Global Export Thermal Coal Cost Curve

Published: Sep, 2016 | Pages: 16 | Publisher: Timetric
Industry: Mining | Report Format: Electronic (PDF)

Synopsis

This report provides a breakdown of mining cash costs per tonne for individual export thermal coal operations, company production and country production. Timetric's analysis covers 180 coal operations accounting for over 500Mt of coal production globally. Overall 30 companies have been included, ranging from the large producers, such Peabody Energy, Shenhua Energy, and Glencore, to smaller players, such as Whitehaven.

Summary

This presentation and accompanying Excel data, provides an coal cost curve for 180 mines, with breakdown of costs into mining, processing, admin, land transport, port charges and royalties.

Specific datasets include:

• Global Mine Level Cost Costs

• Global Company Equity Production Costs

• Country level Production Costs

• Glencore Cost Curve

• SUEK Cost Curve

• Anglo American Cost Curve

Scope

The report is based Timetric's proprietary cost estimation model and data from Timetric's Mining Intelligence Center.

Reasons To Buy

• Understand the global industry structure of coal mines

• Analyze mines you may be working with, including how they compare against their peers

• Assess the performance of coal companies

Key Highlights

• Global export thermal coal costs vary considerably. However thermal coal quality also vary, with low quality
Indonesia coal dominating that first quartile of the curve, while higher quality Australia thermal coal is in the
second half of the curve.

• Processing costs make a difference in total FOB cost. Indonesian thermal coal, with its low ash content (below
5%) does not need to be washed, reducing costs by up US$10/t in comparison to Australian and US operations.

• Low strip ratios will ensure most operations have low mining costs per tonne. Indeed strip ratios are often the
determinant for whether an export thermal coal deposit is economically feasible. Many high cost thermal coal
mines, have higher strip ratios particularly in Australia.

• Rio Tinto's exit away from thermal coal is becoming more apparent, once a major producer and key negotiator
in the annual Australian-Japan thermal coal contract. It has significantly reduced its thermal coal operations,
selling Clermont, Bengalla and its Mozambique operations. Its remaining operations are also comparatively
higher cost, putting Rio Tinto in the fourth quartile.

• Russian operations have low mine gate costs, but then the transportation costs (often rail) over vast distances to
Far East ports significantly bring up their FOB Costs.

 Table of Contents

1 INTRODUCTION
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
2 INFRASTRUCTURE CONSTRUCTION: CATEGORY DATA
2.1 Infrastructure Construction Output: Historic Market Value
2.2 Infrastructure Construction Output: Historic Market Value by Cost Type
2.3 Infrastructure Construction Output: Forecast Market Value
2.4 Infrastructure Construction Output: Forecast Market Value by Cost Type
2.5 Infrastructure Construction Value Add: Historic Market Value
2.6 Infrastructure Construction Value Add: Forecast Market Value
3 INFRASTRUCTURE CONSTRUCTION: ACTIVITY ANALYSIS
3.1 New Construction Output
3.2 New Construction Output by Cost Type
3.3 New Construction Output Forecast
3.4 New Construction Output Forecast by Cost Type
3.5 Repair & Maintenance Output
3.6 Repair & Maintenance Output by Cost Type
3.7 Repair & Maintenance Output Forecast
3.8 Repair & Maintenance Output Forecast by Cost Type
3.9 Refurbishment Output
3.10 Refurbishment Output by Cost Type
3.11 Refurbishment Output Forecast
3.12 Refurbishment Output Forecast by Cost Type
3.13 Demolition Output
3.14 Demolition Output by Cost Type
3.15 Demolition Output Forecast
3.16 Demolition Output Forecast by Cost Type
4 RAIL INFRASTRUCTURE CONSTRUCTION: CATEGORY DATA
4.1 Rail Infrastructure Construction Output: Historic Market Value
4.2 Rail Infrastructure Construction Output: Historic Market Value by Cost Type
4.3 Rail Infrastructure Construction Output: Forecast Market Value
4.4 Rail Infrastructure Construction Output: Forecast Market Value by Cost Type
4.5 Rail Infrastructure Construction Value Add: Historic Market Value
4.6 Rail Infrastructure Construction Value Add: Forecast Market Value
4.7 New Construction Output
4.8 New Construction Output by Cost Type
4.9 New Construction Output Forecast
4.10 New Construction Output Forecast by Cost Type
4.11 Repair & Maintenance Output
4.12 Repair & Maintenance Output by Cost Type
4.13 Repair & Maintenance Output Forecast
4.14 Repair & Maintenance Output Forecast by Cost Type
4.15 Refurbishment Output
4.16 Refurbishment Output by Cost Type
4.17 Refurbishment Output Forecast
4.18 Refurbishment Output Forecast by Cost Type
4.19 Demolition Output
4.20 Demolition Output by Cost Type
4.21 Demolition Output Forecast
4.22 Demolition Output Forecast by Cost Type
5 ROAD INFRASTRUCTURE CONSTRUCTION: CATEGORY DATA
5.1 Road Infrastructure Construction Output: Historic Market Value
5.2 Road Infrastructure Construction Output: Historic Market Value by Cost Type
5.3 Road Infrastructure Construction Output: Forecast Market Value
5.4 Road Infrastructure Construction Output: Forecast Market Value by Cost Type
5.5 Road Infrastructure Construction Value Add: Historic Market Value
5.6 Road Infrastructure Construction Value Add: Forecast Market Value
5.7 New Construction Output
5.8 New Construction Output by Cost Type
5.9 New Construction Output Forecast
5.10 New Construction Output Forecast by Cost Type
5.11 Repair & Maintenance Output
5.12 Repair & Maintenance Output by Cost Type
5.13 Repair & Maintenance Output Forecast
5.14 Repair & Maintenance Output Forecast by Cost Type
5.15 Refurbishment Output
5.16 Refurbishment Output by Cost Type
5.17 Refurbishment Output Forecast
5.18 Refurbishment Output Forecast by Cost Type
5.19 Demolition Output
5.20 Demolition Output by Cost Type
5.21 Demolition Output Forecast
5.22 Demolition Output Forecast by Cost Type
6 OTHER INFRASTRUCTURE PROJECTS CONSTRUCTION: CATEGORY DATA
6.1 Other Infrastructure Projects Construction Output: Historic Market Value
6.2 Other Infrastructure Projects Construction Output: Historic Market Value by Cost Type
6.3 Other Infrastructure Projects Construction Output: Forecast Market Value
6.4 Other Infrastructure Projects Construction Output: Forecast Market Value by Cost Type
6.5 Other Infrastructure Projects Construction Value Add: Historic Market Value
6.6 Other Infrastructure Projects Construction Value Add: Forecast Market Value
6.7 New Construction Output
6.8 New Construction Output by Cost Type
6.9 New Construction Output Forecast
6.10 New Construction Output Forecast by Cost Type
6.11 Repair & Maintenance Output
6.12 Repair & Maintenance Output by Cost Type
6.13 Repair & Maintenance Output Forecast
6.14 Repair & Maintenance Output Forecast by Cost Type
6.15 Refurbishment Output
6.16 Refurbishment Output by Cost Type
6.17 Refurbishment Output Forecast
6.18 Refurbishment Output Forecast by Cost Type
6.19 Demolition Output
6.20 Demolition Output by Cost Type
6.21 Demolition Output Forecast
6.22 Demolition Output Forecast by Cost Type
7 APPENDIX
7.1 Methodology
7.2 About Timetric
7.3 Our Services
7.4 Disclaimer