The Bullroarer - Wednesday 14 May 2008

The Australian - Queensland mine flooding spurs huge coal price rises

AT about 1am on January 19, some of the heaviest rains in a century caused the Nogoa River in Queensland to burst its banks, sending about 146 billion litres of water into one of the largest coal mines in Australia. "It was like watching Niagara Falls," says Peter Westerhuis, 46, general manager of operations for the mine's owner, Ensham Resources Pty. "It filled the whole pit up in five hours."

Almost four months later, two of Ensham's six coal mines, along with others owned by companies including Melbourne-based BHP Billiton, remain submerged. The greatest damage was in the Bowen Basin, the source of 40 per cent of the world's steel-making coal. As production fell, the price of coking coal tripled to a record $US300 a tonne last month, raising costs for the steel that goes into cars, aircraft and washing machines. "There are only a couple of key producing coking coal regions in the world and this is the key one," says Mark Pervan, a commodity strategist with ANZ.


Scoop.co.nz - Methanex To Reopen Motunui Methanol Plant

Methanex New Zealand announced today that it has secured additional natural gas feedstock and intends to restart one of its 900,000 tonne per year Motunui methanol plants until at least the end of 2009. The Motunui plant, which has been idle since 2004, is scheduled to restart in August and will require a capital investment of approximately NZ$70 million. Methanex will continue to operate its 500,000 tonne plant in Waitara Valley in New Zealand until the larger plant restarts.

ABC - Solar centre construction begins

The first sod has been turned at a multi-million-dollar solar technology centre in Alice Springs.

SMH - Wind farm vow to power desalination

THE State Government has signed a 20-year contract to create the largest wind farm in NSW to power its desalination plant. This is part of its commitment that the plant would use renewable energy, even though it will be a big electricity user. The 63-turbine Capital Wind Farm in Bungendore, near Queanbeyan - funded by Babcock & Brown Wind Partners and Babcock & Brown Power - will provide all the electricity needs of the desalination plant, the Premier, Morris Iemma, said yesterday. "This will be Australia's biggest accredited renewable energy contract," he said.

The critics were quick to reply. The Greens MP John Kaye said: "It doesn't do anything to reduce greenhouse gas emissions. That is clean energy that could be going to replacing the output of coal-fired power stations. The State Government … is squandering green power in an unnecessary and energy-hungry desalination plant."

The Australian - BHP sharpens focus on offshore LNG unit

BHP Billiton has made the development of its own liquefied natural gas business offshore of Western Australia the key priority for its petroleum division. But it still faces major development hurdles in developing its key Scarborough and nearby Thebe WA gas discoveries that are stranded more than 250km offshore, about twice as far as most other projects in the area.

The Australian - AGL Energy plans to be greener, says CEO Michael Fraser

A NEW, greener AGL Energy has been outlined by chief executive Michael Fraser, recognising that there will be a paradigm shift in Australia's energy industry as a result of carbon pricing and efforts to encourage renewables. In an investor briefing released to the stock exchange yesterday, AGL Energy, Australia's biggest energy retailer, said there was increased international focus on upstream gas reserves as industry consolidation appeared about to accelerate with further privatisation and continuing mergers and acquisitions.

The Australian - Beach Petroleum wins right to explore in Tanzania

BEACH Petroleum, the main second-tier Australian-listed oil and petroleum company, is expanding its operations, this time in central Africa.

The Australian - Woodside Petroleum reduces stake in Ceramic Fuel Cells

WOODSIDE Petroleum effectively conceded yesterday that it was more interested in developing LNG than any alternative energy sources, as it revealed it would not be taking up a placement in hi-tech group Ceramic Fuel Cells.

Upstream Online - Jakarta waiting on Inpex Abadi plan

Japan's Inpex Holdings is set to submit plans this week to develop the Abadi field in the Timor Sea, potentially one of Indonesia's biggest gas fields, an official at energy regulator BP Migas said today. Indonesia is pushing oil and gas companies to accelerate exploration and production, given flagging production from its own ageing fields, and in order to avoid expensive imports.

Upstream Online - Pure Energy scores hat trick

Australia’s Pure Energy scored a hat trick after the Daniel-1 well hit 30 metres of net coal pay in Queensland’s ATP852P licence which has expanded the northern extent of the Wallons coal measure. The well is the third of its planned four well coalbed methane (CBM) exploration programme.

Upstream Online - Bumper package for ex-Santos boss

Because coke is the primary reducing agent for iron ore the two have complementary demand. Then nickel is needed for the next step of stainless steel so if you take away coking coal so goes much of Australia's mineral boom. This sensitivity to supply disruption parallels that of oil. It's difficult to envisage a basic metals industry without fossil fuels though I believe charcoal is used in primary silicon production.

If they could make a 100kw methanol fuel cell that was cheap and tough enough to use in cars it could replace piston engines. Thereby saving the bother of the Mobil petrol conversion process or use in biodiesel. Like so many needed breakthroughs it always seems to remain just out of reach.