Coal

[sumisu]

KING COAL

by Elliott H. Gue

Editor, The Energy Letter

http://www.financialsense.com/editorials/gue/2007/0611.html

June 11, 2007

Coal is far and away the world's most-important source of electric power and has been for decades. There are two good reasons for this:

Coal is more abundant than oil or gas, and it's cheap.

Coal is a greater pollutant than either natural gas or emission-free nuclear power. But new scrubbing technologies and plant designs can minimize that pollution. And there's no way the world could replace all its coal-fired plant capacity in any reasonable time frame.

China, for example, is building nuclear plants at the most rapid pace of any country on Earth; most analysts believe, however, the country will actually see its reliance on coal increase in the next two decades. Bottom line: Coal is here to stay.

Coal stocks had a rough run in the latter half of 2006. But they're cheap and pricing in a great deal of negative news flow on coal prices. It's time to increase our exposure to the group.

Comprising the largest percentage of global electricity generating capacity, coal is still the biggest play on energy. One company of which I’ve long been a fan not only makes a great model in the industry but a great forecaster as well.

Global Supplier

There’s no single technology or power source that will be a magic bullet for meeting the world's electricity and energy demands.

Certainly, nuclear power will play a role and will account for a growing slice of global power generation. Long-time subscribers know that we've been profitably playing the nuclear theme for some time now.

And natural gas and renewables will also play a part. But when you get right down to it, coal still rules the grid globally. Talking about electricity generation without mentioning coal is a bit like ignoring the elephant standing in the corner of the room.

Energy Information Agency (EIA) data suggests coal currently accounts for roughly 30 percent of global generating capacity; the EIA projects that coal will roughly maintain that share over the next 23 years. Because electricity demand globally is rising quickly, maintaining that steady share for coal means a 79 percent jump in global coal-fired capacity during this time frame. And global coal capacity is already higher than for any other single type of plant.

But it's important to note that the figure above massively understates the importance of coal to the global grid. As I've highlighted before in my newsletter The Energy Strategist, there's a huge difference between capacity and generation: Just because a utility may own a plant with 1,000 megawatts of capacity doesn't mean that plant is operating at that capacity at all times. In fact, that's highly unlikely to be the case.

This brings us to the important distinction between baseload and peaking power. Baseload power refers to the base demand of electricity that needs to be available for around-the-clock usage.

In other words, even at 3 am, there’s some demand for power and generators must meet that usage.

Of course, power demand varies throughout the day. When demand exceeds baseload levels, generators fire up peaking plants to meet those surges of demand. This capacity can be shut down again when power demand slackens.

Although this is a slight overgeneralization, coal and nuclear plants are examples of common baseload capacity generators. Both types of plant can be run around the clock and produce predictable, continuously available electricity supply. In contrast, natural gas is often used in peaking plants.

Gas-fired turbines can be more easily and quickly switched on and off than coal or nuclear facilities; capacity can be quickly brought to bear when demand rises. But gas-fired power tends to cost more than coal or nuclear power; it's perfect for meeting those demand spikes but not for 24-hour generation.

Wind and solar power, at least in reference to the modern grid, aren’t ideal baseload power sources either. That's because the power outputs from such plants aren't constant; those outputs depend largely on weather conditions in a given area.

The long and short of this is that baseload power plants are run more consistently and continuously than peaking plants. Therefore, the actual output from baseload plants tends to run closer to their maximum rated capacity than for peaking plants.

This is why coal plants account for only 32 percent of US installed capacity but produce more than 52 percent of the nation's power.

Meanwhile, gas-fired capacity in the US is more than 40 percent of total generating capacity; however, gas-fired plants account for less than 20 percent of US power output.

This is precisely why coal and coal producers have been and will remain a key investment theme within The Energy Strategist. My favorite play on coal remains Wildcatters Portfolio holding Peabody Energy. The company's recent earnings release and conference call highlighted some major trends at work in the coal industry.

The first point that struck me in listening to Peabody's call is just how much this company has morphed in the past five years.

Management pointed out that five years ago only 1 percent of the company's earnings base came from international operations; now that figure is closer to 33 percent. That's a massive jump in just the past few years.

More Bullish Signs for Peabody

Consider the following factors:

Declining Production In The East--Recall that the region known as Central Appalachia (CAPP) is a major, important, coal-producing region of the US. It's also very mature and has been exploited for more than a century. Coal seams in the region are getting thinner, and a more-specialized and skilled labor force is needed to exploit the underground mines common in the region. Bottom line: Production costs are relatively high.

As coal prices soared in 2004 and 2005, companies started up more marginal, high-cost mines. A host of smaller operators in the region struggled to bring production on-line and take advantage of rising prices.

But many of these Eastern mines and the smaller, undercapitalized producers started bleeding cash when coal prices began falling last year. Mines that made economic sense at $60 per short ton were big money-losers under $40 per short ton. To make matters worse, labor, energy and raw materials costs continued to rise last year; that made mining operations more expensive in general.

The final result of this is that a number of these smaller, higher-cost producers folded and abandoned their mines. This has resulted in a meaningful production decline from the CAPP region.

Overall, Eastern mine production is off more than 7 percent over the past year; this more than offsets a small increase in Western Coal production.

Mountaintop Permitting Decision--Many mines located in CAPP are underground mines; miners actually enter a network of shafts. But some operations are what are known as mountaintop mines; producers simply scrape the earth and rock from the top of a mountain to expose the coal seams. The economic benefit of this practice is that it's often cheaper than underground mining.

The problem traditionally has been that all that dirt and rock—known as overburden—must be put somewhere. Typically, miners would get permits to dump this material into a neighboring valley. As you can imagine, environmental groups aren't terribly enthralled with this idea; one group recently sued and challenged the validity of such mountaintop removal permits.

The judge ruled that the permits granted to several mining firms were invalid because the overburden would permanently destroy streams. This has knock-on effects for other mining projects that now won't be able to get permits. Bottom line: This decision will further limit production from CAPP and tighten coal supplies. That's bullish for coal prices and for some coal-mining firms that weren't seriously or directly affected by the decision.

Seasonal Strength--The peak demand season for natural gas is the wintertime, when consumers look to heat their homes. This is when we typically see gas inventories decline.

In recent years, gas has become more heavily used in power plants, which has resulted in a second period of high demand--the heat of midsummer. But, at this time, the winter heating season trumps the summer cooling season when it comes to gas.

Not so with coal. Coal, as noted above, is the workhorse for the US electric grid. When electricity demand is high, utilities tend to draw down their coal stockpiles. Summer brings heavy cooling demand and high electricity usage.

Some will remember that, last summer, electricity demand soared to record levels during the hottest days of July. This is a key time for the coal market. Coal stocks have historically tended to rally heading into summer in anticipation of this period of high demand.

Inventories Likely Declining-- Coal inventory data from the EIA is less timely than for natural gas. In the inventories chart above, it appears that stocks are just coming off their highs.

But the coldest weather this year was in February and March--a period for which we don't yet have complete inventory data. It's likely, however, that the cold snap brought with it higher demand for coal just as it brought higher gas demand. And with production down in much of the US, inventories have likely continued to decline.

Finally, it's worth mentioning that current coal inventories only look excessive when compared with the past few years’ worth of data--years when coal stocks were considered ultra-low. On a historical basis, coal stocks in the US really aren't all that high for this time of year.


© 2007 Elliott H. Gue

[Arctec]

JRCC

[Arctec]

Grande Cache Coal* (GCE : TSX : $1.25), Net Change: 0.33, % Change: 35.87%, Volume: 3,537,794
Hillsborough Resources (HLB : TSX : $0.55), Net Change: 0.06, % Change: 12.24%, Volume: 659,008
Walking across hot burning coals is no big deal for some people. The Times of India reports that Coal India is exploring
opportunities to acquire steel-grade coking coal mines in Canada through a joint venture route. The company will go ahead with
its Canada plan once it gets assurance from Steel Authority of India Ltd. (SAIL) and Rashtriya Ispat Nigam Ltd. (RINL). SAIL
is now testing a small consignment of Canadian coking coal and the results are expected within the next month. If the grade is
found satisfactory for Indian steel firms, then Coal India will bid for mines in Canada, which could well be the first overseas
project of Coal India. A high-level delegation of Coal India recently visited few coking coal mines and met Canadian
developers. The paper also reports that, Coal India, SAIL, RINL, National Thermal Power Corp. (NTPC) and National Mineral
Development Corp. (NMDC) are forming a public sector giant for acquiring overseas mines. India currently produces 16
million tonnes of steel-grade coking coal but the demand is close to 40 million tonne.

[johnlw]

Fording hopes steel signals turnaround
Stock down 40% from 52-week high

Shaun Polczer
Calgary Herald

Wednesday, May 02, 2007

Fording Canadian Coal Trust is hoping a rebound in global steel markets will help to reverse sagging fortunes in 2006, the company's CEO said Tuesday.

"Today the steel market is very strong, with very strong prices for their steel products and very high rates of production. We like that very much," Boyd Payne said following the company's annual general meeting in Calgary.

Fording holds a 60 per cent interest in Elk Valley Coal, the second-largest metallurgical coal producer in the world, with West Coast mining giant TeckCominco holding the rest.

Unlike thermal coal used to generate electricity, Fording is only one of a handful of firms that produce hard coke used in blast furnaces to make steel.

Four of the top five producers that control more than two-thirds of the global supply are based in Australia, with Fording as the sole exception.

After a banner 2004 that saw unitholders enjoy 100 per cent returns, growth slowed and eventually declined starting in 2006. Fording's units, which gained three per cent or 76 cents in Toronto to close at $27.32 on Tuesday, are down about 40 per cent from a 52-week high of $42.20.

In April, the company reported lower than expected first-quarter results after particularly bad weather in British Columbia lowered production from the company's Elk Valley and Cardinal River mines.

Windstorms in the early part of the year played havoc loading offshore cargoes. Fording was also hard hit by rail strikes that impeded transportation to the coast.

The setbacks came on top of a higher Canadian dollar, lower steel prices and weaker demand, particularly in China.

Payne warned that a larger than expected snow pack in the high mountains could put a further damper on spring coal output.

In addition, the company is suffering the same cost pressures associated with shortages of manpower and materials faced in the oilpatch.

