China’s coal demand may surpass 3 billion tons in 2010, the China Coal Industry Association predicts.  China now has an annual coal production capacity of 2,034 billion tons.  A total of 1,104 billion tons of coal output capacity is scheduled to be under construction, of which 200 million tons has been approved.  China is planning to build 13 large coal production bases at Shanxi, Shandong, Henan, Yunnan, Guizhou, Ningxia and Inner Mongolia.

Churchill Mining announces a coal resource of 250 million tons at its East Kutal project in Indonesia.  The company said this includes 44Mt JORC-compliant measured resources, along 74Mt indicated and 133Mt inferred.

Coal & Allied plans to invest $5 billion in new projects in the Hunter Valley with expectations of doubling its coal production by 2015.  The investment would create 6,000 new mining jobs and another 18,000 indirect jobs in the Hunter region. C&A is expecting its coal exports to rise from 24 million tons last year to 58 million tons by 2015.  The company is continuing to advance its $1 billion Mount Pleasant project in Hunter Valley.  Mount Pleasant, a potential open-cut thermal coal mine, is expected to produce 10.5 million tons a year when production starts.

China Coal Energy Co. plans to acquire the Shanxi Dongpo Coal Industrial Co., owned by a subsidiary of its parent, for $185.5 million.  Production is expected to start in the second half of 2008 with annual production capacity of 1.5 million tons, with plans to apply for approval to double its capacity.  A unit of China National Coal Group Corp owns Shanxi Dongpo.  The deal is awaiting approval.

Kalimantan Gold Corp Ltd, Jakarta, plans to acquire a 75 percent stake of Indonesia Mesra Group in five coal mining concessions totaling 25,000 hectares in East Kalimantan.  The areas are close to coal terminal and to the mining concessions of KGC, which operates gold and coal mines in that region.

Whitehaven Coal has received approval for its Rocglen coal project in New South Wales’ Gunnedah Basin.  Rocglen (former Belmont) is an opencut operation expected to produce some 1.5 million tons of high quality thermal coal a year.  First coal is expected late in 2008, with construction and development costs to reach $35 million.  Whitehaven is seeking planning approval for its Sunnyside Mine.

Australia’s Wiggins Island Coal Terminal has received final approval, passing all environmental requirements.  Feasibility and engineering studies have begun to meet a target date for operations in 2012-13.  On completion, the terminal will have capacity to handle 75 million tons a year.  The design includes a connection to the existing RG Tanna Coal Terminal, which will boost Gladstone’s throughput by an additional 15Mtpa.  First stage of the Wiggins terminal is valued at $1.3 billion and is expected to be completed by 2012. 

OEM Waratah Engineering has sold a 75 percent stake to Varley Group, a Newcastle engineering company.  Waratah has been expanding its product line, which includes Wirth continuous miners and roadheaders, McLanahan feeder breakers, Fletcher bolting products and its own Waracar. Varley is a diversified engineering company that supplies the rail, power, defense and marine industries.  Waratah will continue to operate from its newly occupied site at Argenton, near Newcastle, New South Wales.

Italy’s major electricity producer, Enel, is converting its massive power plant at Civitavecchia from oil to coal.  Over the next five years, Italy will increase its reliance on coal to 33 percent from 14 percent.  Power generated by Enel from coal will rise to 50 percent.  European countries are expected to put into operation about 50 coal-fired plants over the next five years.

Bisichi Mining PLC of South Africa has begun opencast mining at its Black Wattle underground mine in Middleburg.  Bisichi produces about 110,000 tons a month from Black Wattle.  Last year, Bisichi signed a memorandum of understanding with Barclays Capital CPIA to develop new coal reserves in southern Africa with Black Economic Empowerment partners.

Bucyrus International and China’s Huainan Mining have tentatively agreed to a joint venture on the construction of a manufacturing facility in the Huainan mining area of China.   Focus will be on the manufacture of belt systems and armored face conveyors for resale on a preferential basis to Huainan Mining, as well as to companies in China and overseas. 

Eriez-CPT Brazil, sales and manufacturing division for flotation products serving the Brazilian market, has an order for 14 CoalPro Column Flotation Cells from Cia, Valde Do Rio Doce (CVRD) that exceeds $6 million.  CVRD purchased the equipment for the first phase of its Salobo Copper project in Brazil.

Second phase of drilling at Waratah Coal’s Nymboida coking coal project in New South Wales is underway to determine how far the coal seam extends to the north.  SRK had reported a potential resource of around 10 million tons of coking coal.  The Nymboida project is expected to enter production ahead of the Galilee Basin project.  Galilee has a current JORC-compliant inferred resource of 3.12 billion tons of thermal coal.

Premier John Brumby announces a $110 million fund to establish new large-scale, pre-commercial Carbon Capture Storage (CCS) demonstration projects and $12.2 million to create Clean Coal Victoria in the Latrobe Valley, an organization dedicated to maximizing the value of Victoria’s brown coal resources.  A further $5.2 million will go towards investigating carbon storage sites in the Gippsland basin to better understand carbon storage potential through research and modeling of the region’s geology.

