included the demobilisation of most site contractors and, where appropriate,

termination of contract agreements to avoid ongoing losses,” Caledon Resources said.

“Regrettably, it was also necessary to stand down some of the workforce at Cook Colliery with effect from 18

March for an expected two month period. The stand down was enacted under the terms of the Enterprise

Agreement (EA) that covers mine workers at Cook Colliery,” a spokesperson for the Company said.

Caledon said that it has identified productive duties for the majority of its employees based on skills,

competencies, and experience relevant to the dewatering and assessment phase of work.

“To alleviate the financial impact of this decision, the Company has provided affected employees with access to

a range of support options so that they may decide the appropriate course of action based upon their individual

circumstances.” the Company said.

Queensland Government seeks funding through NAIF to progress gas supply

The Queensland Government is seeking funding from the Federal Government through the Northern Australia

Infrastructure Facility (NAIF) to build new infrastructure to emerging gas producing areas.

Queensland’s Natural Resources and Minister Dr Anthony Lynham said that a package offer had been put to his

Federal Counterpart Senator Matt Canavan, offering Queensland’s gas resources for Federal support, including

funds for new gas pipelines.

“Queensland is already ahead of the pace with the measures we have underway, including land on offer where

the gas will be for sale in Australia only. We are looking at further and larger land releases in the Surat Basin

with the same Australian market conditions,” Dr Lynham said.


Dr Lynham has sought an urgent meeting with Senator Canavan to discuss the Queensland proposals, including

a jointly funded study into infrastructure options and guaranteed funding, possibly from the North Australia

Infrastructure Facility, for any viable options, like new pipelines that will deliver gas to the Australian market.

“Access to new pipelines would make all the difference in opening up new potential gas producing areas like

the Bowen and Galilee Basins,” he said.

Dr Lynham said addressing groundwater management would also support further gas production, because a key

concern of landholders was the impact of gas extraction on groundwater.

“Queensland has managed groundwater concerns with an Office of Groundwater Impact Assessment and the

development of a basin-wide cumulative groundwater model and monitoring programme,” said Dr Lynham.

“Developing more basin-wide water models would generate the landholder confidence we need to widen gas

production into other prospective areas of the State.”

Dr Lynham also called for the Commonwealth to continue funding the Great Artesian Basin Sustainability

Initiative (GABSI), which subsidises the rehabilitation of water-wasting uncontrolled flowing bores.

To date, GABSI and its predecessor programmes saved around 200 972 megalitres per annum from the Great

Artesian Basin. The programme is due to end in mid-2017.

“Ending GABSI sends a poor message to landholders and community at a time when Governments are actively

seeking to accelerate gas development that will require the use of water resources,” Dr Lynham said.

Tenders close next week (20 April) for the pilot of land released with the Australia-only sale condition.

Safety

Weekly incident summary 05 April 2017

Source: NSW Government

http://www.resourcesandenergy.nsw.gov.au/__data/assets/pdf_file/0007/712069/weekly-incident-summary-

week-ending-6-april-2017.pdf

Safety Alert - Pneumatic air tool fitting fails

Source: NSW Government

A worker was struck on the left forearm with compressed and foreign particles when a swivel fitting on an air

hose detached from the pneumatic ratchet he was using. The incident occurred at a NSW mine on 11 August

2016.

The worker was tensioning recovery mesh on a longwall in preparation for a changeout using a hired pneumatic

ratchet on a boat winch. During this process, the pneumatic ratchet came apart at the location of a new swivel

fitting and released compressed air. The threaded fitting had become loose and unscrewed at the swivel fitting.

The worker was treated at the scene by ambulance officers for bruising and swelling, and advised to go to

hospital for an x-ray.

The mine returned all of the air ratchets to the original equipment manufacturer (OEM) and completed the

longwall recovery mesh installation using hand ratchet tools.

http://www.resourcesandenergy.nsw.gov.au/__data/assets/pdf_file/0007/712069/weekly-incident-summary-week-ending-6-april-2017.pdf

http://www.resourcesandenergy.nsw.gov.au/__data/assets/pdf_file/0007/712069/weekly-incident-summary-week-ending-6-april-2017.pdf


Investigation

A similar incident with a pneumatic ratchet had previously occurred at the mine during a longwall change-out.

