march 2014 - volume 23 number 3 · march 2014 - volume 23 number 3 ... jindal steel and power ......
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MARCH 2014 - VOLUME 23 NUMBER 3
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Featured on the cover is a McLanahan rotary breaker at Black Panther Mining, a subsidiary of
Oaktown Fuels, in southern Indiana. McLanahan rotary breakers break down coal to meet processing specification, while efficiently
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COVER INFORMATION
World Coal (ISSN No: 0968-3224) is published monthly by Palladian Publications Ltd GBR and is distributed in the USA by Asendia USA, 17B South Middlesex Avenue, Monroe NJ 08831 and ad-ditional mailing offices. Periodicals postage paid at New Brunswick NJ. Postmaster: send address changes to World Coal, 17B South Middlesex Avenue, Monroe NJ 08831.
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Copyright © Palladian Publications Ltd 2014. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither does the publisher endorse any of the claims made in the advertisements. Printed in the UK. Uncaptioned images courtesy of www.bigstockphoto.com.
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MARCH 2014 - VOLUME 23 NUMBER 3
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Regional Report: Indonesia
16 The Coal Potential Of SumatraDaniel Madre, Danmar Explorindo, Indonesia, describes the distribution and extent of known coal deposits in Sumatra, Indonesia.
Coal Handling & Storage
23 Supply Chain SimulationDr Harry King, Ausenco, Australia, explains how simulating the design options for new coal terminal stockyards can optimise efficiency.
29 Solving The ProblemMilton Carruthers, Scott Humphris and Grant Porter, Hatch Australia, discuss the construction and alignment of overland conveyors.
33 Fully LoadedBrian Jones and Craig Money, Matrix Design Group, US, discuss solutions for increasing efficiency in loadouts.
Breakers, Crushers & Sizers
37 Holding The LineJohn Klinge and Bill Dudenhoefer, Eriez, US, highlight strategies for protecting crushers, screens and conveyor belts from tramp metal.
41 Size MattersGeordie Edmiston, McLanahan, US, examines the options available to mineral processing projects for resizing coal.
Mine Dewatering
48 Relieving The PressureWilliam Harding, SRK Consulting, UK, discusses pore pressure control and slope stabilisation in opencast coal mines.
3 Comment
5 Coal News
14 Industry View: The UK’s Clean Coal BridgeTony Lodge, Centre for Policy Studies, UK.
53 The Trouble With WaterAdvanced mine water management can offer mine operators not only economic and environmental payoffs, but also social benefits. Gordon Cope explains.
Coal Waste Management
57 The Clean Up ActBill Betke and Boyd Ramsey, GSE Environmental, US, discuss potential solutions for coal waste disposal in an evolving regulatory environment.
Underground Conveying & Haulage
61 Don’t Risk ItSytze Brouwers, Fenner Dunlop BV, the Netherlands, explains the safety testing and certification regimes for conveyor belts in underground coal mines.
Power Market Report
64 The Steps To IgnitionDr Reinhold Elsen, Guido Schöddert, Christoph Götte and Dr Tobias Ginsberg, RWE Power AG, Germany, detail the construction and initial operation of a lignite-fired power plant.
70 Fire In The Coal MillDerek Stuart, AMETEK Land, and Todd Collins PE, Hoosier Energy, Merom, US, discuss available techniques for detecting early signs of mill fires and explosions.
75 A Dynamic ModelJohn Goldring, RJM International, explains how using virtual models of power plant performance can help plant operators adjust to changing industry regulation and challenges.
Managing [email protected]@worldcoal.comEditorial [email protected] [email protected]
Advertisement [email protected]@worldcoal.comCirculation [email protected]/Marketing [email protected]
Website [email protected] [email protected] Baxter Gordon Cope Michael King Ng Weng HoongPublisher Nigel Hardy
Palladian Publications Ltd15 South Street, Farnham, Surrey, GU9 7QU, UK t: +44 (0)1252 718999 f: +44 (0)1252 718992w: www.energyglobal.come: [email protected]
Jonathan Rowland Editor
I n 1997, Sweden passed its Vision Zero plan into law, pledging to eliminate road fatalities and injuries. Since then, the country has achieved remarkable progress and now boasts the safest roads in the world: according to a
recent article in The Economist, only three Swedes in every 100,000 die on the roads each year – well below the average 5.5 per 100,000 across the EU and 11.4 per 100,000 in the US.
The reduction in the number of people dying on Sweden’s roads is not unique. Since road accident deaths peaked in the 1970s, the number has been consistently dropping in rich countries (although it is still on the rise in poorer countries as car sales rise). But Sweden has achieved much greater success than others.
In analysing the country’s achievements, it is its road planning that should come in for much of the praise. Swedish roads are built with as much thought for safety as for speed or convenience. Measures that may be considered irritating (low urban speed limits) or excessive (building 1500 km of 2+1 roads – where each lane of traffic takes turns to use a middle lane for overtaking) in other areas are now standard in the Scandinavian country. Meanwhile, a tough line on drink driving means that less than 0.25% of drivers tested are over the limit.
The next step, suggests The Economist, will be to reduce the impact of human error further – perhaps eventually doing away with the driver altogether. The Swedish car manufacturer, Volvo, will run a pilot programme of driverless cars in Gothenburg in 2017 in partnership with the Swedish transport ministry. Before then, measures that include putting breathalysers in cars to warn against drink driving and the faster implementation of safety features, such as warnings for speeding and unbuckled seatbelts,
have been mooted. Whether such moves will enable Sweden to hit its Vision Zero target, only time will tell: but it is well on its way.
