Keynote address to the Coal Preparation Conference in Lexington in the United States by Russell Kempnich, executive chairman of Sedgman Holdings Ltd, in May.
Introduction
Coal preparation is an integral part of the coal supply chain and has a long history in all of the major coal producing countries. The technology and equipment employed has evolved in different ways in different countries. While the basic principles remain the same, the mix of economic, social and environmental circumstances produces a unique profile in each case.
This paper reviews the broader coal preparation industry of the major hard coal producing nations - China, the United States, India, South Africa, Australia, Russia, Poland, Canada, Ukraine, Kazakhstan, Indonesia and the United Kingdom.
At the top of the list, China and the US produce around 1 billion tonnes per annum each but are separated by a millennium in terms of political, cultural and economic development. There is a significant drop to the next group at between 200 and 300Mtpa. This includes India, South Africa and Australia, which are differentiated by the domestic focus of India compared to the strong export industries in South Africa and Australia.
Russia and Poland sit in the middle of list with production between 100 and 200Mtpa. Both industries are under significant social and political pressure as they strive to be economic.
At the lower end of the list with production of less than 100Mtpa are Canada, Ukraine, Kazakhstan, Indonesia and the UK. This group has cultural and political diversity but is also significant for the presence of one of the oldest traditional producers in the UK, whose industry is on the decline, together with a new rising producer in Indonesia.
Canada and Indonesia are both characterised by their high dependence on export markets, however, Canada is a mature market with the benefit of modern capital intensive infrastructure, while Indonesia is an emerging market with huge potential but a short history with limited capital or established infrastructure.
World Production
Total world hard coal production in 1998 was 3.7Bt, of which 521Mt was traded internationally.
Table 1 shows the top twelve producing countries, which account for 95% of the total world production. Not surprisingly, eight of these are on the top ten list exporters and account for 89% of the export trade (table 2).
The mix of domestic and export markets and the ratio of raw coal to washed coal production has led to the development of quite varied coal preparation industries.
Table 1
Table 2
Historically, washing was generally applied to metallurgical coal due to its more restrictive quality requirements and higher value. The emergence of the seaborne trade in energy coal in the 1980s and the environmental pressures of the 1990s has seen an increasing need to improve the quality and consistency of energy coal.
Consequently, the number of energy coal plants being installed and the tonnage of energy coal being washed is on the increase. Table 3 gives a detailed breakdown of production by country and coal preparation capacity.
Coal Preparation
The total number of coal preparation plants in the major producing countries is estimated to be 2249. Table 3 summarises the distribution by country and installed feed capacity.
Table 3
Distribution of plant size according to nameplate feed rate shows 75% of the plants are less than 300t/h capacity and of these 93%, or 1501, are located in China. The majority of them are in the 50-100t/h category servicing small mines with average annual capacities of less than 100,000tpa.
There are 542 major plants having a feed capacity of greater than 300t/h (about 1.5Mtpa).
Some of the very largest plants are:
Grootegeluk, South Africa, 15.5Mtpa 7950t/h (6750t/h washed)
Bailey, US, 8.3Mtpa, 3700t/h
An Tai Bao, China,14.8Mtpa, 3000t/h
Gascoigne Wood, UK, 11.0Mtpa, 3000t/h
Fording River, Canada, 7.9Mtpa, 2100t/h
Goonyella, Australia, 6.3Mtpa, 2000t/h
Chervono-gradskaya, Ukraine, 5.9Mtpa, 2000t/h
Interestingly, the majority of these plants have a strong export focus and all incorporate dense medium process systems. A summary of the major process systems used in the world's coal preparation plants is given in Table 4.
Dense medium processes dominate the installed population accounting for 57% of the total (32% to cyclones and 25% to vessels). Jigs account for a surprisingly low 20% of installed capacity and there appears to be a trend away from the jig to more flexible dense medium systems. Recent improvements in medium recovery, equipment capacities and maintenance have improved the cost effectiveness of the dense medium plant relative to a jig.
Spirals have achieved a substantial proportion of the fine coal capacity with 6%, but still well behind the traditional flotation circuits at 10% of installed capacity.
Water only cyclones and tables are on the decline and are operated predominantly in older plants. The US is the only country which is still operating tables. Natural medium cyclones and barrel washers have been included in the ‘other’ category, but these systems have found application in tip rewashing and deshaling applications, especially in the UK.
The nominal hours utilised by the coal preparation industry have been estimated and are shown in Table 3. This gives an indication of the overall utilisation of the installed coal preparation capacity of each country. The overall average utilisation is 4104 hours per year. While not having too much direct significance, it is only 60% of the industry best practice target of 6800 hours.
South Africa has the highest relative utilisation of 93%, which reflects the strong push to fully utilise its capital infrastructure and maximise the competitiveness of its export coal sales.
At the other end of the scale is the Ukraine, which has seen a dramatic reduction in its overall production and markets, resulting in a very low 23% relative utilisation of its installed capacity.
The wide disparity in hours utilised can be further explained by factors such as work place practices and customs, and the reduced market demand for the output from many major producing regions.
Historically the major exporting countries including Australia, South Africa, the US and Canada have justified high capital investment in coal preparation plants based on long term contractual commitments and attractive prices.
However, in recent years the export market has lost much of its shine and has seen investments in the US and Canadian export markets all but dry up. In South Africa the move to improve productivity through higher utilisation and refurbishment of existing plants has replaced investment in new mines and plants.
Table 4
