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Countries ramp up coal use amidst energy crisis
InternationalNews
Countries ramp up coal use amidst energy crisis
Thermal coal demand is rising globally as countries scramble to secure energy supplies despite constrained trade flows through the Middle East.While the Strait of Hormuz remains the world’s most critical chokepoint for oil and gas, relatively little thermal coal trade passes through it directly and major coal exporters, including Australia, are not directly exposed to the route, according to Wood Mackenzie.Wood Mackenzie bulk commodities principal analyst Sushmita Vazirani says in supply shocks of this scale, coal becomes a critical fallback for energy security.“Despite decarbonisation commitments across Asia, tightening LNG supply and elevated prices are accelerating fuel switching back to coal,” she said.However, the current energy crisis has exposed the geopolitical dependency risks associated with using gas as a transitional fuel as higher gas prices drive fuel switching toward coal in price-sensitive markets across Asia and Europe, Wood Mackenzie said.Wood Mackenzie has found that in Northeast Asia, Coal-fired generation remains firm despite seasonal demand weakness in the region, supported by rising LNG prices.Taiwan is preparing to restart the Hsinta coal-fired power plant, which could consume about 5.5mtpa of thermal coal. South Korea has increased guidance for Russian coal imports, while Japan is expected to rely more on nuclear generation, including restarts such as Kashiwazaki-Kariwa Unit 6.Gas accounts for less than 3% of power generation in China, according to Wood Mackenzie, and the country remains relatively insulated from the current energy markets shocks.In Europe, the Italian Government has delayed its coal phase-out by 13 years to 2038 as its energy transition is tested by geopolitical shocks.Germany is also reportedly reviewing its current coal phase out strategy and is considering reactivating standby coal-fired power plants to reduce energy prices.However, the coal industry is not completely insulated from the impacts of rising fuel prices.Wood Mackenzie predicts that, for every US$10/bbl increase in crude oil prices, coal mine site costs increase by US$1–3/t, placing additional pressure on already tight supply .“Rising diesel prices are creating a cost squeeze for coal producers, just as markets call for more supply,” Ms Vazirani said.“In Australia, heavy reliance on imported diesel adds an additional layer of risk, potentially constraining output and tightening global markets.”The market is already seeing rising prices with FOB Newcastle 6,000kcal/kg coal averaging US$126/t in March before prices rose to US$132/t in early April, up from US$114/t in February, according to Wood Mackenzie data.
The refinery supplies more than 50% of Victoria’s and 10% of Australia’s fuel and can process up to 120,000bbls of oil per day, according to Viva Energy.
NewsProjects & Operations
Fire breaks out at one of Australia’s two oil refineries
A major fire broke out at Viva Energy’s (ASX: VEA) Geelong oil refinery just after 11pm last night, with the blaze now contained to the area of origin.Fire Rescue Victoria says all emergency response personnel and Viva employees had been accounted for and there had been no reported injuries. The Country Fire Authority says the fire is still being fought by fire fighters but there is no threat to the public.Federal Energy Minister Chris Bowen says the incident will impact petrol production, with diesel and jet fuel production continuing at the refinery.Minister Bowen told the ABC that the incident appears to be an accident and there were no suspicious circumstances, although the cause remains under investigation.Viva Energy said there was no immediate impact to fuel supply and the company expects to replace any lost production through its fuel import program. The refinery is now running on reduced production rates.The incident comes as Prime Minister Anthony Albanese visits Brunei and Malaysia as part of the Federal Government’s efforts to secure more fuel amid a global fuel crisis.At normal rates of consumption, Australia had 38 days of gasoline, 28 days of kerosene and 31 days of diesel as of April 7.WA has also moved to secure its own fuel security, with the WA Government striking a deal with Cambridge Gulf to purchase and store 4 million litres of diesel. The stockpile will be owned and controlled by the WA Government.