The coal industry has also made substantial progress in reducing the number of injuries and fatalities that occur in mines around the world. But here too, there is still much work to do. Perhaps the most sobering statistic given by the US Mine Safety & Health Administration (MSHA) in its recent discussion of mining fatalities in the US was that deaths continue to occur that could be prevented by easily available technologies, such as proximity detection systems. Despite a large roll out of such systems in US
mines, last year four lives were still lost that could have been prevented by them, according to Joseph Main, assistant secretary of labor for mine safety and health.
Meanwhile, in China, the progress Shenhua has made in improving that country’s mine safety record – which resulted in it winning the Leadership on Mining Safety category at the World Coal Association’s Leadership & Excellence Awards last year – is impressive, but overall the world’s largest coal mining country remains a long way behind its Western
counterparts when it comes to mine safety. “We simply do not accept any deaths or injuries on our roads,”
said Hans Berg of Sweden’s national transport agency. In such a culture, any accident is a failure. Yet, in these straitened times in the mining industry, discussions about safety can be drowned out by all of the talk about optimising productivity, cutting costs and maximising shareholder value. Yet if there is even one miner that does not return home at the end of shift, it does not matter how much money his or her company makes or how much value it is creating, it is still a failure.
DEATHS CONTINUE TO OCCUR THAT COULD BE PREVENTED BY EASILY AVAILABLE TECHNOLOGIES, SUCH AS PROXIMITY DETECTION SYSTEMS.
March 2014 | World Coal | 5
U S-based coal miner, Peabody Energy, has
launched a global campaign to promote
the use of clean coal technologies around
the world. The Advanced Energy for Life
campaign will “work to educate and activate
world leaders, multinational organisations,
institutions, stakeholders and the general
public,” the company said in a statement.
Commenting on the launch, Gregory Boyce,
CEO of Peabody Energy, noted that “more
than a decade ago, the UN Millennium Goals
called for a rapid halving of extreme global
poverty by 2015 [...] Yet today, 3.5 billion people
lack adequate access to energy and more than
4 million people needlessly die each year from
the effects of energy poverty. We have the
technologies and the global resources to end
this crisis. All of us must work together toward
realistic solutions.”
Demographic trends are also driving
the need for affordable energy, as the global
population is expected to hit 8.1 billion by
2025, according to the UN Population Fund.
Meanwhile, the UN Department of Economic
and Social Affairs predicts that the number
of people living in urban areas will grow by
more than 70 million/year to 2020. As a result,
“all energy forms are necessary to end global
energy poverty and increase access to low-cost
electricity,” Peabody continued in its statement.
The campaign will focus on three core
elements:
n A digitally-based education programme
highlighting the widespread benefits of
inexpensive energy access and the vital role
coal-fired electricity can play in solving the
world’s energy issues.
n A research institute that will develop and
distribute studies and policy-oriented
intellectual capital.
n Direct outreach to governments, institutions
and other stakeholders toward actions
that increase energy access and expand
the development and use of advanced
technologies.
Boyce concluded: “The drive by some
to reduce coal use and make energy scarce
and expensive is unsustainable [...] We
need to recognise the enormous health and
environmental benefits in ending energy
poverty, eliminating household air pollution
and increasing access to low-cost electricity.
Everyone in the world deserves to live as well
as those in developed nations. Let’s use more
energy, more cleanly, every day.”
S ome of India’s biggest companies –
including Tata, Jindal Steel and Power
and Adani Power – are among those to have
had their coal block allocations cancelled
by the Indian Ministry of Coal over delays
in developing them. In total, 31 blocks are
expected to be cancelled.
“The ministry has already sent notices to a
number of companies about the de-allocation,”
said N.C. Joshi, a coal ministry spokesman.
“Some others will be intimated soon.” The
de-allocated blocks will now be given to
Coal of India Ltd, the state-owned coal miner,
but may be offered to other developers at a later
date, the coal ministry said.
The move puts billions of dollars of
investment in question. The Tata Group, in a
joint venture with South Africa’s Sasol Ltd, was
planning to invest US$ 10 billion in a coal-to-oil
project using coal from the north of the Arkhapal
and Srirampur coal block in the eastern state of
Odisha. According to Reuters, the joint venture
filed a petition in the Delhi High Court against
de-allocation, which resulted in the court
asking the government not to proceed with the
move. Jindal Steel, which has plans for its own
coal-to-oil project, has also promised to take the
government to court.
Both Tata and Jindal also blamed the
government for the slow speed of development:
“The coal ministry took 18 months to decide the
boundary of the coal block and, secondly, the
state government, over the past three years, has
not even granted the prospecting licence,” said
a spokesperson for Jindal. Meanwhile, Tata also
claimed it was still waiting for the mandatory
prospecting licence from the government,
without which it is unable to proceed with
developing the project.
INDIA Government de-allocates coal blocks over slow development
US Peabody Energy launches the Advanced Energy for Life campaign
6 | World Coal | March 2014
R esults from the mining majors have
highlighted the continuing struggle
against lower prices with BHP Billiton reporting
drops in the average realised prices of hard
metallurgical coal (18% down), soft metallurgical
coal (10% down) and thermal coal (10% down).
Mine more, spend lessBHP Billiton, which reported its results for
H2 2013, presented the strongest results with
underlying EBIT for its coal business up from
US$ 431 million on the same period in 2012 to
US$ 510 million. This was “underpinned by
productivity led volume and cost efficiencies”,
which contributed US$ 779 million to earnings,
the company said in a press statement.
