Australian activists challenge Glencore coal expansion

: Coal, Coking coal
26/05/21

Australian environmentalists have launched court action to block Glencore's planned expansion of its Hail Creek open-cut coal mine in Queensland, citing concerns over methane emissions and native habitat destruction.

The Mackay Conservation Group (MCG) lodged an objection against the proposed expansion in the Queensland Land Court on 20 May. The project would extend Hail Creek's mine life by three years, to 2038, and increase total run of mine (ROM) coal production by 24mn t. The mine is currently approved to produce 20mn t/yr of ROM coal.

The project is inconsistent with domestic and international climate commitments, MCG said, estimating it would release over 70mn t of greenhouse gas (GHG) emissions and destroy around 600 hectares (ha) of high-quality koala habitat.

The Hail Creek coal mine is regulated under Australia's Safeguard Mechanism, which imposes legislated emissions limits on large facilities, a Glencore spokesperson told Argus. The proposed expansion also includes a GHG emissions abatement plan and detailed mitigation measures for koala habitat, the spokesperson said.

Glencore's draft emissions plan outlines the use of existing and emerging technologies to reduce fugitive emissions, including pre-drainage of methane from open-cut operations. Further studies are required to assess the viability of methane pre-drainage, which would be completed within two years of any project approval, the company said.

Previous academic studies have indicated that methane emissions from Hail Creek may be four to five times higher than reported.

By Emma Partis

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26/05/21

Indonesia's commodity export plan rattles coal market

Singapore, 21 May (Argus) — Indonesian coal suppliers and buyers are assessing the commercial implications of Jakarta's decision to channel exports of key commodities such as coal and palm oil through state-owned enterprises (SOEs), otherwise known as BUMN, which has created uncertainty around existing supply contracts and raised questions over the role of traders. The 20 May announcement is the latest in a series of policy changes that aim to give Jakarta tighter controls over the country's coal mining industry and bolster prices. These policy shifts follow a protracted downturn in prices that began in 2022, although prices have since recovered. Argus last assessed Indonesian GAR 4,200 kcal/kg coal at $63.77/t fob Kalimantan for coal loading on Supramax vessels, the highest since May 2023. The price increase has largely been driven by supply concerns after producers faced delays in receiving their 2026 work plans and budgets (RKAB), or output quotas. Other recent measures announced by the government that aim to tighten controls include plans to slash coal output this year, revising the validity period for RKABs back to one year from three previously, withholding coal export sales proceeds in onshore bank accounts and tweaking the domestic HBA coal reference price. Jakarta also previously announced plans to introduce a coal export tax, although this has been delayed. Indonesia is the world's largest exporter of thermal coal and shipped about 524mn t — more than half of total global seaborne supply — in 2025, although this was down by 6pc on the year. Last year's decline in exports was the first since 2020 when the Covid-19 pandemic weighed heavily on industry, denting global demand and at the same time affecting supply chain logistics. Phased rollout planned The latest policy will be rolled out in phases from June through August. Exporters will gradually shift contracts, transactions and payment flows to the BUMN, before the entity moves to full end-to-end control of transactions from September. It is unclear if there will be one enterprise or multiple entities, although a market participant said the BUMN could be linked to Danantara Indonesia. The BUMN will initially cover coal, palm oil and ferroalloys — commodities that accounted for around 23pc of Indonesia's total exports in 2025 — with the scope subject to quarterly review and possible expansion, according to research from Singapore's OCBC bank. The entity could essentially work as a marketing agent and export coal procured from domestic producers, traders said. President Prabowo Subianto cited an estimated $908bn in lost revenue over the past 34 years due to under-invoicing, transfer pricing and weak oversight of commodity export proceeds, arguing that tighter governance is needed to capture the full value of strategic commodities. The move comes at a time when the Indonesian currency has been among Asia's worst-performing in recent months, reflecting pressure from capital outflows and global dollar strength. The benchmark Jakarta Composite Index, representing 913 companies spanning sectors including commodities and energy, is down 30pc from the start of the year. Market participants said the absence of detailed transition guidance is already disrupting trade flows. A Singapore-based coal trader said there is no clarity on how existing contracts with shipments due this year will be handled, and all market participants are awaiting more operational details, which typically takes time to emerge in the commodity markets. Utilities in parts of southeast Asia as well as in India are concerned about term supplies and are seeking inputs from Indonesian suppliers on contracted deliveries. Reaction from China, the biggest buyer of Indonesian coal, has so far been cautious, with some market participants arguing that it will be difficult to implement such a policy in practice. An Indonesian coal producer acknowledged that it has received a number of calls from customers, seeking clarity on whether it will be able to fulfil contracts, but added that there are no clear answers as of now. Term supply contracts in focus The Indonesian Coal Mining Association (APBI) warned that a lack of technical clarity on how current sales will migrate to a BUMN-led structure could jeopardise long-term supply agreements, particularly multi-year offtake contracts. The industry is seeking confirmation on whether existing contracts will be honoured or will have to be renegotiated. In the spot market, at least one low-calorific value (CV) coal supplier has raised offers for July-loading Panamax cargoes of GAR 4,200 kcal/kg coal by as much as 10pc. Broader spot offers may be withheld pending policy clarity, traders said. While some market participants expect existing contracts to be honoured at least through this year, uncertainty remains elevated. Participants also raised broader structural concerns about the BUMN model. Coal transactions involve multiple technical and commercial variables — including CV, ash, moisture and sulphur content, vessel scheduling, blending requirements and payment terms — requiring significant operational expertise. The questions in the market range from operational issues involving mine planning to barge loading and transshipment to the risk of disputes, a trader said. There is also uncertainty surrounding long term off-take agreements between trading companies and producers, some of which involve pre-payments and funding arrangements. Traders with existing positions may face pressure to declare force majeure if the policy disrupts their ability to meet contractual obligations, a market participant said. The framework also adds another regulatory layer to an already complex environment that includes domestic market obligation (DMO) rules, export licensing, royalty adjustments, RKAB approvals, downstreaming requirements and directives to park sales proceeds in Indonesian banks for at least one year. An indirect policy impact could be on jobs that may be lost in the industry along with the potential removal of competition in the sector. There are also questions around the survival and existence of some trading and service companies, an official with a large southeast Asian utility said. Authorities will need to ensure private-sector incentives remain intact, OCBC said, warning that concerns about crowding out could deter investments in the coal sector, unless mitigated through policy clarity and ongoing engagement. Non-tax revenues are closely tied to commodity prices and there could be market volatility because of the plan, OCBC added. By Saurabh Chaturvedi and Andrew Jones Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Japan decides not to issue summer power saving request

