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Thursday, 26 November 20
DECLINE IN COAL EXPORTS ADDS TO NAVAJO-OWNED COMPANY'S PROBLEMS - IEEFA U.S.
 Weak demand and low prices are likely creating steep losses for NTEC
U.S. coal exports to Asia—once heralded as the saving grace for struggling coal producers in the western United States—are facing new strains from low prices and weak demand in the wake of the global COVID-19 crisis.
In its third-quarter financial statement released earlier this month, Westshore Terminals in British Columbia, the primary terminal for U.S. thermal coal bound for the Pacific Rim of Asia, reported a 47% quarter-over-quarter drop in thermal coal exports. Quarterly thermal coal shipments from the terminal fell to their lowest level since 2016, when global coal markets were overwhelmed by a massive supply glut that sent seaborne coal prices crashing.
Even though the Westshore terminal is in Canada, virtually all of its shipments of thermal coal—the type burned in power plants—come from U.S. mines, mostly located in Montana. Data from the U.S. Mine Safety and Health Administration suggest that Montana’s Spring Creek mine, owned by the Navajo Transitional Energy Company (NTEC), bore the brunt of the decline. Coal production at Spring Creek totaled 2.2 million tons during the third quarter of 2020, down from about 3.9 million tons during the year-ago quarter. On an annualized basis, Spring Creek production has now fallen to its lowest level since 2003 (See Figure 1).
Meanwhile, production at the Signal Peak mine, the other major U.S. thermal coal exporter that ships through Westshore, held roughly steady compared to the year-ago quarter. (Signal Peak has been in the news for other reasons, having to do with a fraud and embezzlement scheme perpetrated by former executives. Signal Peak is partially owned by FirstEnergy, also in the news for fraud allegations.) Westshore doesn’t disclose its customer volumes, but Signal Peak’s relatively stable production during the quarter suggests that NTEC’s Spring Creek mine accounted for the bulk of the decline in thermal coal exports through Westshore.
In a related wrinkle, Westshore reported that it took in “$2.6 million [Canadian] of customer shortfall payments” from July through September. This means that at least one of the terminal’s shippers is paying penalties for shipping less coal than promised.
If last quarter’s shortfall payments are indeed coming from NTEC, the company is probably paying even more in penalties to BNSF, the rail company that moves Spring Creek coal to Westshore. (Documents from the 2019 bankruptcy filing of Cloud Peak Energy, the previous owner of the mine, suggest the company paid a little over $25 per ton in rail fees, more than twice as much as Westshore charges to ship a ton of coal.)
Cloud Peak shelled out millions of dollars in such payments to both BNSF and Westshore during times of low international prices, and—ironically enough—frequently shipped coal at a loss to avoid even steeper losses from contractual penalties.
NTEC touted its purchase in 2019 of Powder River Basin mines as a “prudent investment,” pointing to a study (commissioned by the company itself) arguing that Spring Creek exports held the “potential for high profitability.” Yet Cloud Peak had also had made big bets on Spring Creek exports—and those bets helped cement the company’s financial collapse.
Now, NTEC’s gamble on coal exports is backfiring—just as it backfired on Cloud Peak.
This will only worsen difficulties for NTEC, which has recently agreed to an ill-advised expansion of its stake in the aging coal-fired Four Corners power plant in New Mexico and whose core business—coal production for the domestic electricity industry—is in severe decline, and not just because of COVID but because utility companies continue to aggressively abandon coal for cheaper and more modern forms of generation.
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Wednesday, 27 January 21
MARKET INSIGHT - INTERMODAL
As we have entered the era off renewable energies, all industries globally give max effort to minimize their carbon footprint and consequently thei ...
Monday, 25 January 21
ULTRAMAX YET ANOTHER POSITIVE WEEK FOR THE SECTOR, WHICH SAW INCREASED DEMAND ACROSS ALL BASINS - BALTIC BRIEFING
Capesize
The Capesize market rocked and rolled these past few days. But by weeks end little had changed on the Capesize 5TC as it settled down ...