The lower quarterly numbers prompted the trust to slash distributions by almost a third while it rides out the down cycle.

Chairman Michael Grandin told the meeting the federal government's decision to revoke trusts' tax-advantaged status capped off the company's annus horribilis.

"The past year hasn't been that much fun," he said. "But we've been through a number of downturns before."

Also looming on the horizon are provincial and federal government-mandated efficiency targets for greenhouse gas emissions.

Payne noted that Fording's emissions footprint is lower than comparable thermal coal producers, but said the company would struggle to meet the new benchmarks nonetheless.

The biggest chunk of the company's operating costs come from earth moving and transportation.

"The biggest thing for us is to improve efficiencies," he said. "That's the key thing for us. We need to look at the efficiency of our operations."

Despite the gloom, Payne said Fording is looking for emerging markets like Brazil to fuel a rebound in 2007.

"We have all the things we need to succeed," he said. "Our future is very strong."

[e-mail]

[johnlw]

Fording Canadian earns $77-million in Q1 2007

2007-04-23 21:54 ET - News Release

Mr. Boyd Payne reports

FORDING CANADIAN COAL TRUST 2007 FIRST QUARTER EARNINGS RESULTS

Fording Canadian Coal Trust is releasing its first quarter 2007 results. Cash available for distribution for the quarter was $77-million (53 cents per unit) compared with $202-million ($1.37 per unit) in 2006.

Net income from continuing operations was $77-million in the first quarter compared with $165-million in the same quarter in 2006. Net income from continuing operations before unusual items and future income taxes was $78-million in the first quarter compared with $197-million in the same quarter of 2006, which reflects lower sales volumes and lower U.S.-dollar coal prices for the 2006 coal year compared with the 2005 coal year, higher unit cost of product sold, and lower gains realized on foreign exchange forward contracts.

"Despite a difficult first quarter, the outlook for the remainder of the year remains positive," said Boyd Payne, president, Fording Canadian Coal. "Harsh winter weather led to insufficient coal railed to the ports resulting in reduced sales volumes and lower production levels. Looking ahead, we are relying on improved rail performance to move our product to the ports and I remain confident that we can meet our annual guidance targets."

Highlights for the first quarter:

* Elk Valley Coal settled prices with approximately 90 per cent of its customers for the coal year commencing April 1, 2007, at an average price of $91 (U.S.) per ton.
* Cash available for distribution was $77-million for the quarter, or 53 cents per unit, down from $202-million, or $1.37 per unit, in 2006. Distributions to unitholders for the quarter were 65 cents per unit compared with $1.40 per unit in 2006. The first quarter distribution takes into consideration the balance of underdistributed cash from the prior year of 11 cents per unit.
* The average realized coal price in the first quarter of 2007 was $124 per ton ($105 (U.S.)). This was down from $152 per ton ($122 (U.S.)) in the first quarter of 2006, and reflects lower coal year prices that were effective April 1, 2006, and the trust's decision not to designate its foreign exchange forward contracts as hedges under the new accounting rules for financial instruments that became effective Jan. 1, 2007. Realized hedging gains contributed $11.50 per ton to the average Canadian-dollar sales price in the first quarter of 2006.
* Coal sales volumes of 2.8 million tons for the first quarter were 10 per cent lower than 2006 levels. Critically low port inventories at the beginning of the quarter and a continued shortfall in the volume of coal that the company was able to rail to the ports combined to cause this decrease. The shortfall in rail service was due primarily to the harsh winter weather in British Columbia.
* Elk Valley Coal's unit cost of product sold increased by 19 per cent to $45.80 per ton for the first quarter of 2007 compared with $38.60 for the first quarter of 2006. The increase is primarily due to unplanned shutdowns and reduced production in the first quarter of 2007 in response to rail transportation problems, higher labour costs due to settlements of certain long-term union labour contracts in 2006, and inflation in the costs of fuel, tires and other consumables. The trust's mines continued to move waste material, despite reduced production, which contributed to higher unit costs in the quarter; however, this activity is expected to contribute to lower unit costs in the remainder of the year.
* Elk Valley Coal's unit transportation costs were unchanged quarter over quarter. Demurrage costs increased by approximately $2 per ton as the rail transportation problems in the fourth quarter of 2006 and the first quarter of 2007 resulted in longer vessel wait times. Higher vessel demurrage costs were offset by a decrease in rail costs due to lower contractual rail rates than in the first quarter of 2006.
* In March, 2007, the trust entered into $950-million (U.S.) of foreign exchange forward contracts at an average forward exchange rate of 87 U.S. cents, all of which will mature before March 31, 2008. The trust enters into foreign exchange forward contracts when sales contracts for the coal year are settled. The forward contracts mature throughout the coal year in order to fix the rate at which the trust's share of anticipated receipts of U.S. dollars from coal sales, net of U.S. dollar expenses, are exchanged into Canadian dollars. This helps reduce the risk of variability of the trust's distributions arising from changes in the exchange rate for the U.S. and Canadian dollars.
* An agreement was reached for the sale of NYCO, which is expected to close in the second quarter of 2007. NYCO is classified as a discontinued operation in the accompanying financial statements.
* The trust implemented a premium distribution and distribution reinvestment plan. The plan provides a means for eligible unitholders to reinvest distributions by the trust in new units, or to exchange those new units for a premium on the cash distribution. Approximately 450,000 trust units were issued in April, 2007, in lieu of cash distributions of approximately $11-million.

Conference call and webcast

A conference call to discuss these results will be held Tuesday, April 24, at 8 a.m. (Mountain Time), 10 a.m. (Eastern Time). To participate in the conference call, please dial 1-866-540-8136 or 416-340-8010 approximately 10 minutes prior to the call. A live and archived audio webcast and podcast of the conference call will also be available on the trust's website.

 
         CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME 
              (in millions of dollars except per share amounts) 
  
                                                          Three months ended 
                                                                    March 31,                                
                                                              2007      2006 
  
 Revenues                                                 $  350.5  $  473.3 
 Expenses 
 Cost of product sold                                        130.0     119.9 
 Transportation                                              107.4     117.6 
 Selling, general and administration                           5.7       7.6 
 Depreciation and depletion                                   12.1      11.1 
                                                          --------  -------- 
                                                             255.2     256.2 
 Income from operations                                       95.3     217.1 
 Other income (expense) 
 Interest (expense)                                           (5.0)     (3.8) 
 Other items, net                                             (0.8)    (30.0) 
 Income before taxes                                          89.5     183.3 
 Income tax expense                                           12.7      18.1 
 Net income from continuing operations                        76.8     165.2 
 Income from discontinued operation                            0.2       0.1 
 Net income                                               $   77.0  $  165.3 
 Other comprehensive income (loss)                            (0.7)      0.1 
 Comprehensive income                                     $   76.3  $  165.4 
 Basic and diluted amounts per unit 
 Net income from continuing operations                    $   0.52  $   1.12 
 Net income from discontinued operation                   $      -  $      - 
 Net income                                               $   0.52  $   1.12

We seek Safe Harbor.

[Tackler]

Howard Ratti
Position: Director, President and CEO
Mr. Ratti is a senior mining executive with over 28 years national and international experience, and has a global organizational background in the United States, Canada and the United Kingdom. Mr. Ratti is the former senior vice-president at Luscar Ltd., Canada's largest coal company. Before joining Luscar he was vice-president eastern operations with Andalex Resources Inc. of Louisville, Kentucky.

Mr. Ratti holds a Bachelor's degree in Civil Engineering from Loughborough University in the United Kingdom and is both a registered P.Eng. in Canada and a C.Eng. in the United Kingdom. He will also act as the Company's Qualified Person under National Instrument 43-101.


Ken Z. Cai
Position: Director*
Dr. Cai has served as president, chief executive officer and a director of Minco Mining & Metals Corporation since February 29, 1996. Dr. Cai holds a Ph.D. in mineral economics from Queens University in Kingston, Ontario, Canada. Dr. Cai, a Chinese national now living in Canada, has 20 years of experience in mineral exploration, project evaluation, corporate financing and company management. Dr. Cai has been responsible for negotiating the property agreements in China through his contacts in the Chinese mining communities. Dr. Cai has served as a director of several publicly-traded and private Canadian and Chinese companies. He is currently the President & CEO of Minco Silver Corporation. He joined Gobi Gold's Board in August, 2005.


Wade K. Dawe
Position: Director*
Wade K. Dawe is the President and Chief Executive Officer of Linear Gold Corp. In 2003, he successfully negotiated the purchase of an extensive property portfolio held by Mount Isa Mines (MIM) in Central America, and since then has raised over $35 million for the company. From February 2000 to September 2003, he served as Vice President and a Director of the Corporation.

Mr. Dawe has been an entrepreneur in Canadian mining and venture capital industries since 1994. With extensive contacts in the business and investment banking communities he has worked and consulted for a number of successful publicly traded Canadian companies and has raised millions of dollars in equity financing.

He is a founding shareholder and board member of TSX Venture listed Keeper Resources Inc., a Calgary-based producer of oil and gas, and also serves on the Board of TSX listed Minco Silver Corporation, and ImmunoVaccine Technologies Inc.

Mr. Dawe has a Bachelor of Commerce degree from Memorial University of Newfoundland (MUN) 1992. A native of Newfoundland and Labrador, he now resides in Halifax, Nova Scotia.


Howard Balloch
Position: Director*
Mr. Howard Balloch, the former Canadian ambassador to China and Mongolia has been appointed to the Company's board.

Mr. Balloch, Founder and President of The Balloch Group, served for more than five years as Canada's Ambassador to China, Mongolia and the Democratic People's Republic of Korea in 1996 after a 20-year career in the Government of Canada's Department of Foreign Affairs and International Trade. A specialist on Pacific Rim nations, Mr. Balloch helped to develop bilateral exchanges between Canada and China and led the promotion and protection of Canadian interests in China. After retiring from the government's foreign service in July 2001, he continued to support Sino-Canadian business cooperation through his Beijing-based private investment and consulting business, The Balloch Group, and as president of the Canada-China Business Council. Mr. Balloch earned his Bachelor's and Master's degrees from Montreal's McGill University and pursued doctoral studies at the University of Toronto and the Fondation Nationale de Sciences Politiques, Paris.

