Linc Energy

[Boon]

Adani taps POSCO E&C to build rail line for $15 bln Australia coal project

MELBOURNE Thu Jul 17, 2014

(Reuters) - Adani Mining Pty Ltd on Thursday said South Korea's POSCO Engineering & Construction Co Ltd will build the rail line for a long-delayed A$16.5 billion ($15 billion) coal and rail project in Australia.

The cost and other details of the contract to build a 388 kilometre rail line for the Carmichael coal mine in the eastern state of Queensland will be set by the end of 2014 under a binding agreement signed on Thursday, Adani said.

POSCO E&C will help fund the rail line by buying an equity stake, Adani said. That could help Adani raise debt funding from South Korea, essential for a project that analysts have said would be uneconomic at current weak coal prices.

"The binding agreement will enable us to develop a cost efficient rail solution and this relationship gives Adani access to the Korean market, POSCO's expertise and capital," Adani Australia Chief Executive Jeyakumar Janakaraj said in a statement.........................


"This is the largest EPC (engineering, procurement and construction) project in the region for POSCO E&C, and we will put in our best effort to maximise our engineering, procurement and financing capabilities to successfully complete the construction," POSCO E&C President Tae-Hyun Hwang said in a statement...........................................

http://in.reuters.com/article/2014/07/17...NO20140717
________________________________________________________________________________________________________________
Adani Mining Pty Ltd

Brisbane, Australia, 17 July 2014

MEDIA STATEMENT

ADANI and POSCO E&C enter a binding agreement to build rail line in Galilee Basin, Queensland

Adani Mining Pty Ltd., of Adani Group, India’s largest integrated private power, port and infrastructure developer, and POSCO E&C, a leading global construction company and a subsidiary of the South Korean giant POSCO, have today signed a binding agreement to
develop a greenfield non-electrified standard gauge heavy haul rail line to open up the Galilee Basin coal reserves in Queensland, Australia.The rail project will lead to the opening of the Carmichael mine project which will deliver in excess of 10,000 jobs, and will also
provide vital opportunities for Australian Industry involvement.

The agreement gives exclusive rights to POSCO E&C to be the EPC (Engineering, Procurement and Construction) contractor for the 388km greenfield standard gauge rail. The binding agreement has set clear pathways to execute the final contract by the end of this
year, and the final contract will enable POSCO E&C to facilitate the procurement debt financing as an equity participant.

POSCO E&C’s commitment for this project reflects the confidence the global partners have in Adani’s long-term investments guaranteeing energy security in India and other emerging markets, while helping to provide job security across the investment region.

Adani Group Chairman Gautam Adani said "The rail project will lead to the opening of the Carmichael mine project which will deliver, in excess of 10,000 jobs, and will also provide vital opportunities for Australian Infrastructure development and contribute to energy
security of India by lighting the lives of millions of Indians."

Adani Australia CEO and Country Head Jeyakumar Janakaraj said: “I am delighted with the way the two teams worked together in a collaborative manner to get this binding agreement signed in a record time. This is the first major step towards finalising the Project’s
construction contracts and we are proud to be associating with a partner of POSCO’s E&C standing. The binding agreement will enable us to develop a cost efficient rail solution and this relationship gives Adani access to Korean market, POSCO’s expertise and capital."

POSCO E&C is one of the world’s largest construction companies and has significant experience in developing rail infrastructure. The North Galilee Basin Rail (NGBR) construction is expected to commence in early 2015.

POSCO E&C President and CEO, Tae-Hyun Hwang stated that “We are delighted to partner with Adani and contribute to the development of the rail infrastructure. I believe the rail project will greatly benefit from this partnership. This is the largest EPC project in the region
for POSCO E&C, and we will put in our best effort to maximise our engineering, procurement and financing capabilities to successfully complete the construction.”