Monday, 25 January 21
NEW LAW IN CALIFORNIA, USA, AFFECTING SHIPOWNERS' LIABILITY FOR OIL POLLUTION - BIMCO
Members are advised that amendments to the so-called Lempert-Keene-Seastrand Oil Spill Prevention and Response Act of 1990 in the State of Californ ...
Monday, 25 January 21
COAL INDIA SAYS GEARED UP TO MEET SURGE IN FUEL DEMAND FROM POWER SECTOR - PTI
State-owned Coal India Ltd on Saturday said that it is well geared to meet any surge in demand for coal from the power sector.
The s ...
Sunday, 24 January 21
GOVT ASSURES COAL INDIA OF 'FULL SUPPORT', STRESSES ON LEARNING 'NEW THINGS' - PTI
Coal Minister Pralhad Joshi assured Coal India of full government support, even as he said the PSU needs to learn “new things” for impr ...
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Showing 656 to 660 news of total 6871 |
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- Kumho Petrochemical, South Korea
- Semirara Mining and Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- Deloitte Consulting - India
- TeaM Sual Corporation - Philippines
- LBH Netherlands Bv - Netherlands
- Baramulti Group, Indonesia
- Central Electricity Authority - India
- Sinarmas Energy and Mining - Indonesia
- GAC Shipping (India) Pvt Ltd
- Siam City Cement - Thailand
- Kalimantan Lumbung Energi - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Indo Tambangraya Megah - Indonesia
- Bayan Resources Tbk. - Indonesia
- Sree Jayajothi Cements Limited - India
- Sindya Power Generating Company Private Ltd
- Iligan Light & Power Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Kepco SPC Power Corporation, Philippines
- Chamber of Mines of South Africa
- McConnell Dowell - Australia
- Agrawal Coal Company - India
- SMG Consultants - Indonesia
- ICICI Bank Limited - India
- Chettinad Cement Corporation Ltd - India
- Mintek Dendrill Indonesia
- Aditya Birla Group - India
- GMR Energy Limited - India
- OPG Power Generation Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Indonesian Coal Mining Association
- Uttam Galva Steels Limited - India
- Riau Bara Harum - Indonesia
- Independent Power Producers Association of India
- Price Waterhouse Coopers - Russia
- Standard Chartered Bank - UAE
- India Bulls Power Limited - India
- Siam City Cement PLC, Thailand
- Australian Coal Association
- Ministry of Finance - Indonesia
- San Jose City I Power Corp, Philippines
- Formosa Plastics Group - Taiwan
- Directorate Of Revenue Intelligence - India
- Economic Council, Georgia
- Global Business Power Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Kaltim Prima Coal - Indonesia
- Aboitiz Power Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- Makarim & Taira - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Therma Luzon, Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- ASAPP Information Group - India
- Petrochimia International Co. Ltd.- Taiwan
- London Commodity Brokers - England
- Commonwealth Bank - Australia
- Ministry of Mines - Canada
- TNB Fuel Sdn Bhd - Malaysia
- South Luzon Thermal Energy Corporation
- Indogreen Group - Indonesia
- White Energy Company Limited
- Renaissance Capital - South Africa
- Africa Commodities Group - South Africa
- Sojitz Corporation - Japan
- Videocon Industries ltd - India
- Sical Logistics Limited - India
- Indika Energy - Indonesia
- CNBM International Corporation - China
- Barasentosa Lestari - Indonesia
- Romanian Commodities Exchange
- Cement Manufacturers Association - India
- Bharathi Cement Corporation - India
- Wilmar Investment Holdings
- Wood Mackenzie - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- European Bulk Services B.V. - Netherlands
- Maheswari Brothers Coal Limited - India
- SMC Global Power, Philippines
- Australian Commodity Traders Exchange
- Tata Chemicals Ltd - India
- Essar Steel Hazira Ltd - India
- Marubeni Corporation - India
- Simpson Spence & Young - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Singapore Mercantile Exchange
- Alfred C Toepfer International GmbH - Germany
- AsiaOL BioFuels Corp., Philippines
- Energy Development Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Electricity Generating Authority of Thailand
- Indian Oil Corporation Limited
