Engineering & Mining Journal

DEC 2017

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Page 33 of 83

NEWS - THIS MONTH IN COAL 32 E&MJ • DECEMBER 2017 Thiess Will Expand Sangatta in Indonesia Thiess has been awarded a $300 million contract by Kaltim Prima Coal (KPC) to expand operations at the Sangatta coal mine in East Kalimantan, Indonesia. The contract will extend the current life-of- mine contract, increasing coal production at the Melawan pit by 12 million metric tons (mt) and overburden removal by 130 million bank cubic meters (bcm) over four years, until December 2021. "This contract demonstrates Thiess' long-standing commitment to delivering value to our clients across our global min- ing platform," said CIMIC Group Chief Executive Officer-elect Michael Wright. "I am so pleased to see our team con- tinue to grow and prosper in Indonesia, where we have been operating for some 29 years." CIMIC Group Mining and Minerals Executive and Thiess Managing Director Douglas Thompson said, "I'm delighted to strengthen our partnership with KPC as we work together to deliver cost-effec- tive outcomes. "This expansion builds on our suc- cessful history at Sangatta where we have been operating since 2003 and reflects our ability to deliver cost-effective and scalable solutions tailored to our client's production and expansion needs." CNX Resources Spins Off CONSOL Energy CNX Resources Corp. (CNX), formerly named CONSOL Energy Inc., announced on November 29 that it has complet- ed the spinoff of CONSOL Energy Inc., formerly named CONSOL Mining Corp. (CEIX), creating two publicly traded com- panies — a natural gas exploration and production company and a coal company. "Our objective was to once again trans- form a 150-year-old institution, which owns and operates the best natural gas and coal assets in the world," said Nick DeI- uliis, president and CEO, CNX Resources. "We have accomplished that goal and, in doing so, positioned two new companies to dedicate singular focus to their individual industries and market segments." Under the terms of the separation, on November 28, the company's stockholders received a distribution of one share of com- mon stock of the newly named CONSOL Energy for every eight shares of the compa- ny's common stock held as of the close of business on the record date of November 15. No fractional shares of CONSOL Ener- gy were issued and stockholders received cash in lieu of fractional shares. The com- pany's stockholders retained their shares of company common stock, but as a result of the name change, these shares now rep- resent shares of CNX Resources Corp. In connection with the distribution, the company changed its name from CONSOL Energy Inc. to CNX Resources Corp. and retained its ticker symbol CNX on the New York Stock Exchange (NYSE). At the same time, the newly formed CON- SOL Mining Corp. changed its name to CONSOL Energy Inc. and its common stock begins trading today on the NYSE under the ticker symbol CEIX. "The coal assets that are the founda- tion of our company today are well-capital- ized and have a well-documented history of generating strong free cash flow," said CEO of CONSOL Energy Jimmy Brock. "We look forward to now allocating capital to further develop this globally known platform that stands apart within the industry in terms of safety, margins and productivity." Brock added that CONSOL has a strong balance sheet and liquidity that complements its asset base. "Investor expectations are re-emerging and the timing of our spin ties very nicely to prior upcycles that should create value for all of our stakeholders," Brock said. Peabody Completes Sale of Burton Mine To Lenton JV Peabody Energy has completed the sale of the majority of its inactive Burton mine in Australia and its related infrastructure to the Lenton Joint Venture for approxi- mately $11 million, subject to certain customary post-closing adjustments. In addition to the cash from the sale, the transaction reduces Peabody's asset re- tirement obligation by approximately $41 million. The sale also provides for the re- lease of approximately $30 million of re- stricted cash in support of such asset re- tirement obligation, which combined with the company's recently announced revolv- ing credit facility, is expected to free up approximately $300 million in cash. Peabody placed the Burton mine on care, maintenance and rehabilitation in December 2016 and announced the sale of the mine in September 2017. The Len- ton Joint Venture, of which New Hope Coal is a 90% participant, controls mining tenements that adjoin the Burton mine lo- cated in Queenland's Bowen Basin. An excavator loads coal at the Sangatta mine in Indonesia.

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