San,Franciso,,California,,Usa,?,February,3,,2024:,Waymo,Self
NewsOpinion
Off the Record: A lack of curiosity killed the cat
When looking for an answer, is the universal response not “just Google it”?Well, you may have noticed a rewiring of our curiosity instincts, with some now ditching the well-loved search engine for AI.In a world that worships productivity, AI is hailed by many as our saviour — increasingly automating boring and monotonous daily tasks, while humans reap the productivity gains.The internet era, ushered in by the likes of Google, expanded the breadth of information we can access at any given time. Like its predecessor, AI has revealed similar concerns around complacency and cognitive decline. The Google effect, or digital amnesia, is a tendency to forget information that is easily accessible on the internet. A 2011 study highlighted how this altered the way people process information: when we no longer use our memory to its fullest extent our neural pathways atrophy, resulting in shortening memory, reduced concentration and declining analytical skills. It could be seen as an erosion of critical thinking.The growing preference for ChatGPT as a search engine is taking this a step further. Instead of using these tools to free up space for thinking, some are now using it as a substitute.If you find that after less than a minute of mental effort your subconscious is nagging you to “just ask ChatGPT”, you may be letting go of your cognitive wheel and becoming a passenger to the “thoughts” of your LLM of choice.A recent MIT study, Your brain on ChatGPT, reported that excessive reliance on AI-driven solutions may contribute to cognitive atrophy like that seen in the Google effect. But the way people use generative AI is fundamentally different to the way they consume the internet. They aren’t looking up the definition of a word to use in an essay and then immediately forgetting it. They are outsourcing their thinking completely.Sure, cognitive outsourcing has its place. I’m from the generation that pretty much can’t get anywhere without a GPS. And I definitely don’t remember anyone’s phone number.But deep thinking was never meant to be efficient; it is a messy and often tedious process. That is what makes it so effective. When we problem solve, our brains traipse through complex challenges, wrestle with opposing sides, sift through possible outcomes and deduce the best course of action.Thinking is part of what makes us human. By removing this human element and streamlining this process with AI, we risk turning into passive consumers rather than active creators.Think of how Waymo, a self-driving car service in the US, is wreaking havoc for commuters.The AI can’t navigate basic — I mean, complex — scenarios like construction zones or how to not hit a cat crossing the street. When faced with such difficult manoeuvres, the cars end up blocking traffic or causing severe emotional distress for pet owners.From Google Maps to inbuilt assisted parking, anyone who drives a car these days outsources some of their thinking. I’m all for the added safety assists in my car, but I am far more comfortable in the driver’s seat than in the backseat of a driverless car.Though I do love my GPS, if the internet imploded today, I like to think I have enough critical thinking skills to read a map and follow street signs. And if world leaders decided to abolish AI tomorrow, I’d maybe be a little annoyed that I had to actually think about how to spell bureaucrat, but I’d get over it.Maybe it’s time we take back control of the wheel and get our brains to do the driving.I’m not suggesting that you refuse to interact with any form of AI and go off the grid. All that will do is isolate you from the future of the modern world. I am suggesting that if you’re struggling to make a decision or come up with an idea, try to remember you don’t need to ask the omniscient being in your computer to do it for you.And watch out for cats when you’re driving.Off the Record is The Australian Mining Review’s weekly column. 
The trial occupied 51 days of hearing, and more than 4000 documents were tendered into evidence as exhibits.
NewsPolitics & Regulation
Rinehart footed with royalty bill in billion-dollar dispute
Hancock Prospecting (HPPL) will have to pay royalties from Hope Downs to one of its biggest rivals after the WA Supreme Court upheld Wright Prospecting’s claim involving legacy deeds signed by Gina Rinehart's father. The decades-long legal battle has culminated in a ruling from Justice Jennifer Smith, who found HPPL is the beneficial owner of the Hope Downs share but upheld Wright Prospecting’s claim to royalties.The proceedings were concerned with formal agreements made decades ago between Lang Hancock, Peter Wright and Don Rhodes. A major consideration was who held the beneficial ownership of the Hope Downs and East Angelas exploration licenses when they were acquired in 1988 and 1989, and who now holds the beneficial interest in the 50% share of the Hope Downs mining lease. Following the ruling, Hancock Prospecting framed the central issue as ownership of the Hope Downs and East Angelas tenements, rather than “the far less significant issue of royalties”. “HPPL welcomes the WA Supreme Court decision which decisively confirms HPPL’s rightful ownership of these tenements firmly rejecting the baseless ownership claims of John, Bianca and Wright Prospecting Pty Ltd (WPPL) in their entirety,” executive director Jay Newby said in a statement. Hope Downs today generates hundreds of millions of dollars in taxes and royalties for the WA Government. “The remaining Rhodes royalty claim historically attributable to HPPL amounts to approximately $4m per annum for Rhodes and for WPPL approximately $14m per annum,” Mr Newby said. Hancock does not expect to shoulder that burden alone. Mr Newby said any amounts payable in royalties and interest are a shared responsibilities with Rio Tinto (ASX: RIO), its partner in Hope Downs.  “ a further royalty contribution in this regard, which will lessen contribution,” he said.  “We will consult with our partner and consider our position on these matters.” Counsel on both sides will have 21 days to lodge their appeals.
