Coal

Trading

As India's power demand soars, the importance of coal increases in the overall Power value chain. Although India is one of the largest coal consuming and producing nations in the world, it heavily depends on imported coal. Today, PSM Energy is private sector coal importer into India and continues to improve its coal business by expanding its sourcing network, cost effective shipping and timely door delivery structure at the power stations. The Company has entered into long-term arrangement for uninterrupted supply of imported coal with some of the biggest suppliers in Indonesia, USA, Australia and African continent. Coal demand is expected to increase substantially in the coming years, which will strengthen the company's presence in this segment.

Joint Venture with Africa-Asia Commodities

Africa-Asia Commodities is a privately owned trading company, based in Durban, KZN, South Africa. The group was founded in 2007, established to operate the Copper/Cobalt mine asset in Katenga Province, DRC.

AAC has recently been established as a commodity, (Coal and Fuel), trading company to target and maximise the trade potential between Africa & India, more particularly South Africa, which has the largest Indian population outside of the Indian continent, of which Durban (KZN) is the most populated province.

South Africa has substantial COAL reserves, South Africa is the 5th largest coal producing company in the WORLD. South Africa has >75 years of current surveyed COAL assets. South Africa has an additional >30m ton/annum of COAL export potential from Richards Bay.

AAC has the strongest relationship and cooperation agreements with multi-nationals operating within South Africa. We can secure long-term reliable, secure contracts for reliable, secure BUYERS.

AAC commodities are principally those related to the petroleum industry and range from feedstock, such as crude oil and intermediate or blending stocks to finished products like gasoil, diesel, jet, gasoline and fuel oil, ready for consumer use. Commercial partners are crude oil producers, refineries, trading and retailing companies.

AAC is proud of its relationships particularly within Africa, and Eastern Europe, which enables it to secure and move oil almost anywhere around the globe.


For more details about AA Commodities, Please visit http://www.aacommodities.co.za

Improve and identify

PSM's supply chain consulting services include:

  • Transportation studies of transportation service providers
  • Cost of service estimates
  • Alternative delivery methods

Integrating its comprehensive understanding of the supply chain, PSM provides analysis of transportation logistics geared towards identifying areas for improvement or to identify bottlenecks in the system that may have a negative impact on efficient operations. This analysis may result in recommendations of alternative delivery methods to mitigate risk and to obtain optimum service rates.

Study and deliver

These supply chain services also include coal handling system reviews at loading or unloading yards located at the mine, port or utility. PSM provides coal handling system audits including environmental and safety audits to ensure best management practices and technologies are employed when handling, processing or treating the coal.

PSM will review current operating practices to ascertain the adequacy and capability of the system. Based on this review, PSM will provide recommendations to achieve improved efficiencies and identify baseline metrics and benchmarking to measure future improvements with the goal of optimizing daily operations.

Contract Support

Maintain the fuel supply...

Covering all aspects of the coal supply relationship, from initial due diligence of potential long-term suppliers, market and transportation studies to contract advisory services through dispute resolution, PSM provide perspective and practical solutions on arranging and maintaining a reliable economic solid fuel supply.


Work with utilities...

With clients such as electric utility companies, independent power project sponsors, lenders, and traders and transportation providers, PSM renders coal supply studies and contract advisory services which are now recognized and accepted throughout the global financial community.

Specialize in contracts...

PSM specializes in advising on the technical and commercial aspects of long-term coal supply and transportation contracts. Whether for captive power plants or independent power plants seeking project financing, PSM provides detailed studies of coal reserves and supply chain reliability and matches technical contract terms accordingly.


Individualize information...

Through detailed coal reserve and mine planning studies or in-depth supply source and transportation studies, PSM commercial advice is based on the particular circumstances of each client. Those circumstances may call for long-term market-based pricing or for captive buyers, fixed price plus escalation or cost-plus prices. In every situation, PSM consultants provide expertise and advice on technical and commercial terms including:

  • Coal Sources
  • Coal Reserves
  • Quantities (Production Rate and Term)
  • Coal Quality - Acceptable Range and Rejection
  • Price
  • Price Adjustments
    • Indexed
    • Component Escalation
    • Cost-plus
  • Weighing and Sampling
  • Delivery, Unloading and Rejection
  • Security of Supply and Performance Standards
  • Administration and Management
  • Transportation for CIF, DES and DEQ delivery

Market Analysis

Analyze and act...

PSM can provide market analysis and price forecasts including coal customer analysis, competitor studies and supply - cost curves of producers in major coal basins in every major coal exporting country around the world.

This data is derived from publicly available data. It is regularly updated by a team of analysts and supplemented with current labor and supply rates. These rates are derived from a range of ongoing studies at various mines.

Should the client desire, PSM can include historical and future forecasted transportation costs to coal-fired power plants or other customers at any location in the world.

Coal Supply Planning

PSM consultants continue to be key advisors to utilities and independent power producers around the world on technical and commercial matters pertaining to long-term fuel supply.

On the technical side, PSM advises on:


  • Coal Quality Design Specifications
  • Coal Reserves and Producers
  • Land and Ocean Transportation
  • Loading and Unloading
  • Coal Handling and Stockpiles