Following an incident investigation, one of the recommended controls was to install hose swivels to prevent

rotation of the air hose when undoing the fitting into the ratchet tool.

The swivel fitting was installed on the pneumatic tool, however it was found that there was no thread lock

applied to the screw end of the swivel.

Investigations by the original equipment manufacturer at their workshop found that three of the nine ratchets

used had no thread lock at the swivel and would undo easily. The remaining six were difficult to undo and had

a thread lock.

Recommendations

When using portable pneumatic power tools mines should consider:

a) installing a swivel fitting to assist in preventing the unwinding of screwed fittings during use and tool

changes

b) using a mechanism to prevent the unscrewing of screw fittings, such as a thread lock compound, tab washers,

grub screws or pins

c) using automated hose rupture detection air shut-off valves.

Mines safety alert no. 340 - Drill hole compressed air injection -

Source: Qld Government

While drilling a surface to underground paste fill hole two drillers were injured when a sudden release of air,

water, mud and fines was ejected under pressure toward them.

Compressed air was injected into a drill hole in preparation for down hole reaming. The hole began to block up

allowing the compressed air to build up pressure which suddenly released air, water, mud and fines, from the

surface diverter pipe toward the drillers. The drill rig pressure diverter set up consisted of PVC pipe and a

flange which was positioned facing towards where the drillers were working. One driller fractured his forearm

when he fell over and both sustained bruises and abrasions.

Comments

Pressure can build up when reaming holes due to mud and fines blocking the hole. The diverter flange was

loosely attached to the grouted outer hole casing, allowing the flange to move. The PVC pipe attached to

the flange was held in place by a ratchet strap hooked and tightened over the end of the pipe.

When the pressure built up and released suddenly the set up failed to contain or effectively direct the release of

pressure. There were no sensors or feedback on the drill rig to indicate the developing pressure build up.

Key issues

Recommendations

• Where possible diverter pipes should be directed away from general work areas.

• Diverter pipes must be fit for purpose and able to withstand pressure release events.

• All pressure diverters must be securely connected to the drill hole grouted outer casing.

• Where possible sensors or feedback indicators should be used to detect pressure build ups.

• Drillers should be made aware of the potential for pressure build up when reaming holes.


Mines safety alert no. 341 - Mobile equipment operator injured when seat belt failed Source: Qld Government

An operator of a loaded agitator truck was driving down a ramp when he felt a bump and was thrown from the

driver’s seat. His head struck the cabin roof and he sustained neck injuries.

The operator’s seat belt was found to be buckled together but one half of the seat belt had detached from its

anchor point. The anchor point fixing bolt was found still in the seat belt stem eyelet.

How did it happen?

The anchor point fixing bolt was found to have completely unscrewed from it’s mount on the side of a

suspension seat frame. The bolt thread was in good condition, clean and was easily able to be screwed back

into the mounting point. The bolt head showed signs of rubbing wear.

It was found that the rubbing marks on the bolt head corresponded with the marks on the seat frame. The head

of the bolt had been striking the panel for some time. The action of the seat suspension exacerbated this contact

and over time had contributed the bolt to coming undone.

Comments

There was no information provided in the site training material on how to set up the seat in the truck.

All seats should have instructions from the original equipment manufacturer (OEM) on how to correctly set it

up to suit each individual operator.

Recommendations

All sites should inspect their mobile equipment to ensure:

• all seats are fit for purpose and meet the OEM specifications

• all seat mounts and seat belt anchor points are checked for security

• all seat belt interlocks, if fitted, function as per the OEM specification

• OEM information pertaining to the correct adjustment of the driver’s suspension seat should be made

available to all equipment operators

• all seats, mounts and seat belts should be inspected, to verify there is no interference between them and

any other items in the cabin that could prevent the safe operation and intended function of the driver's

seat

• inspection of seat mounts, seat belt anchor points, seat belt interlocks, if fitted and seat belts are

included as part of scheduled maintenance programmes.

