xcoal energy & resources - cma india» marketer of metallurgical and thermal coals from u.s.,...
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Xcoal Energy & Resources
Consol Xcoal BEFH US NAPP Coal - a
Reliable Fuel for India’s Cement Sector
CMA Conference, 29 November 2018
Agenda
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• Xcoal overview
• Value proposition of Consol Xcoal BEFH US NAPP Thermal coal
Xcoal Energy & Resources overview:
» Privately owned and operated coal marketing company headquartered in Latrobe, Pennsylvania USA
» A team of ~100 professionals is actively engaged in the business. The team is led by Ernie Thrasher, Chief Executive Officer & Chief Marketing Officer, and Jack Porco, President & Chief Commercial Officer
» Marketer of metallurgical and thermal coals from U.S., Canada, Australia, Indonesia, Mongolia, and others • Specializing in U.S. origin coking coal, thermal coal and anthracite coal.
» Creative & competitive transport and logistics company • Complete supply chain ownership
» Internationally recognized company with a strong customer base
» Dedicated to supplying diversified energy resources to our customers via our newly announced XLNG venture and Xnergy & Resources Pte Ltd.
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Xcoal Company Profile:
Privately held company specializing in the export of U.S. origin metallurgical, thermal, semi soft, PCI, and anthracite coals to integrated steel mills, cement plants and electric generators throughout the world.
Highlights:
2017 exports = 20.3m MT
2016 exports of 14.2m MT
2015 exports of 15.0m MT
2018 exports projected to be ~22.0m MT
Market penetration of new regions continue as coals are tested/approved
Contracts for rail and throughput capacity to ensure reliable and timely deliveries
Met coal / Thermal coal sales are approximately 84% / 16%
Term contracts of multi-year year duration with major integrated steel mills in Asia
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Global Marketing Team:
» Key office locations to support global growth initiatives
with high customer service standards: • United States of America
› Latrobe, PA (Headquarters), Pittsburgh, PA, Baltimore, MD,
Norfolk, VA, New York, NY & San Antonio, TX
• Asia & India locations
› Tokyo, Seoul, Beijing, Shanghai, Singapore, Brisbane, &
Mumbai
• European locations
› Zug, Switzerland, Brussels, Essen
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• 2017: Xcoal accounts for 25% of all U.S. coal exports • Baltimore: 7.1 million tons, 38%of all throughput
• Hampton Roads: 8.4 million tons, 27% of all throughput
• Mobile: 1.0 million tons, 12% of all throughput
• 2016: Xcoal accounted for 24% of all U.S. coal exports • Baltimore: 4.64 million tons, 32% of all throughput
• Hampton Roads: 6.94 million tons, 32% of all throughput
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Xcoal is a dominant US coal exporter…..
Business Supported by Long Term, Lower Cost
and Strong Partnerships
» Proven, long term suppliers to Xcoal continue to produce tons in the current market environment: • CONSOL Energy
• Blackhawk Mining
• Coronado Coal
• Rosebud Mining Company
• Warrior Met Coal
• Curragh Mining
• Bounty Mining
» Xcoal business relationships remain with Norfolk Southern & CSX on domestic rail shipments
» World class export terminals on the US East Coast remain in place within the Xcoal logistics process: • CNX, Curtis Bay Pier, DTA, Pier 9 and Lamberts Point.
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Positive aspects of Xcoal’s business
» Thorough understanding of mining operations and the relationship to
global market opportunities
» Xcoal’s suppliers have the ability to produce various grades of
metallurgical coal, thermal coal, and anthracite
» Xcoal’s transportation providers remain supportive of our export
activities
» Xcoal’s network of offices provides “on the ground” marketing and
technical support in the regions of the world where demand for our
products remains strong
» Xcoal has the ability to adjust its business model to meet demand for
different products and in different regions of the world • Adjusted our marketing efforts to reflect additional demand for thermal coal
• Adjusted our marketing efforts to capture business in India as demand warrants
• Increased our supply base to include new suppliers and products
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Innovative supply chain solutions
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Xcoal’s “top off” operation
has been recognized by
World Coal magazine in its
Annual review of
innovative coal projects
Xcoal has performed 135
“top off” operations since
2010, totaling approximately
7.7 million tons of
transferred cargo
Sales & Volume Forecast:
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Geographic Customer Diversification
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Product mix: coking vs thermal
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Value Proposition of Consol Xcoal
BEFH U.S. NAPP
High CV Thermal Coal
Three highly productive, well-capitalized
underground coal mines in the Pittsburgh #8 coal
seam: Bailey, Enlow Fork, and Harvey
Five longwalls and 15-17 continuous miner sections
Largest central preparation plant in the United
States
~79% of 735 mm ton reserves are owned and
require no royalty payment
Extensive logistics network served by two Class I
railroads: NS and CSX
Access to seaborne markets through CONSOL
Marine Terminal
Nearly $1.5bn invested in the mine operations since
2012
Non-union workforce since 1982
Pennsylvania Mining Complex Overview (PAMC)
2017 PA Mining Complex Domestic Power Plant
Customers
PA Mining Complex
CONSOL Marine Terminal
Transportation Infrastructure Advantage
Geography and access to an
efficient supply chain enables
competitive deliveries with
global reach
Dual served mines and terminal
Superior transportation routes
Alternative routes are high cost
Complicated
Transportation
PAMC
PAMC Operations
Quality
Impact
$$$ Rail
Efficient Rail Competitive
Freight
Options
CMT- Coal export terminal strategically located
in Baltimore, MD
» 15.0 million tons per year throughput
capacity
» 1.1 million tons coal storage yard capacity
» Sole East Coast coal export terminal served
by two railroads
Achieved significant service and operating cost
efficiencies starting in 2016
CMT achieved a record year in 2017
» Throughput volume of 14.3 mm tons
CONSOL Marine Terminal (CMT) Overview
Exclusive access to throughput ensures
reliable rail & throughput operations
Extensive Reserves & High Quality Coal
U.S. Mines
International Mines
Thermal coal reserve base unrivaled
Among the highest heat content in North America
Low chlorine content favorable
NAPP Marketing Landscape is Shifting
Rail and terminal capacity constraints will limit access to the market by traders
Spot transactions won’t disappear, but the ability to build an economic supply
and delivery model will be more challenging without investment in the supply
chain
» Security of supply comes with this investment
Increased financial strength among buyers in India will further drive down the role
of traders
» Customers want to purchase directly from the producer or their designated
marketing partner
Operating efficiencies realized with a marketing consolidation
Rail and terminal capacity constraints will limit access to the market by traders
Why CONSOL Xcoal BEFH Coal in the Cement Kiln?