He serves on a number of corporate boards and is Adjunct Professor of International Business at the University of British Columbia.


Mar Bergstrom
Position: Vice-President/Corporate Secretary and Acting Chief Financial Officer
Ms. Bergstrom has served as an officer and director of several public companies over the past 20 years. She is a native of Houston, Texas and attended the University of Texas for two years. She is the President of LGM -- Lions Gate Management Ltd., a consulting company providing corporate services to public companies.

[Tackler]

ELC

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ERD

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CCJ

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GCE

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WTN

[Tackler]

Frick

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HLB ...

[Tackler]

Erdene completes Mongolia technical report

2007-03-05 09:29 MT - News Release

Mr. Peter Akerley reports

ERDENE PROVIDES UPDATE ON COAL PROJECTS AS THEY APPROACH DEVELOPMENT MILESTONES

Erdene Gold Inc. has provided an update on its coal projects in Mongolia and Eastern Canada.

The company recently completed a 2006 technical report on the Galshar coal project in Mongolia and results to date indicate the potential for a large thermal coal resource within 65 kilometres of rail lines with ready access to China, 200 kilometres to the south. The Galshar property is 100 per cent owned by Erdene and Xstrata Coal Canada Limited can earn a 75-per-cent interest by fully financing the project through completion of a feasibility study.

In Eastern Canada, underground tunnel refurbishment at the Donkin coal project in Cape Breton, N.S., has progressed to the 1,800-metre mark while a prefeasibility report is expected by the end of March, 2007. Erdene holds a 25-per-cent interest in the Donkin project with partner Xstrata Coal Donkin Limited.

"Both the Galshar and Donkin coal projects are reaching significant project milestones," said Peter Akerley, president and chief executive officer. "At Galshar, Erdene and Xstrata Coal are ready to commit to a significant resource delineation drilling program designed to establish a NI 43-101-compliant resource estimate. At Donkin, tunnel preparation is well under way to establish access to this very large resource."

Galshar coal project, Mongolia

Based on the 2006 drilling results, Erdene and Xstrata Coal are planning to move the project to the resource delineation stage. A 30-hole drilling program is planned for the second quarter of 2007 to further define the coal seams intersected to date and confirm the coal quality. It is anticipated that this program will culminate in the establishment of an NI 43-101 compliant resource estimate for the Galshar coal project. Erdene believes that Galshar has the potential to be the site of a large-scale open-pit operation of thermal grade coal with a low stripping ratio.

Eleven holes, with an average spacing of greater than one kilometre and totalling 1,093 metres, have been completed in the Galshar basin by Erdene. Drilling has identified one main coal seam with an average thickness of 21 metres (maximum thickness of 46.6 metres) overlain by an additional five to 10 seams, each one to two metres thick. Drilling by Erdene in 2006 confirmed the coal seams extend at least 3.6 kilometres to the northeast of Erdene's 2005 drill hole CDD-01 that returned a 21.8-metre section of greater than 10,000 British thermal units coal with low ash (6 per cent) and low sulphur (0.4 per cent). Hole GHR-03, located 2.2 kilometres northeast of hole CDD-01, intersected a 17.4-metre section of the main coal seam that averaged greater than 8,000 BTU per pound. Drilling results from 2006 and historic exploration reports suggest additional seams may also occur east and south of the area currently being explored. Erdene holds a 100-per-cent ownership of three exploration licences totalling 97,000 hectares which cover a large portion of the 4.7-by-1.8-kilometre coal-bearing basin at Galshar.

Erdene continues to evaluate other coal opportunities on its licences as well as on other properties located in central, southern and southeastern Mongolia. Xstrata Coal has an option to earn a 75-per-cent interest in any Erdene owned or acquired coal project located in Mongolia by fully financing the project through completion of a feasibility study.

Donkin coal project, Cape Breton

Work on the Donkin coal project is progressing on schedule with an internal prefeasibility study currently being reviewed by management and the report is expected by the end of March, 2007. McElroy Bryan Geological Services has been contracted to complete a resource estimate and quality assessment of the project, marketing studies are under way and consulting engineers CBCL Limited are overseeing site engineering and permitting. A preliminary surface site layout has been prepared with a number of coal transport options being assessed.

There are currently 14 full-time equivalent employees and local contractors on site involved in the tunnel dewatering process which is at the 1,800-metre mark or approximately half of the 3.5-kilometre length of two parallel tunnels. Since the pumping started on Nov. 13, 2006, 150 million litres has been safely discharged into the adjoining settling ponds. Additional pumping capacity has been added to accelerate the dewatering process. Clearing and refurbishment of the tunnels are well under way with debris from the main access tunnel being removed as dewatering progresses. The second access tunnel is relatively free of debris. Access to the targeted Harbour Seam coal face is anticipated during the second quarter of 2007 which will be followed by an extensive in-seam exploratory drilling and bulk sampling program. To date, the activities are on schedule and on budget for the project and conditions in the tunnels are good, as expected.

The Donkin Coal Alliance was formed to secure the exclusive right to the Donkin coal project and to explore, assess, study and, if feasible, develop the Donkin Coal resource block into an operating coal mine. The Donkin Coal Alliance began its exploration program and evaluation and scoping study in June, 2006, in order to obtain enough information to make a decision as to whether or not to develop a mine.

With an estimated 200 million tonnes of thermal and metallurgical coal, the Donkin Coal resource block is considered the last remaining undeveloped block of high-quality coal offshore Cape Breton. The continued growth of the Atlantic seaborne coal market bodes well for future marketing of Donkin coal. The evaluation program is being managed by Xstrata Coal Donkin Management Limited and is expected to be completed in approximately 14 months, at which time a decision will be made whether and how to develop the Donkin resource for commercial production.

Qualified person

This press release has been prepared under the supervision of J.C. (Chris) Cowan, PEng, who serves as the qualified person under National Instrument 43-101. All coal samples were analyzed by the Central Geological Laboratory in Ulan Bator, Mongolia. In addition to internal checks by the Central Geological Laboratory, the company incorporates a QA/QC sample protocol using prepared standards, sample splits and duplicates.

[december]

It is looking real good for WHD........the stock is being accumulated everyday.........

[sumisu]

West Hawk Development Corp. and Radar Acquisitions Corp. Complete an LOI to Develop a Clean Coal Gasification Project in Colorado, USA

March 16, 2007 - Vancouver, B.C.: West Hawk Development Corp. (the "Company") (TSX.v - WHD, Frankfurt - H5N) is pleased to announce that it has entered into a Letter of Intent (LOI) with Radar Acquisitions Corp. ("Radar") (TSX.v - RAC) for initial testing and joint participation in the development of a Colorado coal property that is intended to utilize environmentally friendly clean coal gasification technology to transform coal and other potential feedstock to gasification products, with the objective of capturing CO2 and Mercury.

The terms of the LOI require the Company to sample and test the coal for gasification ability. Upon a successful outcome of the testing, the Company will acquire the rights to 50% of the project to become joint development partners with Radar, who will retain an overriding coal royalty of US $0.10 per ton in the project.

The property is located adjacent to interstate highway I-70, 90 miles from Denver, Colorado, a strategic hub for the products to be distributed throughout the US. An active railroad with a rail siding, and a pipeline, pass through the property.

Radar has filed a NI 43-101 report on the property, and is available for review at http://www.sedar.com. Past geologic work on the property has also been performed by a division of Union Pacific, and mine planning data exists from more than 400 drill holes on the property.

West Hawk and Radar intend to immediately begin sampling and testing the coal for gasification viability and have already contacted Sasol/Lurgi for quotes and testing time. The final details of the West Hawk-Radar joint venture, including definitive documentation, will be consummated once these initial tests are successfully and satisfactorily completed.

Both of the Board of Directors of West Hawk Development Corp. and Radar Acquisitions Corp. have approved the transaction, and approval has also been obtained from the coal lessor for the assignment of the coal leases to the Company's and Radar's joint development venture.

West Hawk's objective will be to place its Northwest Territories coal gasification project and its interest in the Colorado Coal Gasification Project into two separate subsidiaries, both of which will focus specifically on the development of a clean coal gasification project. With very similar technologies envisioned for these clean coal projects, placing these assets into their own subsidiaries will allow the company to maximize the value of these assets for our shareholders.

West Hawk Energy, USA, will continue to focus specifically on deep well gas, and is expected to bring its first well from the Figure Four project into production next week.

Both coal projects are lignite in classification and expect to use proven technology to produce coal gasification products such as pipeline quality gas - CTG, liquids - CTL, and power - IGCC. The product stream will be finalized after successful completion of the gasification tests and completion of the market analysis. The objective is to produce these products while meeting the Kyoto clean air requirements and focusing on extracting CO2 and mercury.

The gasification technology is intended to be located at the coal mine site thereby eliminating the cost of transportation and ultimately passing the cost savings to our shareholders.

Dr. Wm. Mark Hart, Co-Chairman, President and CEO of West Hawk Development, and Dr. John Reeves Jr., CEO of West Hawk Energy, have been working to bring this project to West Hawk Development over the last 8 months and are extremely excited about this potential opportunity for the respective shareholders of West Hawk and Radar.

Additional information will be available on our website at www.westhawkdevelopment.com.

On behalf of the Board of Directors,

"Dr. Wm. Mark Hart"
Dr. Wm. Mark Hart, Co-Chairman, President and CEO

"Chris Verrico"
Chris Verrico, Co-Chairman

THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement with EnCana Oil & Gas (USA) Inc.; the Tulita coal property in the Northwest Territories; the Groundhog coal property located in northwest British Columbia; and the Ellesmere Island, Nunavut Territory coal property.

Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 51-101 Report on the Figure Four property. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Contacts
North America
West Hawk Development, [phone]
Email: [e-mail]

company website: http://www.westhawkdevelopment.com/

[Arctec]

Coal faces bleak future in global warming fight: MIT study

Wednesday, March 14, 2007
WASHINGTON — The coal industry faces a bleak future unless ways are developed on a commercial scale to capture and store carbon dioxide in the campaign against global warming, according to a study released Wednesday.

The report by the Massachusetts Institute of Technology says coal, which accounts for half of U.S. electricity production, will remain the fuel of choice to produce electricity in the United States because it is relatively cheap and abundant.

