JULY/AUGUST 2020 - VOLUME 29 NUMBER 4

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Contents 03 Comment

05 News

Regional Report: Africa

10 A Golden Opportunity For CoalPeter Bryant and Wiles Kase, Clareo, USA, assess the importance of ESG in ensuring prosperity and equity in the development of African coal reserves.

Roof Bolting & Bolter Miners

16 Bolt Down On QualityUwe Wyink, Master Builders Solutions, Germany, explains how new rock bolting technology promises faster and higher quality tunnel development for longwall mining.

21 Causality: Fires And CollapsesKent McTyer, DSI Underground, Australia, examines the effects of mine fires on resin-anchored bolts.

Inspection, Sampling, Testing & Analysis

25 Essential CredentialsNick Asaro, Cita Logistics, USA, outlines the importance of laboratory sample preparation, chain of custody and accreditation.

27 More Than Run-Of-The-MillGary Madden, Techinomics, USA, discusses ‘smart process coal milling’, a method of addressing power plant primary classification.

Longwall Mining

31 Power Distribution SolvedJessie Schembri PMP, Becker Mining SystemsAG, Germany, discusses methods of solving common, reoccurring issues in underground power distribution systems.

IPCC & Surface Miners

34 Take The High AngleJoseph A. Dos Santos, Dos Santos International, USA, explains why high angle conveyors provide the missing link for optimised IPCC systems.

Conveyors

39 Lighten The LoadDan Marshall, Martin Engineering, USA, considers the key factors of loading zone design that help optimise production and efficiency.

45 Elevated DesignsDario Margola, Gambarotta Gschwendt, Italy, discusses the highperformance of belt bucket elevators.

48 Seeing Conveyors In A Different LightLiam Sheeder, Belt Tech Industrial, USA, addresses how using infrared thermography for predictive maintenance can help improve the safety and efficiency of production.

51 X-Ray InfluenceBernd Küsel, Conveyor Belt Gateway, Germany, discusses the merits of automated diagnostics on conveyor belts.

Slurry Management & Tailings Dewatering

54 Reduce And Reuse In Real TimeJustin Kirkwood, Red Meters, USA, identifies how intelligent measurement systems for tailings ponds can deliver superior density measurement and serve as a real-time process issue detection and/or prevention device.

Screening, Crushing, Breaking & Sizing

57 Coal Prep Plants SpotlightedKris Porter, Adrian Maré and Shane Hickey, Metso, Australia, discuss the changes to Australian coal prep plants in the last 10 years.

61 Not Such A Cagey StartMatt Richardson, TerraSource Global, USA, considers how a particular type of cage mill is becoming more popular for small product sizing operations.

Primary production and haulage equipment from Komatsu can be equipped with cutting-edge

automation technologies to optimise safety and productivity. Joy continuous miners and entry

drivers have automated cutting capabilities to reliably and repeatedly follow designated cut patterns.

Automated heading control and maintenance provide spatial awareness and mapping capabilities.

Joy continuous haulage machines maintain optimal distance and alignment to the continuous miner

or entry driver thanks to automated following capabilities. Komatsu is also trialling automated bolting

solutions so bolter operators can position themselves in safer working locations.

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World Coal (ISSN No: 0968-3224, USPS No: 020-997) is published eight times per year by Palladian Publications Ltd, GBR, and distributed in the USA by Asendia USA, 17B S Middlesex Ave, Monroe NJ 08831. Periodicals postage paid New Brunswick, NJ, and additional mailing offi ces. POSTMASTER: send address changes to World Coal, 701C Ashland Ave, Folcroft PA 19032.

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CommentC louds are hanging heavy over the US.Behind the pace from the very beginning, the country’s COVID-19 case numbers are now higher than they were in the initial surge, raising the question of whether it is a second wave, or whether the fi rst wave ever really ended. With top disease adviser Dr. Anthony Fauci predicting new virus cases in the country to hit 100 000 every day, the foreseeable future looks bleak indeed.

Moreover, as protests against racial injustice and the message of the Black Lives Matter movement continue to penetrate social and political spheres around the world, important questions continue to mount and will rightly take centre stage alongside the country’s pandemic response before the US heads into its November election.