BHP Billiton announced a 22% increase in
metallurgical coal production to 22 million t,
while thermal coal was inline with 2012
production at 37 million t. This included record
production across its Queensland metallurgical
coal mines (South Walker Creek, Saraji and
Poitrel) and New South Wales and Cerrejón
thermal coal operations, offsetting declines
at Illawarra (metallurgical coal) and BECSA
(thermal coal).
A similar theme was found throughout the
results. Rio Tinto reported that “aggressive cost
and productivity improvements” delivered
US$ 442 million to underlying earnings, while
Anglo American reported “early progress” in
its Driving Value programme, particularly in its
metallurgical coal business. Here, production
increased by 30% with its Moranbah North
underground mine lifting longwall output by
39% “on the back of an improvement in cutting
hours, an increase in automated cutting rates
and reduced unplanned downtime”. Rio Tinto
reported record production of semi-soft
metallurgical coal (up 17%) and thermal coal
(up 11%).
Reporting its production for 2013,
Glencore Xstrata said output increased 4% on
2012 to 138.1 million t as a result of growth
projects at Prodeco (up 26% to 18.6 million t) and
Australia thermal coal (up 9% to 57.7 million t).
Currencies help…A stronger US dollar against the Australian
dollar and South African rand, among
others, also helped to buoy up revenues with
BHP Billiton saying such currency trends
boosted its coal revenues by US$ 404 million.
Meanhile, Rio Tinto reported just over a
US$ 1 billion boost to its underlying earnings
across all commodities, as a result of favourable
currency movements.
… but low prices still weigh heavily on earningsDespite this, low prices still had a heavy
influence on miners’ results. BHP Billiton was
the only major to announce higher earnings.
Glencore Xstrata was the best of the rest,
announcing an 8% drop in its total coal revenues,
“as lower realised coal prices
impacted the coal industrial business”.
Meanwhile, Rio Tinto reported underlying
earnings down to US$ 33 million from
US$ 309 million in 2012 as a result of
“significantly lower prices” and Anglo American
delivered an underlying profit of only
US$ 46 million in metallurgical coal – an 89%
drop on the previous year. Its thermal coal
revenue also dropped by 32% to US$ 541 million.
“Excess supply of metallurgical coal
continued with nearly all major exporting
countries increasing output in 2013, putting
continuing pressure on premium hard
metallurgical coal prices in H2 2013,” Rio Tinto
noted. “Global thermal coal prices [also]
continued the weaker trend of the past two years
with the Newcastle Index recording and
year-on-year fall of 10%, finishing the year on
US$ 86/t,” the miner continued.
Reasons to be positiveThe results mark solid performances by the
mining majors amid the prolonged softness
in commodity markets. And looking forward,
there may be reason for cautious optimism.
Restructuring in the US coal industry should
reduce the volume of coal on the global market,
while coal demand across most markets is
expected to remain solid on the back of high gas
prices, said Glencore Xstrata. Overall, a stronger
recovery in the global economy should offer
continued support for commodities demand,
albeit at more moderate rates of growth, noted
BHP Billiton, as the global trend towards
urbanisation and industrialisation sustain
demand for key commodities, including crude
steel (iron ore and metallurginal coal) and
thermal coal.
INTERNATIONAL Global mining companies release 2013 results
ELECTRIC POWER Conference + Exhibition1 - 3 April 2014St Louis, USwww.electricpowerexpo.com
Global Power Markets7 - 9 April 2014Las Vegas, USwww.platts.com/conference
Coaltrans China10 - 11 April 2014Shanghai, Chinawww.coaltrans.com/china
Mercury Emissions from Coal22 - 25 April 2014Clearwater, USmec10.coalconferences.org
Coal Prep International 201428 April - 1 May 2014Lexington, USwww.electricpowerexpo.com
Coaltrans West Coast7 - 8 May 2014Vancouver, USwww.coaltrans.com/westcoast
Coaltrans Southern Africa Networking Forum12 - 13 May 2014Cape Town, South Africawww.coaltrans.com/southernafrica
Coaltrans Asia1 - 4 June 2014Bali, Indonesiawww.coaltrans.com
AIMS 2014: High Performance Mining11 - 12 June 2014Aachen, Germanywww.aims.rwth-aachen.de
COAL-GEN20 - 22 August 2014Nashville, USwww.electramining.co.za
ACPS 201415 - 18 September 2014Gold Coast, Australiawww.acps.com.au/conference-2014/home
Electra Mining Africa 201415 - 19 September 2014Johannesburg, South Africawww.electramining.co.za IMEX 201423 - 24 September 2014Las Vegas, USimex2014.com
Coaltrans World Coal Conference12 - 14 October 2014Copenhagen, Denmarkwww.coaltrans.com
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8 | World Coal | March 2014
NEWSINBRIEF
W orld Coal presents its monthly round up
of news from coal projects in Australia,
Botswana, Canada, the Kyrgyz Republic,
Mongolia, Mozambique, New Zealand,
South Africa and Tanzania.
Australia
Anglo AmericanAnglo American has said it will cut jobs at the
Drayton coal mine in New South Wales, after
delays to planning approvals held back the
expansion of a nearby project designed to extend
the mine’s life. The company said it would
move to a five-day roster at the Drayton thermal
coal mine from the current seven days, slowing
production to preserve remaining reserves. It did
not say how many jobs would be lost.