But if carbon limits are imposed to address climate change, that could change unless the government and industry develop a program to capture and store the tens of millions of tons of carbon dioxide that now spew from coal-burning smokestacks into the atmosphere.

Carbon dioxide is the principal so-called “greenhouse” gas because as it concentrates in the atmosphere it creates a blanket-like effect that many scientists believe is warming the Earth. While carbon dioxide is released in the burning of all fossil fuels, coal produces greater amounts of it because of the fuel's high carbon content.

A central message of the MIT report is that carbon capture from coal burning is technically and economically possible, but that it has yet to be proven on the broad commercial scale that would be needed if limits on carbon emissions are imposed.

The Democratic-controlled U.S. Congress is considering a number of proposals that would impose a cap on greenhouse gas emissions, primarily carbon dioxide, along with various provisions aimed at reducing the economic cost.

“Coal will continue to be used to meet the world's energy needs in significant quantities,” said the MIT report. With carbon capture programs more coal would likely be used in 2050 than is used today but global carbon emissions would likely be only slightly more than today, the study said.

The MIT report said its doubtful that either China or India will impose carbon controls any time soon, although both countries are rapidly expanding coal use in power and industrial plants.

Neither China nor India are likely to take such actions without the United States moving to curtain carbon emissions first, the study said. Eventually, carbon capture from coal burning will be crucial for both China and India if climate change is to be addressed.

And the United States will have to take the lead, the study concluded.

“If the coal industry wants to protect itself from a very bleak future ... they have a great interest in seeing carbon dioxide sequestration practically demonstrated now,” John Deutch, co-chairman of the MIT panel that wrote the coal report, said in an interview.

Mr. Deutch, a former CIA director under former president Bill Clinton and senior official in both the Defence and Energy departments, said the government is not moving fast enough to develop demonstration projects capable of capturing and depositing in deep geological formations as much as a million tons of coal a year.

The report said three or four such demonstrations projects should be developed as soon as possible.

Bush has said carbon capture and sequestration is a top energy priority. The government hopes to have an experimental coal burning power plant called FutureGen built by 2012 capable of capturing and storing underground a million tons of carbon a year.

But the MIT report said more is needed and that the Energy Department's budget for clean coal programs “falls far short of what is required” to ensure coal remains a primary fuel in a carbon-constrained world.

The administration last month asked Congress for nearly $600-million (U.S.) for coal technology research for the next fiscal year, including $79-million for carbon sequestration and $108-million for the next instalment in FutureGen.

The report also urged that government tax breaks, loan guarantees and other assistance be directed only at new coal plants that include carbon capture and sequestration and to programs aimed at retrofitting other plants with such technology.


--------------------------------------------------------------------------------

[Arctec]

B.C. border mine hits U.S. challenge

Sunday, March 11, 2007
HELENA, Mont. — A coal mine proposed in British Columbia and fought in Montana as an environmental threat that could extend south of the border is being challenged by the U.S. administration.

The project that Cline Mining Co. wants to develop just north of Glacier National Park could lead to environmental harm in the United States, the U.S. State Department said in a letter to the B.C. government.

Montana officials have contended the open-pit mine stands to jeopardize water quality in the trans-boundary Flathead area. Besides Glacier, that area includes sprawling Flathead Lake and other waters popular for recreation. The Flathead River system spans the international border and the north fork of the river is Glacier's western boundary.

The Flathead basin is “an area of unique and internationally recognized environmental importance,” Edward Alex Lee, Canadian affairs director in the State Department, said in the Feb. 23 letter.

He said the mine could cause “significant adverse environmental effects” in the United States.

Kate Thompson, spokeswoman for the British Columbia Ministry of Environment, did not comment immediately Saturday. Ms. Thompson said she intends to discuss the letter with Garry Alexander, the provincial official to whom it was addressed.

Efforts to reach Cline for comment Saturday were unsuccessful.

In a weekend statement, U.S. Senator Max Baucus, a Montana Democrat, said he is “glad federal officials are finally engaging — in a big way — to help us stop this mine.”

“Montanans are rightfully worried that mining in British Columbia could have devastating consequences to fish, wildlife and our growing recreation industry in the Flathead.”

Although the State Department's letter is encouraging, Mr. Baucus said, he still is requesting the department call for an investigation by the International Joint Commission, a Canada-U.S. panel charged with preventing and resolving disputes under a 1909 water treaty.

In 2005, British Columbia gave Cline a permit for exploratory work to determine whether the coal mine should be developed. Less than a year earlier, a proposal for another mine just north of Glacier was scrapped after Montana raised concerns about potential harm to water downstream.

In the 1980s, a proposal for coal mining north of Glacier ended after the International Joint Commission initiated an assessment of the mine's potential effect on Flathead water and fish. The commission found the project likely to violate the water treaty.

Montana Governor Brian Schweitzer said this winter federal intervention in the latest border-mine dispute likely would be necessary, because it appeared efforts toward collaboration by the state and province were not succeeding.

[Arctec]

Fording Canadian Coal Trust (FDG.UN : TSX : $25.07)
Distribution below expectations
TD Newcrest downgrades to "reduce", 12-month target price is cut to $23.00

[Arctec]

U.S. CO2 legislation threatens future of coal in power generation
By: Dorothy Kosich
Posted: '16-FEB-07 07:19' GMT © Mineweb 1997-2006



RENO, NV (Mineweb.com) --
Standard & Poor’s affirmed Wednesday that carbon dioxide emissions caps now being considered by the U.S. Congress could make domestic coal plants more expensive to build and operate.

Although coal prices have dropped significantly since early 2006, S&P’s analysis suggests that “we see moderation, not disaster in coal prices going forward.” Primary Credit Analysts Thomas Watters emphasized that “coal’s position in the domestic energy spectrum is well entrenched with abundant reserves and its lower cost versus other competing fuels.”

Watters suggested that coal’s potential to be used as an alternative fuel source should also be considered. Therefore, he stressed, “Longer-term fundamentals remain intact and should be supportive of coal prices.”

Nonetheless, S&P claimed that “not all coal producers will enjoy the party. Credit quality for Central Appalachia coal producers remains largely negative given the many issues faced by producers in that region. Extremely difficult geologic and operating conditions, an inexperienced labor force, legacy liabilities, and onerous permitting issues have combined to sharply increase operating costs, rendering many Central Appalachia producers insolvent.”

Needless to say, Central Appalachia coal producers rated by Standard & Poor’s are at the low end of the credit spectrum.

Meanwhile, S&P Primary Credit Analyst Ralph DeCesare noted that one of five bills now in Congress could finally this year become the first U.S. federal law limiting CO2 emissions from power plants. “Because coal burning for electricity contributes about one-third of the CO2 emitted in the U.S., any new law will have a significant impact on coal-burning electric utilities,” he suggested.

If a federal cap-and-trade system is enacted, DeCesare said it could cause utilities to use less coal either by retiring older coal-burning plants or building new non-coal power plants.
“Any such legislation would change the economics of burning coal for electricity, increasing the expense of operating a coal plant”, he noted. “The Clean Air Act of 1990 had a similar effect. Utilities are still spending money to remediate SO2 emissions, though they have been largely successful in passing these costs through to their customers.”

“Should CO2 legislation become law, utilities will try to get regulator approval to pass those costs on as well, DeCesare said. “Under almost any CO2 legislation scenario, utilities with a majority of nuclear power as their fuel source seem to be the obvious winners.”

DeCesare proposed that nuclear plant construction “could make a comeback. But even if a utility announced plans today to build a new nuclear plant, it would take at least seven years before power could be generated.”

Integrated Gasification Combined-Cycle (IGCC) uses coal to generate a clean-burning gas and make it easier and more economical to capture CO2. While the process costs more than traditional coal burning, DeCesare advised that IGCC could keep coal in the picture. Utilities will also emphasize energy conservation to reduce the need for more power plant construction, he suggested.

DeCesare concluded that current conditions “do pose a threat to coal’s growth rate and will affect its future market share of U.S. electricity generation.”

[mhlld]

Sennen, following todays news release, SN has now sold all its Aussie coal properties for $25 million AUD which equals $22.8 million Canadian Dollars. SN has 44.5 million shares outstanding. The cash value of SN is .51 cents/share. I wonder what's next for SN?

[mhlld]

Sennen to sell Collingwood, Ownaview projects


2007-02-15 13:46 ET - News Release

Mr. Ian Rozier reports

SALE AGREEMENT REACHED WITH ANGLO COAL AND MITSUI OVER COLLINGWOOD AND OWNAVIEW COAL DEPOSITS IN SURAT BASIN, QUEENSLAND

Sennen Resources Ltd. has executed a sale agreement with Anglo Coal Australia and Mitsui Coal Holdings dated Feb. 14, 2007, for the sale of its interests in the Collingwood and Ownaview coal projects located in the Surat basin of Queensland, Australia, for a consideration of $10-million (Australian).

The purchase by Anglo and Mitsui is subject to the approval of the Foreign Investment Review Board and the Department of Natural Resources and Mines (DNR&M), together with the registration of transfers by the DNR&M and the Environmental Protection Authority into the names of the nominated subsidiaries of Anglo and Mitsui. Sennen is obligated to obtain the approval and registration of transfers from the DNR&M and the withdrawal of an MDLA over the Collingwood coal project prior to settlement.

http://www.stockwatch.com/swnet/newsit/newsit_newsit.aspx?bid=B-650061-C:SN&symbol=SN&news_r...

[Arctec]

By JOHN KING
Observer Reporter
Feb 04 2007


When a group of men showed up at her door to talk about giving up her 728 hectares of land to a coal mine, Lenore Yorston said she made the men breakfast and tried to reason with them.

The owner of Australian Ranch, Yorston was suspicious of them from the beginning and started looking into the company they worked for – West Hawk Development. The mining outfit was in the planning stages and, at the time, was talking with farmers such as Yorston to bring them on side.

That was two years ago.

Now, after the coal mine fell through, Yorston continues to speak out against the way B.C. Liberals do business.

Yorston, with 10 other landowners from the region, gathered at Quesnel’s provincial government building Wednesday to hand in a notice of appeal to the B.C. Liberals – the party responsible for several changes to the Mineral Tenure Act in 2002. Changes they said will help open B.C. up for business.

