Britain is set to encounter widespread power shortages within eight years due to the country's switch to cleaner energy generation, according to forecasts contained in a government report. A growing reliance on intermittent renewable energy sources, such as wind, is set to exacerbate the problem.
To give a boost to thermal power generation, the government has set an annual coal production target of 1,055 million tonnes in the XIIth Five-Year Plan. For full story, click here
Chinese coal trader China Qinfa Group is planning an US$ 81 million (HK$630 million) Hong Kong IPO, for investment in new production facilities. The company is set to sell 250 million shares at a range of HK$2 to HK$2.52 per share, representing a 2008 price-to-earnings multiple of 7.5 to 9.5. Also, Alpha Natural Resources Inc (ANR.N) is to acquire Foundation Coal Holdings Inc (FCL.N) for $1.5 billion in an all-stock deal to create the third-largest U.S. coal producer, signaling an expected wave of consolidation in the fragmented industry.
PT Bumi Resources Tbk, Indonesia’s leading thermal coal producer, increased its 2009 output target and forecast a 13 percent increase in output from a year ago. Herlan Siagian, general manager of marketing at Bumi Resources, stated: About 20 million tonnes will come from the Arutmin mine, while KPC (Kaltim Prima Coal) will produce 40 million [...]
The Power Ministry declared that it has enhanced the coal imports target of electricity generation units by about 15% to 28.7 million tonnes in 2009-10 to ensure that the utilities do not reel under any dry fuel shortage. For full story, click here
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