Among the mounting pressure on the government, an issue that is slowly making pages is the country’s relationship with coal, and the indsutry’s future – which has been dealt blow after blow in this extremely diffi cult period and doesn’t appear to have an immediate let off in sight.

According to The Guardian, coal mining communities in the US have urged immediate action to mitigate the economic impact of coal’s decline and ensuing job losses at the hands of COVID-19. As many as 33 000 jobs have been lost in the last 10 years and, with renewables expected to streak ahead of coal in the production of electricity in 2020, many regions with strong backgrounds in coal are starting to fear for their futures. To make matters worse, many mines have been closed permanently as a result of the pandemic and – as forecast by the US Energy Information Administration – a 23% reduction in coal production on 2019 shows just how serious the issue could be in the long run.

A country heading in a similar direction is Spain, as it has looked to take a leading role in decarbonisation across the board. As of 30 June, seven of the country’s 15 coal-fi red power plants will be shut down following their categorisation as unviable without the help of state aid, which has been banned by the EU. The Director of the Economics for Energy Group, Pedro Linares, stated: “A year ago there were still a few sceptics out there, but after the movements we’ve seen, I think that there is no going back to coal for Spain.”

In the months since the pandemic hit Europe, Britain has also gone coal free. On top of the demolition of several power stations over the years, COVID’s impact has led to the ultimate removal of coal power from Britain’s energy portfolio. Moreover, renewables have recently nipped past fossil fuels’ outside edge and posed a real threat of overtaking them in 2020 altogether, according to Dr. Simon Evans of Carbon Brief.

Power plants have been gradually decommissioned and destroyed in the UK for years, and some former coal sites in the North of England have even become thriving ecosystems for wildlife following water treatment schemes – a sign of the country’s commitment to a coal-less future.

Despite COVID appearing to be speeding up coal’s decline in the Western Hemisphere, the market has actually grown – according to research by IndexBox – in Asia Pacifi c for the third consecutive year, with China, Japan and India leading the way for the production and consumption of coal. Not only this, but coal is also due to retain its pattern of growth in these regions. IndexBox’s fi gures show that from 2007 - 2019, the average growth rate of volume in China came to 3.7%, India’s reached 5.2% and Indonesia experienced the highest period of growth.

After a dearth in energy demand for several months, the appeal of cheap coal power is likely to be in the forefront of the Asia Pacifi c region’s mind, which should give the industry cause for optimism going forward.

For regular news updates and the latest developments from the coal industry, make sure to register for a free trial of World Coal and take the time to like and follow our Facebook, Twitter and LinkedIn pages!

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J.H. Fletcher & Co. cannot anticipate every mine hazard that may develop during use of these products. Follow your mine plan and/or roof control plan prior to use of the product. Proper use, maintenance and continued use of (OEM) original equipment parts will be essential for maximum operating results. 2020 J.H. Fletcher & Co. All Rights reserved.

2020 World Coal.indd 1 6/12/2020 10:39:02 AM

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July/August 2020 | World Coal | 5

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Coal News

MONGOLIA Agreement reached on long-term power supply for Oyu Tolgoi

R io Tinto, Turquoise Hill and the government of Mongolia have reached an agreement on the preferred domestic power solution for Oyu Tolgoi that paves the way for the government to fund and construct a state-owned coal-fired power plant at Tavan Tolgoi.

The agreement, which is a revision of the Power Source Framework Agreement (PSFA) signed in 2018, states that the parties will work towards finalising a Power Purchase Agreement by the end of March 2021. The amended PSFA sets a proposed timetable for development, with construction of the coal-fired power plant set to begin no later than 1 July 2021 and commissioning within 4 years thereafter.

Oyu Tolgoi currently uses imported power and both the government of Mongolia and Oyu Tolgoi have committed to extending the current arrangement to ensure continued stable power is supplied to the mine and underground project until the state owned power plant is commissioned and is able to supply stable, reliable and continuous power.

Arnaud Soirat, Copper and Diamonds Chief Executive, said: “This agreement provides a potential pathway to securing a domestic power supply for the Oyu Tolgoi mine and underground project for the benefit of all shareholders and the wider community. We look forward to working with the government of Mongolia to progress the solution.”

