IM 2016 September 2016 | Page 134

MECHANISED COAL_proof 22/08/2016 16:41 Page 1 MECHANISED COAL Cutting coal John Chadwick examines the importance of good communication in cutting coal more efficiently, longwall automation and of course safety, among other things he steam-coal market is expected to remain challenging for the next few years, due to prices close to all-time lows, a massively oversupplied Chinese market, uncertain Indian market growth, and diminishing consumption across Europe, the US and China, according to IHS Inc. Nevertheless, signs are starting to emerge of a recovery in the market, and that supply and demand will rebalance later this decade, according to IHS Energy experts. There have been winners and losers among the producers struggling with the tough market. BHP Billiton has perhaps been one of the more successful. President Operations Minerals Australia, Mike Henry, told investors at a coal briefing that the company saw significant opportunity to further increase the competitiveness of its coal operations – both in terms of costs and volumes. BHP Billiton’s Coal business has delivered over $3 billion of productivity gains since 2012 and is targeting another $600 million by the end of the 2017 financial year. “Even in today’s difficult environment, all of our operations remain cash positive,” Henry said. “The developing world needs steel, steel needs coking coal, and we have the strongest resource position in the seaborne market,” T Komatsu intends to operate Joy Global as a separate subsidiary of Komatsu and retain the strength of the Joy Global brand names 132 International Mining | SEPTEMBER 2016 Henry said. “Against the backdrop of greater uncertainty in the outlook for thermal coal, we are confident that base demand in emerging economies will remain resilient for decades to come and our higher quality coals position us well in an increasingly carbon constrained world.” By far the biggest recent news in the coal cutting supplier sector, and that of all underground and surface equipment, has come from Komatsu and Joy Global. Komatsu America Corp, a subsidiary of Komatsu Ltd, will acquire Joy Global in a transaction valued at approximately $3.7 billion, including Joy Global’s outstanding indebtedness. The companies will align the organisation and operation for optimal customer support from Joy Global’s headquarters in Milwaukee, Wisconsin. "Komatsu and Joy Global’s products and services are highly complementary and the combined organisation will continue to focus on Good communication has been essential to Centennial’s recent success at its mines like Mandalong, shown here safety, productivity and life cycle cost improvement for customers. Komatsu plans to leverage both companies’ leading technologies to pursue product and service innovation to enhance mine safety and productivity. In addition, the companies employ complementary strategies and are committed to an integrated direct sales and service model." “This is a compelling transaction that delivers substantial and certain value to our stockholders as well as expanded options for our customers and employees going forward,” said Ted Doheny, President and CEO of Joy Global. “We believe this is the right partnership to meet the evolving needs of our customers while furthering our ability to lead the mining industry with game-changing technologies and best-in-class products. Joy Global’s Board of Directors, in making its determination, considered the challenging market conditions the company believes are likely to persist. “The