...the requirement. Coal seam gas which has widely been used in industry is considered as an new energy. Therefore, coal seam gas is playing a vital role in many countries. For instance, coal seam gas industry can provide outstanding economic revenue for Australia (Hamawand , Yusaf, & Hamawand, 2013, p. 552). However, the extraction of coal seam gas encounters opposition because it would bring serious contamination to farmland and environment . This essay will outline the merits of exploiting the coal seam gas which may replace the conventional energy and to reduce contamination. It will also discuss the negative effects of developing the coal seam gas industry on farming and the environment. Coal seam gas is the substaintial energy that can substitute the traditional energy and decrease environmental pollution. First of all, the refining of coal seam gas can lower the environmental pollution. For example, the new Kenya water treatment plant can help changing coal seam gas water to recycle, and thus could reduce the water pollution (GE; advanced technology to produce beneficial water from booming coal seam gas industry in Australia, 2011). Furthermore, the development of coal seam gas can decrease the air pollution. If the discharge of greenhouse gases were limited from burning fossil fuel, the extensive disposal of coal seam gas for coal would obtain a considerable reduction in terms of Australia’s carbon footprint (Chen & Randall, 2013, p. 7). Coal seam gas is a comparatively...
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...intensive industry refers to industry that requires substantial amount of human labour to produce industrial products. For example, in Australia coal mining is one of the labour intensive industries. According to Australian Coal Association (Coal & the Community), black coal mining is one of Australia’s most important industries that creates employment, low-cost fuel and important source of export revenue. (ii) Coal mining industry is labour intensive because this particular industry requires a large number of human labours to run heavy machinery and work in large factories to produce the goods. (iii) Economies of scale is where the long-run average cost declines as production increases in simple explanation where a manufacturing company saves money as its produce higher quantities of its product. In this case, mining industry are likely to develop economies of scale because it has the ability to mass produce products. (iv) In coal mining industry in Australia there numbers of firms in mining industry, however there are four major companies that dominates coal mining industry – Rio Tinto, BHP Billiton, Xstrata and Anglo American – together account for well over half of total Australian black-coal production. b. (i) Capital intensive industry refers to industry that requires substantial amount of capital in the production of goods. In Australia one of the capital-intensive industries is automotive industry. (ii) Automotive industry is capital intensive because in order to...
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...dirty energy Alternative Annual Report 2011 Contents Introduction Coal BHP Billiton in Colombia: Destroying communities for coal BHP Billiton in Indonesia: Going for Deadly Coal in Indonesia BHP Billiton in Australia: When too much in uence is never enough BHP Billiton Australia: Coal mine workers ght back - Queensland BHP Billiton Australia: BHP battle with farmers - New South Wales Oil and Gas and Greenhouse Gases BHP Billiton globally: Re-carbonising instead of decarbonising BHP Billiton in Australia: Hero or destroyer? Uranium BHP Billiton in Australia: “Wanti” uranium – leave it BHP Billiton in Australia: Irradiating the future BHP Billiton in Indonesia: Mining for REDD a false solution to climate change Solutions? Less mining, more reuse and recycling? Moving into rare earths? Footnotes BHP Global mining operations – dirty energy investments 1 3 4 7 8 10 10 11 12 13 15 18 19 20 22 Introduction “More than 30 million people were displaced in 2010 by environmental and weather-related disasters across Asia, experts have warned, and the problem is only likely to grow worse as climate change exacerbates such problems. Tens of millions more people are likely to be similarly displaced in the future by the effects of climate change, including rising sea levels, floods, droughts and reduced agricultural productivity. Such people are likely to migrate in regions across Asia, and governments must start to prepare for the problems this will create.” – Asian Development...
