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Summary of global coal mine production under the influence of epidemic situation

ECHEMI 2020-04-10

Since March, the situation of covid-19 has deteriorated rapidly all over the world. In order to deal with the crisis, governments of all countries have carried out the policy of isolation and even the severe means of national blockade. Under the attack of the epidemic, coal companies around the world sent out successive production reduction and shutdown notices, which caused a critical blow to the coal mining industry, which was already plagued by low coal prices. Next, the author will present a relatively clear summary report of "global coal industry under the influence of the epidemic" by combing the production status of coal mining industry in major coal exporting countries in the world.

 

The novel coronavirus pneumonia confirmed in Commonwealth of Australia, 331, and 3966 cases were accumulated in the first day, the number of cases in New South Wales Prefecture was the highest, and it was the most serious disaster area in the country, according to the data released by the Ministry of health of Australia, 29, 15. In terms of coal production, the Australian government has listed the mining industry as a necessary industry, allowing some Australian miners to be exempt from the travel ban.

 

At present, Australia is studying ways to ensure the continuous operation of mining areas, including allowing free transportation of export commodities and import of major consumables. At present, most Australian ports implement a 14 day isolation system for crew members coming to Australia. The isolation period starts from the time when the ship leaves the last foreign port. Earlier this week, however, the Queensland government announced that it would ease restrictions on the port of Brisbane, allowing key personnel working on ships to disembark while wearing masks and following the distance rules.

 

However, this provision does not apply to crew members who have been to China and South Korea in the past 14 days. In February, Australia exported 29.59 million tons of coal, down 7.23% from 31.89 million tons in January. As the most serious epidemic in Africa, South Africa has more than one thousand confirmed cases and is currently in a 21 day "national blockade" state. In terms of coal production, although the South African government has listed the coal industry as a "necessary industry" and allowed it to maintain production during the period of the closure of the country, the main coal producers in South Africa are still under considerable impact. After the South African government announced a 21 day state of national blockade on March 26, south32 decided to withdraw its guidance plan for the South African business in fy2020 and cut costs significantly.

 

Anglo American, another major coal producer in South Africa, said it expected to have 1.5-2 million tons of export power coal affected this year due to the restrictions imposed by the closures. At present, Anglo American coal production continues, but the number of workers and production are reduced by 50% - 70%. As of 10:00 p.m. on March 30, Canadian News Network reported that there were 7448 confirmed and suspected cases and 89 related deaths in Canada. It is understood that one of the company's camps near elkford, southwest of British Columbia, has raised concerns about the spread of the virus. The camp can accommodate more than 400 people and its employees are employed in four coal mines around the elk valley.

 

The four coal mines are Elkview mine, line Creek mine, green hill mine and fording mine. At present, the company has not found any new epidemic cases, but the camp is currently understaffed, only 70% of the staff are in place. The novel coronavirus pneumonia in Beijing is diagnosed as 140960 cases in March 30th and 2457 cases died in March 30th, according to the latest data released by the US University of Johns Hopkins. Previously, Pennsylvania announced the closure of all coal mine operations in the state, including consol energy, contura energy, corsa coal, Rosebud. As of today, some coal miners have chosen to suspend mine operations. Coronado coal, which owns Buchanan, Logan and Greenbrier mines in Virginia and West Virginia, will close its US mining operations. On Monday, Consol Energy said it had two employees tested positive and decided to close Bailey mine in Pennsylvania for two weeks. At the same time, NASDAQ listed Alliance Resource Partners (ARLP) announced it would temporarily suspend production of all its coal mines in the Illinois basin. The outage will last until April 15, but may be advanced or delayed according to the buyer's demand. Moody's Investors Service said it expects us coal production to fall 15-20 per cent to 550-600 million tons this year. Russia's rose new coronavirus epidemic prevention and control command released a message on March 30 that 302 new cases of coronavirus infection have been added in Russia, with the total number of people infected with the new coronavirus reaching 1836. In novel coronavirus pneumonia outbreak in the early stage of global outbreak, Russia announced that Russian ports such as Novorossiysk, Kafka and Kavkaz and Taman postponed the handling of ships from serious epidemic areas for up to 14 days. According to official data of Russia, due to the reduction of export demand and low global prices under the epidemic, the daily average output of raw coal in Russia fell by 13% to 1.09 million tons / day in February.

 

Evraz group recently announced that in order to meet the financing demand in the case of weak demand and no actual sales, Raspadskaya coal mine may be ready to suspend the coal sales for six months to one year. The coal reserve of raspadskay mine is 451 million tons, and it is also the largest underground mine in Russia, mining about 8 million tons of coking coal every year. The coking coal produced by Raspadskaya coal mine is mainly supplied to MMK (Magnitogorsk iron and steel plant) and nlmk (New liplitsk iron and steel plant), the largest metallurgical enterprises in Russia, and also exported to Ukraine and Eastern Europe (Romania, Hungary, Bulgaria) and other regions. Novel coronavirus pneumonia cases were confirmed in Indonesia, and 1414 cases were confirmed by the Ministry of health, Indonesia, March 30th, 129 officials said. At present, two subsidiaries of Bayan resource, an Indonesian miner, will stop operation, tabang and Fajar Sakti prima. These two subsidiaries operate a mine with an annual capacity of 28 million tons and a calorific value of 4400 kcal in eastern kalimanta.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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