Mines safety alert no. 339 - Ground collapse while surface drilling

Source: Qld Government

A surface drill rig was reaming an underground paste fill hole when the ground around the rear of the rig

subsided, creating a void approximately two metres in diameter and four metres deep. The two drillers working

at the rear of the rig fell into the void suffering various injuries including lacerations, bruising and a fractured

finger.

It is believed that the ten days of drilling, which took place prior to the incident, caused the ground to become

supersaturated by water from drilling seeping into the surrounding strata causing a significant loss of rock

strength. While the drillers were reaming the hole, it started to block so they began pulling the rods.


It is thought that a build-up of clays on the drill rods and head acted like a plug and once the drill head started to

be retracted it ‘catastrophically' pulled the plug along with overlying liquefied strata, allowing it to be sucked

down the pilot hole creating the void to the surface.

Comments

The rock type was weathered cretaceous material which is predominantly fractured mud stones with shale and

sandstone layers. A drill hole had been previously drilled in close proximity which may have pre-conditioned

the ground and made it more susceptible to saturation. A sucking sound could be heard 30 seconds before the

ground failed.

Recommendations

• Consider the competency of the ground when drilling holes and have geological and geotechnical input

when determining the location of drill holes.

• If there have been holes drilled in close proximity to proposed drill holes consider that the original hole

may have preconditioned the ground.

• Consider the potential for ground liquefaction in fractured mudstones.


Company News – Acacia Coal, Altona Energy, Aspire Mining, Caterpillar, Comet Ridge, Hume Coal, NERA,

New Hope Corporation, NQBP, Prairie Mining, Solid Energy, Tian Po Resources, Universal Coal,

Acacia Coal Limited has announced the completion of an updated JORC 2012 compliant Resource statement

for it’s flagship Riversdale Anthracite Colliery (RAC) in KwaZulu‐Natal, South Africa. The independently

calculated updated Resource Statement now comprises total Measured, Indicated and Inferred Resources of

9.521 million tonnes of high quality, low sulphur and low phosphorous anthracite. Eighty six percent of the

Resource or 8.21 million tonnes is of high quality, low sulphur and low phosphorus anthracite. A Maiden Ore

Reserve is currently being prepared and will be released in conjunction with the Pre‐Feasibility Study on the

RAC Project, which is now in it’s final stages and on track for release in early May.

Altona Energy plc. has announced that for the six months ended 31 December 2016, it continued to focus on

it’s investment in the Arckaringa Project, a world class coal resource exceeding 7.8 billion tonnes (1.3 billion

tonnes JORC compliant) in South Australia. The project area is covered by three exploration licences covering

2,500 km2 in the northern portion of the Permian Arckaringa Basin in South Australia. Altona and joint

venture partners Sino-Aus Energy Group and Wintask Group Limited was informed on 28 July 2016 that it

required a Petroleum Exploration Licence (PEL) before test drilling could commence at Arckarina. The JV

Company made an application to the South Australian Government for a licence, under PELA 666 on 17

October 2016. At the same time, it was established that another licence application, PELA 604, owned by

Sapex Energy Limited, a subsidiary of Linc Energy Limited (in voluntary administration) overlaps Altona’s

three Exploration Licences (EL4511, 4512, 4513) relating to the Arckaringa project. The JV Company is now

waiting to be awarded its own licence, PELA 666, which covers the same area of land (9,259 km2) as PELA

604. The South Australian Government has confirmed that the JV Company’s application would be the next to

be assessed, should the new owner of PELA 604 not proceed with their application.

Aspire Mining Limited has announced that it’s 50% owned Ekhgoviin Chuluu Joint Venture (ECJV) with the

Noble Group has received a Conceptual Mining Study for it’s Nuurstei Coking Coal Project in Mongolia.

Specialist coal engineers, Bluefield Advisory were commissioned undertake a Conceptual Mining Study to

evaluate the viability and cost of an open cut mining operation for the Nuurstei Coking Coal Project deposit.