Reliance Coal Resources Private Ltd (RCRPL), a wholly owned subsidiary of Reliance Power Ltd., has acquired three coal mines in Indonesia with reserves of two billion tons.  RCRPL plans to invest in mine and transportation infrastructure to take the capacity of the mines to over 25 million tons annually.  Reliance Coal has acquired Srivijaya Bintangtiga Energy, Bryayan Bintangtiga Energy and Sugico Pendragon Energy in the South Sumatra area of Indonesia.  Coal from the mines will be supplied to Reliance Power’s 4,000-MW Ultra Mega Power Project at Krishnapatnam in Andhra Pradesh and to the Shahapur power project in Maharashtra.

Rio Tinto Coal Australia expects to double coal exports from its Queensland operations within the next seven years, following opening of the $A950 million Clermont mine in the Bowen Basin.  First coal is expected in 2010 with a potential to producing 12.2 million tons a year when at full capacity in 2013.  The mine is a joint venture between Rio Tinto, Mitsubishi Development, J-Power Australia and JCD Australia.  Rio Tinto plans to make a multi-billion dollar investment in Queensland that would double its coal exports in the next seven years from 21 million tons to 40 million tons per year.

The Greenbank Group UK Ltd, Woodville, Derbyshire, has won the 2008 Queen’s Award for Enterprise – Innovation Category.  The  Group, owned by CBP Engineering Corp, Washington, PA, won the innovation category award by combining an ecologically sound strategic approach with cutting edge technology that allows coal-fired power stations to generate more electricity with less coal, improve emissions and reduce potential landfill from the residual ash.  The award acknowledges the Greenbank Group’s significant contribution in the fight against global warming, by helping coal-fired power generation both in the UK and globally transform its environmental credentials. Also this year the company was nominated Derbyshire Business of the Year 2008 and Managing Director Charles Conroy was awarded Entrepreneur of the Year.

Australia’s Leighton Holdings Ltd announces that its Thiess unit has a $250 million five-year coal mining contract in Indonesia with PT Inkor Prima Coal, which includes overburden removal and mine support services at its Samboja coal mine in East Kalimantan. 

Macarthur Coal has agreed to enter into a long-term contract with Hyundai Steel Company of Korea to supply coal from its Coppabella mine in Queensland, starting in 2009. Macarthur will supply low volatile PCI coal from Bowen Basin for Hyundai Steel to use in its new blast furnace.

Fenner PLC has begun construction of a new conveyor manufacturing plant in Kwinana, Western Australia, the first to be built in that country in 60 years.  The plant will supply steel cord conveyor belts to underground coal mines in Queensland and New South Wales as well as targeting the international market.  The new plant will feature the world’s largest press, capable of producing steel cord and rubber ply belts up to 320 cm wide and 5 cm thick.

Semirara Mining Corp., Manila, Philippines largest coal producer, plans to expand annual production by 500,000 tons.  A unit of DMCI Holdings Inc., Semirara expects coal exports to India, China and Hong Kong to double to 1.6 million tons this year. The company plans also to spend $35 million this year to acquire new equipment such as excavators and dump trucks to help expand capacity to 4.5 to 5 million tons per year.

Lachian Star will pay $A25 million to Coal of Africa for acquisition of its Holfentein project in South Africa, which contains an indicated resource of 60 million tons of coal as well as an option agreement covering the adjoining Wildebeestfontein Farm.  The upper seam of the Holfontein project is believed to have high quality coal with low sulfur and phosphorous and high energy values, while the lower seam contains lower quality sub-bituminous coal, suitable for local power generation or coal-to-liquids feedstock.  The transaction is not yet approved.

Enterprise Energy announces intentions to acquire Bandanna Coal, which includes legal and beneficial rights to all issued shares in Bandanna for a consideration of $A235 million.  Bandanna currently holds 11 exploration permits for coal, along with applications for a further five.  Exploration permits in the Bowen Basin include the Dingo West PCI project and the Acadia and Springsure projects.

Carborough Downs, a joint venture mine in Queensland, expects to more than triple production by late 2009 when a longwall operation is installed.  Carborough Downs is an underground coking and pulverized coal injection mine.  Partners will invest some $A401 million to increase production from one million tons per year to 4.9MTPa run-of-mine from the third quarter of 2009. Expansion includes a longwall mining system from Inbye Mining along with associated infrastructure.  Construction has begun and is expected to be fully installed by June 2009.

ArcelorMittal, Jakarta, proposes to invest $10 billion in Indonesia in an iron ore and coal mining joint venture with local mining firm PT Aneka Tambang Tbk and PT Krakatau Steel to develop a new steel plant in Java.  ArcelorMittal has made many investments and acquisitions in developing countries such as Senegal, Liberia, India and Russia. Indonesia has some of the world’s top mines and is among the top producers of coal, natural gas and palm oil.