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...11159249 11174354 11282047 10679140 Page 1 Table of Contents: 1. Business Description 2. Whitehaven Coal Ltd’s Performance Vs ASX200 Energy Index 2.1 Profitability Ratios 2.2 Asset Utilization Ratios 2.3 Capitalisation Ratios 2.4 Market Ratios 3. Quality of Financial Data 4. Revenue & Profitability Growth Forecast 4.1 Industry Life Cycle 4.2 Sustainable Growth Rate 4.3 Macroeconomic and Technological Factors Affecting Growth Rate 5. Business Risks: Porter’s 5 Forces 5.1 Threat of New Entrants 5.2 Bargaining Power of Suppliers 5.3 Bargaining Power of Buyers 5.4 Threat of Substitutes 5.5 Rivalry Among Existing Competitors 6. Recommendation Pg 3 Pg 3 − 5 Pg 5 Pg 6 Pg 7 − 8 Pg 9 Page 2 1. Business Description ASX Ticker: WHC Current Share Price (5th April 2012) Market Capitalisation Shares Outstanding Revenue from Ordinary Activities FY11 NPAT FY11 Diluted EPS (cents) Whitehaven Coal Ltd is an Australian listed company whose main $5.67 operations involve developing and operating coalmines in NSW. $2, 814m 496m and the development of the Narrabi underground mine. Initial Currently, its focus is on coal production in the Gunnedah Basin resource assessment by WHC projected that the Gunnedah Basin is $622.19m able to support at least 1.5 million tonne per annum (Mtpa) $9.95m production of open-cut coal for the company itself. That makes 2 WHC the biggest coal producer in the Gunnedah Basin. Source: Australian Securities Exchange 2. WHC’s Financial Performance...
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...MPF53 FINANCE “Review the proposed Carbon Pollution Reduction Scheme (CPRS) in Australia and critique its impact on financial management decisions” BY Xiao Nie Yang Song Date: 20th April 2010 Introduction In today’s society, all countries in the world will experience climate change in coming decades because of increasing carbon pollution (climate change 2007). In order to reduce the carbon pollution, ETS and CPRS will be proposed in the world wide and Australia. This essay is to focus on revising the proposed carbon pollution reduction scheme and point out its impact on financial management decision. In the first place, there is a brief summary about the CPRS scheme in detail. In the second place, there is an analysis about major and minor financial management decisions. In the final place, the impacts of CPRS on its financial management decision will be raised. All in all, the conclusion is a summary of the aim of the essay and how to achieve this aim. The CPRS scheme The emissions trading scheme (ETS) in Australia is called Carbon Pollution Reduction Scheme (CPRS). Australia is very vulnerable to the effects of climate change. They recognize that human activity is causing the climate change and also Australia is one of the biggest polluters on a per capita basis. The CPRS will help reduce Australia’s carbon pollution by putting a price on carbon for the first time in Australia’s history. The carbon price means that goods that...
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...THE LASTING EFFECTS OF THE TERMS OF TRADE BOOM ON THE AUSTRALIAN DOLLAR Word Count: 1406 Introduction The Australian Dollar (AUD) has experienced significant appreciation in the last decade culminating in record highs over the last 36 months. This sustained appreciation has raised concerns over the impact that a high AUD has on the Australian economy and its people. This paper analyses the underlying causes of the sustained rise, the impact that the exchange rate plays on the Australian economy and the implications for monetary and fiscal policies, particularly policies that will reduce the overall exchange rate. Background There are two distinct trends, which can be discerned from the nominal exchange rate of the AUD against the United States Dollar (USD) over the last 36 months. The AUD has achieved record ‘post float’ highs and sustained strength against the USD for much of this period (Garton, Gaudry, & Wilcox 2012). The trend of appreciation is most notable in Figure 1.1 between August 2011 and April 2013 where the AUD was consistently above parity with the USD. However, in the final 12 months of this period the AUD has fallen below parity and has continued to depreciate until the present day (RBA, 2014). Thus, it can be said that the AUD has experienced two separate trends in recent times, a record period of appreciation followed by a gradual and continuing depreciation. Figure 1.1: The AUD vs. USD nominal exchange rate over the last 36 months. Available...