The aim of the Study was to assess the economics for a conceptual open cut pit that would enable a significant

portion of the Indicated Resource to be mined. Aspire said that the study as well as logistics and market

assessments provided by Noble Group has provided the Company with the confidence to proceed in 2017,

subject to funding, with a US$1.5 million drilling and sampling programme that will look to upgrade inferred to

indicated resources as well as increase overall resources. Aspire said that as there is a low level of geological

confidence associated with inferred mineral resources there is no certainty that further exploration work will

result in an increase in indicated mineral resources. The Study along with preliminary logistics analysis suggest

an internationally competitive delivered cost onto Chinese rail for a washed hard coking coal based on owner

miner assumptions. Given Coking Coal price expectations for the medium term, the Study provides

encouragement for the Company to complete feasibility work and firm up operating and capital assumptions.

Aspire is currently engaged in a discussion with Mongolia based mining contractors on a schedule of rates so

that a comparable contractor cost model can be assessed.

Caterpillar Inc. has announced that it’s new global headquarters will be in Deerfield, Illinois, US.

Caterpillar CEO Jim Umpleby said that the location is approximately a 20-minute drive to O’Hare airport and

convenient to the city of Chicago via commuter train, thus achieving the Company’s goal to be more accessible

to global customers, dealers and employees.


Comet Ridge Limited has announced that the Mahalo Joint Venture (Comet Ridge-40%, Santos-30%, and

APLNG-30%) has unanimously approved the Amended Mahalo 2017 Joint Venture Exploration Work

Programme. Comet Ridge was appointed agent on behalf of the Exploration Operator to manage the field

subsurface work in respect of the Mahalo 2017 Joint Venture Exploration Work Programme and Budget until

31 December 2018. Tor McCaul, Comet Ridge’s Managing Director said that this decision by the Joint

Venture to approve a Work Programme focussed on moving 3P Reserves over into the 2P Reserves category in

a cost effective way, highlighted the willingness of gas explorers/producers to meet the growing east coast

market demand. The approved 2017 Exploration Work Programme includes initial stimulation (under-reaming)

of the four Mira vertical pilot wells to improve both water and gas offtake rates and the potential of drilling a

horizontal well in the Mira pilot area to establish production performance consistent with that already achieved

in the Mahalo pilot, which lies 13km northwest of Mira; drilling of a single step-out corehole to the northeast of

Mira for reserves confirmation purposes; and studies work as required.

Hume Coal Pty Limited is holding several rounds of community information sessions during the exhibition

period of the environmental impact statement for the Hume Coal Project. The first round of information

sessions will be held at the Mittagong RSL and will commence on Friday 21 April from 12:00pm – 7:00pm and

continue on Saturday from 10:00am to 4:00pm. Further community information sessions will be held toward

the end of the exhibition period, which will have allowed the community more time to review and analyse the

EIS studies and findings.

New Hope Corporation Limited has advised that Bengalla Mining Company Pty Ltd., (New Hope 40%) has

commenced proceedings in the Land and Environment Court of New South Wales against MACH Energy

Australia Pty Ltd. Bengalla Mining Company is seeking an order from the court restraining MACH Energy

from carrying out any further development for the Mount Pleasant Project prior to MACH satisfying the terms

of it’s Development Consent.

NERA (National Energy Resources Australia) has awarded 10 Australian small to medium sized businesses a

$20,000 grant each under the inaugural NERA Innovation Voucher programme, which will allow them to

deliver an innovative solution to a technical challenge which had limited their customer’s ability to maximise

their business operations. NERA was established in 2016 as an independent, not for profit company for the

energy resources sector, specifically oil and gas, uranium and coal. It’s role is to maximise value to the

Australian economy by having a globally competitive energy resources industry that is sustainable, innovative

and diverse. The recipients of the inaugural Innovation Vouchers have proposed solutions for safer operations,

digital solutions for personnel mobility as well as applications for drone technology.

North Queensland Bulk Ports Corporation (NQBP) has awarded a contract for the supply of marine

helicopter pilot transfer services to local company Mackay Helicopters. Two Airbus helicopters are under

construction at Mackay airport. Ports Minister Mark Bailey said that the helicopter contract was part of a joint

tender process run by NQBP and Gladstone Ports Corporation. NQBP Chief Executive Officer, Steve Lewis

said helicopters have long been used by ports as the most safe and efficient mode of transport for transferring

marine pilots to vessels. “Helicopters allow port operations to run smoothly, because they can be operated in a

wide range of conditions. “They provide us with rapid response capabilities to any operational needs or in the

unlikely event of an emergency”, Mr Lewis said. Chief Executive Officer of Aviator Group, which operates

Mackay Helicopters, Ian Vanderbeek said that the new and improved helicopters are at the leading edge of

safety standards. “These new helicopters are the current generation of aircraft and will serve the ports well over

the next five to eight years.”