China eases BHP iron ore ban
InternationalNews
China eases BHP iron ore ban
China Mineral Resources Group (CMRG) has reportedly told several Chinese steel mills they can purchase some BHP (ASX: BHP) cargoes, relaxing restrictions that have been in place since September 2025.The state-backed iron ore buyer is reportedly allowing domestic plants to resume bidding for some BHP shipments denominated in US dollars, according to Bloomberg.The move follows a recent trip to China by BHP chief executive Mike Henry and incoming chief executive Brandon Craig where they met with executives at China Baowu, the world’s largest steel maker.“We have strong relationships with copper producers and steelmakers in China,” Mr Craig said in a LinkedIn post.“ produce around 130mt of steel a year… the reliable supply of quality Pilbara iron ore has made a big contribution to this remarkable growth story, and it will continue to do so in the years ahead.”CMRG was established in 2022 to shift the power dynamics between China and iron ore majors, including BHP, with the Chinese Government arguing that iron ore unfairly favoured the dollar-denominated seaborne market.Commercial negotiations between BHP and CMRG have been ongoing since September as CMRG continues to place pressure on BHP to accept new price-setting mechanisms. After BHP reportedly rejected the term, CMRG banned the import of Jimblebar fines grade before enforcing broader restrictions on all dollar-denominated cargoes.
Fortescue pushes fossil fuel elimination target to 2028
NewsProjects & Operations
Fortescue pushes fossil fuel elimination target to 2028
Fortescue (ASX: FMG) expects to save US$100m in fossil fuel costs next year as it fast-tracks its delivery of a fully integrated green energy grid. Unlike other large renewable hubs, which feed intermittently into national or other power systems, Fortescue’s off-grid system is expected to be the largest of its kind dedicated to decarbonising major industry. Fortescue anticipates the 290MW of installed renewable capacity to meet the fixed energy requirements of its ore processing facilities, enabling daytime “green processing” across its Pilbara operations, by early 2027. The system is expected to ramp up to power all of Fortescue’s operations for 24-hour periods completely without fossil fuels by the end of 2027 — well ahead of the companies previous Real Zero by 2030 target. Fortescue is expecting full completion of its Pilbara green grid by the end of 2028, which includes 1.2GW of solar capacity, more than 600MW of wind generation and 4-5GWh of battery energy storage. Fortescue says the deployment of its accelerated green grid infrastructure timeline has commenced within its approved decarbonisation budget.  At the completion of its decarbonisation program, Fortescue expects to demonstrate that eliminating fossil fuels is not only achievable but economically superior by achieving a further reduction in C1 unit costs of at least US$2 - 4/wmt. Fortescue sees a clear pathway to expand its green energy system by a further approximately 2GW of power generation capacity, firmed with 4GWh of advanced batteries. This would be enabled by Fortescue’s proprietary know-how, patented technologies and exclusively developed AI, and is expected to be delivered for less than US$2.5b.  The company anticipates this capacity could be progressively delivered over an 18- month timeframe — an unprecedented delivery of firmed energy generation in speed to market, capital costs and operating costs. The company has also marked another major operation milestone with the shipment of its 2.5 billionth tonne of iron ore. 
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