Alpha’s collapse may be imminent
US metallurgical coal producer Alpha Natural Resources is discussing a plan with creditors that would shut mines as part of its bankruptcy proceedings, three people with direct knowledge of the situation said, asking not to be named because the discussions are private, according to the Australian Financial Review.
In that potential plan lies some salvation for others trying to survive the worst coal market slump in decades. The US thermal coal sector is oversupplied by some 50 million tonnes, according to consulting firm IHS.
BHP coal mine approved in Sydney’s catchment without groundwater assessment
BHP Billiton was granted approval by the NSW government for what is believed to be the most aggressive coal mine ever attempted beneath the Special Areas at the core of Sydney's water catchment without an accompanying groundwater impact study, according to the Sydney Morning Herald.
The Dendrobium mine, within the Metropolitan Special Areas west of Wollongong, won approval in February 2013 by the Department of Planning and Environment for five of 10 longwall extractions being proposed for Area 3B.
Growth dries up for BHP Billiton as oil price collapse bites
Collapsing oil and gas prices and diminishing offshore oil reserves have thrown BHP Billiton’s total production into decline for at least two years, with investors and analysts warning the group will escape this “ex-growth” position only through a sustained price recovery or a big deal that could divide shareholders, according to the Australian Financial Review.
Deutsche Bank mining analyst Paul Young said it was the first time in 15 years BHP was without enough growth options and argued the company was being restricted by its progressive dividend.