Prairie Mining Limited has agreed terms for further investment from its cornerstone investor CD Capital

Natural Resources Fund III LP subject to shareholder approval and completion of final formal documentation.

The investment will take the form of a private placement by PDZ Holdings Pty Ltd., of non-redeemable, non-

interest bearing convertible loan notes for an aggregate principal amount of A$2.0 million. The Notes can be

exchanged into ordinary shares of the Company at A$0.46 per share representing the price of the recent

successful placing of ordinary shares to high quality UK institutional investors completed in April 2017. The

proceeds from CD Capital’s investment, combined with the net proceeds from the Institutional Placement, will

enable Prairie to further accelerate the development of its Debiensko Hard Coking Coal Project and advance

pre-construction engineering works at it’s Jan Karski Mine. Prairie and CD Capital will continue working

together in partnership to de-risk and enhance the significant value of Prairie’s world class coking coal assets as

they progress rapidly through the next stages of project development. PDZ Holdings Pty Ltd. is a wholly-

owned subsidiary of Prairie Mining which indirectly holds the Jan Karski Mine and the Debiensko Hard Coking

Coal Project.

Solid Energy New Zealand Limited has reached settlement in the sale of it’s Ohai and New Vale mines to

Greenbriar. Greenbriar is owned by the Palmer MH Group, a privately-owned South Island New Zealand

resources group, with diverse, well-established interests in mining and quarrying operations. All the mines’

current employees and operations will transfer to the new owner. The signing of a sale and purchase agreement

for the two Southland mines was announced last October after an extensive sales programme encompassing all

Solid Energy’s mining assets across the country. New Vale Mine is at Waimumu, south-east of Gore. Ohai

Mine is located 80 km northwest of Invercargill at the base of the Takitimu Mountains. Solid Energy has also

announced that settlement of West Coast assets purchased by Birchfield Coal Mines Limited is expected mid-

April and with Moore Mining Ltd in May/June. Settlement with BT Mining (a joint venture of Bathurst

Resources and Talley’s Group) for the Stockton export coal operation, and the two Waikato mines, Rotowaro

and Maramarua is expected in June/July 2017.

Tian Poh Resources Limited has signed a memorandum of understanding (MoU) with the Mongolian

Ministry of Energy (MOE) to provide a framework for collaboration in the development of suitable coal to

electricity, and coal to gas plants, distribution of electricity and gas, and construction of the Ulaanbaatar City

Gas Pipeline Network, to be fed from Tian Poh’s Modun Coal Field. The MOE regulates the supply of energy

in Mongolia and the MoU is a key part of a strategy by the MOE to reduce air pollution in Ulaanbaatar via the

use of gas for electricity production. The proposed plant is to be built at or near the Company’s Nuurst Coal

Project, fed by coal extracted from this project. The Nuurst Coal Project is located approximately 100km from

Ulaanbaatar.

Universal Coal plc has delivered it’s first Run-of-Mine coal from the opencast development at it’s New

Clydesdale Colliery (NCC) in the Witbank area of South Africa to the coal handling and preparation plant for

processing and sale. Opencast mining at NCC is expected to ramp up over the next quarter, reaching steady

state in 2H2017, complementing the underground coal currently being mined from three underground sections

at the adjacent Diepspruit shaft. Universal’s Chief Executive Officer Tony Weber said that with both NCC’s

underground and the opencast pit now being mined simultaneously, the colliery is set to contribute significantly

to the cash flows that Universal currently receives from it’s Kangala colliery, and it’s exposure to the improved

thermal coal export market will diversify the Company’s revenue. NCC hosts a JORC 2012 compliant Mineral

Resource of 144.7Mt of which 96.8Mt is classified as Measured, 41.8Mt as Indicated and 6.0Mt as Inferred.

