Korab Resources, an Australian resource development and exploration company is currently evaluating portfolio of energy assets in Ukraine with a view to acquiring controlling interest in these assets. Eastern Ukraine assets, which are being evaluated and which are subject of the potential transactions, include a producing anthracite coal mine and other anthracite coal deposits, as well as shale gas and coal seam gas licences. The anthracite coal mine which is being evaluated is currently in production. It has its own railway spur and is connected by rail to a deep sea port terminal. The anthracite deposits under evaluation are ready to produce.
Korab explains that anthracite coal, “because of its rarity, increased use and limited capacity to increase supply, has seen strong price increases. Anthracite global reserves account for about 1% of total coal reserves making this one of the rarest forms of coal and leading to it being termed ‘black gold’ of the coal world. Anthracite is a hard, compact variety of coal that has a high lustre. It has the highest carbon count and contains the fewest impurities of all coals. Anthracite is the highest of the metamorphic rank, in which the carbon content is between 92% and 98%. The moisture content of fresh-mined anthracite is less than 15%. The heat content of anthracite ranges from 26 to 33 MJ/kg on a moist, mineral-matter-free basis.
“In China and India, anthracite plays a crucial role in steel making, particularly in pulverised-coal-injection (PCI) methods. The technology involves injecting very fine particles of pulverised coal at high rates into the chamber of the blast furnace as a fuel. Most modern furnaces are equipped with a coal grinding and coal injection system. The major incentive is cost savings. A coal grinding and injection system requires much less capital cost compared to a coke oven installation.
“In 2009 China (which produces about 50% of world anthracite) stopped exporting anthracite and by 2010 China had become a net importer of anthracite coal. Globally, anthracite is used as a superior and cleaner substitute to coke because of its physical and chemical characteristics.” The main applications where anthracite coal is used are:
- Carboniser for steel production
- Coke substitute in production and smelting of nonferrous metals
- Production of synthetic corundum in abrasive industry
- Carbon fuel for agglomeration of ores for frrous and non-ferrous metals
- Athracite refuse and mine waste is used for team electric power generation.
In addition to hosting large deposits of anthracite coal, Uraine has significant deposits of coal seam gas, and some of the richest shale gas deposits in Europe. Ukrainian shale gas deposits are estimated to have as much as 88 trillion cubic feet of recoverable shale gas reserves.