» Extensive experience: has been successfully used in a number of kilns in the U.S.,
India, Egypt, Togo, DR Congo
» High heat content (~6900 kcal/kg NAR) superior to most other fuels
» Lower sulfur, vanadium, and nickel content than pet coke
» High volatile matter and char reactivity lead to ideal combustion profile
characteristics
» Excellent grindability and handling characteristics
» CONSOL and Xcoal provide a demonstrated track record of consistent quality,
reliable delivery, and outstanding customer service
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Advantages of CONSOL Xcoal BEFH Coal
» Excellent milling characteristic
• Higher typical HGI enables full pulverizer performance expectation to be
achieved
• Lower variability in HGI index than pet coke
• Less abrasive than pet coke, lower pulverizing mill wear
» Improved combustion characteristics
• Higher volatile matter release and carbon char reactivity
• Rapid ignition in the kiln sintering zone
• Better heat distribution and more uniform kiln temperature profile for clinker
sintering (1450 – 1500o C)
• Supports stable ignition of other alternative fuels
› Pet coke, tyres, municipal waste, etc.
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» Lower total vanadium than pet coke
• ~0.1% V2O5 can be found in cement clinker with 50% pet coke use; higher amounts
occur with CKD recirculation
• Significantly lower vanadium content in coal (at least 25x less than pet coke) leads to
corresponding reduction in cement clinker V2O5 content
• Lower V2O5 in the clinker leads to:
› Increased free lime in clinker
› Increased clinker grindability index
› Reduced cement sulfate expansion improving stability
› Longer kiln maintenance intervals
» Lower sulfur content than most pet cokes
• Lower sulfur/alkali ratio and lower propensity to form alkali sulfate kiln deposits
• Reduced kiln gas SO2 cleanup costs
» Better carbon burnout, lower CKD Carbon content
• CKD can be used as a replacement in some cement applications
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Advantages of CONSOL Xcoal BEFH Coal vs. Pet Coke
Other Key Characteristics of CONSOL Xcoal BEFH
Coal for Cement Kiln Applications
» Coal ash composition compatible with cement clinker
• Fuel ash incorporated into clinker with compatible chemistry
» Low chlorine levels
• Always less than 0.20% accepted limits
• Low impact on cement setting time
» Stable on-site storage
• Excellent compaction reaching 70 lb/cubic foot (1,121 kg/m3)
• Excellent quality retention while in storage
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Thank you
Q&A
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Contact Information
Xcoal Energy & Resources India Office:
Sujogya Kumar Dash
MD – South and South East Asia
Phone: +91 (22) 6692 0000
Email: [email protected]
Corporate Office:
One Energy Place, Suite 9000, Latrobe,
PA 15650, USA
e-mail: [email protected]
Web: www.xcoal.com
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Additional Information
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Proximate Analysis
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Basis
CONSOL
Pitt 8 Coal
Moisture % as-received 6.3
Volatile Matter % as-received 37.0
Fixed Carbon % as-received 49.0
Ash % as-received 7.7
Key Quality Characteristics
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Basis
CONSOL
Pitt 8 Coal
Sulfur % as-received 3.0 - 3.5
Chlorine % as-received 0.1
Vanadium ppm dry 27
Nickel ppm dry 12
Gross Calorific Value Btu/lb as-received 12,950
Net Calorific Value kcal/kg as-received 6850 - 6900
HGI 54 (51-57)
Typical Ash Composition
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% dry ash % dry ash
SiO2 45.8 MgO 0.7
Al2O3 22.0 Na2O 0.6
TiO2 1.0 K2O 1.7
Fe2O3 22.7 P2O5 0.4
CaO 2.5 SO3 2.4
OTHER 0.2