“We’re here to get mining off private property,” she said.

As it stands, any miner or mineral explorer can stake a mineral claim on private land because what they’re staking, whether it’s gold or copper, is underground.

Property owners don’t own the ground beneath their feet – only the ground they stand on.

“All you’re doing now when buying property is buying the right to pay taxes,” Yorston said.

The appeal asks the provincial government to assess private land at a tax rate of $4.16 for every .5 ha of land. It’s the same price a miner pays to stake out the same amount of private land.

Yorston said industry and government keep telling her regulatory policies make miners clean up after themselves and put back the land the way they found it – but Yorston doesn’t buy into all the promises.

“They say they’ll reclaim the land so I can farm again, but that’s not much good 30 years from now,” she said.

Trudy Wootten, also a landowner, piped up.

“They can’t put the land back the way it was,” she said, adding the government and industry are always telling people that.

Others gathered with Yorston said if they buy land, then it’s their land – not a mining company’s.

“The government can sell the ground under your feet six times,” landowner Margaret Moffat said.

“There’s six different minerals that can be mined I guess.”

Before walking down the hall to hand over their appeal to government agents, Yorston said she’ll continue fighting until no miner can stake a claim on private property.

“We haven’t any rights, the government says there’s a process to appeal a mining development but they always sides with the miners,” she said.

Because Yorston’s property – along with 19 others – remains staked even though West Hawk looks stone cold in the water, she said entertaining the thought of selling her land is a waste of time.

“Who’s going to buy land someone’s going to come and destroy one day,” she said.

[Arctec]

Grande Cache Coal (GCE : TSX : $0.73)
Q3 lower than expected
Canaccord Adams downgrades to "sell", 12-month target price is $0.60

[december]

WHD.V - News pending. Cleaning out all the .58 -.60 stock for a possible move higher.
http://www.stockscores.com/quickreport.asp?ticker=v.whd

LMA.T - Bullish Chart - Needs to cross 1.50 to run
http://www.stockscores.com/quickreport.asp?ticker=t.lma

Visit us @ http://www.clarksoncapital.com/

[sumisu]

Peabody Energy Announces Results for the Year Ended December 31, 2006

Thursday January 25, 8:00 am ET

-- Peabody posts fifth consecutive year of record results

-- Full-year earnings rise 45% to $2.29 per share excluding Excel acquisition and $2.23 per share including Excel

-- EBITDA rises 24% to $1,080 million

-- Operating profit grows 28% to $663 million

-- Revenues climb 13% to $5.26 billion on industry record volume of 248 million tons


ST. LOUIS, Jan. 25 /PRNewswire-FirstCall/ -- Peabody Energy (NYSE: BTU - News) today reported a 45 percent increase in full-year earnings to $2.29 per share, excluding the effects of the recent Excel Coal acquisition. With the acquisition, earnings were $2.23 per share on net income of $600.7 million. EBITDA rose 24 percent to $1,080.4 million for the year.

"The Peabody team delivered record results for the fifth consecutive year," said Peabody President and Chief Executive Officer Gregory H. Boyce. "And in 2007, we are targeting increased results as we benefit from greater access to high-margin global coal markets, along with higher realized U.S. prices from sales contracts signed in recent years. The international coal markets are very strong, and we expect U.S. markets to strengthen in 2007 with the announced industry production cutbacks and a return to normal electricity generation. In the near term, we are managing our U.S. production and capital to match demand."

In the fourth quarter, Peabody completed the acquisition of Excel, one of Australia's largest coal companies, to serve rapidly expanding global markets and Peabody's six-continent customer base. With Excel, Peabody acquired more than 500 million tons of proven and probable reserves to accommodate future expansion. EBITDA from international coal activities is anticipated to be as much as 30 percent of the company's total in 2007 and continue to increase in later years.

[continued in following link]

http://biz.yahoo.com/prnews/070125/cgth006.html?.v=79

[mhlld]

Orion buying SN under .20 today. News coming? eom

[sumisu]

West Hawk Announces Deal With Lu'an Mining Group

Thursday January 18, 12:01 pm ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Jan 18, 2007 -- West Hawk Development Corp. (the "Company") (TSX VENTURE:WHD.V - News)(FWB: H5N) is pleased to announce that it has successfully concluded negotiations with the Shanxi Lu'An Mining Industry (Group) Company ("Lu'An") who have agreed to purchase a 25% interest in the Company's subsidiary, West Hawk Energy (USA) LLC for US $7.5 million dollars. The Agreement provides that funds will be remitted to the Company within 30 days. The aforesaid 30 days allows Lu'An and the Company to complete their outstanding per-functionary due diligence.

Dr. John Reeves, Jr., CEO of West Hawk Energy (USA) LLC, stated, "...that foregoing financings will provide the necessary capital to develop West Hawk's Figure Four Ranch project to a sustainable operation level." Furthermore, Dr. Reeves commented, "That due to the recent record breaking freezing weather, minus 28 deg C, operations at Figure Four site were impacted, but have now returned to normal. Completion on the first well should still be late January or early February."

The Shanxi Lu'An Mining Industry (Group) Company is a multi-billion dollar energy producer in China, operating coal mines, power plants, and chemical plants. Lu'An is currently building a C $1.5 billion IGCC and coal to liquids plant. There is a synergistic relationship between the two companies, given their shared vision of coal gasification. Dr. Wm Mark Hart, President and CEO of West Hawk Development Corp. commented, "The strategic alliance formed between Lu'An and the Company, provides West Hawk with the additional resources to develop its coal gasification, and other energy assets."

On behalf of the Board of Directors,

Chris Verrico, Co-Chairman

Dr. Mark Hart, Co-Chairman

About the Company: West Hawk Development Corp. is focused on exploring for and developing valuable, high-demand energy products from a variety of sources. Assets include the 500 billion cubic feet (estimated resources as per NI51-101 report) Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement with EnCana Oil & Gas (USA) Inc.; the Fort Norman coal deposit in the Northwest Territories; the Groundhog coal deposit located in northwest British Columbia; and the Ellesmere Island, Nunavut Territory coal property.

Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 51-101 Report on the Figure Four property. A National Instrument 43-101 report has been filed on the Groundhog property. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

The TSX Venture Exchange has not yet reviewed and does not take responsibility for the adequacy or accuracy of the content of this news release.

Contact:
Contacts:
West Hawk Development Corp.
Chris Verrico
Co-Chairman
[phone]

West Hawk Development Corp.
Dr. Mark Hart
Co-Chairman
[phone]
[phone] (FAX)
Email: [e-mail]
Website: http://www.westhawkdevelopment.com



--------------------------------------------------------------------------------
Source: West Hawk Development Corp.

http://biz.yahoo.com/iw/070118/0204929.html

[sumisu]

Banks are urged not to finance coal power

Global warming spurs campaign

By John Donnelly, Globe Staff

January 16, 2007

WASHINGTON -- A new front in the fight to slow down global warming follows trails of money, not wisps of polluting chemicals, straight to the doorsteps of banks.

A coalition of environmental groups, including Boston-based Ceres, is demanding that banks reject loan requests for projects that emit high rates of greenhouse gases, which contribute to global warming. The groups say they have won commitments from more than a dozen banks in the last few weeks to turn away from supporting coal-fired electric plants.

But because of the financial potential, several banks remain bullish about underwriting energy projects, including those that emit high rates of greenhouse gases.

Now, the issue is coming to a head in a plan by the Texas utility TXU Corp. to build 11 new pulverized-coal power plants at a cost of $11 billion. The plants, most of which would be built on the cattle-grazing plains of central Texas, would release an estimated 78 million tons of carbon monoxide per year, the equivalent of the exhausts of 14 million automobiles.

At the moment, three banks -- Merrill Lynch, Citigroup, and Morgan Stanley -- have agreed to arrange TXU's financing, and are trying to persuade investors to buy in.

Banks' moves are under scrutiny as the United States is undergoing a resurgence in proposals to build coal-fired plants, amid a growing awareness that climate change could soon disast rously affect the earth.

"That's why the lending of money to these projects is coming to a head here in the United States," said Dan Bakal , director of electric power programs for Ceres, a nonprofit group that aims to persuade investors to back environmentally friendly projects.

Bakal and other environmentalists believe that coal-fired energy plants pose not only environmental and reputational risks to banks, but financial hazards as well. With federal climate-change legislation expected to be approved in coming years, they argue, the plants could be faced with costly new levies and pollution controls.

Just one US bank -- Bank of America, which more than two years ago bought FleetBoston -- has committed to cut back all its funding of energy projects that produce large quantities of greenhouse gases. In its energy lending portfolio, Bank of America hopes to show a 7 percent reduction in its investments' greenhouse gas emissions .

"We are changing the mix of our loan portfolio, and adding customers who are using renewable energy resources," said Eloise Hale, a Bank of America spokeswoman. "We're applying good fiscal practices to good environmental behavior, and routinely asking them about their greenhouse gas emissions." She declined to say whether Bank of America would be involved in funding the TXU project, citing confidentiality.

Rainforest Action Network , an environmental group based in San Francisco, provided two faxes from banks in the Netherlands, Rabobank and Finance for Development, that said they would not invest in the TXU plan. A spokesman for a third bank, the Bank of Montreal, said in an e-mail it also will not fund the project.

The Bank of Montreal, wrote spokesman Ralph Marranca , "is committed to the principles of sustainable development and, in particular, to the belief that the quality of our lives improves when economic growth is integrated with respect for the environment."

Forty-five banks have signed the Equator Principles , a set of guidelines used to determine the social and environmental risks associated with a project. Citigroup , one of the three banks arranging the financial package for the TXU project, has signed the principles.

The two other TXU backers , Morgan Stanley and Merrill Lynch, declined to comment.

Shawn D. Miller , Citigroup's director of environmental and social risk management, said in an interview last week that he could not discuss the TXU project, but added that Citigroup applies the Equator Principles to every loan request that has capital costs exceeding $10 million.

"For project financings, we go through a pretty judicious process to make sure Citigroup is investing in something that is not just meeting relevant laws and regulations, but is also meeting our internal robust standards," he said.