Adani and POSCO E&C will develop this Greenfield standard gauge rail line with a capacity to haul 60 mtpa. Adani and POSCO E&C will jointly manage the development of this rail line. The Queensland Government has declared the rail corridor as a State Development Area. This rail infrastructure is aligned with the Queensland Government policy of strategic infrastructure being located to allow multi user participation and will provide access to other miners, helping unlock further growth opportunities for jobs in Queensland.

http://www.adanimining.com/Common/Upload...cement.pdf

(vested)

[greengiraffe]

Indian mining giant Adani Group overhauls local empire
THE AUSTRALIAN JULY 23, 2014 12:00AM

Bridget Carter

Mergers and Acquisitions Editor
Sydney
Indian giant overhauls local empire
The Abbot Point coal terminal south of Townsville Source: Supplied
INDIAN mining giant Adani Group is embarking on a sweeping overhaul of its Australian resources empire as it drafts in investment banks for a potential selldown of its $2 billion Abbot Point coal port in Queensland.

Fresh from striking a $2.2bn rail joint venture with Posco of Korea last week, the company, founded and chaired by one of India’s richest men, billionaire Gautam Adani, has requested proposals from banks to look at a range of options for Abbot Point that could ultimately result in a sale worth about $2bn.

Abbot Point is one the nation’s most significant emerging coal ports, 25km northwest of Bowen on Queensland’s north coast, and options such as sale, partial sale or refinancing are on the table as an increasing global coal supply causes export demand for the commodity to plummet.

Pricing for thermal coal has crashed to below $US70 a tonne, from almost $US120 three years ago, when Adani purchased the 99-year lease on the asset for $1.8bn amid the nation’s mining boom.

At the time Adani purchased the lease from the North Queensland Bulk Ports Corporation, it was part of a $10bn-plus expansion project across its rail, port and mine assets in Queensland’s Galilee Basin, as it looked to capitalise on surging coal exports.

However, questions have since emerged as to whether the expansion plans would proceed, on the back of lower coal prices and after concerns its financiers could withdraw support due to environmental fears.

Built in 1984, the most northerly deepwater coal port in Australia consists of rail in-loading facilities, coal-handling and stock­piling areas, and a single trestle jetty and conveyor connecting to two offshore berths and two ship loaders, all 2.8km offshore.

Mining giants BHP Billiton, Rio Tinto and Glencore Xstrata are its three main customers.

Plans include expansion from two terminals, with annual coal export capacity of 50 million ­tonnes, to four terminals with ­capacity for 70 million tonnes. However, the expansion is subject to approval from the Administrative Appeals Tribunal for dredging.

This has been controversial due to suggestions that dredging for the expansion would have a negative impact on the Great Barrier Reef.

Adani has $US17bn ($18.1bn) of resources, logistics and energy ­assets globally, and also owns the Carmichael coalmine in Queensland’s Galilee Basin, as well as the railway to transport coal to port, bound for India and China.

Last week’s announced railway deal with Posco was understood to involve the construction of a 388km railway line due east from the northern part of the Galilee Basin to the established coal area of the Bowen Basin, where the line would connect with existing railway infrastructure.

At the time, Mr Adani said the rail project would lead to the opening of the Carmichael mine project, with work to start on the railway next year.

Adani did not comment on its plans for the Abbot Point port yesterday. However, a spokesman said it was routine for businesses such as Adani, spanning mining, energy and a growing infrastructure footprint in Australia, to review financing options on its significant investments in Australia from time to time.

The asset is likely to attract global buyers amid surging demand for infrastructure assets, which have been undeterred by the falling coal price.

This year, the NSW government sold the Port of Newcastle — one of the world’s largest coal ports — for a bullish $1.7bn to Hastings Funds Management and China Merchants Group despite the waning demand. Other east coast port sales, such as the Port of Melbourne, in the months ahead are expected to reap billions of dollars for the states.

[Boon]

The Adani Carmichael Coal Project approved by the Australia Federal Government.

(vested)
________________________________________________________________________________________________________________
Australia approves Adani's $16 bln Carmichael coal project

By Sonali Paul

MELBOURNE Mon Jul 28, 2014


(Reuters) - The Australian government on Monday approved Indian firm Adani Mining Pty Ltd's controversial A$16.5 billion ($15.5 billion) Carmichael coal and rail project in Queensland, subject to strict conditions to protect groundwater.