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...Yanzhou Bids for Felix Resources Case Study 1. When should stockholders doubt their own company’s support of a friendly acquisition? With a friendly acquisition takeover the firm chooses to make a public offer that is equally accepted by the board when all the terms are agreed upon, which will also need the approval of regulators and also shareholders. The key parameter that drives a deal and is also the key concern for both seller and buyer is known as valuation. There have been a large number of researchers that have studied the effects that have occurred with company takeovers on value with not only on bidder firms, but also the target. From the research done it has shown that stockholders of the target firms end up having a positive outcome. It has shown evidence of a large number of return before the acquisition is actually completed and as well as when the transactions has been done. (Cosh, Andy and Hughes Alan(2008). Centre for Business Research:Takeovers after takeovers; (http://www.researchgate.net/publication/4999297_Takeovers_after_Takeovers) If the buyout is financed primarily with debt it will make it a leveraged buyout. This will mean that the debt ratio will change in years to come and will lead to changes in the costs of not only equity, but also debt and capital during that time. When one looks as what acquisitions has to offer it in fact offers firms a short cut to be able to get to the company’s strategic objective although the procedure does have...
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...repetition in exactly the same circumstances. That means that it is hard to measure risk, and event’s probability is a highly subjective estimation. The term risk prevails in portfolio analysis whether in the sense of risk measure (e.g. beta is the risk measure) or in the sense of uncertainty. A project can be defined as an entity of inter-dependent activities, which is unique and has its purpose and objective. In this case study, we have two mutually exclusive investment projects. The first prospective investment involved a strip (open-cut) mining operation in western New South Wales. The second investment also involved the extraction of coal, but this expenditure would be an underground site in South-Eastern Victoria. Based on Mira and Dunja, 2005, project risk can be defined as the cumulative effect of the chances of uncertain occurrences which will adversely affect project objectives. It is the degree of exposure to negative events and their probable consequences. Project risk is characterized by three factors: risk event, risk probability and the amount at stake. The risk measurement in the field of the real investments based on predicted cash flow is...
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...Essay Four (Exchange Rates): Topic 2 – Australia in the global Economy Outline the causes of a decrease in demand for the Australian dollar, and discuss the impacts on the Australian economy of a sustained depreciation of the Australian currency. The exchange rate is a measure of the value of a currency relative to another and is influenced by the demand and supply of the Australian Dollar (AUD). Changes in any of the factors that affect supply and demand causes the AUD to rise or fall. The demand for the AUD is derived from the demand of Australia’s goods, services and assets, which is impacted by domestic and international economic conditions. Therefore, factors such as decreased capital inflow from investors, decreased demand for Australian exports and speculation that the AUD will fall are the predominant causes of the decrease in demand of the Australian dollar. This decrease in demand has resulted in a sustained depreciation of the Australian currency that has resulted in various positive and negative implications for the Australian economy. Capital inflow impact the exchange rate as foreign investors wanting to invest in Australia must exchange their own currency for Australian dollars therefore impacting the demand for Australian currency. The level of Australian interest rates relative to overseas interest rates may influence their investment decisions. Recently the interest rate has fallen from 3.75% in May 2013 to 2.25% in April 2015, causing a decrease in...
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...have diverse point of views regarding the safety and use of nuclear energy power plants. Australia is country which has developed something of an allergic reaction to any mention of uranium or nuclear energy. Though Australia has abundant sources of Uranium fuel and its known uranium resources are the world’s largest, still all of this nuclear fuel is exported to the countries around the world. Australia is few of the developed countries not using nuclear power. With the increasing energy costs for the general public and the modern industries being completely dependent on electricity, it’s time Australia needs to stop the using the fossil fuels as the main source of production of energy and think...
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...PB-13-02 Realizing the Philippines’ Mining Potential Given the country’s mineral wealth, the mining industry can be a key driver of economic growth. However, the industry is hounded by various issues and challenges. These include the social and environmental costs, a revenue sharing agreement that is seen as unfair and inequitable, the overlapping and weak enforcement of mining laws, and other problems relating to the mining sector. Unless these are addressed through a clear, consistent and competitive mining policy, the sector’s huge potential to bring economic benefits will unlikely be realized. The SEPO Policy Brief, a publication of the Senate Economic Planning Office, provides analysis and discussion on important socioeconomic issues as inputs to the work of Senators and Senate Officials. The SEPO Policy Brief is also available at www.senate.gov.ph. Introduction The mining industry has a great potential to be a key growth sector in the Philippines given the country’s vast and rich mineral resource deposits. Mining can spur economic growth and generate employment opportunities in local communities as mining companies invest in infrastructure, utilities and other facilities within the mining sites. It can likewise contribute to the country's foreign-exchange earnings through exports and bring much needed revenues to the government through taxes and fees paid on mining and other related activities. It appears though that the Philippine mining industry has not lived up to its...