Asked how a coal power project would meet Citigroup's standards, Miller replied, "Currently, if a coal-fired power plant in the United States receives its environmental permits, receives an OK from relevant environmental authorities, goes through a public commenting process that allows locally-affected people and civil society to give their own point of view, and goes through our internal and independent environmental and social review, then I think it is meeting a robust standard."

Several banks also have vowed to reduce their own emissions of greenhouse gases. For instance, Citigroup, which owns or rents 13,000 properties, has pledged to cut its emissions by 10 percent by 2010; Merrill Lynch aims for a cut of 2 percent a year.

Tim Greeff, a global warming specialist at the Natural Resources Defense Council, a Washington, D.C.-based advocacy group, said Citigroup's internal and external environmental policies were not consistent. "It is sort of like allowing [tobacco-maker] Philip Morris to claim they are fighting tobacco addiction by asking their own employees not to smoke, while continuing to sell cigarettes to everyone else," Greeff said.

A decision by Texas regulators on the coal plants is still probably several months away.

TXU spokeswoman Lisa Singleton said the environmentalists' campaign was not yet interfering with the projects. "At this point, we're not concerned," she said. "We're continuing discussions with everybody. It's a complex issue, balancing the need for power with environmental concerns." The project, she said, would add 9,100 megawatts of new energy.

And another TXU spokesman, Thomas Kleckner, said that "cutting-edge technology" would result in emissions that would be "80 percent cleaner than today's average coal plant."

But Dana Clark, a global finance campaigner for the Rainforest Action Network, said her group is asking banks if they "really want to be associated with this massive increase of greenhouse gases that undermines everything?"

John Donnelly can be reached at [e-mail]

© Copyright 2007 Globe Newspaper Company.

[Tackler]

I have never actually seriously looked at them and dont have any interest to now.
Johnlw may be one to ask.
Just looking at the chart you might get a bounce off .45-.48

[december]

Hey Tackler,

What do you think of WHD.

Cheers

[sumisu]

West Hawk to work with Lu'An for coal project

2007-01-10 21:08 ET - News Release

Dr. Mark Hart reports

WEST HAWK FURTHERS INITIATIVE WITH LU'AN GROUP

West Hawk Development Corp. has strengthened its previously announced (in Stockwatch May 11, 2006), relationship with the Shanxi Lu'An Coal Mining (Group) Co. Ltd., headquartered in Changzhi city, Shanxi province, China, with a view to jointly developing coal gasification facilities with the aim of using coal as the primary feedstock to produce clean liquids and power.

The Shanxi Lu'An Coal Mining (Group) Co. Ltd. is one of the 500 largest enterprises in China. Lu'An's major interests include coal production, power generation, coking facilities and chemical production. The company is also in the construction phase of building a coal gasification unit to produce power, liquids and gas. The Shanxi province of China is the largest coal mining region in the world, producing over 500 million tons of coal annually.

Chairman Ren of Lu'An Coal Mining and Dr. Wm. Mark Hart, co-chair, president and chief executive officer of West Hawk Development, met in the Shanxi province during late December and have agreed to work together to jointly develop an underground coal gasification system for the purpose of producing liquids (CTL -- coal to liquids) and power (IGCC -- integrated coal gasification combined cycle). Lu'An will dedicate 500 million tons of coal property toward this development and both companies are working diligently on a program to advance this technology. Two directors of the Lu'An Coal Mining Group and five other Lu'An officials will be in the United States and Canada to further this initiative during January, 2007.

"This is another big step for our company towards our goal of becoming aggressively involved in coal gasification production," said Dr. Hart. "We are extremely pleased with chairman Ren's decision that the Lu'An Coal Mining Group has chosen West Hawk to be their strategic partner in the development of this great coal gasification technology as it is one of the most efficient, clean methods to produce energy and utilizes one of the most abundant fuel sources -- coal. We look forward to other strategic initiatives between our two companies in the near future."

Along with its current 500-billion-cubic-foot (estimated reserves as per National Instrument 51-101) Figure Four natural gas property, which is currently being drilled under a development and drilling agreement with EnCana Oil and Gas (USA) in Colorado's Piceance basin, which is considered one of the largest natural gas resources in North America, West Hawk is well positioned to attain its goal of providing valuable, high-demand energy products from a variety of coal and gas sources.

[oasdihf]

Red Hill to Advance Ulaan Ovoo and Chandgana Tal Coal Projects; Manager of Coal Exploration Hired
Thursday January 11, 9:00 am ET

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 11, 2007) - Red Hill Energy Inc. (TSX VENTURE:RH - News; "Red Hill" or the "Company") announced today its advancement plans for its Ulaan Ovoo and Chandgana Tal coal projects in Mongolia.

The Ulaan Ovoo Coal Project

By successfully acquiring a 100% interest in mineral licenses contiguous to and entirely surrounding Red Hill's Ulaan Ovoo Coal Project, the Company is now in control of all known structural basins within the vicinity of Ulaan Ovoo's 208.8 million tonne coal resource. Three basins in particular are considered by Red Hill to be particularly promising, with each having the potential to host coal deposits similar or greater in size than the Ulaan Ovoo deposit.

The 2006 Scoping Study on the Ulaan Ovoo coal deposit completed by Behre Dolbear (USA) Ltd. of Denver, CO, suggests the deposit has an Economically Recoverable Demonstrated Coal Resource of 208.8 million tonnes sufficient to support a 34-40 year mining operation. The Study concludes that the project is capable of simultaneously producing coal to supply both a mine mouth power plant while also producing coal for transport to international and domestic markets. At current tonnage, the base case project has a Net Present Value (5% discount rate) of US $225.5 million.

After results of the Scoping Study were published on November 9, 2006, a number of large to mid-size international power generation companies plus several regional and international coal producing companies and international coal brokers, have expressed strong interest in discussing strategic alliance opportunities with Red Hill Energy. Confidentiality agreements have been signed with several third parties.

Mr. Ranjeet Sundher, President of Red Hill Energy, adds that:

"We are considering several strategic alliance opportunities for Red Hill while simultaneously moving ahead development on key assets. Red Hill's priorities remain the same: continue to maximize shareholder value through project advancement while operating in an environmentally responsible manner and continue with hiring policies that favour Mongolian workers."

Red Hill has planned 2007 exploration programs that include extensive drilling in the structural basins that surround the coal-bearing Ulaan Ovoo basin. The life of the future Ulaan Ovoo coal operation could be greatly increased beyond the currently anticipated 34-40 year mine life should any of these surrounding basins be proven to contain significant coal accumulations. Drilling of the most promising surrounding basins is expected to start in the first quarter of this year. Details of this planned drill program will be included in a subsequent news release.

The Ulaan Ovoo coal deposit and outlying structural basins are located in the territory of Tushig soum, a sub-province of Selenge aimag (province) in northern Mongolia. The area is approximately 8 kilometres (km) west of the central village of Tushig soum and approximately 17 km away from the Mongolian-Russian border. Project infrastructure includes electricity, water and quality road links to both Russia and Mongolia's central railroads.

Chandgana Tal Coal Project

Red Hill Energy is preparing to advance its 100% owned Chandgana Tal Coal Project in the first quarter of 2007. Exploration is planned to define and advance historical Russian resource estimates to N1-43-101 and JORC compliant standards. Previous work done on the project by a joint Russian-Mongolian operation was too limited and too shallow to have properly defined the full lateral extent of Chandgana's five known coal seams. The historical work defined an estimated coal resource of 133 million tonnes which, using the original Russian resource categories, consists of 31 million tonnes classified as categories A and B, 59 million tonnes classified as category C1 and 43 million tonnes classified as category C2. According to recent published articles, such as that by S. Henley in the April 20, 2004, issue of the Mining Journal, Russian resource categories A and B can generally be considered roughly equivalent to the "measured" resource category recognized by JORC, category C1 is roughly equivalent to "indicated" and C2 to "inferred".

Nearly all of the historical resource is confined to a single, near surface flat-lying coal seam from 30m to 50m thick. This thick shallow seam is overlain by no more than 34 m of overburden, presenting a favorable situation for a potential future large-scale low stripping ratio open-pit operation. Exploration is planned to define this shallow seam in detail in order to advance the historical resource estimate to NI-43-101 and JORC compliant standards and to explore three other coal seams known to occur at depth beneath the shallow seam. These three seams appear not to have been included in prior tonnage estimates.

Mr. Ranjeet Sundher President of Red Hill Energy, adds that:

"Our approach to the Chandgana Tal Coal Project will be similar to the successful approach we took at Ulaan Ovoo where it was thought to contain no more than 78 million tonnes when we acquired it. In just 24 months we increased the Ulaan Ovoo project by over 125 million additional tonnes, commissioned a successful scoping study and acquired additional promising basins in the region."

Chandgana Tal's proximity to China makes it particularly attractive for a potential near term very economic mining operation. Further, the deposit occurs in a large oval-shaped synclinal basin, approximately 5 km x 7 km in size, which has not been explored in detail. This suggests that with successful further exploration Chandgana Tal could become a very long-life operation.

Coal Exploration Manager Hired

To assist with Red Hill's coal exploration activities in the Ulaan Ovoo region and elsewhere in Mongolia, the Company is pleased to announce that it has hired an experienced coal geologist, Eric Robeck, who is relocating from Utah, USA, to Red Hill's office in Ulaanbataar, Mongolia. Mr. Robeck holds BSc and MSc degrees in geology from Brigham Young University and is a member of the Geological Society of America. Recently he has prepared complete, multi-seam geologic models and databases for three new underground and surface coal mines in Colorado, Utah and Wyoming, USA. Mr. Robeck managed the 2006 drilling program in Ulaan Ovoo and looks forward to returning with Red Hill for another exciting field season.

ABOUT RED HILL ENERGY INC.

Red Hill Energy Inc. is a junior resource company trading on the TSX-Venture Exchange under the trading symbol "RH". In addition to developing the 208.8 million tonne Ulaan Ovoo Coal Project and the Chandgana Tal Coal Project the Company has 14 uranium properties located throughout Mongolia. Red Hill has a strategic alliance with Mega Uranium Ltd. to jointly develop its uranium assets and has a full time office in Mongolia's capital, Ulaanbaatar.

Red Hill Energy Inc.