The Carmichael mine, which could become Australia's largest coal mine at 60 million tonnes a year, has sparked protests from green groups and marine tour operators worried about carbon pollution and export of the coal from a port near the Great Barrier Reef..................

"We welcome the Minister's approval of the Carmichael Mine and Rail project, which takes us another step closer to delivering our multi–billion dollar mine, rail and port development," Adani Chairman Gautam Adani said in a statement.

The environmental conditions imposed on Adani's project were largely to address concerns raised by landowners worried that coal projects in the area will affect groundwater supply from the Great Artesian Basin.

"The strict conditions will ensure the protection of the environment as a paramount concern," Australia's environment minister, Greg Hunt, said in a statement........................................................

http://in.reuters.com/article/2014/07/28...3V20140728

[greengiraffe]

Long shot IMHO, getting projects off ground in Australia and taking it to fruition is a nightmarish experience given the experience of the mammoth LNG projects that are in progress in WA and QLD...

Not Vested

http://www.theage.com.au/business/mining...zxnft.html

Adani coal mine approved amid weaker prices
Date
July 28, 2014 - 6:09PM

Brian Robins
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Indian utility Adani has won environmental approval from the federal government for a $10 billion coal mine even though the sustained downturn in coal prices threatens to undermine the project's viability.

Adani is seeking to develop the Carmichael coal deposit in the Galilee Basin, central Queensland, which will use a specially built rail link to Abbott Point.

It is one of a host of projects planned for the Galilee Basin, although weak coal prices and the need for dedicated infrastructure have rendered their economics marginal at best.

Adani at Carmichael and another Indian group, GVK, which is planning a series of coal projects in the Galilee Basin, have been reported to be seeking partners to help defray the initial development costs and to help provide markets for the output.

Carmichael is planned as a 60-million-tonne-a-year steaming coal mine, which would rank it one of the largest mines globally. It has a development price estimated at well over $10 billion. First coal exports are planned from 2017, with full production not to be hit for several years beyond that. However, it is unclear whether this timing will be achievable.

Federal Environment Minister Greg Hunt approved the Carmichael project on Monday, subject to conditions, two months after the Queensland government gave its environmental approvals.

Both sets of approvals cover the mine and the initial portion of the rail link, with the full rail plan yet to receive environmental approvals, which are expected this year. Other aspects of the port development plans at Abbott Point, relating to dredging, have been subject to separate challenges.

Two weeks ago Adani reached agreement with South Korea's Posco E&C for the construction of the 400-kilometre rail link from the mine to Abbott Point. This may mean the Korean group could emerge with a slice of equity in this part of the project. Speculation continues that partners will also be sought to invest in the mine, although Adani officials would not comment.

Mining costs for GVK's nearby mines were estimated at $56.85 a tonne in early 2011, which would be similar to the production costs at the Carmichael mine. This figure does not include financing costs, which would be significant.

The sustained weakness in steaming coal prices over the past three years has played havoc with the prospective economics of the project. Several industry majors have scaled back production ambitions as they have sought to slash costs to maintain viability. Last week US coal major Peabody admitted its Australian coal mines were barely profitable as it seeks to continue to cut costs.

Good quality steaming coal exported from Australia is fetching about $US67 ($71.30) a tonne in the spot market, which means that after taking borrowing costs into account there would be little profit margin.

With GVK's Alpha proposal caught up in legal disputes with environmental groups and landowners, there is concern the proposed Carmichael mine development may also be hit with legal delays on top of the issues faced with dredging off Abbott Point, which may also complicate financing plans.

Because of low coal prices it's hard to raise the financing for big projects, a senior industry figure said on Monday.

"Raising capital on the debt and equity markets remains difficult given low commodity prices, regulatory burden and perceived sovereign risk," the Queensland Resources Council noted in its latest quarterly review of the sector. "Securing internal funding within the larger organisations is also difficult as shareholders request larger dividends and as funding is directed to lower cost jurisdictions globally."

