Jun 9, 2021

GlobalData: Coal market sees growth despite challenges

Coal
GlobalData
Renewables
covid-19
2 min
India coal market sees growth, supported by entry of private players, despite Covid-19 challenges and long-term shift to renewables, says GlobalData

India’s coal production is expected to grow from 777Mt in 2020 to 827.8Mt in 2021, a 6.4% increase. This follows growth of 3.1% in 2020, an impressive feat given the operational disruption caused by COVID-19. A key to this increase in output is the entry of private players to the industry, according to analytics company GlobalData.

Coal production in India predicted to rise

Vinneth Bajaj, Mining Analyst at GlobalData, commented: “GlobalData expects coal production in India to grow at a compound annual growth rate (CAGR) of 9% to reach 1.2Bnt in 2025, meeting the Indian Government’s target of 1Bnt. However, COVID-19 will present some short-term challenges to this estimation.

GlobalData Coal

Coal production recovering despite Covid-19

“The sharp increase in new COVID-19 cases since the beginning of March 2021, and fresh lockdowns across key coal-producing states (such as Odisha, Chhattisgarh, Madhya Pradesh, Maharashtra, and Telangana) has hampered India’s coal operations,” noted Bajaj.

“Despite this, there was a slight recovery in coal offtake in April 2021, indicating a revival in demand over the coming months.”

Power demand growing in India

While power demand is growing in the country, coal is being gradually phased out of power generation. “In 2020, around 73% of the electricity in India was generated from coal,” added Bajaj.

“However, India has environmental commitments to reduce carbon emissions to 50% by 2030. As a result, the share of coal-fired electricity generation is forecast to fall to 70.6%, while the share of renewable rises from 2.9% in 2020 to 4.2% in 2025.

The country's biggest producer, Coal India is also the world's largest coal miner, could venture into solar wafer manufacturing and wants to “aggressively” participate in the country’s solar energy auctions following a pledge to invest $1.7b3bn in solar power projects.

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Jun 11, 2021

Ivanhoe Mines copper set for China with Zijin, Citic deal

Copper
Zijin Mining
Ivanhoe Mines
CITIC Metal
2 min
Ivanhoe Mines has signed a deal with China’s Zijin Mining’s subsidiary and trader CITIC Metal

Ivanhoe Mines has inked significant deals with JV partner Zijin Mining and its subsidiary CITIC Metal to sell each 50% of the copper production from the recently launched first phase of its Kamoa-Kakula mine in the Democratic Republic of Congo (DRC)

The copper concentrate and blister copper off-take agreements will see wholly-owned Zijin unit Gold Mountains (H.K.) International Mining Co Ltd and CITIC Metal split the initial offtake from Kakula.

The DRC government has authorised exports to international markets and Ivanhoe has also announced a 10-year processing deal to utilise the DRC Lualuba smelter owned by CNMC.

CITIC Metal becomes Ivanhoe’s largest shareholder

Following a new share agreement, CITIC Metal will come to own 19.9% of Ivanhoe Mines’ issued and outstanding common shares when the placement is completed, establishing CITIC Metal as Ivanhoe’s largest single shareholder. Chairman and Founder Robert Friedland will be Ivanhoe’s second-largest shareholder, with over 17% shareholding.

Ivanhoe Mines intends to use the proceeds for the advancement of the company’s world-scale mine development projects in Southern Africa ─ Kamoa-Kakula, Platreef and Kipushi ─ and also for working capital and general corporate purposes.

blister copper ingot - Ivanhoe Mines

CITIC Metal part of a bright future with Kamoa-Kakula’s potential to become the world’s highest-grade major copper mine

Friedland said the agreement with CITIC Metal is the culmination of a 15-year relationship between the leaderships of Ivanhoe Mines and CITIC.

“In 2003, the original Ivanhoe Mines was grappling with the challenge of developing its vast copper-gold discoveries at the Oyu Tolgoi Project in southern Mongolia. Following extensive discussions, Ivanhoe and CITIC established a strategic alliance to cooperatively pursue a number of selected common interests in metals production and related technologies.

“For some time now, the board of directors and senior management of today’s Ivanhoe Mines have been evaluating potential transactions that would combine the critical elements needed for Ivanhoe to advance the development of our exceptional assets that have been established in Southern Africa in recent years,” Friedland added.

“A fundamental, qualifying condition has been that any new partner must be complementary to our established partners, Zijin and the Japanese consortium led by ITOCHU Corporation. We are confident that CITIC Metal shares our vision and has the experience and financial resources to help us advance our three projects to production, creating value for Ivanhoe’s stakeholders in the DRC and South Africa, and our international shareholders.”

Robert Friedland, Ivanhoe Mines

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