Technical developments in cleaning mine water have helped the Coal Authority to improve the sustainability of one of its vital treatment schemes. Enhancements to the Frances scheme in Dysart, Scotland, will significantly reduce its whole-life costs and environmental footprint.

These improvements include an immediate 15% reduction in chemical usage – approximately 180 tpy – with the potential for more savings if dosing levels can be further cut after the authority reviews the water discharge quality; a need for fewer site deliveries, giving constant carbon savings and reducing greenhouse gases; operational changes – from ‘slug’ dosing to a 24 hour treatment – will end the need for flushing cycles, which should reduce water consumption by more than half and improved pumping efficiencies, which will lead to significant electricity savings.

As the mines in the East Fife coalfield closed, the pumps used to keep them dry were switched off. Over time the water levels recovered and picked up naturally occurring minerals from the rocks, such as iron, which can impact the ecosystem.

Since 2003, the authority’s scheme at the former Frances Colliery site, part of its work to make a better future for people and the environment in mining areas, has been collecting and treating this mine water in a series of lagoons before it is discharged into the Firth of Forth.

Because the scheme was working at full hydraulic capacity to help control water levels across the mining block, more efficient pumps were installed in 2013 as part of ongoing refurbishments.

As a result, the scheme which now treats twice the original 80 l a second design flow, relies on chemical dosing to reduce iron levels to meet the discharge consent.

Coal Authority Project Manager Mathura Pramekalan, Operations Manager Andrew Hargreaves, Contracts Manager Katie Shorrock and Process Engineer Waqas Ahmed have been working on the upgrade project with contractor Severn Trent Services. Pramekalan said: “This raw mine water is acidic and iron rich, and the chemistry is influenced by tidal flows. Chemical dosing helps to neutralise the acidity, enhancing the treatment and separation process, which occurs through the original cascades and settlement lagoons.”

“Previously, chemicals were delivered for 5 hours every day, and we needed to flush the system with water between each of these batch processes, to prevent any residue crystallising when temperatures dropped, potentially blocking the pipelines.”

All these factors were considered during the upgrade and informed how the Coal Authority approached the project to improve efficiencies and achieve more sustainable operations.

Pramekalan added: “Process optimisation now means continuous operation of the semi-automated dosing plant to match mine water flow rates. This will cut the amount of chemicals we use to deliver significant savings – £58 000 at current prices, as prices per tonne have almost doubled in recent years.

This upgrade conforms to best engineering practices, providing the latest features to meet operational requirements and emergency operations

The project, which ran May - December 2019, saw the installation of new hardstanding, fill point kiosk, storage tanks, pipework, dosing rig, distribution board and control panel, plus improved safety features including a better shower and eye bath.

UK Coal Authority upgrades mine water treatment scheme

DIARY DATES

6 | World Coal | July/August 2020

Coaltrans China 202014 - 16 October 2020

Shanghai, China https://www.coaltrans.com/events/china/

overview

CoalProTec09 - 10 November 2020

Charlestown, USAhttps://www.coalprepsociety.org/ViewEvent.

aspx?ID=7

EXPOMIN 202009 - 13 November 2020

Santiago, Chilehttps://www.expomin.cl/en/online-

registration/

Future of Mining Australia30 November - 01 December 2020

Sydney, Australiahttps://australia.future-of-mining.com/

aus2020/en/page/register-now

POWERGEN International08 - 10 December 2020

Orlando, USAhttps://www.powergen.com/attend/

registration-packages

ACPS 18th Conference 202108 March - 12 March 2021New South Wales, Australia

https://conference-2021.acps.com.au/register/

2020 Coal Association of Canada Conference: Candaian Coal in a Global

Economy10 March - 12 March 2021

Vancouver, Canadahttps://www.coal.ca/event/2020-coal-

association-canada-conference-agm/

Future of Mining Americas31 May - 01 June 2021

Denver, USA https://americas.future-of-mining.com/

usa2020/en/page/register-now

MINExpo International 2021September 2021Las Vegas, USA

https://www.minexpo.com/attend/

Electra Mining Africa05 - 09 September 2022

Johannesburg, South Africahttps://www.electramining.co.za/

Coal News

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The Queensland Resources Council (QRC) has welcomed the Queensland state government’s commitment of lung health checks for mine workers.QRC Chief Executive, Ian Macfarlane, said the industry had a strong partnership with the

government for health checks and industry welcomed the delivery of free health checks for retired metalliferous mine workers from 1 September 2020.