26/05/21

Japan decides not to issue summer power saving request

Osaka, 21 May (Argus) — The Japanese government has decided not to request electricity conservation this summer, because the country has secured sufficient supply capacity and fuels to meet expected peak demand despite a hotter-than-normal weather forecast. All of Japan's 10 service areas are projected to maintain reserve margins of more than 3pc in July-September, above the minimum 3pc level needed to cope with emergencies such as spikes in demand and unexpected power plant outages, even if the country experiences its hottest summer in the past decade, Meti said on 20 May. The capital Tokyo region, Japan's biggest power consuming area, is now expected to post reserve margins of 3.5pc in the first half of August and 3.7pc in the second half. The ratio rose from the previous estimate of 2.4pc made in March for the entire month, given the capacity addition through the public tender. Tepco Power Grid secured 976MW, including 18MW of demand response, at an average contract price of ¥299/kW ($1.88/kW) through an open call for 1.2GW held in April, with the capacity required to be available over 1 July-18 September. Jera, the country's largest power producer, won the tender with its 1GW Sodegaura No.2 gas-fired unit, which has been mothballed since 1 April. Power demand in Japan is expected to remain firm this summer. Northern areas face a 60pc chance of above-normal temperatures in June-August and other regions a 70pc chance, according to a Japan Meteorological Agency forecast released on 19 May. Along with output capacity, power producers have so far secured sufficient fuel for generation, despite concerns over disruptions to crude and LNG shipments through the strait of Hormuz due to the US-Israel war with Iran. Japan's main power utilities held 2.04mn t of LNG as of 17 May, broadly in line with the average level for the past five years, Meti said. Thermal coal inventories also remained stable as of mid-May, while power producers generally maintain stocks equivalent to about one month's consumption, or around 7mn-9mn t, according to Meti's hearings with companies. Power producers also operate oil-fired plants during peak summer and winter demand periods. They held more than 500,000 kilolitres (3.15mn bl) in inventory as of the end of January, well above monthly consumption levels, while company hearings confirmed that stock levels remained stable as of mid-May, Meti said. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Indonesia to route key commodity exports via state firm

