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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (56192)	4/13/2010 3:13:37 PM
From: LoneClone	Read Replies (1) \| Respond to of 193446

Global coal growth opportunities under evaluation – Anglo Thermal Coal miningweekly.com By: Martin Creamer 12th April 2010 JOHANNESBURG (miningweekly.com) – South Africa-dominated Anglo American Thermal Coal – now a business unit separate to Anglo's Australia-dominated metallurgical coal unit – is evaluating global growth opportunities in thermal coal. Anglo American Thermal Coal CEO Norman Mbazima told Mining Weekly Online on Monday that the opportunities under evaluation are in the major areas of export coal, namely Indonesia, Australia and Colombia. "That's where we're looking," he said. Anglo already has a third share of Cerrejon in Colombia with BHP Billiton and Xstrata. The company has ten coal mines in South Africa and two projects, one the new $1,7-billion New Largo project that will supply Eskom's new Kusile power station with 14-million tons of energy coal a year, and the second the $505-million Zibulo, which will supply 3,3-million tons of coal a year to Eskom and export another 3,3-million tons. Anglo's ten South African thermal mines produce 59,2-million tons of coal a year, 16-million tons of which is exported. Last year 30% of Anglo's South African thermal coal exports – some 4,9-million tons – were to India, where mega power stations are being erected on the east and west coasts. The coal to power these stations will not come from India itself, but mainly from Indonesia, Australia and Colombia. However, Indonesian coal wetness and low calorific value presents opportnities for South African coal exports to India. The logistics for coal exports from Australia are favourable, except for the mine to port segment. Colomibia has coal of excellent quality, but distance from the Asian markets is a disadvantage and most of Colombia's coal is exported to America and Europe. This left South Africa as a swing supplier, to Europe, its traditional market, or to India, but like Australia, South Africa's logisticals are also constraining from mine to port. China, which consumes more than three billion tons of coal a year, last year imported a relatively low 50-million tons, and suppliers to the seaborne market are wary of China having excess coal, which could result in China exporting greater volumes of coal and disrupting the seaborne market of 600-million tons a year. "We're always concerned, and we really look forward to China continuing to grow at a high rate so that it can import even more than the 50-million tons of last year," Mbazima said.