“QRC member companies already pay for the lung health checks of their mine workers and following negotiations with WorkCover and the government, we have secured free lung health checks for retired workers,” Macfarlane said.

“The testing is in the form of a chest X-ray that is read by at least two qualifi ed radiologists as well as a lung function test.

“These testing arrangements are already in place for coal mine workers.” Macfarlane said QRC joined the government to encourage mine workers to alert friends

and colleagues who may have left the industry to contact the mine dust health support service to aslo access their free health checks.

AUSTRALIA QRC welcomes health check testing for mine workers

Westmoreland Mining Holdings LLC, and its subsidiary Prairie Mines & Royalty ULC, have announced that it will be suspending operations at its Coal Valley Mine due to the signifi cant constraints and challenges imposed by the COVID-19 pandemic. Since the start of the outbreak, the company has prioritised the health, safety and wellbeing of its employees, the local community and all other stakeholders in its coordinated response to the virus.

Based on the latest assessment of the continuing and ongoing impacts of this situation, the management team ultimately concluded that there was no other option than to place the mine into a state of care and maintenance.

Commenting on the determination, Joe Micheletti, Chief Operating Offi cer for the company, said: “This is a very diffi cult call for us to make, however, we know it’s the right decision in the circumstances and one that balances our duty of care to our workforce with the long-term interests of Coal Valley. For over four decades, safety has been the cornerstone priority at the operation and these actions highlight the extent to which the day to day activities at this unique mine have been compromised by COVID. Severance remuneration will be paid to all of the valued employees aff ected by this disappointing outcome.”

All of the equipment and infrastructure on site, including the processing plant, will be maintained to preserve a state of operational readiness.

“We will be transitioning to a small number of employees remaining on site to maintain the property and equipment, as well as to oversee all environmental responsibilities and compliance,” added Stephen Love, Coal Valley’s General Manager. “The operation will take all necessary steps to ensure that safety and environmental protocols and procedures are diligently followed during the care and maintenance period.”

Westmoreland’s management team is currently working with all stakeholders on a phased reduction of production operations at the mine site, with the transition to full care and maintenance activities expected to occur within the next quarter.

USA Westmoreland to suspend Coal Valley mine operations

https://www.coaltrans.com/events/china/overviewhttps://www.coalprepsociety.org/viewevent.aspx?ID=7https://www.expomin.cl/en/online-registration/https://australia.future-of-mining.com/aus2020/en/page/register-nowhttps://www.powergen.com/attend/registration-packageshttps://conference-2021.acps.com.au/register/http://coal.ca/event/2020-coal-association-canada-conference-agm/https://americas.future-of-mining.com/usa2020/en/page/register-nowhttps://www.minexpo.com/attend/https://www.electramining.co.za/

https://famur.com/

8 | World Coal | July/August 2020

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Coal NewsThe coal sea port of Shakhtersk (CSPS), a key logistics asset of East Mining Company (EMCO) in Russia, shipped 2.2 million t of coal between January and May 2020, which is 700 000 t or 47% more than the 1.5 million t that was handled during the same period in 2019. At the same time, the shipment plan for the period of January - March 2020 was exceeded by 34%. The port has been operating in a normal mode since the start of navigation due to the company being one of the fi rst in the region to develop and implement a set of measures to prevent the spread of COVID-19 at its facilities. So far, handling operations are carried out according to the schedule.

“Such high rates of cargo turnover were achieved even despite the diffi cult epidemiological situation and taking into account the actual start of navigation in the second half of March,” said Anatoly Balakin, CSPS Chief Operating Offi cer. “Together with the relevant state bodies, we have developed a viable mechanism

to prevent the spread of coronavirus infection and made our key operations more eff ective.”

Consistent capacity-building of shipment volume through the port is one of the key projects implemented by the company as part of the global strategy for long-term growth. Within this task, EMCO is not only working on technical re-equipment of berthing and onshore facilities and fl eet, but in 2019 it also established a joint venture with a key player in the operation of marine transhipping terminals – Rocktree Logistics Pte Ltd, a Singaporean company. EMCO–Stevedore co-project was created to improve the coal shipment effi ciency at anchorage.