26/05/20

Indonesia to route key commodity exports via state firm

Singapore, 20 May (Argus) — Indonesian president Prabowo Subianto today announced that the government will require exports of key commodities to be routed through a state-appointed company, in a move that could tighten state control over flows as authorities grapple with fiscal pressures and a weakening currency. The policy will initially target palm oil, coal and ferrous alloys, Prabowo said in a parliament session on 20 May. The market awaits details of the policy, but under the broad plan, export sales would be channelled through a state-owned enterprise (BUMN), which would act as the sole counterparty to overseas buyers. Prabowo said a state-owned enterprise will act as a "marketing facility" which helps the state strengthen monitoring of export transactions and fight against under-reporting the value of exports in the country. The move is also to ensure that exporters do not "run away" from requirements to keep export proceeds in the country for at least one year, he said. Exporters of national resources, except for oil and gas, are required to place 100pc of the foreign currency proceeds into a special deposit account of a national bank for at least 12 months, according to a government regulation imposed in March 2025. Indonesia has lost about $908bn over 1991-2024 because of export under-invoicing, Prabowo said. "This will optimise our tax revenues and government proceeds from sales of key commodities and our natural resources," said Prabowo. "We don't want our exports to be the cheapest because we don't dare to control our own resources." The shift signals a move towards centralised trade management that could help the state capture more foreign exchange earnings and improve revenue collection. But it also risks disrupting established supply chains and complicating trade flows with international buyers. The benchmark Jakarta Composite Index, representing 913 companies spanning from sectors including commodities and energy, extended losses because of the announcement, dropping by as much as 2.4pc before trimming some intra-day losses. The index is down by 27pc from the start of the year. The phased roll-out of the scheme will begin in June and last through August, when exporters will have to gradually shift contracts, transactions and payment flows to BUMN or state-owned enterprises (SOEs), while still handling parts of the export process. The aim of the phased roll-out is to ensure that SOEs gradually take over the international sales of the commodities. The system is set to move to full implementation from September, with the SOEs assuming end-to-end control of transactions. This could include contract negotiation, documentation, shipping co-ordination and receipt of export proceeds, effectively positioning state firms as the primary interface between Indonesian producers and global markets. The Indonesian coal mining association (APBI) did not immediately respond to a request for comment. By Saurabh Chaturvedi and Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Q&A: Core expects US coal demand increase

26/05/19

Q&A: Core expects US coal demand increase

New York, 19 May (Argus) — While coal-fired generation in much of the US has lagged year-earlier levels in 2026, there are opportunities for growth, according to Core Natural Resources chief executive Jimmy Brock. In this Q&A, conducted on the sidelines of the Eastern Fuel Buyers Conference in Florida on 14 May and edited for length and clarity, Brock talked about the company's export strategy, domestic opportunities for coal, and how federal policy change is shaping the company's outlook. Given the current geopolitical environment, how does Core view its export strategy and related logistics? The growth for us in the US is in the export markets; and it's primarily into Asia, Southeast Asia, those countries [where] you want to bring people out of poverty, and it gives us an opportunity to go there. But with that being said, I was asked this morning [during a presentation at the Eastern Fuel Buyers Conference], what is the API 2 pricing that you feel comfortable moving? Well, that's only one piece of it. So, if the API 2 pricing is where it is today — around $115/metric tonne (t), that's one piece of it. But if the API 2 pricing is $110/t or $115/t, and the transportation cost to get it there is eating up a big part of that, then that doesn't work. What prices does Core need now for bituminous coal exporting to be profitable? We have all kinds of ranges of pricing. We know what our cost to mine is. We know the rail transportation and the logistics behind it. So, it all depends on where it's going, how it's getting there and what we feel comfortable with. We don't want to be the only one that makes money in these deals. We want our end-users to do well, because that's how you get long-term contracts. So, it's really, it's hard to pinpoint pricing, and even on our earnings calls, we give mostly ranges, other than some fixed costs. But if you're asking me today, I would tell you, if you're looking at bituminous coal, it's somewhere in the mid-$50s/short ton (st) to low-$60s/st [at the mine]. That's the range we would use. What are your thoughts on Powder River basin (PRB) exports? Peabody Energy recently said it is testing exporting PRB coal through the Port of Guaymas in Mexico. I think it remains to be seen. And again, there's a lot of moving pieces to that. So, if you're going down to Guaymas in Mexico, it depends on where is the origin of that [coal trip], where's the end-user product at? And then is there demurrage, because those are expensive every day, and you've got to figure all of that. Has Core considered it? We absolutely did. To be honest with you, I would see that as more of an opportunity for our high-calorific value (cv) thermal coals coming out of West Elk than it would be for PRB. We don't export PRB coal. Most of ours is sold domestically. It's a niche market. It goes in the west, Midwest, those areas, to those utilities there. We don't export because 8,400 Btu/lb coal doesn't transfer very well. Core has expanded West Elk coal shipments to a few eastern US utilities. Do you see additional market opportunities for Colorado coal? West Elk is a unique place. We've moved out of the E-seam into the B[-seam]. It's going to give us an opportunity to produce at a better cost number and be more consistent. That's what that mine needs. We depend real heavily on our rail partners to move it, because we only have so much room in inventory there. The mine has a huge opportunity to produce more than it has. And I think we're going to do that. Those coals because of the quality have opportunities to go into different sets of markets. We need to do some work on our forward reserves, but for the next five years, I feel really good about West Elk, and I think we're going to put that coal to marketplace. How is eastern US coal faring in domestic markets? Our Pennsylvania mining complex is the largest complex in North America, and we invested $2bn in capital in the last decade. It's a very high quality, high-cv coal. We move a lot of that into India, into the industrial side. We have a lot of domestic customers that love the high-heat value of the coal. So we ship a lot of it, and we'll continue to serve our domestic partners. We run to the market. So if the market domestically is...a better price, we'll favor the domestic market over the international market. If we can serve both, that's even better. Right now, we move probably 30pc of that coal internationally. The rest stays here, domestically. And it can change. There's going to be new opportunities for coal to stay home here, going into the domestic utilities, and that means that we may either do one of two things, we'll either run more or we'll ship less internationally and more here. Despite a supportive presidential administration, the company has maintained its 2026 outlook. Why? We're exploring all the sales we can. But I want to be crystal clear about this: as great as the Trump administration is today, they cannot solve our problems. They can only give us resources that will solve them. We have to put those resources to work. [There are] positive things coming back now. You see these power plants that were scheduled to shut down now announcing further out retirement dates, going to run longer. Some are saying: "I don't have a retirement date because all of my customers are telling me they need more electricity, not less". So that's all coming out of what the Trump administration has put forward with the executive orders and really the demand. If all of this demand does come on, if it is 3pc annually for the next 10 years, that could be 30pc more. And a 1pc increase in utilization at those coal-fired plants for capacity factor is 10mn st. So, you can see how enormous that could be for the coal side of the thing, if all of this comes now. How would you describe the impact of recent Department of Energy emergency orders on the coal industry? The plants that we go into haven't really [been affected by the orders]… The consent decree that just got passed in Pennsylvania for Keystone and Conemaugh coal plants [between the state and plant owners] is huge for us. They were first targeted to retire in 2028, now they're going to run. They really don't have retirement. They said 2032, but they're going to use that consent decree to make the improvements in the plants, which is going to let them run far beyond it... But I think those 202(c) orders, if nothing else, put the US on a significant path to understand grid reliability and affordability. US utilities still seem to be more interested in adding new natural gas or renewable generation instead of coal. What do you think might change that? We do our best to talk about it, but the real lesson will come in economics. If I'm the CEO of a utility company, my number one job is to provide power 24/7 that's reliable, affordable and secure. So those are the three things. So coal has all three. Are we going to get back to 50pc of the electric generation? Probably not. But who knows how high we can go? We certainly are not going to remain in the teens; we're going to continue to grow. By Elena Vasilyeva Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Kazakh thermal coal output falls 2pc in Jan-Apr