G. Arnold Armstrong - Chairman and CEO

Ranjeet Sundher - President

Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The companies do not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

[Tackler]

Someone at TD likes SN

[Arctec]

It may help JRCC. (posted them on the other board)

It may be prudent to wait till the US Congress gets on its alternative energy horse.
Before thinking that coal is making a comeback.

[Tackler]

Start a list Arc. Syntech and Rentech off the top of my head and my spelling may be off.

[Arctec]

January 4th, 2007

BUNNING, OBAMA RE-INTRODUCE BLUEPRINT FOR ENERGY INDEPENDENCE
Will Form Senate Coal-to-Liquid Fuel Caucus

Washington, DC - U.S. Senators Jim Bunning (R-KY) and Barack Obama (D-IL) today introduced the “Coal-To-Liquid Fuel Promotion Act of 2007.” This bipartisan piece of legislation is based on the bill first introduced by Senators Bunning and Obama last spring and would help create the infrastructure needed for large-scale production of Coal-to-Liquids (CTL) fuel. It is a comprehensive bill that expands tax incentives, creates planning assistance, and develops Department of Defense support for the domestic CTL industry.

In the CTL process, coal is gasified, the gas is run through the Fischer-Tropsch process, and the resulting fuel is refined into products like jet and diesel fuels. The final product is cleaner than conventional fuels because most of the sulfur and nitrogen is removed during the Fischer-Tropsch process.

“This bi-partisan piece of legislation that I have re-introduced with Senator Obama today will lay out a plan for the 110th Congress on how we need to work together for energy independence. CTL technology offers America the chance to capitalize on an abundant domestic resource that is found in eastern and western Kentucky and across the country. To help spread the message of how important the CTL process is for energy independence Senator Obama and I will form the Senate Coal-to-Liquid Fuel Caucus to help lead this fight. With a strong investment in CTL, America will wean itself off of foreign sources of energy, and at the same time create jobs for working families back home. CTL is a viable, environmentally friendly energy resource that will help cure America’s addiction to oil.”

Obama said, “The people I meet in town hall meetings back home would rather fill their cars with fuel made from coal reserves in Southern Illinois than with fuel made from crude reserves in Saudi Arabia. We already have the technology to do this in a way that's both clean and efficient. What we've been lacking is the political will. This common sense, bipartisan legislation will greatly increase investment in coal-to-liquid fuel technology, which will create jobs and lessen our dependence on foreign oil. Illinois Basin Coal has more untapped energy potential than the oil reserves of Saudi Arabia and Kuwait combined. Instead of enriching the Saudis, we can use these reserves to bring a renaissance for Illinois coal.”

The Coal-to-Liquid Fuel Promotion Act of 2007 is a three-part, comprehensive effort to create a vibrant domestic CTL fuel market. First, this bill enables the Department of Energy to provide loan guarantees for construction and direct loans for the planning and permitting of CTL plants. Loan guarantees will encourage private investment and planning loans will help companies prepare a plant for construction. Second, this legislation will expand investment tax credits and expensing provisions to include coal-to-liquids plants, extend the Fuel Excise Tax credit, and expand the credit for equipment used to capture and sequester carbon emissions. These tax incentives build on the loans and loan guarantees by offering tax breaks during the multiple-year construction phase and during initial production at the plant. Third, this bill provides the Department of Defense the funding and authorization to purchase, test, and integrate these fuels into the Strategic Petroleum Reserve and military fuel supplies.

[Tackler]

SN creeping up...

[mhlld]

A very likely possibility imo. For those that aren't aware here's a few companies mgmnt has been or is involved with. elr.to, mxv.v, nwx.v

[Tackler]

So thats a double from here for the $13.5 mil cash value.
Maybe they have a plan for the money Sprott knows about.

<edit> so forgetting the coal this will be a shell loaded with cash worth 2x pps? looks like a no brainer.
I recall the management involved in other ventures. Coal has lost its flair. Maybe take the cash and go for Uranium?

[mhlld]

If my math is correct SN should receive $13.5 million CAD's from the Middlemount sale. They still retain the Collingwood and Ownaview coal deposits. It is interesting to see Sprott buying at these levels. Maybe the DJB Coal folks can get something cooking with the Collingwood or Ownaview deposits, if they haven't already.

[Tackler]

Any comment? Sprott has been buying the stock.

[mick]

hi sumisu, good afternoon.

i'm going back a few.

there is a wealth of infomation in this message.

THANK YOU,

[sumisu]

Coal Companies Prepare for Mild Winter

Monday November 27, 4:05 pm ET

By James Amend, AP Business Writer

El Nino Sends Coal Producers Bracing for Another Warm Winter

NEW YORK (AP) -- With all signs pointing to another warm winter, the downward pressure on coal producer stocks seems unlikely to lessen anytime soon.

"We have a strengthening El Nino event, which forewarns of a warmer winter, particularly in the northern half of the country," said Mike Halpert, the head of forecast operations in the climate predictions center at the National Oceanic & Atmospheric Administration.

The government does not expect the current El Nino to reach the magnitude of what it called a very strong phenomenon in 1997-98, but temperatures on average in the U.S should finish 2 percent warmer than their 30-year average.

The only area not expected to be above average is the South, which is likely to experience a wetter-than-normal winter.

"Less sun in the South means cooler temperatures, but they won't get the cold Arctic blasts," Halpert said in an interview on Monday.

That's bad news for coal producers, who are already struggling to draw down excess inventory from last year's near-record high winter temperatures and a general misconception by the industry that demand in 2006 would be as high as 2005.

But Paul Forward, an analyst at Stifel Nicolaus & Co., said investors often misread the impact weather can have on coal inventories.

"It tends to even out over time, so we can't worry too much about the weather," Forward said in a telephone interview on Monday.

Prolonged cold snaps, however, do have the potential to send utilities scrambling for inventory.

"There's nothing like a scarcity in the supply of coal, or whatever the product might be, to drive investor sentiment higher," Forward remarked.

According to Ann Kohler, an analyst at Caris & Co., inventories at electric utilities at the end of September, or the latest month of available data, rose by 2.3 million tons. Over the previous five years, inventories in September fell by an average of 1.3 million tons compared to the previous month. On a daily supply basis, Kohler said, stockpiles in September stood at 46 days, or 38 percent higher than the same period a year ago. Daily supplies are 8 percent higher than their five-year average.

Blaming cooler weather, Kohler said in a research note last week that net electric generation fell 5.2 percent versus year-ago levels. Coal's share of electric generation in the month fell 6 percent and is off by 1.3 percent so far this year, due at least partly to lower prices of its chief rival, natural gas.

Production cuts, however, seem to be working, according to the latest numbers available from the Department of Energy. Estimated U.S. coal production for September fell 6.7 percent compared to August. Production also fell against the same period last year for the first time since March, although companies still produced coal a record pace over the first nine months of this year.

Coal prices, a key driver of coal producer stock prices, reflect the excess inventory. According to the Department of Energy, spot prices for a ton of Central Appalachian coal for the week of Nov. 17 closed at $47.25, or 24 percent lower than the $62 it commanded during the same period last year. Department of Energy prices are prime numbers culled from a number sources, which often vary.

Not surprisingly, coal stocks have buckled under all the pressure.

After reaching 52-week highs in May, shares of the nation's largest producers fell as much as 57 percent by the end of September. While the stocks recently regained some ground on news of higher natural gas inventories, names like Consol Energy Inc., Massey Energy Co., Arch Coal Inc. and Peabody Energy Corp. remained off by anywhere between 29 percent to 44.1 percent in trading Monday on the New York Stock Exchange.

Forward said sustained weekly production below 22 million tons per week would draw supply beneath demand sometime next year and provide a catalyst for stock prices. But production cuts in the coal industry are never easy, he noted.

"They have to consider shutting down what they can, but the difficulty is that the communities in these areas are so closely tied to the mines," Forward said.

[Spellbound]

West Hawk Development Corp. Enters Into Four-Well Drilling Contract With Bronco Drilling
Thursday November 16, 12:28 pm ET

Ref - http://biz.yahoo.com/cnw/061116/west_hawk_development.html?.v=1

Excerpt:

VANCOUVER, BRITISH COLUMBIA, November 16 /CNW/ - West Hawk Development Corp. ("West Hawk") (TSX VENTURE:WHD - News; FWB:H5N), via its wholly owned entity West Hawk Energy (USA) LLC, has entered into a significant four-well drilling contract with Bronco Drilling (www.broncodrill.com) to drill four wells on the Figure Four Ranch Property, located in the Piceance Basin, Rio Blanco County, Colorado. Permits for four additional wells are filed and will be issued by mid to late December.

The Bronco (number sign)27 Drill Rig will arrive on site the first part of December and commence drilling operations. The gathering system pipeline is being installed to the first well pad. The initial road construction has been completed, permitting access to the well pad and the well pad construction has started.

[mhlld]

Sennen Resources Ltd.: Agreement to Sell Interest in MDL 282 Middlemount Coal Deposit for AUS$15,000,000
Thursday November 16, 5:00 am ET

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 16, 2006) - Mr. Ian Rozier, President of Sennen Resources Ltd. ("Sennen") (TSX VENTURE:SN - News), reports that Sennen has entered into a Share Sale Agreement (the "Agreement") that will result in the sale of its interest in the Middlemount coal deposit MDL 282 ("Middlemount") in Queensland, Australia to Custom Mining (Middlemount) Pty Ltd ("CMM"), a subsidiary of Custom Mining of Newcastle, New South Wales, Australia.

Under the terms of the Agreement CMM will acquire all the issued shares of Ribfield Pty Ltd ("Ribfield"), an Australian company beneficially owned by Sennen, and the owner of a 95% interest in Middlemount. The consideration to be paid by CMM to Sennen for the purchase of the shares of Ribfield will be A$15,000,000. The terms of the Agreement are summarized as follows:

1. The payment to Sennen of a non-refundable deposit of A$500,000 upon execution of the Agreement.

2. Completion of the Agreement (the "Completion") is to take place five business days following satisfaction of the following conditions:

(a) Regulatory approval in Australia for the transfer of MDL 283 (Ownaview) and EPC 640 (Collingwood) to another entity owned by Sennen;

(b) DJB Coal obtaining regulatory approval for the transfer of their 5% interest in MDL 282 to CMM; and

(c) Regulatory approval of the TSX Venture Exchange; but in any event not later than June 30, 2007.