Australian Pacific CoalAustralian Pacific Coal and Linchpin Capital
Group have signed a non-binding agreement
to jointly develop the South Clermont coal
exploration tenement in the Bowen Basin
coalfields. Under the terms of the agreement,
the two companies will initiate an exploration
programme to complete proving the Clermont
coal resource and bring the deposit into
production. Initial indications show that this has
the potential to be an opencast operation.
Cockatoo CoalCockatoo Coal has acquired 90.2% of the
shares in Blackwood Corp. Ltd and will soon
exercise its right to compulsorily acquire the
remaining shares in Blackwood. The acquisition
will allow the Cockatoo Group to “maximise
operating and financial synergies across the
combined business,” according to a company
statement. The move will also allow it to optimise
development of the overall project portfolio
with a focus on the development of the Baralaba
expansion project.
Canada
Altitude ResourcesAltitude Resources has announced a NI 43 -101
coal resource estimate, comprising 15 million t, at
the company’s Palisades project in Alberta. The
resource comprises a 10.1 million t measured and
indicated resource and a 4.9 million t inferred
resource. An exploration target of 33 million t
has been identified for the Palisades area. The
study, carried out by Dahrouge Geological
Consulting, confirmed that the coal quality rank
is low volatile.
Canadian Dehua International Mines GroupCanadian Dehua International Mines Group
(CDI) has reportedly discovered a coalfield
estimated to have 7 billion t of reserves in
west Canada. If these estimates are correct, it
would make it the world’s largest metallurgical
coalfield, according to the company. Vincent Li,
chief engineer at CDI, told the Xinhua news
agency that analytic data showed that the
150 km2 field contains 7 billion t of coal, most
of which is buried within a depth of 1000 m.
Half of the total reserve is high quality
metallurgical coal.
Jameson Resources Jameson Resources has released the results of its
coke strength after reaction (CSR) tests for coal
quality at the south block of its Crown Mountain
metallurgical coal project in British Columbia.
The first three CSR results received for the
block have ranged from 67 – 74. The company
confirmed that these results indicate that the
Crown Mountain product is expected to be a
hard metallurgical coal. The prefeasibility study
continues to progress, with a completion date
expected by June/July this year.
Kyrgyz Republic
Celsius CoalCelsius Coal Ltd has announced that the
exploration licenses for its Kargasha and Kokkia
tenements, which together with the Min Teke
tenement comprise the Uzgen Basin metallurgical
coal project, have been extended for two years.
Mongolia
Guildford CoalThe Baruun Noyon Uul (BNU) coal
mine has been successfully and formally
commissioned for operations and sales by the
Mongolian Government and is now awaiting
final permitting for the coal transport company
that will deliver first sales from the mine to the
coal distribution hub at Ceke, on the Chinese
border. The BNU mine is situated approximately
130 km by road from Ceke.
Mozambique
Queensland BauxiteQueensland Bauxite has secured a further coal
project in Mozambique that has a potential
resource base of hundreds of millions of tonnes
of coal. The project is located 250 km from the
Palma and Pembra ports, giving Queensland
Bauxite useful access to existing infrastructure.
License 4453L covers 192 km2 and contains
99.9 km2 of Lower Karoo geology. Historical
drilling intersected 3 m coal seams within the
top 40 m. There is also significant prospective
at depth, which has yet to be tested. Should the
tenement contain a coal seam of bituminous
to anthracite grade, as has been reported from
previous drilling, the license may host over
250 million t in situ coal.
New Zealand
Bathurst ResourcesBathurst Resources has announced a further
delay to the opening of its new Denniston Plateau
mine on the west coast of New Zealand with
the loss of 29 jobs. The mine was due to open
in April 2014; however, it has been delayed
indefinitely, largely due to the slump in the coal
export market.
South Africa
Condor EnergyCondor Energy is to acquire a majority interest
in the Duel hard metallurgical coal project and
Tshipise 2 project in South Africa. The company
will purchase the projects from Hong Kong-based
Signet Coking Coal.
Tanzania
Walkabout ResourcesA field reconnaissance has been undertaken at
the Lindi project in Tanzania. Last year, Uranex
announced the discovery of outcrop coal on a
tenement adjacent to Walkabout’s holdings. The
company is currently assessing options for a
follow-up programme.
INTERNATIONAL A round up of developments from coal projects around the world
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10 | World Coal | March 2014
M ergers and acquisitions, contracts and
new partnerships: World Coal wraps up
the suppliers news from the last month.
Mining
ADDCAR SystemsUGM Holdings has bought ADDCAR Systems, a
manufacturer of highwall mining systems, from
Arch Coal for US$ 21 million. ADDCAR had
been a wholly-owned subsidiary of Arch Coal
following the acquisition of International Coal
Group (ICG) in 2011. The sale includes all
licenses, patents and technology related to the
ADDCAR highwall mining system and its
manufacturing facility in Ashland, Kentucky.
Also included in the sale are all existing contract
mining and equipment lease agreements. UGM
will pay the US$ 21 million in three installments.
Additional terms were not disclosed.
Dassault SystèmesDassault Systèmes has extended its relationship
with its Indian partner, EDS Technologies, to
include the sale of GEOVIA mining applications.
EDS Technologies has been a Dassault Systèmes
partner in India since 1998, serving the
aerospace, automotive, industrial machinery,
high-tech and electronics, infrastructure and
engineering industries.