Until all approvals are in place, Adani is not expected to pursue actively the funding which is needed to get its project off the ground.

Adani chairman Gautam Adani said Monday's approval "takes us another step closer to delivering our multi-billion dollar mine, rail and port development”.

"As many of Queensland’s LNG and mining projects move into the production phase over the next 12 to 18 months, attracting investment in new large-scale projects will prolong demand for construction skills and ease the transition towards a long term operations-based workforce," Australian Mines and Metals Association executive director policy and public affairs Scott Barklamb said.

[Boon]

Getting projects off the ground and taking it to fruition in Australia COULD be a nightmarish experience for some – especially for those who are new or inexperienced in running projects Down Under, Adani included – for those who have local resources project experience, they know how to mitigate these risks – fortunately Posco (Australia) is one of them.

Australia has three operating LNG developments and seven other under construction. Other projects are also being considered
http://www.appea.com.au/oil-gas-explaine...-projects/

These seven LNG projects pretty much reached the final investment decision stage in the 2009 to 2012 period, and construction work commenced pretty much all at the same time, amid the tail end of mining boom (predominantly iron ore and coal related projects) - When that much capacity is scheduled to be built at the same time, labor bottlenecks inevitably bound to happen, and it did – this has been the MAJOR contributing factor to the nightmarish experience, IMO.

Mining boom has ended.

The crucial construction phase (2012 to 2015) of these seven mammoth LNG projects would soon be over.

Would there be a next wave of LNG projects in Australia ?

High-cost Australia may miss $180 bln LNG expansion wave
http://www.reuters.com/article/2014/04/1...XB20140410

Yes or no, the labor crunch would ease, IMO.

Absolutely, to bring Adani Carmichael project into fruition – there are many risks to be “de-risked”- and it is going to be long shot.

It is self-evident that the royalty agreement Linc Energy has with Adani would increasingly become more valuable the greater the progress being attained by its owner. With the passing of time, the income stream would be less distant away, certainty would increase, risk would decrease, and value would increase – progress has certainly been made with the approval from the Federal government – one risk off the list.

That said, since the royalty is “tradable” – it could end up being a “shorter” shot.

On the other hand, if Adani has decided to postpone or abandon this project – it could end up being a “long long…..” shot.

(vested)

[Boon]

SGX Announcement
31 July 2014

LINC ENERGY’S CARMICHAEL MINE ROYALTY REVENUE MOVES CLOSER WITH ADANI APPROVAL

Linc Energy Ltd (SGX: TI6) (OTCQX: LNCGY) is pleased to note the recent approval by Federal Minister for the Environment, The Honourable Greg Hunt, of the AU$16.5 billion, 60 million tonne per year Carmichael Coal Mine and Rail Infrastructure project (Carmichael Project) owned by Adani Mining Pty Ltd of the Adani Group (Adani).
Linc Energy sold the underlying coal asset to Adani in August 2010 and holds an assignable, CPI (inflation) indexed, AU$2.00/tonne royalty for production from the Carmichael Coal Mine.

Minister Hunt on 28 July 2014 announced the approval of the proposed Carmichael Project for development following a thorough assessment and consideration, imposing 36 conditions on the project development. This approval follows approval by the Queensland Coordinator General on 7 May 2014.

The recent announcement of the Federal Government approval of the Carmichael Project and the agreement between POSCO E&C (a leading global construction company and a subsidiary of South Korean giant POSCO) and Adani to build the railway line to the Port of Abbot Point (which is also owned by Adani) are considerable steps forward in progressing the Carmichael Coal Mine to production.

On the basis that Adani meets its predicted peak production target of 60 million tonnes per annum, the royalty payable to Linc Energy would generate approximately AU$133 million per annum in revenue for the Company.