Thanks to an active investment programme and business process transformation, the volume of coal shipments in the port of Shakhtersk has already increased from 1.2 million t in 2013 to 8.8 million t in 2019, and by the end of 2020 it is planned to reach 10.6 million t.

RUSSIA Port of Shakhtersk increases coal shipments volume

P ressure is mounting on one of the world’s largest insurers, Liberty Mutual, to abandon plans for a new coal mine in Australia after it cited its own environmental policies for a decision to cut ties with the nearby Adani Carmichael coal mine.

Liberty Mutual is the sole owner of the Mount Ramsay Coal Company, which is plowing ahead with plans to build the Baralaba South greenfi eld coal mine in Queensland, Australia.

The support of this project fl ies in the face of Liberty Mutual’s December 2019 coal policy, which commits to stop investing in and insuring coal companies. In recent media reports, a Liberty Mutual spokesperson confi rmed the implementation of the policy: “Coal mines are a very small part of our overall investment portfolio, and we have since made the strategic decision over a year ago to make no new additional direct investments in the industry.”

Despite this statement, Liberty is continuing to drive forward the Baralaba South coal mine, which it wholly owns. Nearby residents and farmers fi ercely are fi ercely against the project due to concerns around fl ood risk, air pollution and land degradation.

Paul Stephenson, who was born and raised near the mine’s proposed location and is part of a fourth-generation farming family, said: “Liberty Mutual has said it will make no new investments in the coal industry. It has also said, at the same time, that it will proceed with the Baralaba South coal mine, which would cost hundreds of millions of dollars to build. The company can’t have it both ways. It’s time for Liberty Mutual to withdraw the Baralaba South project.”

Activists and farmers across Australia are adding their voice to a global campaign that is pushing Liberty Mutual to ditch fossil fuels and respect Indigenous rights. The #StopAdani movement has been pressuring Liberty Mutual to rule out insuring any part of the Adani coal mine for more than a year, and earlier this month, Liberty fi nally came out with an unequivocal statement against the project.

Lock the Gate Alliance Queensland spokesperson, Ellie Smith, said: “Liberty Mutual’s confl icting attitude to the Adani coal mine and Baralaba South coal mine was typical of large corporations.

“This company clearly wants to green wash its image by withdrawing from the Adani Carmichael coal mine, while continuing to back Baralaba South quietly. As an insurance company, Liberty Mutual should understand the risks of this project.

“The community doesn’t want a mine on this fertile river country. Now is the time for the company to cut its losses, get out of coal and stick with the insurance business.”

Earlier in June, the global Insure Our Future campaign (formerly known as Unfriend Coal) released a new set of demands, calling on Liberty Mutual and other insurers to stop supporting all new oil and gas projects and phase out fossil fuel business in line with 1.5˚.

In North America, Liberty Mutual is currently under pressure to not renew its insurance policy for the Trans Mountain tar sands pipeline, which is up for renewal at the end of August 2020.

AUSTRALIA Calls for Liberty Mutual to abandon coal mine plans

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10 | World Coal | July/August 2020

July/August 2020 | World Coal | 11

Peter Bryant and Wiles Kase, Clareo, USA, assess the importance of ESG in

ensuring prosperity and equity in the development of African coal reserves.

W ith energy demand rising throughout the developing world, demand for coal is forecast to rise through 2050. Some African nations also consider developing coal reserves as one step in alleviating poverty in their countries. Environmental, social and governance (ESG) investors may hesitate to involve themselves in coal mining, but because the demand for coal will most likely drive these countries to develop their coal reserves, there is a golden opportunity - for whoever commits the capital and technology – to advance equity and sustainability goals in African coal development. While this may sound counterintuitive to some, including ESG and climate activists, a real opportunity exists in helping ensure that African coal development is equitable and sustainable.