NCC currently has a Proven Ore Reserve of 29.3Mt. Universal Coal has now satisfied all conditions precedent

for the A$21 million (ZAR215 million) loan facility paving the way for debt drawdown which will, according

to Mr. Weber, allow Universal to complete construction and meet the delivery requirements of it’s Eskom and

long-term export offtake agreements, with no further financing needed.


Diary Dates

1 – 2 May

2017

Minesafe International 2017

http://www.minesafe.ausimm.com.au

08 May

2017

2017 NSW Minerals Council Exploration Forum – The Rocks and Beyond

Parliament of New South Wales (Theatrette)

Sydney

NSW

9 – 11 May

2017

8th World Conference on Sampling and Blending

Perth

WA

http://www.wcsb8.com/Media/WCSB8/docs/wcsb8_advert_20170131.pdf

14 – 16

May 2017

23rd Coaltrans Asia

Nusa Dua

Indonesia

19 May

2017

Hunter Business Mining

22 – 24

May 2017

Austmine 2017: Mining’s Innovation Imperative

Perth Convention and Exhibition Centre

WA

www.austmineconference.com.au

13 – 15 Jun

2017

Longwall USA

Pittsburgh

USA

14 – 15 Jun

2017

2017 Australian Energy Storage Conference and Exhibition

International Convention Centre

Sydney

NSW

11 – 13 Jul

2017

Australasian Groundwater Conference

UNSW

Sydney

NSW

06 Aug

2017

Queensland Mining Industry Health and Safety Conference

Gold Coast

QLD

28 – 30

Aug 2017

AusIMM Australian Mine Ventilation Conference 2017

Brisbane

QLD

http://www.minesafe.ausimm.com.au/

http://www.wcsb8.com/Media/WCSB8/docs/wcsb8_advert_20170131.pdf

http://www.austmineconference.com.au/


29 – 31

Aug 2017

AIMEX 2017

Sydney Showground

NSW

10 Sept

2017

22nd Annual Memorial Day Service

Federation House

67A Aberdare Road

Cessnock

NSW

Date subject to change – please contact CFMEU Northern Mining office on 1300 712 791

19 Sept

2017

Queensland Miners Memorial Day Service

20 – 22

Sept 2017

AusIMM Tenth International Mining Geology Conference 2017

Hobart

TAS

16 – 18 Oct

2017

13th AusIMM Underground Operators’ Conference 2017

Gold Coast

QLD

23 – 24 Oct

2017

15th Annual Longwall Conference

Crowne Plaza

Hunter Valley

NSW

30 Oct – 02

Nov 2017

International Mining and Resources Conference IMARC 2017

Melbourne

VIC

29 Nov

2017

University of Wollongong Coal Science Fair

Personnel

Atrum Coal Limited has announced the appointment of Tom Borman as Non Executive Director, effective 18

April 2017. Mr. Borman spent 11 years at BHP Billiton where he served in various senior commercial roles.

He left BHP Billiton in 2006 to join Warrior Coal Investments which established Optimum Coal Holdings, a

roll-up of coal assets in South Africa. Optimum was listed on the JSE in 2010 and sold to Glencore in 2012.

BHP Billiton Limited and BHP Billiton Plc confirm that Pat Davies has retired as a Non Executive Director of

the Company, effective from 06 April 2017.

Intra Energy Corporation Limited has announced the resignation of David Mason from it’s Board of

Directors.


NSW Resources Regulator has announced the appointment of Lee Shearer to the newly created position of

Central Coast Coordinator General for the Department of Planning and Environment. Ms Shearer will be

responsible for driving the delivery of the Central Coast Regional Plan. Dave McLean has been appointed to

the role of Chief Inspector.

Origin Energy Limited has announced that it’s Integrated Gas CEO, David Baldwin will step down from the

role at the end of April 2017. Current General Manager, Commercial, Mark Schubert, has been appointed

Executive General Manager, Integrated Gas, effective 1 May 2017.

