Coal news and updates

Worsley mulls coal import fix

One of the world's biggest coal miners, BHP Billiton, is considering importing the fossil fuel through Bunbury Port amid heightened concerns Griffin Coal is struggling to maintain supply to the Worsley alumina plant.

BHP would become the second Griffin customer after Cockburn Cement to deal with the loss-making Collie coal producer's woes by importing coal to make sure its operations can continue. It is understood BHP's Worsley unit wants to import 40,000 tonnes of coal through Bunbury and stockpile some of it in the South West town. It is unclear where the coal would come from, and whether it could be from BHP's coal fields in Queensland or NSW.

Worsley asset president Michael Rix yesterday did not deny the proposal but said it was continually looking for alternative sustainable fuel options.

"While (Griffin owner) Lanco's Collie coal supply remains uncertain, Worsley is investigating the viability of other fuel sources," Mr Rix said. "We are talking to a range of community stakeholders about our options but no decisions have been made."

_WestBusiness _highlighted Worsley's coal crisis two weeks ago when it reported the BHP business was buying increasing volumes of coal from Griffin's Collie rival, Premier Coal. Worsley was forced into the move because Griffin's financial woes had impacted deliveries under long-term supply contracts to clients including the Bluewaters power station and Cockburn Cement. Worsley received no coal from Griffin in December and January and less tonnage than contracted in February.

Cockburn is thought to have ordered a maiden shipment of Indonesian coal in January.

Bunbury mayor Gary Brennan said the council had received a query from Worsley to stockpile coal but was treating it as a town planning matter. Worsley needs council approval for coal to be stored on council-managed land.

Worsley will become part of BHP spin-off South32 in May, alongside the Illawarra coal assets in NSW. Worsley is cognisant it may have to renegotiate its Griffin supply deal and agree a price hike in order to maintain a viable Collie coal supply.

Lanco spokesman David Trench said it was working to resume full coal production to negate the need for imports.

source: https://au.news.yahoo.com