COVID-19

Virus, market force coal companies to adjust operational plans

Two companies' mines in US, South Africa affected

This article is 5 years old. Images might not display.

Mining Magazine is making some of its most important coverage of the COVID-19 pandemic freely available to readers. For more coverage, please see our COVID-19 hub. To subscribe to Mining Magazine, click here.

South Africa's Buffalo Coal has confirmed the country's Department of Mineral Resources and Energy has issued permission for it to restart mining - though only at 30% of its normal operating capacity.

The miner's operations, based in Dundee, KwaZulu Natal, had been under a national 21-day lockdown since March 24. In a separate same-day statement, the company said the national lockdown has been extended by another 14 days to April 30.

While the permission does not represent a restart to its normal operations, Buffalo Coal officials said it was set to recommence mining under compliant terms on April 14. 

"The company and its operations will continue to effectively manage and proactively respond to COVID-19 within the framework of the company's policies, and local and national health authority requirements and recommendations in order to minimise the risk of infection to our employees," it said.

Buffalo Coal has 100% interest in Buffalo Coal Dundee, a South African company which has a 70% interest in Zinoju; Zinoju has whole interest in the country's Magdalena bituminous mine and the Aviemore anthracite mine.

In the US, producer Alliance Resource Partners has updated its plan again, the first time since confirming March 30 it would temporarily cease all coal production at its Illinois Basin region mines through April 15.

The Oklahoma-headquartered miner said it committed previously to decisions that would hinge on its customers' business needs, and as such it has opted to extend its idlings.

"Based on available data and customer feedback as of today, Alliance has determined that anticipated coal supply requirements can be met currently from remaining inventory at its Illinois Basin mines, and has temporarily extended the previously announced cessation of coal production at those operations through April 26," it said.

Additionally, it will be supplying coal to its customers from existing inventory at the MC Mining operation in eastern Kentucky, which has been on a stoppage since early April. That will remain the case until coal production is transitioned to the new Excel No. 5 mine - a move expected to come next month.

"Coal production is continuing at ARLP's Northern Appalachian mines," Alliance officials added.

Expert-led Insights reports built on robust data, rigorous analysis and expert commentary covering mining Exploration, Future Fleets, Automation and Digitalisation, and ESG.

Expert-led Insights reports built on robust data, rigorous analysis and expert commentary covering mining Exploration, Future Fleets, Automation and Digitalisation, and ESG.

editions

Automation and Digitalisation Insights 2025

Discover how mining companies and investors are adopting, deploying and evaluating new technologies.

editions

Mining IQ Exploration Insights 2025

Gain exclusive insights into the world of exploration in a comprehensive review of the top trending technologies, intercepts, discoveries and more.

editions

Future Fleets Insights 2025

Mining IQ Future Fleets Insights 2025 looks at how companies are using alternative energy sources to cut greenhouse gas emmissions

editions

Automation and Digitalisation Insights 2024

Exclusive research for Mining IQ Automation and Digitalisation Insights 2024 shows mining companies are embracing cutting-edge tech