Stanmore Coal Limited has announced the appointments of Ian Poole as Chief Financial Officer and Bernie

O’Neill as General Manager - Operations. Mr Poole will replace Andrew Roach who will move into a new

role as Group Manager – Development. Following the resignation of Michael McKee earlier this year, the

previous role of Chief Operating Officer will not be replaced.

HVCCC Weekly Performance Report

Source: Hunter Valley Coal Chain Co-ordinator (HVCCC)

Report for 10 – 16 April 2017

Coal Delivery

• Planned rates were 316kt below target while Actual inbound performance was 372kt below the Declared

Inbound Throughput (DIT). Total losses finished the week at 9.3% compared to the 2017 declared

target of 7.2%.

• April month-to-date throughput is currently 6,311kt (144.0Mtpa) which is 591kt below the DIT, with

total losses of 9.0%.

Shiploading - Port Waratah Only

• Planned rates were 614kt below target while Actual outbound performance was 596kt below the

Declared Outbound Throughput (DOT). April month-to-date shiploading is currently 4,896kt

(111.7Mtpa), 117kt above the DOT.

• Port Waratah port stocks finished the week at 1,176kt, an increase of 91kt from the previous week.

Coal Chain Demand

• April nominations are currently 10.3Mt.

• Based on terminal demand the Port Waratah vessel queue is estimated to be nine at the end of the April

and 10 at the end of May.

• At Port Waratah, there were 13 vessels in the offshore queue at the end of the week.

Port of Newcastle Monthly Coal Trade Report

Report for March 2017

Coal Exports

Mass Tonnes YTD TEU’s YTD Trade Value

($AU Million)

YTD

($AU Million)

Coal Vessel

Visits YTD

13,791,933 38,536,713 0 0 $1,688.5 $4,717.3 152 429

Coal Export Destinations: Australia, China, India, Japan, Korea, Malaysia, Mexico, New Caledonia, Taiwan


Transcoal Port Congestion Graph East Coast Australia

17 April 2017 - The overall vessel queue increased from 114 ships last week to 136 this week. Queensland’s

queue increased from 101 ships last week to 115 this week. New South Wales’ queue increased from 13 ships

last week to 21 this week.


Braemar ACM Weekly Focus

18 April 2017

Vessel

DWT

Australian Round Voyage Far East Mediterranean/Continent Mediterranean/Continent –

Far East

Last week This week Change Last week- This week Change Last week This week Change

28,000 $7,400 $7,450 $50 $5,250 $5,200 -$50

32,000 $8,400 $8,250 -$150 $5,500 $5,450 -$50

52,000 $9,500 $9,000 -$500 $4,250 $4,000 -$250 $15,000 $17,000 $2,000

58,000 $10,000 $9,500 -$500 $4,750 $4,250 -$500 $15,500 $17,500 $2,000

74,000 $10,842 $11,732 $890 $4,602 $5,145 $543 $18,445 $20,091 $1,646

180,000 $14,647 $14,254 -$393 $6,459 $6,211 -$248 $29,440 $30,020 $580

Note: NOTE: The trades 28K, 32K, 52K & 58K DWT sizes rates are assumed to be DOP South East Asia. All other

sizes are assumed DOP North Asia.

Vessel DWT 1-year period 3 years period

28,000 7,000 6,750

52,000 7,500 8,000

74,000 11,000 13,000

180,000 15,000 17,000

CAPESIZE

Towards the later part of the week the uptick in the index was somewhat baffling considering the fact that the

fundamentals, especially in the Pacific, showed nothing to support any sort of rise apart from a widening spread

between the bid and offer. A healthy amount of cargoes in the Pacific on the first day back after the Easter long

weekend, although bid/offer spread remains wide. Charterers are eyeing closer to last done levels and owners

are looking to paper to price their ships, we either need a good drop in paper levels to adjust owners’

expectations accordingly or at least wait for charterers to pay up.

Quiet end to last week in the Atlantic with the market stuttering a little. The Turkish tender was fixed at close

to $9.50/tonne. Ballaster tonnage currently looks to be the main source of ships for Brazilian cargoes. The

North Atlantic is lacking demand as we look for direction. There have been rumours in the market that ships

are being cancelled out of CSN for end-April/early-May dates also undermining C3 sentiment. especially with

C3 now reportedly fixing at $14.20/tonne for 1H May dates, a drop of nearly $0.80 from last done levels.

