Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr
Issue link: https://emj.epubxp.com/i/239773
NEWS-THIS MONTH IN COAL Westmoreland Acquires Sherritt's Coal Operations Westmoreland Coal Co. entered into an agreement to acquire the Prairie and Mountain coal mining operations from Sherritt International Corp. for $435 million. These include seven producing thermal coal mines in Canada's Alberta and Saskatchewan provinces, and a 50% interest in an activated carbon plant and a Char production facility. "This is an historic event for Westmoreland," said Westmoreland Chairman Keith E. Alessi. "The acquisition represents a transformation to our existing operations and expertise—this will more than double our business," in one of the world's most attractive mining jurisdictions. The combined business will be the No. 6 North American coal producer, as measured by 2012 production, according to company officials. Westmoreland CEO Robert P. King was similarly enthused. "This acquisition, significantly enhances our asset portfolio and positions us as the leading mine mouth coal producer in North America," he said. The Prairie operations consist of six operating surface mines within Alberta and Saskatchewan and control mining rights to 654 million coal tons of Q4 2012. In 2012, Prairie operations delivered 22 million tons of low-sulfur thermal coal to domestic utilities. Mountain operations consist of one surface mine in Alberta that produced 4 million tons of low-sulfur, thermal coal in 2012, primarily for export, and one surface mine currently in reclamation. Mountain operations hold an aggregate reserve of 22 million tons of coal as of Q4 2012. China First Project in Australia Gets EIS Approval Waratah Coal's proposed $6.4 billion "China First" coal mine, rail, infrastructure development and Queensland export facility—more commonly known as the Galilee Coal Project—has received approval for its Environmental Impact Statement (EIS) from Australian commonwealth government officials. The Brisbane-based Waratah Coal, a 100% owned subsidiary of Mineralogy Pty Ltd., plans to build a thermal coal project in the Galilee Basin coal region near Alpha, west of Emerald in central west Queensland, as part of its China First project. The mine will be linked to a proposed coal ter- minal at Abbot Point near Bowen by a new 453 km standard gauge, heavy-haul railway line, capable of carrying 400 million metric tons per year (mt/y). Establishing the mine, rail and associated infrastructure, according to Waratah representatives, will generate 3,500 jobs during its construction phase and 2,275 jobs during operation in a massive boost to the state and national economies. Managing Director Nui Harris said the environmental approval by the Ministry for Sustainability, Environment, Water, Population and Communities marked an important milestone. "The EIS has involved consultation with stakeholders including federal and state government agencies as well as non-governmental agencies, local councils, indigenous representatives, the private sector, public organizations and local residents," Harris said. Earlier in 2013, China First enjoyed a Major Project Facilitation (MPF) status renewal by federal government officials through Q4 2016. Asia Resources Names Walton as Chairman After a very public and bitter 18-month boardroom feud between company founders, coal miner Asia Resource Minerals Plc, formerly London-listed Bumi Plc., has named businessman Chris Walton as chair after splitting from its Indonesian partner at Q1 2013. Walton, currently chair of Goldenport Holdings Inc. and Lothian Buses Plc., will join the coal producer's board in Q1 2014 as an independent non-executive director before becoming chairman, Asia Resource officials said in a statement. Nick Salmon will become a non-executive director; Julian Horn-Smith, current deputy chairman, will step down next month, company representatives added. Shareholders approved a $501 million deal to separate from Indonesia's Bakrie family and change its name. Both sides had sought a split since 2012 after relations between co-founder Nathaniel Rothschild and the Bakrie clan soured amid financial probes in Asia and the U.K.; the company plans to return more than $400 million in proceeds to shareholders. 22 E&MJ; • JANUARY 2014 www.e-mj.com