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...central economic problem is how to match finite resources with unlimited wants. With the demand for resources rising as the world economy grows this is becoming more of a challenge. Leading global companies like Anglo American strive to find new solutions to this problem every day. Anglo American is one of the world’s largest mining companies. Its portfolio of mining businesses spans precious metals and minerals – in which it is a global leader in platinum and diamonds, base metals (copper and nickel) and bulk commodities (iron ore, metallurgical coal and thermal coal). The company’s mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia. The purpose of the organisation is set out in a mission statement. In 2008 there was a downturn in world economic activity. This resulted from a loss of confidence in the world financial system. The downturn led to a steep fall in commodity prices such as coal, copper and platinum. By late 2009 these prices started to rise again as demand for commodities increased. Although mining companies are affected by changes in economic activity, mining is a long-term investment business. Firms like Anglo American have to take a long term view of the business. This involves extracting commodities in a sustainable way over a long period of time. The company focuses on those commodities in which it has a favourable position....
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...Chapter 14 Review The environmental effects of gold mining can harm the environment in many negative ways. Gold miners removed enough rock to equal the weight of 50 automobiles to extract a little amount of gold. The leftover waste is piled near the mine sites and can pollute the air and nearby surface water. Mining companies also created a new mining technology called cyanide heap leaching to level entire mountains of rock. In order for them to extract the gold, they spray a solution of highly toxic cyanide salts. This cyanide is extremely toxic to birds and mammals drawn to these ponds in search of water and they can leak into the rivers posing as a threat to fish and other life forms. Geology is the science devoted to the study of dynamic processes occurring on the earth’s surface and in its interior. The core is the earth’s innermost zone. The mantle is a thick zone surrounding the core. The crust is the outermost and thinnest zone of the earth. The tectonic plates are various sized areas of the earth’s lithosphere that move slowly around with the mantle’s flowing asthenosphere. The lithosphere is the outer shell of the earth, composed of the crust and the rigid, outermost part of the mantle outside the asthenosphere. A transform vault is an area where the earth’s lithospheric plates move in opposite but parallel directions along a fracture in the lithosphere. Weathering is the physical and chemical processes in which solid rock exposed at earth’s surface is changed to separate...
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...Nuclear energy is energy that comes from uranium. One uranium fuel pellet the size of the tip of a pencil eraser - produces the same energy as 17,000 cubic feet of natural gas, 1,780 pounds of coal or 149 gallons of oil. The energy is released in two ways; nuclear fusion and nuclear fission. Nuclear fusion energy is released when atoms are joined together to make a larger atom and Nuclear fission is the opposite and is when atoms separate making smaller atoms. Nuclear plants use nuclear fission to create energy. When the energy is released the energy is used to make steam, steam is then used to power a turbine to generate electricity. What a great way to produce electricity. People debate on the positives and negatives of nuclear energy,...
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...! ! ! Group Project: Ethics of the Mining Industry Group 4 Business Ethics 04-71-300-02 Professor Singh Date submitted: March 19th, 2014 ! ! ! ! ! ! ! ! ! ! ! ! ! !1 Executive Summary This report assesses the global mining industry from a business perspective. Firstly, it begins with the history of mining across the globe and the structure of the mining industry. It then analyzes the impacts of the mining industry globally. Lastly, it addresses the issues surrounding our land—the Canadian mining industry. The research shows that the history of mining goes as far as the Neolithic era. The mining value chain presented demonstrates the formation of a mining company to the extraction of the natural resources. Further investigation shows that the mining structure is an oligopoly. Methods of analysis include an environmental analysis using PEST and a stakeholder map, which focus on the performance of a world-renowned mining company TransAlta. The finding is that management’s role is to have efficiency and productivity while maintaining ethical practices. Ethical theories are then used to look at the social, environmental and economical impacts of the Canadian industry. It is concluded that each ethical theory presents a favorable solution to each impact. Social corporate responsibility is evaluated in the last ten years in Canada and around the globe. It is found that the industry has become one of the most safety-conscious industries within Canada. The companies still...
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