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Tag: steel

Filling the steel gap

Metallurgical coal may be an unknown to the general population, but it’s very important to the manufacturing of steel and also valuable in the current economy.

In August 2022, Australia-based Coronado Global Resources Inc., which produces metallurgical coal, announced a $169.1 million expansion of its Buchanan Mine Complex in Buchanan and Tazewell counties, expected to create 181 jobs. 

Metallurgical coal is used to generate coke, a fuel used in blast furnaces to make steel. “That’s what we’re focused on,” says Bob Cline, Coronado’s vice president of business development and engineering.

Thermal coal, by contrast, is used to generate power — and also has generated an image problem due to its contribution to climate change.

“I would make the argument that Coronado is not an energy company; rather, it is more aptly defined by its role in the manufacturing, infrastructure and construction sectors,” says Will Payne, managing partner of consulting firm Coalfield Strategies LLC and head of business development for InvestSWVA, a public-private business attraction and marketing campaign for Southwest Virginia.

Prices for metallurgical coal hit historic highs in the last part of 2021 and the first part of 2022, according to Ben Beakes, president of the Metallurgical Coal Producers Association.

Halfway into 2022, the metallurgical coal market began to “settle,” according to Beakes. “However, the market is still fairly strong.”

Expanding the Buchanan Mine Complex in Buchanan and Tazewell counties is necessary for Coronado to remain “competitive in the international coal markets for many years,” Cline explains. The company also has active mines in Queensland, Australia, and West Virginia.

Over the next 20 years, extracting coal from the Buchanan mine will require digging out more rock than previously required. “The expansion will allow Buchanan to not only maintain current production levels but also increase the saleable tonnage produced annually,” Cline says.

As of early December, workers had begun construction at the Buchanan Mine Complex on a second set of skips, which carry raw coal from underground to the surface. “We are well on our way to getting started,” says Brett Holbrook, vice president of U.S. operations for Coronado.

The expansion will also include storage space for 60,000 to 70,000 tons of raw coal, as well as a new coal preparation plant. “The preparation plant separates the coal from the rock, thus generating a saleable clean coal product,” Cline says. Additionally, the expansion will increase the size of the coal storage stockpile facility. This will mean fewer trucks hauling coal offsite for storage and later hauling it back for shipping, he adds. 

Several factors contributed to the current demand for metallurgical coal. Coming out of the pandemic, construction projects that had been put on hold suddenly received green lights, which led to a clamoring for steel. Then Russia invaded Ukraine, and Europeans looking to wean themselves from Russian coal, including metallurgical coal, began shopping for it elsewhere.

Another factor impacting demand: China’s relations with Australia began deteriorating a few years ago. That caused China also to shop around for its metallurgical coal needs. “The United States benefited quite a bit from that shift,” says Michael Quillen, founder of Abingdon-based coal producer Alpha Natural Resources and chair of the Energy DELTA Lab and the Southwest Virginia Energy Research and Development Authority.

As part of its plan to satiate some of that demand, Coronado had hired about 40 of the promised new workers as of December 2022, bringing the total number of employees at the Buchanan complex up to 615, according to Cline. The company plans to fill an
additional 141 positions over four years. 

The expansion plan for the mine complex came together quickly over the summer of 2022, according to Payne, who collaborated closely with Coronado executives and state and local officials on the expansion.  “Zooms and phone calls every … day for 10 weeks,” Payne recalls.

Gov. Glenn Youngkin approved a $3.5 million grant from the Commonwealth’s Opportunity Fund to Buchanan and Tazewell counties for the expansion. The money will be used primarily to relocate less than a mile of Route 632 to make room for expansion, according to Cline.

Payne describes Youngkin and Virginia Secretary of Commerce and Trade Caren Merrick as being “incredibly hands-on” during negotiations. “They closed the deal.”   

Colonna’s Shipyard promotes three execs

Norfolk-based Colonna’s Shipyard Inc. announced Monday it had promoted three executives to senior management positions, effective in July.

CSI has promoted Jordan Webb from vice president of contracts to vice president of shipyard operations; Randall Crutchfield from chief experience officer and executive director of Steel America and Weld America to vice president of industrial operations and facilities; and Chris Marsh from director of trades to executive director of waterfront operations.

“These key promotions along with a strategic organizational realignment reflect our response to the emerging dynamics of the marketplace and demonstrate to our customers and key stakeholders the continuity of experienced leadership within our company,” CSI President and CEO Tom Godfrey said in a statement.

