Iron ore and Coal

Coal production from top mining companies to increase in 2021

Coal production from top mining companies to increase in 2021
Mining News Pro - Coal production from the top world`s ten mining companies fell from a collective 1.70-million tonnes in 2019 to 1.63-million tonnes in 2020, which is a 4.2% decline.
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The most significant declines were observed from Arch Resources (28.6%), PT Bumi (24.9%), Glencore (23.9%) and Peabody (21.8%), according to data and analytics company GlobalData.

GlobalData expects production from the top ten companies, which also includes Coal India, China Shenhua, Yanzhou Coal, Siberian Coal, China National Coal and BHP, to be between 1.68-million and 1.74-million tonnes this year, which is an increase of up to 6.6% compared with the collective output in 2020.

Operating activities, backed by the roll-out of vaccines and strict Covid-19 protocols on site, returning to normal is expected to be a key production driver for companies this year.

Production from Arch Resources (formerly Arch Coal) declined in 2020 primarily owing to the sale of the Holden #22 Surface mine in December 2019, coupled with weak economic conditions during quarter one 2020.

Moreover, the temporary suspension of the Viper mine in the second quarter of 2020 further disrupted the company’s coal production.

“Heavy rainfall amid the outbreak of Covid-19 impacted PT Bumi’s output in 2020, while Glencore’s coal output fell for the fourth consecutive quarter as the company’s Colombian coal assets remained suspended as part of Covid-19 preventive measures.

"Scheduled production cuts across the Australian portfolio also impacted the company’s overall output as did the placement of the Prodeco mine under care and maintenance and strikes at Cerrejon between August and December 2020,” says GlobalData associate project manager Vinneth Bajaj.

Peabody’s output dropped primarily owing to the upgrade of the main line conveyor system at Shoal Creek, alongside pit sequencing work at Moorvale and a dragline outage at Coppabella.

Moreover, the company also suspended operations at the Wambo underground mine for around 59 days during the second half of 2020.

The closure of mines, including Kayenta and Cottage Grove in the third quarter of 2019, and Wildcat Hills in the second quarter of 2020, further impacted the company’s output.

“BHP’s coking coal production was impacted by planned maintenance at the Saraji and Caval Ridge mines, environmental disruptions at La Nina, and lower yields at the South Walker Creek and Poitrel mines. Meanwhile, the thermal coal segment, from which the company is expected to exit in the near future, was affected by a 91-day strike at Cerrejon, which started on August 31, 2020.

"In contrast, production from Coal India rose by 4% owing to a recovery in the offtake from India’s power sector, which was supported by a resumption in industrial and commercial activities as the country’s electricity demand started to recover from the Covid-19 setback. Output from China Shenhua, Yanzhou and China National Coal Group also increased, rising by 3.1%, 10.2% and 8.1%, respectively, in 2020, mainly owing to a quick recovery in China, particularly during the second half of 2020,” Bajaj indicated.


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