Eickhoff Corp.Eickhoff has received an order for two SL 750
longwall shearer loaders from Walter Energy, a
US producer of metallurgical coal for the global
steel industry. The machines ordered will operate
at a Walter Energy installation near Brookwood,
Alabama. The SL 750 shearer model is used in
medium height seams and has been successful in
coal mine operations across the globe.
HexagonHexagon has acquired Aibotix, a
manufacturer of intelligent multicopter
systems for high-efficiency aerial applications.
The acquisition strengthens the life of
mine solution offered by Hexagon’s
Leica Geosystems Mining division.
MaptekMaptek has acquired DroneMetrex, a developer
of technology for aerial photogrammetric
mapping from small drone aircraft. The
DroneMetrex system allows users to collect large
amounts of high-quality digital terrain data and
imagery for rapid assessment and integration
into the day-to-day processes of industries such
as mining, geospatial, agriculture, infrastructure
management and other applications requiring
highly accurate elevation data.
Sandvik MiningSandvik Mining and Maptek are to co-operate
on the development of integrated planning
and execution solutions and robust automation
systems for the mining industry. The
companies, which announced a memorandum
of understanding last month, will focus on
delivering automated mining equipment
that can connect to and work directly from
mine planning and measurement data from
Maptek products.
Voith TurboBukit Asam, an Indonesian mining company,
is to expand its operations at Tanjung Enim
coal mine in Sumatra, Indonesia, using
14 Voith TVVS fluid couplings on ten new belt
conveyors. The fluid couplings will have power
ratings of between 55 and 315 kW.
Handling and preparation
ContiTechContinental will purchase
Veyance Technologies, a global leader in
the field of rubber and plastics technology,
from The Carlyle Group for d 1.4 billion.
Veyance will be integrated into Continental’s
ContiTech division, the world’s largest supplier
of conveyor belts. Veyance has 27 plants
around the world and a workforce of about
9000 employees at the end of 2013. The
acquisition is subject to the approval of the
responsible anti-trust authorities.
MetsoMetso and Guangxi Liugong Group (LiuGong)
have obtained approval from the Chinese
authorities for a joint venture between the
two companies. Liugong Metso Construction
Equipment (Shanghai) will be headquartered
in Shanghai and will combine Metso’s expertise
in the track-mounted crushing and screening
business with LiuGong’s customer service and
manufacturing capabilities. The initial scope
of the joint venture will cover the design and
manufacture of localised versions of Metso’s
Lokotrack mobile crushers and screens, the
first of which is expected to be launched during
H1 2014. The products will be sold under
the dual branding: LiuGong Metso. The joint
venture will also promote Metso’s global track-
mounted crushing and screening equipment in
China.
TelestackTelestack Ltd has commissioned a TS 2058 radial
telescopic stacker for AES Genera, a coal-fired
power plant in the Port of Ventanas, Chile. The
stacker is part of a complete vessel unloading
and import material handling system upgrade
carried out to replace the existing infrastructure.
The telescopic stacker has a capacity of 2000 tph.
The machine incorporates a 1400 mm wide
conveyor belt with a 35 m outer conveyor and
23 m “stinger” extending inner conveyor to
maximise stockpile capacity. The telescopic
conveyor enables an additional 30% of material
to be stockpiled within the same footprint. Total
stacking capacity of the TS 2058 on a 180˚ radius
is 109,090 t of coal.
Power
Siemens EnergyThe South Korean engineering company,
eTEC E&C, has ordered a new steam turbine
from Siemens Energy for the extension of
the Seagull power plant in the Gunjang
industrial zone in the city of Gunsan in
western South Korea. The new facility’s
installed generating capacity will be 250 MW.
Delivery from the Görlitz plant is scheduled
for June 2015, with the facility scheduled to
produce heat and electricity for the first time in
Q2 2016.
Siemens will also supply two steam
turbines, along with auxiliary and ancillary
systems, for the lignite-fired Soma Kolin power
plant in Turkey. The 510 MW plant is being
constructed by Harbin Electric International.
The machines will be delivered between
August 2015 and January 2016; the plant is
scheduled to commence commercial operation
in April 2017.
SUPPLIERS NEWS Recent news from equipment and services suppliers to the global coal industry
12 | World Coal | March 2014
DIGITAL HIGHLIGHTS The stories that are making the news on www.worldcoal.com
WCA urges EU to ensure affordable energy accessThe World Coal Association has called on
the EU to ensure access to affordable energy,
adding that coal is essential to delivering
affordable energy to Europe.
Value of US net coal exports since 2005According to the US Energy Information
Administration, the dollar value of US net
coal exports has increased more than threefold
since 2005.
China’s coal demand to peak in 2020 The Coal Industry Planning and Design
Research Institute has forecast that China’s
coal demand will peak in 2020, with the
country needing approximately 4.7 billion t.
Mining: Atlantic Coal to purchase new equipmentAtlantic Coal is to purchase six haul trucks and two dozers in a bid to
significantly increase ROM production at Stockton.
Handling: Troubleshooting belt cleanersThe five factors of correct conveyor belt cleaning.
Ports & Terminals: Aurizon upgrades coal haulage outlookAustralian rail freight company Aurizon has raised its guidance for its coal
haulage volume for the fiscal year 2013 – 14.
Power: Shell signs CCS agreement with UK GovernmentShell has signed an agreement with the UK Government to progress the
Peterhead CCS project to the next design phase.
Product News: RPM launches haulage simulation software solutionRungePincockMinarco has announced the launch of a new haulage
simulation software product, HAULSIM.