- Bulk Trading Sa - Switzerland
- Planning Commission, India
- Xindia Steels Limited - India
- Georgia Ports Authority, United States
- Eastern Energy - Thailand
- PowerSource Philippines DevCo
- Orica Mining Services - Indonesia
- The Treasury - Australian Government
- Jorong Barutama Greston.PT - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Bukit Baiduri Energy - Indonesia
- Antam Resourcindo - Indonesia
- Banpu Public Company Limited - Thailand
- Tamil Nadu electricity Board
- Energy Link Ltd, New Zealand
- Samtan Co., Ltd - South Korea
- Bukit Makmur.PT - Indonesia
- Oldendorff Carriers - Singapore
- Madhucon Powers Ltd - India
- Vedanta Resources Plc - India
- Sarangani Energy Corporation, Philippines
- Ministry of Transport, Egypt
- Meenaskhi Energy Private Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vizag Seaport Private Limited - India
- Semirara Mining Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Heidelberg Cement - Germany
- Intertek Mineral Services - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Global Green Power PLC Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Rashtriya Ispat Nigam Limited - India
- Toyota Tsusho Corporation, Japan
- Meralco Power Generation, Philippines
- The State Trading Corporation of India Ltd
- Minerals Council of Australia
- Grasim Industreis Ltd - India
- MS Steel International - UAE
- Medco Energi Mining Internasional
- GVK Power & Infra Limited - India
- Binh Thuan Hamico - Vietnam
- Global Coal Blending Company Limited - Australia
- Ambuja Cements Ltd - India
- Port Waratah Coal Services - Australia
- Bangladesh Power Developement Board
- Central Java Power - Indonesia
- SN Aboitiz Power Inc, Philippines
- Anglo American - United Kingdom
- Edison Trading Spa - Italy
- Power Finance Corporation Ltd., India
- Leighton Contractors Pty Ltd - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Jindal Steel & Power Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Lanco Infratech Ltd - India
- Petron Corporation, Philippines
- Latin American Coal - Colombia
- Electricity Authority, New Zealand
- Mercuria Energy - Indonesia
- The University of Queensland
- Gujarat Sidhee Cement - India
- Sakthi Sugars Limited - India
- Mjunction Services Limited - India
- Dalmia Cement Bharat India
- Jaiprakash Power Ventures ltd
- Merrill Lynch Commodities Europe
- Indian Energy Exchange, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Kohat Cement Company Ltd. - Pakistan
- Bahari Cakrawala Sebuku - Indonesia
- Attock Cement Pakistan Limited
- IHS Mccloskey Coal Group - USA
- Parliament of New Zealand
- Salva Resources Pvt Ltd - India
- Coal and Oil Company - UAE
- Carbofer General Trading SA - India
- Parry Sugars Refinery, India
- Asmin Koalindo Tuhup - Indonesia
- Savvy Resources Ltd - HongKong
- Bhatia International Limited - India
- Coastal Gujarat Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Ceylon Electricity Board - Sri Lanka
- Larsen & Toubro Limited - India
- Trasteel International SA, Italy
- Straits Asia Resources Limited - Singapore
- Billiton Holdings Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Goldman Sachs - Singapore
- Rio Tinto Coal - Australia
- Bhoruka Overseas - Indonesia
- PTC India Limited - India
- Borneo Indobara - Indonesia
- Star Paper Mills Limited - India
- Posco Energy - South Korea
- Thiess Contractors Indonesia
- Interocean Group of Companies - India
- Eastern Coal Council - USA
- Bhushan Steel Limited - India
- Cigading International Bulk Terminal - Indonesia
- VISA Power Limited - India
- Mercator Lines Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kobexindo Tractors - Indoneisa
- Kideco Jaya Agung - Indonesia
- Thai Mozambique Logistica
- Karaikal Port Pvt Ltd - India
- New Zealand Coal & Carbon
- Bank of Tokyo Mitsubishi UFJ Ltd
- Metalloyd Limited - United Kingdom
- Karbindo Abesyapradhi - Indoneisa
- Kartika Selabumi Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Krishnapatnam Port Company Ltd. - India
- Altura Mining Limited, Indonesia
- Orica Australia Pty. Ltd.
- Malabar Cements Ltd - India
- PNOC Exploration Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
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