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