Hanam Canada Corporation

COAL MINE DEVELOPMENT

Hanam Canada is active in coal mine development and marketing. Our most recent projects include:

We have completed many coal sales and marketing assignments for clients in Canada, the US, Japan, Korea, and China. We have helped several companies do business with Canadian suppliers.

The market in Japan, Korea and Taiwan for hard coking coal is 106 million mt/y. Hanam Canada is familiar with sources of coking and thermal coal in British Columbia and Alberta, mining and processing, rail and truck transportation, and loading port costs. We have assisted foreign trading companies in purchasing Canadian coal. We have visited customers in Japan, Korea, China and South America to ensure western coal can be produced that meets the quality demands of these buyers. We have maintained excellent relationships with the leading coal producers. We are up to date on developing projects in BC and Alberta and can assist in sourcing competitive coal.

As a service to North American and Asian research and development companies, Hanam has carried out marketing assignments for clean coal combustion technologies including:

Coking coal supplies from western Canada have been consolidated under a new company, Elk Valley Coal. Five BC mines owned by Elk Valley Coal sell about 13 million t/y to Japan, 4 million t/y to Korea, and 1 million t/y to each of Taiwan, Brazil, and Europe. Hanam Canada has been assisting companies to purchase coal from new coking coal mines planned in British Columbia. Some of the largest potential customers for a new mine are:

Product quality requirements

Coke plants and steel mills have installed grinding, screening, pulverized coal injection, briquetting, preheating, and dry coke quenching systems that allow them to use lower quality coals.  Typically 10 to 15 different types of coal are used to minimize costs.  Nevertheless, coke must still be layered in the blast furnace with iron ore, and a strong coke facilitates production and reduces operating problems. For example, improved blast furnace performance and  reduced carbon dioxide and other emissions are the goals in technologies such as a multifunctional blast system, an oxygen blast process, optimum control of burden distribution, and gas injection into the shaft. A high quality coking coal makes steel production more efficient.

Customers expect the sulfur concentration to be less than 0.5% and phosphorus less than 0.04%.  The coal should yield low amounts of tar on combustion.  Typically coal is washed to reduce its ash content to about 9%.   But the lower the ash content the better.  The cost of fluxing agents used to help remove ash from the furnace and the cost of ash disposal can be reduced by minimizing the coal ash content.  A standard steel mill parameter that includes the coal ash is the total inerts in the blend.  The ash content must be reliable and consistent from shipment to shipment.  S

Coal that will produce a coke that remains strong even after it has been reduced in the blast furnace is highly valued.  Low alkali content ash (i.e. low sodium, potassium and calcium) is one of the indicators of a coal that produces strong coke.  The acidic to alkali components ratio is called the composition balance index (CBI) and should be above 1.5.  Coke strength after reduction values above 60% are favoured.  A related coke strength parameter is the free swelling index or FSI.  A hard coking coal has an FSI in the range 7-9.  Semi-hard coking coals have an FSI in the range 5-6 and semi-soft in the range 1-3.   A related term is the crucible swelling number.  A high drum index of above 85 is also important. Another key variable in forming a strong coke is maximum fluidity (MF), or plasticity, measured in the logarithm of dial divisions per  minute (ddpm).   

Another desirable quality is high reflectance, or "mean reflectance of vitrinite, (Ro)  which is related to the carbonization of coal.   A reflectance of 1.1 to 1.5 is considered medium, and greater than 1.5 is considered high. Coals should be low in moisture and have a low inherent moisture content.  The coal is dried before it goes to the coke oven and a low moisture content reduces energy costs.  The coal should be consistent in size distribution and easy to grind but have a low fines content.   

Coking Coal Costs and Competition

Australian mines, such as BHP's Peak Downs, supply about 55% of the market.  The current and developing BC mines produce coking coal of superior quality at very competitive costs.