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14 | World Coal | March 2014
AuthorTony Lodge is a research fellow at the Centre for Policy
Studies (CPS). He is author of Clean Coal – A Clean, Secure and Affordable Alternative, published by the CPS. He also advises the
British Parliament’s All Party Group on Clean Coal.
THE UK’S CLEAN COAL BRIDGE Tony Lodge, Centre for Policy Studies, UK
C oal-fired power continues to play
a crucial role in the UK generation
portfolio, providing 41% of electricity
generated across the country in 2012. This
contribution from the existing coal generation
fleet, as well as the associated supply industry
and infrastructure, is absolutely essential
in providing secure, flexible and affordable
energy supplies to the UK’s households and
businesses. In particular, retaining coal as part
of the UK’s energy mix will provide a hedge
against future volatility in the gas market that
would otherwise be passed directly on to the
consumer.
A new campaign in the UK argues
that it is vital that the remaining lives of
these unabated coal-fired power plants are
managed effectively and optimised to enable
maximum contribution to the UK’s power
requirements over the next decade, through
to the transition to the future low carbon
generation portfolio, which must include coal
with carbon capture and storage (CCS). This
would ensure continuity and progression in
the skills, capabilities and resources required
to support the development of clean coal with
CCS as part of that future generation fleet.
But the right policy signals are needed from
government for building the much needed
investor confidence in the coal supply chain,
including indigenous mining, ports and
transportation infrastructure.
With the support of an ambitious,
government-led CCS strategy, coal has the
potential to provide secure, affordable low
carbon energy through to 2030 and beyond.
Indeed, the UK Committee on Climate
Change in its carbon budget assumes a
significant role for CCS for coal and gas in the
UK’s 2030 energy mix.
The scale of coal’s current contribution and
its future potential cannot be underestimated.
Yet, in contrast to most of the main industrial
competitor nations, the future of the coal
mining sector is under serious threat from
an energy policy framework that is driving
premature closure of the current coal fleet,
which was largely built in the early 1970s. At
the same time, the construction of new high
efficiency CCS-ready coal-fired power plants
is effectively prohibited due to new legislation
called the Emissions Performance Standard.
The UK has also failed so far to deliver the
momentum required to seize the opportunity
presented by CCS technology. This is despite
the significant progress on deploying
large-scale CCS projects in other countries
(particularly the US) and the strong national
advantages that makes the UK one of the best
places to deploy the technology.
It is argued that a new strategy for coal is
urgently required as a key element of national
energy policy alongside gas, nuclear and
renewables. After all, the UK Government
announced a gas generation strategy in
November 2012. A new coal strategy will
allow a managed transition to CCS, thereby
ensuring coal’s continued contribution
to security, affordability and diversity of
supply in meeting Britain’s energy needs,
while sustaining highly skilled employment
for some 10,000 employees across the coal
resource sector.
There are a number of key policies that
the UK Government can deploy to create a
seamless bridge from existing unabated coal
generation to new coal with CCS. The policies
will maintain investment and operations at
UK underground and opencast coal mines.
Without this bridge, the mining industry and
access to the UK’s considerable coal resource
will be lost and become stranded.
The transition to CCSThe policies that could be adopted by the UK
Government include the following:
n Urgent and serious consideration should
be given to holding the draconian UK
Carbon Price Floor (CPF) at 2014 levels.
The original purpose of the CPF was to
help stimulate investment in low carbon
technologies, such as CCS; however, the
planned trajectory of CPF and resulting
divergence from EU carbon prices will
drive early closure of existing coal-fired
power plants, risking UK energy
security and driving up power prices,
without encouraging investment in low
carbon technology or impacting global
emission levels.
n The design and implementation of the
electricity capacity market should provide
existing coal-fired power plants with a
realistic expectation of recovering the
investment needed to ensure continued
reliable and flexible performance, while
meeting the costs of adhering to EU
environmental legislation and the CPF.
Coal-fired power plants can provide a
cost-effective contribution to power security
and price concerns over the next decade.
Conversely, the early demise of coal will
materially add to the risk of security issues
and price spikes. It will also increase
dependence on foreign gas imports.
n Emission Limit Values (ELVs) under the EU
Industrial Emissions Directive (IED) should
be grandfathered until 2030 with no further
tightening of emission limits under the EU
Large Combustion Plant Directive. This
could then encourage over 10 GW of existing
coal-fired power to continue through to the
2020s and bridge coal with CCS.
n Coal with CCS should be accelerated and
expanded through the urgent development
of two demonstration plants under the
current CCS competition.
Adoption of these policies would see an
effective transition in the UK from unabated
coal consumption to coal with CCS, the
retention of 10,000 direct jobs and the creation
of highly skilled roles at new CCS plants, in
coal mining and throughout the supply chain. It
can guarantee energy security and affordability
of electricity supply for the UK and provide a
hedge against gas price spikes. The window of
opportunity to deliver this is now.
WITH THE SUPPORT OF AN AMBITIOUS GOVERNMENT-LED CCS STRATEGY, COAL HAS THE POTENTIAL TO PROVIDE SECURE, AFFORDABLE, LOW-CARBON ENERGY THROUGH TO 2030 AND BEYOND.
in Mineral SizersWorld Leaders
THE MMD GROUP OF COMPANIESW W W . M M D S I Z E R S . C O M
Originally established in 1978, to design and manufacture equipment for the UK underground coal mining industry, MMD patented the Twin Shaft Mineral Sizer. Since 1978, the company has refined and developed the Sizer design to the stage where MMD currently size over 75 different minerals, in over 60 countries.