Webb will be responsible for all legacy waterfront business, including its Down River Division ship repair work. He has led the CSI contracts department since 2017. Webb started as a ship superintendent, became a shipyard project manager and contract manager and then served as operations manager of Steel America.

Webb has a bachelor’s degree in business management from Virginia Tech and completed his project management professional curriculum through Villanova University.

Randall Crutchfield photo courtesy Colonna’s Shipyard Inc.

In his new position, Crutchfield will be responsible for CSI fabrication and machining operations, including off-site welding and machining and capital project planning and execution. He is also vice chair of the CSI Board of Directors. Crutchfield has worked in several departments across CSI and its subsidiaries, including procurement, Down River operations, contracts, project management and facilities.

He holds a bachelor’s degree in international trade and development from The University of North Carolina at Chapel Hill and an MBA from Regent University.

Marsh will now lead enterprise-wide legacy waterfront business and Down River operations and will oversee operations of Colonna’s Shipyard West in San Diego. He was most recently CSI’s director of trades. Before joining CSI, Marsh was production director for General Dynamics NASSCO-Norfolk for five years.

Marsh is a marine pipefitting and welding apprenticeship graduate of Newport News Shipbuilding and is an American Weld Society certified weld inspector. He is currently studying business management at Old Dominion University with a focus on project management.

Founded in 1875, Colonna’s provides ship repair, marine and industrial machining and steel fabrication. Between its headquarters and its San Diego location, Colonna employs approximately 700 people. In 2020, it received an $800,000 grant for new welding machines through the Small Shipyard Grant Program operated by the U.S. Department of Transportation’s Maritime Administration.

Mich. company acquires Roanoke steel distributor

Jackson, Michigan-based Alro Steel Corp. announced Monday it had acquired Roanoke-based Ace Steel Inc.

Financial terms of the transaction were not disclosed.

Founded in 1992, Ace Steel is a steel distributor serving the Roanoke Valley.

The transaction will help Alro provide improved service for cut-to-size metals and plastics, while Ace Steel’s customers will benefit from access to Alro’s inventory, which includes aluminum, carbon steel, stainless steel, tool steel, cast iron, red metals, alloys and plastics, Alro said in a statement.

“We are delighted that the Ace Steel team will join Alro and continue to provide quality materials with great customer service,” Alro said in a statement. “Alro and Ace Steel are both focused on exceeding our customers’ expectations through superior service and outstanding teamwork.”

Brothers Al Glick and Robert Glick founded Alro Steel in 1948. The company distributes metals, industrial supplies and engineering plastics. Alro operates more than 70 locations in 13 states through its companies: Alro Steel, Alro Metals, Alro Metals Outlet, Alro Industrial Supply and Alro Plastics.

SunCoke to invest $50M in Buchanan County plant

SunCoke Energy Inc., the largest independent producer of high-quality coke for blast furnace steel production in the Americas, plans to invest $50 million in its Buchanan County manufacturing operation, Gov. Ralph Northam said in a news release Tuesday.

Calling the project “a much-needed boost” for Southwest Virginia, Northam said the project will retain approximately 100 jobs at the Jewell Coke plant, where the company has been for 60 years. Virginia competed with Ohio for the project, which will include production upgrades and renovations to the facility. The company is refurbishing its manufacturing system at the plant to produce foundry coke, a diversification of its product line.

“SunCoke Energy has thrived in Southwest Virginia for more than half a century, and this major investment will ensure the company’s longevity in our Commonwealth for decades to come,” Northam said. “This project is an important win for Buchanan County, providing a much-needed boost to the coalfields’ economy and serving as a strong vote of confidence in the region and its skilled workforce.”
Based in Illinois, SunCoke has facilities in Indiana, Ohio, Virginia and Brazil, and its logistics terminals have capacity to mix and transload more than 40 million tons of coke each year. The Virginia Economic Development Partnership (VEDP) worked with Buchanan County and the Virginia Coalfield Economic Development Authority to secure the project for the state, and Northam approved a performance-based grant of $1.2 million from the Virginia Investment Performance (VIP) grant.
“SunCoke has been operating the Jewell Coke plant for more than 60 years, and we are happy to continue the good relationship we have had with state and local officials,” SunCoke President and CEO Mike Rippey said in a statement. “We are thankful to the commonwealth of Virginia for providing the VIP grant. As SunCoke works through its customer contracts and prepares to enter into the foundry coke market, Jewell Coke was the ideal facility for the deployment of capital for refurbishment and upgrade of ovens over the next three years.”