PANAMAX

The Panamax market remained steady as most of the fixing was done before the Easter holidays.

The week started slowly with fresh enquiry in both basins. The aftermath of Cyclone Debbie continues as

charterers are scrambling to ship cargoes ASAP. West coast Australian charterers are seizing this opportunity

to push down rates for owners wanting to do an Australian round voyage. Indonesia to China is reportedly

fixing at low-$11,000/day levels. Australian round voyages are reportedly being fixed at high-$10,000/day for

early-May dates. NoPac rates remain healthy with LME types open North China region rating in the region of

$11,000/day, while larger tonnage is getting around high-$11,000/day. Trips out of ECSA are fixing at

$14,500/day plus a ballast bonus of $590,000.

Talks on period saw rates heard at low-$11,000/day for 5-8 months trading.


HANDYSIZE, HANDYMAX & SUPRAMAX

The Pacific basin remains soft as rates drop from a lack of fresh orders and a build-up of prompt tonnage.

Indonesian coal stems have dried up along with more tonnage off the Australian coast limiting owners to only a

few trades. A Pacific round voyage is low-$9,000/day, basis delivery Singapore with a discount for trips into

India or the Persian Gulf. Short period activity is quiet with forward sentiment now turning bearish with most

operators willing to take TCT for backhaul or repositioning business.

Handysize activity in the Pacific was on the up last week with a number of orders in the market and spot vessels

that needed to be fixed before the Easter holidays. After the Easter break, we are seeing more of the early-May

date orders. It remains to be seen whether activity levels this week will match those of last week. There has

not been much of a change in rates since last week. The 28,000 dwt ships are around $8,000/day DOP

Singapore for an Australian round voyage and the bigger Handysize ships are in the high-$8,000/day region.

Commodities (USD)

Coal (Del. China) Ther. Newc.6.3k Change Ther. Kalim. 5k Change Cok.Prem.Oz Change

$84.40 -$3.05 $62.70 $0.25 $302.00 $11.00

Bunkers (USD)

Port 380 IFO Change 180IFO Change MDO Change

Singapore $321.00 -$2.50 $328.00 -$0.50 $483.00 $3.50

Hong Kong $336.00 $4.00 $342.00 $4.00 $506.00 $5.00

Japan $349.00 $0.00 $355.00 $0.00 $445.00 $5.00

Sth Korea $344.00 $1.50 $364.00 $1.50 $509.00 $0.00

Bunkers as at 13 April 2017 (Source: Universal Bunkering Pty Ltd).

Indices

Date 10 Apr 13 Apr Change

BHSI 549 560 11

BSI 888 899 11

BPI 1,466 1,611 145

BCI 14 2,165 2,249 84

BDI 1,231 1,296 65

As at 13 April 2017 (Source: Baltic Exchange)

DRY CARGO / BRAEMAR ACM Event Impact Analysis

18 April 2017

Chinese coal output rises for the first time since February 2015

China’s coal production in March increased 1.9% year-on-year to 300m tonnes, the first rise since February

2015. However, Q1 coal production dropped 0.3% year-on-year to 810m tonnes. There was production growth

of 5% or more in 25 provinces including Inner Mongolia, Guizhou, Yunnan, Shanxi and Ningxia. However,

output fell more than 30% in 20 provinces.


Exchange Rates

Source: ANZ Global Markets

Bank buying rates for US dollars as at 8.15am each morning for week ending 13 April 2017

Exchange Rates Monday Tuesday Wednesday Thursday Friday

Bank Buy $US 0.7506 0.7506 0.7502 0.7537 Holiday

Thermal Coal Swap Bids

Source: ANZ Global Markets

Newcastle Coal Swaps Curve (Mids) as at 13 April 2017

Cal-2017 - US$78.50/mt

Cal-2018 - US$72.00/mt

Cal-2019 - US$69.15/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’.


HUNTER VALLEY COAL REPORT The Hunter Valley Coal Report is published weekly by Nadine Brierley

[email protected]

ABN 92 506 051 400

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