However, coal remains at the core of the company’s business and MMD now produce a wide range of machines available for the coal industry. From the original pick and scroll machines; usually positioned close to the coal face, that reduce high volumes of ROM to a conveyable size, to segmented tooth machines designed for a specific product size in the coal preparation plant, and mobile IPCC systems for open pit operations.
MMD’s experience, together with a close working relationship with their customers has allowed them to develop the complete sizing solution.
World Coal 297x210+3mm.indd 1 5/23/2013 6:10:01 PM
16 | World Coal | March 2014
T he distribution of coal deposits in Sumatra, Indonesia, is controlled by the tectonic setting of collision between the Australian plate and the Eurasian plate. Older, high-grade coal is found on
both sides of the Barisan Mountains in the foothills. These deposits have potential for bituminous and metallurgical coal. Younger, lower grades of coal also occur on both sides of the Barisan Mountains. These deposits are located further away from the mountain uplift, in sedimentary basins where stable conditions have resulted in thick accumulations of coal.
Compared to Kalimantan, Sumatra has only a fraction of the coal tenements, even though the coal resources are of a similar scale. Coal tenements in Sumatra are clustered in areas where coal is outcropping in easily accessible locations. The future challenge is to locate the next
generation of coal deposits that are not so obvious. Huge potential for coal, ranging from lignite to sub-anthracite grades, remains to be discovered on both sides of the Barisan Mountains.
Tectonic framework of SumatraConditions suitable for the formation of significant deposits of coal have occurred throughout the island of Sumatra, despite the active tectonic setting. In Sumatra, plate collision is oblique, resulting in significant movement often felt as earthquakes.
The plate boundary of Sumatra is a classic example of an active subduction zone. A diagrammatic section through the island shows the main elements of this tectonic setting (Figure 1). In terms of coal potential, the main features are outlined below.
Daniel Madre, Danmar Explorindo, Indonesia, describes
the distribution and extent of known coal deposits
in Sumatra, Indonesia, and looks at the challenges of
future exploration.
March 2014 | World Coal | 17
Outer island arcThis includes the islands of the Mentawai Archipelago. Tectonic movement in response to mega-thrust earthquakes makes this geological setting unsuited to the accumulation of significant coal deposits. Lignite grade coal, which is relatively thin and often contains high sulfur, has been found
on Nias Island. Overall, the outer island arc is not prospective for the discovery of coal.
Forearc basinThis area includes the entire west coast of Sumatra. Coal occurrences are known throughout the forearc basin of Sumatra.
These coal occurrences can be classified into two basic groups, older and younger coal seams, as follows:
Older coal seams (Middle Miocene)These coal deposits occur within the foothills of the Barisan Mountains where the oldest sediments of the forearc basin have been uplifted and are now close to the surface. Coal seams greater than 3 m thick are common. Deposits have been reported from south of Bengkulu to Sibolga, a strike distance of more than 400 km. The coal seam quality is relatively high grade with total moisture contents of about 15% and calorific values often in excess of 6500 kcal/kg (adb).
These coal deposits are often relatively structurally deformed and limited in extent by structural controls due to close proximity to the uplift of the Barisan Mountains. Examples of these types of deposits are known in Bengkulu, Tapan, Painan and Mandailing. The size of these deposits is relatively small (10 – 100 million t) due to structural controls. Coal quality is often very good and the potential for metallurgical coal is possible due to relatively high heat flows caused by the Barisan uplift over time, as well as contact metamorphism as a result of volcanism.
Younger coal seams (Late Miocene to Pliocene)These coal deposits generally occur on the coastal plain of western Sumatra. Coal deposits are also relatively thick and laterally extensive, occuring throughout the west coast from south of Bengkulu to Meulaboh in the north, a distance of more than 1000 km. The deposits are relatively undisturbed in terms of their structure. Coal quality ranges from 30 – 50% total moisture and 3000 – 5500 kcal/kg (adb) energy, depending on their age. The age and coal grade of these deposits is generally directly proportional to the distance from the Barisan Mountains.
Examples of these types of deposits are at Tais, in Seluma regency, south of Bengkulu, and Meulaboh in West Aceh. Potential deposit size is relatively large and deposits Figure 2. Diagrammatic section through Sumatra modified after McCaffery (2009).
Figure 1. Regional tectonic setting of Sumatra (Amijaya et al, 2005).
18 | World Coal | March 2014
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numerous, with more than 100 million t documented.
Figure 3 shows the relative location of coal seams on a diagrammatic section through the forearc basin of Sumatra.
Volcanic arc (intramontane setting)When the Barisan Mountains formed, some coal deposits were caught up in the earth movements and formed outliers within the Barisan Mountains. These deposits are thought to be of a similar age and origin to those in the forearc basin. They have also been subjected to intensive deformation and are limited laterally by structural controls. The most well-known example of this type of coal is at Ombilin, east of Padang, West Sumatra, where coal mining has
continued for more than 100 years. There are other examples at Tambang Sawah, in the Lebong regency, and near Gunung Kerinci within the National Park area.
The coal seam quality is relatively high grade with total moisture contents of about 12% and calorific values often in excess of 7000 kcal/kg (adb). Potential deposits are relatively small and generally between 10 – 100 million t. The potential for metallurgical grade coal is also relatively good, as these coals have experienced significant paloethermal upgrading.