The Carmichael Project is expected to operate for about 90 years and to generate AU$500 million per year in direct and indirect benefits to the Queensland economy during its construction period and about AU$3 billion per year at full capacity. The Carmichael Project will create up to 2,500 construction jobs and employ approximately 3,900 staff when operational. It will have a yearly resource value of AU$5 billion and a lifetime resource value of at least AU$300 billion.
It is estimated that the Carmichael Project will provide fuel to generate electricity for up to 100 million people in India.

All coal will be railed via a privately owned Adani/POSCO rail line connecting to the existing Aurizon rail infrastructure near Moranbah, and shipped through coal terminal facilities at the Port of Abbot Point and/or the Port of Hay Point.

Adani has announced that the details of the accord for engineering, procurement and construction of the 388 kilometre (241 mile) track between Galilee Basin and the Port of Abbot Point will be completed by December 2014. Construction will start early next year on the Carmichael Project in which POSCO will take a stake and help to arrange finance.

Adani has stated that POSCO E&C’s commitment for this project reflects the confidence the global partners have in Adani’s long-term investments, guaranteeing energy security in India and other emerging markets.

Peter Bond, Chief Executive Officer and Managing Director of Linc Energy, said “The approval of the Carmichael Project and Adani’s agreement with POSCO for the development of the railway line are significant steps forward, unlocking the value of Linc Energy’s royalty over the Carmichael Coal Mine.”

“Given that Linc Energy holds a royalty of over AU$2 per tonne of coal that is mined and transported off the Carmichael Coal Mine site, we as a company are very happy to see the final Federal Government approval for the Carmichael Project granted to Adani. Not only will Linc Energy receive over AU$133 million per annum in revenue from the Carmichael Coal Mine at peak production, but because the royalty is assignable, the value of the royalty contract itself should increase considerably on the back of this news.”

“From a personal viewpoint, it was Linc Energy that explored the area and discovered this great coal resource, so every Linc Energy shareholder should be proud of the fact that this significant project exists because of the entrepreneurial endeavours of our team and our Company. It is also a great example of why exploration in general should be encouraged at every level of State and Federal Government - after all, exploration is the backbone of the success we’ve long enjoyed as a resource based Australian company. More exploration equates to more opportunity for regional communities and the country as a whole. We look forward to watching the Carmichael Project develop into Australia’s largest coal mining operation.”

http://infopub.sgx.com/FileOpen/2014.07....eID=307557
________________________________________________________________________________________________________________
Adani Mining Pty Ltd

28 July 2014
MEDIA STATEMENT

Adani’s investment in Queensland one step closer to generating economic benefits for Australia

Today’s approval announcement by the Minister for the Environment, Greg Hunt, marks another significant milestone for Adani’s Carmichael Coal Mine and Rail Project, after having received approval from the Queensland Coordinator General on the 7th May 2014.

Adani Chairman, Gautam Adani said today: “We welcome the Minister’s approval of the Carmichael Mine and Rail project, which takes us another step closer to delivering our multi–billion dollar mine, rail and port development”.

Together with the North Galillee Basin Rail and the company’s port operations at Abbot Point, Adani’s planned investments in Queensland will deliver more than 10,000 direct and indirect jobs in Australia, and vital opportunities for local suppliers.

“Adani’s commitment to contribute towards providing energy security to India and other Asian countries goes hand-in-hand with its commitment to providing sustainable employment opportunities for local workers and suppliers, not just through our rail infrastructure, but also our longer-term investments in ports and mining”, Mr Adani said.

“Development of the Galilee Basin is vital for the regional and economic growth of both Queensland and Australia, and Adani’s projects play an important role in realising this growth”, said Mr Adani.
Minister Hunt’s approval follows Adani’s recent announcement of Korean firm POSCO E&C as the rail partner for the company’s vital 388km rail line.

