News Flash 31 January 2012

Financial Times

Shale gas fate trips up on politics and bubblenomics

Just before the shale gas industry was blessed as good in the president’s State of the Union address last week, it admitted it was broke. Read More.....

---

Financial Times

IGas hints at north-west shale gas potential

IGas Energy provided some encouragement for shareholders this week as it suggested it could be positioned to join the rush to exploit shale gas reserves in the north-west of England.

The Aim-quoted company, formed in 2003 with an initial focus on exploiting coal-bed methane reserves, said this week that drilling in Ince marshes in Cheshire had revealed both coal seams and large shale sections, which could be suitable for hydraulic fracturing or “fracking”. Read More.....

---

Mining Weekly

Water Affairs confirms movement on long-term AMD study

South Africa’s Department of Water Affairs (DWA) has confirmed that a feasibility study has been initiated to assess longer-term solutions for South Africa’s acid mine drainage (AMD) problem. The investigation began in December and should be completed over a maximum period of 18 months. Read More.....

---

New York Times

On Our Radar: 6 More Coal Plants to Close

FirstEnergy Corp. on Thursday said it will retire six coal-fired power plants, including four in Ohio, because of stricter federal anti-pollution rules. The six older and dirtier plants will be closed by Sept. 1. "It was a tough decision," said Charles D. Lasky, vice president of fossil fleet operations for FirstEnergy Generation Corp. FirstEnergy will be among the first American utilities to close aging, polluting power plants after tighter federal clean-air rules were finalized last month. Read More.....

---

The Economist

Power is essential for India’s long-term growth. But electricity is unlikely to flow fast enough

In coal India has something as abundant as people. As more Indians enjoy the trappings of middle-class life and the country industrialises, demand for coal-fired electricity will continue to rise smartly, roughly in line with economic growth. India may not have much oil or gas to call its own but it has the world’s fifth-largest coal reserves. Read More.....

---

News 24

Limpopo coal deal under scrutiny

Coal India, which has since postponed a fact-finding mission which was due to happen this month, said last week it had $817m (about R6.35bn) that it has to spend by March this year, and the Limpopo government was hoping to receive a cut of the state-owned entity’s massive war chest. Read More.....

---

Business Live

Optimum Coal H1 2012 production down 15%

Optimum Coal Holdings has announced that it produced 7.441 million tons of run-of-mine coal in the six months to December 2011, a drop of 15% compared with the previous corresponding period. Of this, 2.903 million tons of export/high quality domestic coal was produced, 20% down on 3.611 million tons produced in the previous comparable period, the coal mining and exploration group said in its operational update. Additionally, 3.018 million tons of Eskom quality coal was produced, 11% down on 3.4 million tons produced a year ago. Read More.....

---

Business Live

Eskom appeal 'a grim warning of energy failure'

The appeal this month by Eskom to big mining companies to curb their electricity usage is a grim warning that government's energy planning has failed and drastic policy revisions are urgently required, says the Cape Chamber of Commerce and Industry.

Cape Chamber of Commerce & Industry president Michael Bagraim said on Wednesday that government should allow the construction of gas fired generation stations on the coast so that inland coal stations could focus on supplying electricity to large mines and other industries. Read More.....