26/05/18

Kazakh thermal coal output falls 2pc in Jan-Apr

London, 18 May (Argus) — Kazakhstan's thermal coal production fell by 2pc on the year to 35.38mn t in January-April, with the energy ministry keen to boost output and investments to meet its annual target amid a slow start to the year. Thermal coal production fell by 2.3pc on the year to 7.67mn t in April and by 19pc from 9.48mn t in March, National Statistics of Kazakhstan data show. Overall coal production including coking coal dipped by 1.2pc on the year to 36.95mn t. Kazakh output got off to a slow start this year, with first-quarter production down by 2pc on the year to 27.7mn t. But the energy ministry today reaffirmed its 128.9mn t target for 2026. The ministry is trying to attract more investments to the sector, with expectations for 553.5bn tenge ($1.19bn) this year, up from 305bn tenge in 2025. This is part of broader efforts to boost the coal sector through the government's national project , under which more coal-fired generation capacity will start up between now and 2030. The country will need to average about 11.69mn t/month to December to achieve its annual target. Production totalled 111.5mn t in 2025. Most Kazakh coal production is used domestically, but the country plans to boost exports this year from the 30mn t shipped to markets such as Poland, Uzbekistan, Turkey, India and Malaysia in 2025. Kazakhstan is Poland's import origin of choice, with sized coal often heard sold at premiums to the European benchmark API 2 index. Sized Kazakh coal of 0-300mm was heard offered as high as $130/t cif Gdansk last week, sources said. Argus assessed the NAR 6,000 kcal/kg cif Amsterdam-Rotterdam-Antwerp market at $110.38/t as of 15 May. Kazakh-origin thermal coal imports hit a record high of 551,000t in Turkey in March, eroding the share of Russian thermal coal shipments to Turkey during the month. Separately, coal dispatches by rail rose by 5pc on the year to 76.1mn t during the 2025-26 heating season, rail operator KTZ said earlier this month. Kazakhstan's heating season refers to the autumn-winter period running in general from mid-October to April. KTZ said it delivered 69.8mn t to combined heat and power plants and 6.3mn t to the municipal sector. The rail operator said it has already begun preparing for the next autumn-winter period, with scheduled repairs and maintenance under way along key routes used to ship coal. By Shreyashi Sanyal Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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