Growing demand for coal sparking interest in African reserves At the 2020 International Mines and Ministers’ Summit, the resources minister of an African nation said: “It is unfair to have riches below and poverty above, so leaning on natural resource development as a tool for poverty alleviation is part of the equation.” This statement expresses, more or less, that if a nation has resources that it can develop as a way to alleviate poverty, national decision makers feel a sense of obligation to do so. As resource-rich emerging economies are faced with the task of balancing the dual priorities of climate change and growing prosperity for their people, thermal and metallurgical coal reserves that exist in African nations will most likely be developed. There are three things will likely drive this development:

A rising global demand for coal. The need to generate income for the country in the form

of taxes and royalties, with the goal of lifting people into prosperity beyond the mining sector and the life of the resource.

The need to provide affordable and accessible power to parts of those nations’ population that lack access to reliable power (knowing renewables alone cannot bridge the gap between an emerging and a developed economy).

Several African nations have signifi cant coal reserves, in particular South Africa, Mozambique, Zimbabwe, Nigeria and Tanzania. In most of these nations, multi-stakeholder development is possible. Some nations, such as Zimbabwe, that have political instability, corruption or disenfranchisement may be diffi cult to engage with in a productive multi-stakeholder manner. But for the nations where it is a possibility, ensuring that multi-stakeholder development is the norm will be critical in order to achieve a shared purpose that cultivates partnerships among communities, businesses, investors and other groups aff ected by coal mining.

Multi-stakeholder engagement must continue to be the priority for mining companies as they play a signifi cant role in coal development in the region. Mining companies involved in African coal reserves tend to be a mix of multinational companies and local companies. For example, in 2019, the top two coal producers in South Africa were multinationals – South32 and Anglo American – making up a signifi cant portion of the country’s coal production. Sasol, a global integrated energy company, and Exxaro, a South African mining company,

A golden opportunity

for coal

A golden A golden opportunity opportunity

for coalfor coal

also produce a signifi cant share of the country’s coal. South32 and Anglo American both have executed or planned sales of their South African coal businesses to South African fi rms.

Capital and technology enable sustainable and equitable development of coal reservesDeveloping coal resources requires access to fi nancing and technology to enable the development of the resources in the most sustainable and equitable way possible. There is a view that Western-led ESG advocacy from civil society and investors could hamper access to the fi nancing and technology that would enable the very sustainability and equity goals advanced by ESG advocates. Financial institutions across the globe have been pressured to eliminate coal from their portfolios. In May 2020, Japan’s two largest banks announced plans to no longer fi nance new coal-fi red power plants. Similarly, Australia’s Westpac Bank announced that it will stop funding thermal coal projects by 2030, leaving only one Australian bank still committed to fi nancing thermal coal.

When it comes to global mining companies, many are being forced by activist investors like the Norwegian Sovereign Wealth Fund to exit coal. For example, Rio Tinto exited the coal mining industry in 2018 to focus on metals, responding to pressures to remove coal from their portfolio. South32 fi nalised the sale of its South African coal assets, essentially exiting

thermal coal development in 2019 while keeping its Illawara mine in Australia for metallurgical coal, but many miners are also being forced to consider leaving metallurgical coal behind.

One possible outcome of hampering access to fi nancing and technology is China’s increased involvement in funding and developing African coal reserves. Given China’s human rights and sustainability record, it is reasonable to think that Chinese investment in coal reserves may not come with the level of accountability around sustainability and equity that ESG advocates and all proponents of sustainable development desire. Chinese fi rms may be particularly well positioned to fund and advise the development of African coal reserves given their heavy investment in Africa. China has been especially active in coal-fi red power generation, including investment in Zimbabwe’s Hwange Makomo Power Station expansion, Mozambique’s Niassa coal plant, Tanzania’s Mbeya coal plant and numerous plants in South Africa.1 In fact, one in four coal power plants outside of China have received some form of Chinese investment.2 However, to date, China has had little involvement in funding or developing foreign coal reserves.

No matter who makes the investment to develop African coal reserves, there is an opportunity to minimise the negative impacts on the climate and ensure equity. If ESG investors become involved in African coal development, they can assist in mapping out conditions for prosperity and equity, as well as the longer-term transition to renewable energy.

Capital-exporting nations and resource-rich emerging economies both face a great opportunity to harness the power of resource development to lift people out of poverty. Of course, developing natural resources, especially fossil fuels subject to poor or volatile price conditions, can often go awry and unintentionally weaken poverty alleviation eff orts. This is referred to as Dutch disease.

