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NEWS-THIS MONTH IN COAL Mechel Completes Elga Railway
Peabody Energy Opens New Indonesian Office
A new 321-km railway will allow Mechel to fully develop the massive Elga coking deposit.
Mechel OAO has finished laying tracks from the Ulak station to the massive Elga coking coal deposit which is being devel- oped by Mechel Mining's Yakutugol sub- sidiary. The last section of track of the 321-km railway link was laid in December 2011. The 40-billion-ruble ($1.25 billion) construction project has opened traffic along the entire route from Baikal-Amur Mainline's Ulak station to the Elga deposit. "The railway's completion is one of the most complicated and important stages in implementing the unique project of devel- oping the Elga coal deposit, which is one of the world's largest coking coalfields. This project's scale is unique for the mining industry. Completion of railway construc- tion together with the launch of mining at the deposit in such a short time, consider- ing the global financial crisis in 2008- 2009, once again proves that Mechel is one of the few companies with the poten- tial to handle a project of such magni- tude," said Igor Zyuzin, chairman, Mechel. Mechel began constructing the Elga railway link in February 2008. The railway was built in difficult climatic and geologi- cal conditions. A total of 76 bridges were built in the course of the railway's con- struction. Mining at the Elga open-pit began in August 2011, producing some 200,000 metric tons by the year's end.
China Continues to Increase Coal Production Capacity China added more than 95 million metric tons (mt) in coal output capacities in 2011 with total output in the country's 14 major collieries reaching 3.2 billion mt, according to Liu Tienan, deputy director of National Development and Reform Commission and
24 E&MJ; • FEBRUARY 2012
director of National Energy Administration. Speaking to
, Liu also
noted China added 90 gigawatts (GW) in installed power capacity last year, bringing the country total capacity to 1,050 GW. In 2012, China will add 200 million mt in coal output capacity and 70 GW in in- stalled power capacity.
Goonyella to Abbot Point Rail Project: On Track Australia's BHP Billiton is studying the con- struction of its own dedicated rail line from the Goonyella mine to a proposed BHP Billiton coal export terminal at Abbot Point. This infrastructure will ultimately allow the export of up to 60 million metric tons (mt) of metallurgical coal annually.
The continuing BHP Billiton study has identified a single proposed rail corridor in consultation with local landowners in the region."We have been working closely with local landowners, many of whom have lived on the same properties for decades," said BHP Billiton Metallurgical Coal President Hubie van Dalsen. "Some landowners have previously expressed concerns about the effect of multiple proposed rail corridors on landholdings. We have listened to their concerns and acted on the advice of the Queensland Government in pursuing a common corridor which could be used by other proponents." Local knowledge is pro- viding a critical perspective on potential issues like stock crossings, flooding and environmental issues in determining the proposed corridor, van Dalsen explained. To date, BHP Billiton has negotiated access for study purposes with more than 85% of landowners, taking a long-term view in developing the relationships.
Peabody Energy announced the opening of an office in Balikpapan, Indonesia, a sea- port city in the East Kalimantan province. The move further expands the company's presence in the world's largest supplier of seaborne thermal coal. Peabody's Balikpa- pan office complements ongoing sourcing and business development activities in Indonesia and supports an office in the capital city of Jakarta. Indonesia is the fastest-growing supplier of thermal coal to both China and India, and Peabody is posi- tioning itself to assist local suppliers in moving Indonesian coal throughout the Pacific Rim. The company has secured multiple term offtake agreements from resource-rich East Kalimantan.
China First to Sue QR National
China First Pty Ltd. has launched an $8 billion lawsuit against QR National Ltd. and QR Ltd. for an alleged breach of con- fidentiality and misleading conduct over a proposed rail link between the Galilee Basin coal region and the Central Queensland coast. The company alleges QR National, which is more than 34% owned by the Queensland Government, breached a confidentiality agreement with China First Pty Ltd.
"Our China First Project will create 6,000 jobs during construction and will generate an estimated $4.6 billion per annum in export revenues once opera- tional," China First's spokeswoman Baljeet Singh said. "Now we have QR National in conjunction with the Queensland Govern- ment claiming it can build the rail link and create hundreds of jobs in what looks like a bid to score some political mileage in the government's bid for re-election. "We intend seeking damages of $8 bil- lion and will also seek injunctions against QR National and other relevant parties seeking to restrain them from dealing with QR National in respect of the Galilee Basin and its corridor and associated port facili- ties," Singh said.
The China First Coal Project includes a large scale thermal coal mine near Alpha, west of Emerald. The proposed mine will be linked to the new T4-T9 coal terminal at Abbot Point near Bowen by a new 471-km, heavy-haul railway line.
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