Australian company plans coal mine in Poland

China's top economic planner on Thursday reiterated a ban on favourable power tariffs for power-intensive sectors as the world's second-largest electricity consumer struggles to deal with its worst power crisis in seven years. Last year, the National Development and Reform Commission (NDRC) asked local governments and power suppliers to cancel favourable power prices for aluminium, ferroalloy and calcium carbide makers, and said preferential power rates for direct trade between power generators and power users but without approval must be halted.

Australian coking coal producer Caledon Resources said it agreed to be bought by a Chinese investment group for 313.1 million pounds ($507 million), in a long-awaited deal which has finally met Chinese regulatory approval. China's Guangdong Rising Assets Management Co (GRAM) first approached Queensland-focused Caledon with a 112 pence per share offer in November to which Caledon agreed in principle, subject to approval from the Chinese regulators.

New Zealand Prime Minister John Key has told The Australian newspaper there will be changes in New Zealand mine safety regulations. Key made the comments in an interview when asked about Pike River, the West Coast mine where a series of explosions left 29 men dead last November. Over the weekend the same paper quoted a mining safety specialist who quit Pike River over concerns it was too dangerous as saying the mine lacked critical equipment required in Australian mines, which could have avoided the enormous methane explosion.

Tenaris S.A. (NYSE: TS) (BAE: TS) (MXSE: TS) (MILAN: TEN) announced today that, within the framework of the Venezuelan National Assembly's law declaring all of Matesi's assets to be of public and social interest and ordering the Executive Branch to take the necessary measures for the expropriation of such assets, President Chavez issued Decree 8280/2011, which orders the expropriation of Matesi's assets as may be required for the implementation of a state-owned project for the production, sale and distribution of briquettes, and further instructs to commence negotiations and take any actions required for the acquisition of such assets.

Teck Resources provided an update today to its coal guidance for the second quarter. As a result of the February earthquake and tsunami in Japan, some of Teck's coal customers have deferred shipments due to reduced steel production requirements and Teck now expects coal sales in the second quarter at the low end of its previously announced guidance range of 5.5 to 6.0 million tonnes.

The Australian reports a mining safety specialist who quit New Zealand's fatal Pike River coal mine over concerns it was too dangerous will present crucial expert testimony to the royal commission into the disaster, which killed 29 men. Peter Sattler went public last week for the first time to claim Pike River lacked critical equipment required in Australian mines, which could have avoided the enormous methane explosion that ripped through the mine near Greymouth on November 19. The move comes as, for the first time since the blast, rescue experts prepare to enter the mine, in a step towards recovering bodies and recommissioning the operation.

Mongolia may share its Tavan Tolgoi coal mining project between a majority of the six bidders shortlisted by the government and ask them to work together, Prime Minister Sukhbaatar Batbold told Bloomberg in an interview adding that the final decision is “very close.” Coal production in Mongolia doubled last year to become the nation’s top export earner, spurring the government to push through development of one of the world’s biggest unexploited deposits of the mineral. Peabody Energy Corp., a Shenhua Group Corp.-Mitsui & Co. venture, Vale SA, a Russia-Japan-South Korea group, ArcelorMittal, and Xstrata Plc were all shortlisted.

More than 1,000 workers at two BHP Billiton coking coal mines in Australia staged a third day of strikes in a dispute that is disrupting production from the world’s largest exporter of the steelmaking commodity. Analysts believe the industrial action, added to the 15% cut in annual production caused by monsoon rains and a cyclone, will support rampant prices for steel-making coal which hit an all-time high in April of $330 per tonne. Metallurgical coal accounts for A$24.5bn of the Australia’s A$202.17bn in total annual goods exports.

A report released this week suggests that US federal regulation of coal combustion residuals, or coal ash, currently being considered by the Environmental Protection Agency would result in as many as 316,000 lost jobs and as much as $110bn in lost economic activity over a 20-year period. Power-generating coal is coming under fire from many quarters including Australia where a proposed carbon tax in 2012 could see coal mining profits fall and lead to thousands of job losses. This despite a new report showing that worldwide coal consumption is at its highest relative to other sources in 40 years.