But, importantly, resource development does not have to go awry if corporations and governments prioritise equity and sustainability and maintain awareness of the factors that can lead to Dutch disease. Initiatives that promote strong governance and accountability are central to eff ective sustainable development. Building other sectors like agriculture, manufacturing and tourism is also critical. This requires a multi-stakeholder approach and development of a long-term economic blueprint that is crafted in partnership with mining companies. It is at this point in the process where investors and mining companies interested in advancing ESG goals can play an important role: ensuring that the practices involved in African coal development are inclusive, equitable and sustainable. Anglo American has been spearheading just such an approach in the Limpopo province of South Africa, which has been embraced in the province as a successful model.

Making equitable and sustainable resource development work

Multi-stakeholder engagement leads to trust and accountabilityProven measures for multi-stakeholder, equitable and sustainable development help resource-rich emerging

12 | World Coal | July/August 2020

Figure 2. Projected global energy consumption be energy source through 2050 shows coal’s relative share of the global energy mix decreasing but the absolute amount consumption of coal increasing after 2040. Source: US Energy Information Administration (September 2019).

Figure 1. Projected global energy-demand growth by region shows energy demand growth in Africa (and throughout the rest of the non-OECD world) through 2050. Source: US Energy Information Administration (September 2019).

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economies balance the dual priorities of climate and economic development. For example, a multi-stakeholder approach develops trust and strong relationships with development partners, according to The Development Partner Institute (DPI). The most important relationships to improve are those of capital-exporting economies, international fi nancial institutions and private sector companies, according to the Center on Foreign Relations.

Multi-stakeholder development also allows for, and must include, equitable profi t-sharing and royalty/tax sharing arrangements with low-income communities in African nations with coal reserves. To make sure these eff orts are executed in way that actually benefi ts poor populations and helps to lift them out of poverty, mining companies and resource-rich emerging economies must employ accountability measures to ensure profi t-sharing arrangements are followed. Some options provided by the Council of Foreign Relations include:3

Adopting the International Finance Corp.’s extractive industries transparency requirements (EITI, from which the US controversially withdrew in 2017) and applying those principles to all bilateral development finance.

Funding ‘local civil society actors,’ such as South Africa’s Corruption Watch (which has used citizen-generated reports of corruption to hold leaders accountable since 2012), enabling them to monitor revenue flows and, thereby, build demand for accountability.

Establishing independent monitoring systems among investors so that important mechanisms like the Equator Principles are enforced.

Improving electricity access accelerates poverty alleviationAnother way resource development can improve the lives of poor people in African nations is through increasing access to electricity. There are a number of important considerations in the complex issue of electricity access.

First, for coal development to have a direct impact on electricity access, the coal that is mined needs to be made available as an aff ordable fuel fi rst and foremost to the energy sector in the sub-Saharan economies that lack electricity access instead of being exported to other countries with high coal demand, like India and China.

Second, and most importantly, governments and corporations must collaborate to increase electricity demand (as opposed to supply) in sub-Saharan grid electricity markets, specifi cally through fostering productive (as opposed to consumptive) uses of electricity. While diffi cult to achieve,

improving demand for electricity through productive use is the single most important factor in expanding access to electricity in emerging economies. In the last decade, the World Bank has facilitated and funded electricity demand programmes that follow the ‘Business Development Services’ technique. Under this technique, NGOs and the World Bank assisted "small and home-based enterprises in gathering information, fi nding credit and addressing technology constraints."

In Peru, the World Bank has carried out market assessments, helped prepare business plans and facilitated introductions between emerging market entrepreneurs and the electric utility. These eff orts have made it easier for entrepreneurs to launch businesses that use relatively larger amounts of electricity. These businesses generate the demand that, in turn, justifi es investment in expanding the electricity grid. Businesses supporting between 5000 - 10 000 Peruvian families and microenterprises emerged in a variety of sectors from small-scale agriculture, livestock and dairy production, to artisanal mining and textiles, to transportation and distribution; importantly, women entrepreneurs play a signifi cant role in improving electricity demand.