3. CMM has a period of 8 weeks to complete a drilling and analysis program (the "DA Period") on MDL 282.

4. Within 16 weeks of the expiration of the DA Period, CMM is to place A$3,500,000 into an escrow account with Sennen's Australian lawyers, Blakiston and Crabb, in the event that Completion has not occurred by that time.

5. Upon Completion, CMM will pay Sennen A$2,000,000, and A$3,500,000 will either be paid to Sennen directly by CMM or be released from escrow to Sennen, as the case may be.

6. Within 12 months of Completion, CMM will pay Sennen a further A$4,500,000.

7. Within 24 months of Completion, CMM will pay Sennen the final A$4,500,000.

8. Upon Completion, CMM will provide bank guarantees for the two outstanding payments of A$4,500,000 to be paid by CMM on the 12 and 24 month anniversaries of the date of Completion in order to ensure payment of the funds as and when they are due; the escrow agent will not be required to hold these funds.

Following Completion, Sennen will retain its interest in MDL 283 (Ownaview) and EPC 640 (Collingwood), two coal deposits also located in Queensland. MDL 283 (Ownaview) is located 10km from Dalby in Queensland and is approximately 75km from the Tarong Power Station. As reported in a news release of the Company dated March 1, 2005, Ownaview contains a 'historical' Measured Resource of 172Mt of recoverable high volatile, low sulphur (0.4) thermal coal, 97Mt having a strip ratio of 5 to 1 (waste to coal). The average seam thickness is 7.1m.

EPC 640 (Collingwood) is located 15km from the railhead at Wandoan 400km from Brisbane. As reported in the March 1, 2005 news release, Collingwood contains a 'historical' measured and indicated Resource of 115Mt with a strip ratio of between 5 to 1 and 7 to 1 (waste to coal), with a moderate ash content (15-20%) and high specific energy. The coal deposits at both Ownaview and Collingwood would be amenable to low cost dragline mining methods.

With the Agreement with CMM over Middlemount, Sennen is now in a position to better evaluate its options with respect to the further development of Ownaview and Collingwood.

The qualified person having prepared the contents of this news release is Mr. Ian Rozier, B.Sc.(Hons), M.Sc., P.Eng.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of the contents of this news release.



Contact:
Mr. Ian Rozier
Sennen Resources Ltd.
President & CEO
[phone]
[phone] (FAX)
Email: [e-mail]
Website: www.sennenresources.com


--------------------------------------------------------------------------------
Source: Sennen Resources Ltd.

http://biz.yahoo.com/ccn/061116/200611160358280001.html?.v=1

[sumisu]

West Hawk Development Announces Roger A. Baer as Chief Financial Officer and a Member of the Board of Directors

Tuesday November 14, 6:53 pm ET

VANCOUVER, B.C., November 14 /CNW/ - West Hawk Development Corp. (TSX VENTURE: WHD - News; FWB: H5N) today announced that Roger A. Baer has joined the Company as its Chief Financial Officer. Baer has also been appointed to the Board of Directors of West Hawk Development and its subsidiary, West Hawk Energy (USA) LLC, and is named Corporate Secretary.

Baer is a Certified Management Accountant, and holds a Master's in Business Administration from the University of Phoenix, and a BS, Accounting from Illinois State University. Baer has 25 years of financial experience in the minerals and natural resource industries, including management positions with Newmont Mining, Cyprus Amax Minerals, Kennecott Energy, and Amoco Pipeline Company.

Baer is a member of the Institute of Management Accountants and the American Institute of Certified Public Accountants.

As the Company's Chief Financial Officer, Baer will be responsible for Accounting, Finance, Tax, Treasury, Investor Relations, and Corporate Governance and Administrative functions, as West Hawk begins exploration and development of its coal gasification properties in British Columbia and the Northwest Territories. Baer comes to West Hawk from Denver-based Newmont Mining Corporation, the world's second-largest gold producer, where he was Director, Corporate Accounting.

Prior to Newmont, Baer was a financial consultant for internal control and Sarbanes-Oxley implementation and compliance-related work in the oil and gas, construction, and minerals industries. Baer was the Chief Financial Officer for Newcastle Construction, and held Accounting and Financial Management positions with Rio Tinto-owned Kennecott Energy in the Powder River Basin of Wyoming, and at Cyprus Amax's surface and underground coal properties in Colorado, Wyoming, and Kentucky. Baer started his career with Amoco in the oil and gas pipeline industry, and later with Amoco's minerals segment, holding various accounting, finance, economics, and business planning positions.

At Newmont, in addition to helping implement a new enterprise-wide financial system and Sarbanes-Oxley compliance, he also led several process improvement initiatives in the corporate accounting group. At Cyprus Amax, as Controller for the Colorado Business Unit, Baer helped its operations gain world-renowned status and achieve several world records for underground productivity. At Kennecott, Baer helped the Company grow through acquisitions of coal properties in the Powder River Basin and become one of the leading suppliers of energy to the electric power industry.

"We are extremely pleased to have someone of Roger's caliber and welcome him to our Company," commented Dr. Wm. Mark Hart, President and CEO of West Hawk. "Roger will be an integral part of West Hawk's executive management team, in helping grow our energy business, ensuring solid financial focus, and focusing on proper Corporate Governance."

THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the 500 billion cubic feet (as per NI51-101 report) Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement with EnCana Oil & Gas (USA) Inc.; the 2(+) billion ton Fort Norman coal deposit resource in the Northwest Territories, being developed with Lurgi South Africa (Pty) Ltd. with the aim of creating a multi-stage, multibillion cubic foot per year Coal-to-Gas operation supplying clean "syn-gas" to markets through Imperial Oil's proposed MacKenzie Valley Pipeline and/or producing high-demand electric power and sulfur free diesel through construction of an IGCC (Integrated Gasification Combined Cycle) facility; the one billion ton Groundhog anthracite coal deposit resource located in northwest British Columbia; and the 2(+) billion ton coal deposit resource located on Ellesmere Island, Nunavut Territory.

For further information

West Hawk Development Corp. Dr. Wm. Mark Hart, [phone] Co-Chairman, President and CEO Email: [e-mail]



--------------------------------------------------------------------------------
Source: West Hawk Development Corp.

[Spellbound]

Watching Dejure....

[Spellbound]

Byron King: The Canadian Tar Sands; Ref - http://www.lifeaftertheoilcrash.net/Archives2006/KingTarSands.html

Here are some excerpts describing some of the difficulties facing the fledgling Tar Sands projects. Note particularly the NG input necessary. West Hawks NG investment might just prove to be a real bonanza.

Energy Input

Production of "oil" from the tar sands is a very energy-intensive process. Production estimates for 2025 are that the energy input will require between 1.6-2.3 billion cubic feet (bcf) of natural gas per day, approximately equal to the planned maximum capacity of the proposed Mackenzie Valley gas pipeline (1.9 bcf/d) out of northern Canada, or about one-fifth of anticipated daily Canadian gas production. Pipelines or no, the energy requirements of the projects planned for tar sands development already exceed the amount of available natural gas from the entire Mackenzie River project. Virtually all estimates for natural gas usage in tar sands operations by 2015, just 10 years hence, exceed the projections for available amounts of natural gas. Something has got to give.

In another respect, using natural gas for tar sands development creates a political issue for Canada due to its obligations under the North American Free Trade Agreement (NAFTA). The NAFTA issue arises because if Canada uses natural gas for tar sands development, that nation will have that much less gas available for export to the U.S. But also under the terms of NAFTA, Canada cannot reduce natural gas exports to the U.S. unless it also reduces natural gas consumption within Canada. And because sometimes it gets cold in Canada in the wintertime, there may be a domestic Canadian political issue wrapped up in all of this.

Thus the expansion of Canadian tar sands capacity is limited by natural gas supply, and indirectly by the price of natural gas, which will drive the economics of expansion and continued use of the sands resource. One possible exception to the natural gas limitation would be to develop nonthermal processing technology or to switch to alternate fuels for the tar sand process heat required. These types of alternate solutions are not even on the drawing boards, and hence are highly speculative.

If any alternatives to using natural gas are going to be adopted, these new energy sources will have to be fast-tracked to get them online in time for the tar sands projects to make use of them. Some examples of alternate energy sources are burning the bitumen that is extracted from the tar sands, or using coal bed methane. Each technique will require its own rather extensive industrial infrastructure. And each of these energy sources emits relatively higher levels of greenhouse gases that natural gas, so Canada will face international criticism, if not other sanctions, over higher CO2 emissions. (Darn, there's that "global warming" thing again.)

There are proposals to use nuclear plants in the Alberta area to provide process heat or other required energy input. But nuclear plants create issues of their own. These include the capital costs for the plants, the difficulty of constructing such facilities in the Alberta region, time-to-build issues, safety and nuclear waste issues, and the need to construct energy transmission facilities for electricity or steam. Plus, there are the same kind of "not in my backyard" (NIMBY) people in Alberta as there are in most other locales of North America. Do you want a nuclear plant near you? A lot of people do not.

Water Limitations

Another limitation on tar sands expansion is that processing capacity is limited by water supply. Much water is already being recycled using current technology, but current production techniques require 1-2 barrels of "makeup" water per barrel of product. It will be imperative to develop technology that uses less water or that recycles even more of the water being used. And doing this is not nearly as easy as you might think.

Surface water flows, principally from the Athabasca River, are simply inadequate to meet forecast needs. And deeper water, from underground aquifers, is saline and must be diluted with fresh water or otherwise desalinated. Whoops. This will require more of that energy input stuff.

Immense amounts of water are currently being discarded into settlement ponds, in which it may take 200 years for the smallest particles to settle down to the bottom. Meanwhile, the water is toxic, and mixed with exceedingly high levels of heavy metals and other exotic elements that you probably do not want to eat. Some of these impoundment ponds are many miles in area, and will pose an environmental problem or hazard for many centuries.

[sumisu]

Tackler,

I had heard that they attended this conference. Dr. Hart seems to do a lot of travelling overseas and in North America spreading the word of West Hawk, but the stock price is stuck in the mud.

Maybe things will change once they begin drilling for natural gas.

Thanks,

sumisu