Backarc basinThe backarc basin is the most prolific of the coal forming environments in Sumatra. This is because, in these areas, stable tectonic conditions have
prevailed, facilitating thick accumulation and preservation of organic materials over long periods of time. Both South and Central Sumatra display evidence for this, with thick extensive coal deposits throughout many areas. Figure 4 shows a diagrammatic section through the backarc basin and the relative distribution of coal resources. The backarc coal deposits range in age from Early Miocene near the uplifted mountain range to peat swamps on the east coast of Sumatra where coal is forming today. Again, as in the forearc basin, the coal deposits can be divided into two broad groups as follows:
Older coal seams (Early Miocene)These are coal seams that occur close to the Barisan and other uplifted mountain areas. These deposits have similar characteristics to the older coal seams in the forearc and intramontane basins. They also have been subjected to deformation (although generally less than the forearc and intramontane deposits) and, as such, are less limited in lateral extent by structural controls. Examples of this type of coal are found in the provinces of Riau, in the north, Jambi, South Sumatra and Lampung, over a distance of more than 500 km.
The coal seam quality is relatively high grade with total moisture contents of about 16% and calorific values often in excess of 6300 kcal/kg (adb). Potential resources are relatively large between 100 – 1000 million t.
Younger coal seams (Late Miocene to Quaternary and Pliocene)Lampung, South Sumatra, Jambi and Riau all have coal resources with relatively thick seams (greater than 10 m is common), extending over large areas. Total moisture contents range from 25 – 60% and calorific values range from 5500 – 3000 kcal/kg (adb) depending on the age of the coal, which is directly related to the distance from the uplift of the Barisan Mountains.
Examples of this type of deposit are in South Sumatra and Jambi.
Figure 4. Diagrammatic section through backarc basin showing distribution of coal modified after McCaffery (2009).
Figure 3. Diagrammatic section through forearc basin of Sumatra modified after McCaffery (2009).
20 | World Coal | March 2014
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Hundreds of locations are known to contain thick coal deposits near the surface. Deposit sizes are of a massive scale, with billions of tonnes of resources in gently dipping coal seams over vast areas. Relatively little structural disturbance has occurred here.
Coal resourcesThe distribution of coal resources in Sumatra is shown in Figure 5. As might be expected, the resource of coal in the backarc basin areas far exceeds any of the other geological settings. More than 60 billion t of coal is estimated in this area. Most of this (59 billion t) is in the South Sumatra Basin. The majority of this resource is in younger age coal formations with total moisture contents of about 50%.
The apparent disproportionate concentration of coal in South Sumatra may reflect the level and history of exploration in the area. Much of South Sumatra is more developed, accessible by roads and infrastructure and, as a result, has experienced more exploration and coal discovery. With this in mind, it seems likely that Jambi and Riau have excellent potential for
significantly larger quantities of coal to be discovered.
For older coal seams in the backarc basin (closer to the Barisan Mountains and other uplifted areas), resources seem relatively small. However, deposits, such as Muara Bungo in Jambi and Indrapura in Riau, show that large resources are possible. Additional exploration in these areas is warranted.
In the forearc basin, younger lignite seams make up most of the currently known coal resource. Meulaboh, in West Aceh, has coal resources of more than 500 million t. Recent exploration work suggests that more coal is possible and will be discovered as more work is completed. Further south, in the northern part of the Bengkulu Block, significant resources of lignite are currently being explored and resources in this area are also likely to increase dramatically as more work is carried out. Significant coal resources, with grade equivalent to that at Bukit Asam, are also being exploited in North Bengkulu regency. Exploration work is steadily increasing coal resources in this area as well.
Older coal seams in the forearc basin may also be under explored.
Evidence for high grade coal in outcrops throughout the forearc basin for hundreds of kilometres suggests that the current resources may be under estimated. Although reported resources are small, production from these deposits near Bengkulu has continued for more than 25 years, while the remaining resources have remained constant.
In the intramontane setting, only one significant deposit has been exploited to date. This is at Ombilin. It seems unlikely that Ombilin is the only intramontane basin throughout the entire Barisan Mountains. Evidence for coal in outcrops is known in other places but no significant, systematic exploration in these areas has taken place. Protected forests and national parks may cover many of these areas as the location coincides with the Barisan Mountains nature conservation zone.
ConclusionThe easiest and most accessible coal deposits in Sumatra have already been found and are being exploited. Most of these locations were discovered many years ago where coal was recognised outcropping on the surface. At present, only 18% of all the Contract of Work areas for coal in Indonesia are in Sumatra. Large parts of the island are free of mining licenses, despite good coal potential in many areas. There is huge potential for the discovery of new coal areas where little or no previous exploration work has been carried out.
The future challenge for exploration will be to locate the next generation of coal deposits that are not so obvious and may not be expressed as outcrops at the surface. The regional distribution of the main coal formations of Sumatra suggests that the opportunity for discoveries of high grade coal with metallurgical potential occurs on both sides of the Barisan Mountains. Similarly, further discovery of younger, lower grade coal is also likely on both sides of the Barisan Mountains where no significant exploration work has been carried out. The potential is massive and the field is wide open.
Figure 5. The distribution of coal and peat resources in western Indonesia: brown represents coal aged 65 – 23 million years old; yellow is coal 23 – 2.5 million years old; and green represents coal 2.5 million years old until present time. Source: Indonesian Directorate of Mineral Resources 1990.
22 | World Coal | March 2014
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