Third, corporations interested in improving access to electricity in these resource-rich emerging markets must encourage governments to improve power-trading schemes in sub-Saharan Africa, which is the second most important limiting factor (behind lack of demand) in current electricity access rates, according to the World Bank.4

Carbon capture is an important first step towards sustainability goalsFinally, ESG advocates and Western investors and technology suppliers must involve themselves in coal mining in these African nations to ensure that the goal of climate change mitigation is advanced in tandem with that of prosperity. When extracting thermal or metallurgical coal, this means focusing on conducting carbon sequestration at the mine site and in the production of power at coal power plants or at the steel mill. One key to advancing carbon capture technology is fi nding productive uses of carbon (other than enabling further oil and gas extraction) and creating policies that incentivise capturing or reuse of carbon (tax credits, etc.).

According to the International Energy Agency, only two signifi cant carbon capture operations associated with power plants worldwide operated in 2018, capturing 2.4 million t of CO2. These were the Petra Nova carbon capture system in Texas, USA, and the Boundary Dam CCUS project in Saskatchewan, Canada, which started

14 | World Coal | July/August 2020

Table 1. African nations with the largest proven coal reserves and associated-access rates. Sources: US Energy Information Administration (May 2020) and World Energy Council

Country Million t of proven reserves % of world proven reserves Electricity access rate (overall) Urban-rural electricity access rates

South Africa 34 723 3.4000 84 93% in urban areas; 66% rural

Mozambique 1975 0.1500 27 73% in urban areas; 2% rural

Zimbabwe 553 0.0050 40 85% in urban areas; 18% rural

Nigeria 379 0.0034 55 - 60 88% in urban areas; 22% rural

Tanzania 297 0.0027 33 65% in urban areas; 17% rural

operations in 2017 and 2014, respectively. China currently has four large-scale carbon capture plants in early development – well short of the 2030 Sustainable Development Scenario goal of 350 million t.5 Policy, such as tax credits and grant funding, should be crafted to stimulate investment and cost-reducing innovations in carbon capture technologies to lay the groundwork for sustainable coal development.

Outside of carbon capture, technology and policy options can make resource development more sustainable. The Republic of Ecuador, for instance, has used technology and policy to help with its diffi cult balancing act: the nation’s largest oil deposits are located underneath the world’s most biologically diverse rainforest habitat. Ecuador’s developing economy demands the development of those oil reserves, so, in response, the country - which has had a mixed past when it comes to environmental protections in its oil fi elds - has begun to require the use of more stringent off shore equipment and practices onshore. Additionally, the country has made a public declaration of the importance of nature by giving nature ‘human’ rights in its constitution. Ecuador has also converted 90% of its grid energy to renewable energy and will discontinue imports of ICE vehicles after 2025. And while the Ecuadorian government has catalysed these sustainability eff orts, it views itself as an enabler, calling on the private sector to engage in a multi-stakeholder approach to eff ectively drive the advancement of sustainability.

ConclusionWhile the dual goals of prosperity and sustainability may seem at odds at times, ESG-minded investors can take part in African coal mining to improve the outcomes of countries attempting to use the riches below the ground to alleviate poverty above the ground. Capital exporters from North America and Europe ought to consider the consequences of withholding capital due to ESG concerns. If capital can be used to encourage a multi-stakeholder approach with equitable and sustainable development, nations can achieve a shared purpose for all entities involved, especially for communities and the environment, as they tap into coal reserves. As Dr. Faith Biral, Executive Director of the International Energy Agency, said: “How Africa meets the energy needs of a fast-growing and increasingly urban population is crucial for its economic and energy future – and the world.”6

References1. https://foreignpolicy.com/2019/06/09/when-coal-came-to-para-

dise-china-coal-kenya-lamu-pollution-africa-chinese-industry-bri/2. https://ieefa.org/ieefa-china-lender-of-last-resort-for-coal-plants/3. https://www.cfr.org/blog/exorcising-resource-curse-some-

innovative-ideas4. https://openknowledge.worldbank.org/bitstream/han-

dle/10986/31333/9781464813610.pdf?sequence=6&isAllowed=y5. https://www.iea.org/reports/tracking-power-2019/ccus-in-

power#abstract6. https://www.iea.org/news/africas-energy-future-matters-for-

the-world

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