Adani is fully committed to adhering to the strict regulatory and environmental approval processes that apply to all of its planned projects.

http://www.adanimining.com/Common/Upload...140728.pdf

(vested)

[greengiraffe]

http://www.businesstimes.com.sg/premium/...c-20140801

PUBLISHED AUGUST 01, 2014
Aussie project go-ahead a revenue boost for Linc
Value of royalty contract will also surge, it says
BYANDREA SOH
sandrea@sph.com.sg @AndreaSohBT

THE Australian government's approval for the development of the Carmichael coal mine in Queensland would generate about A$133 million (S$154.1 million) a year in revenue for mainboard-listed Linc Energy, as it owns royalty over the coal that is mined and transported.
Not only that, the value of the royalty contract - which can be traded - will also "increase considerably", said its CEO Peter Bond in a news release yesterday.
Linc Energy sold the underlying coal asset to Indian conglomerate Adani Group in August 2010, and holds an inflation-indexed royalty contract that provides for A$2 for each tonne of coal produced from the Carmichael coal mine for the first 20 years of production.
The proposed development of what is expected to be the largest coal mine in Australia, has got environmentalists up in arms as they say it would threaten the Great Barrier Reef.

[Boon]

Linc Energy Seeks Tyonek Coal Permit

By Ellen Lockyer, KSKA - Anchorage | August 1, 2014

The state Department of Natural Resources has received a request from Australia-based Linc Energy for a coal exploration permit. The area to be explored is located Northeast of Tyonek on the western side of Cook Inlet, and much of it is within the Kenai Peninsula Borough. Activities are to consist of drilling up to five exploration holes. The lease area covers more than 107 thousand acres. The Alaska Mental Health Lands Trust owns both the surface and subsurface rights in the lease area.............................

http://www.alaskapublic.org/2014/08/01/l...al-permit/

http://dnr.alaska.gov/mlw/mining/coal/li...232014.pdf

[greengiraffe]

Dunno if CSG impacts Linc

Busybody
GG

Anti-CSG activists bought out by company
THE AUSTRALIAN AUGUST 05, 2014 12:00AM

Graham Lloyd

Environment Editor
Sydney
COAL-seam gas company QCG has surrendered to community pressure and spent millions of dollars buying out vocal opponents in the marginal rural residential ­estate at Tara on Queensland’s western downs.

Anti coal-seam gas groups claim the buyout was a “tacit ­admission” by the company that it is not safe to live near coal-seam gas wells.

QGC said it had bought more than 60 properties over the past 10 years to “support development of long-term infrastructure and to minimise impacts on residents, particularly those in rural residential estates’’.

Tara residents bought out by QGS are understood to include high-profile protester Dayne “Frackman” Pratzky and Debbie Orr, who was visited by Tony ­Abbott and has complained that leaking coal-seam gas could damage her children’s health.

Property sales have been covered by a confidentiality agreement and Mr Pratzky said he would not discuss his situation, but he gave the company credit for the buyout.

“It seems that the company had first tried to walk over people but it now seems to be taking a different approach,’’ Mr Pratzky said.

“They realise that some people are more impacted than others.

“Some people are quite happy to live in a gasfield.

“It was quite clear over the past five years that only a few people in Tara had a problem with the gas.

“You have got to give the ­company credit for resolving the problem and I hope this is the new norm for QGC and the ­industry.”

Mr Pratzky said that he remained opposed to coal-seam gas extraction.

“I have moved on from Tara but I still have a $2 million documentary coming out next year and will be turning my attention to the Santos gasfield in the Pilliga in NSW,” he said.

Anti coal-seam gas group Lock the Gate Alliance called for a comprehensive investigation into the health impacts of coal-seam gas.

Lock the Gate’s president, Drew Hutton, said the Tara purchases were a clear admission that people and gasfields did not, and should not, mix.

“The buyouts are a tacit ­admission by this foreign-owned CSG company that coal-seam gas is harmful to human health,” he said.

QGC said there was no ­evidence to support health ­complaints.

[Boon]

Sub-Saharan Africa
Poland
Now Tanzania
________________________________________________________________________________________________________________

6 August 2014

LINC ENERGY SIGNS MOU TO COMMENCE COMMERCIAL UNDERGROUND COAL GASIFICATION (UCG) OPERATIONS IN TANZANIA BY 2017

http://infopub.sgx.com/FileOpen/2014.08....eID=308523

(vested)