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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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Saturday, 23 January 21
GOVT PLANNING TO OPEN UP COAL MARKETING TO STREAMLINE PROCESS - THE INDIAN EXPRESS
The government is considering opening up coal marketing, Coal Secretary Anil Kumar Jain said on Thursday. Currently, production by Coal India is al ...
Thursday, 21 January 21
LNG MARKET RIDING HIGH, BUT WILL THE GAINS CONTINUE? - DREWRY
The LNG market started 2021 on a high note with Asian spot prices crossing $30 per MMBtu while LNG shipping rates recorded a high $350k per day due ...
Thursday, 21 January 21
CHINA'S SPOT THERMAL COAL PRICES REFRESH RECORD HIGH - MYSTEEL
Despite the moderate rebound in temperatures across most regions of China after late December’s deep-freeze, thermal coal prices in the count ...
Wednesday, 20 January 21
CORONAVIRUS OUTBREAK IN HEBEI HAS LIMITED IMPACT ON CHINA'S STEEL INDUSTRY - FITCH RATINGS
The recent Covid-19 outbreak in the steel producing hub Hebei will not have material impact on China’s steel industry, Fitch Ratings says.
...
Wednesday, 20 January 21
MARKET INSIGHT - INTERMODAL
While 2020 is finally behind us, its negative impacts are still hovering over the shipping market. That being said, it is still too early to even s ...
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- Ceylon Electricity Board - Sri Lanka
- SMC Global Power, Philippines
- Banpu Public Company Limited - Thailand
- Tamil Nadu electricity Board
- Australian Coal Association
- Semirara Mining Corp, Philippines
- Latin American Coal - Colombia
- Thiess Contractors Indonesia
- Kapuas Tunggal Persada - Indonesia
- Bhoruka Overseas - Indonesia
- Sical Logistics Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Marubeni Corporation - India
- South Luzon Thermal Energy Corporation
- Rio Tinto Coal - Australia
- Renaissance Capital - South Africa
- Xindia Steels Limited - India
- Kepco SPC Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Anglo American - United Kingdom
- Price Waterhouse Coopers - Russia
- Holcim Trading Pte Ltd - Singapore
- Cigading International Bulk Terminal - Indonesia
- Makarim & Taira - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Baiduri Energy - Indonesia
- Posco Energy - South Korea
- SN Aboitiz Power Inc, Philippines
- Chamber of Mines of South Africa
- Essar Steel Hazira Ltd - India
- Sree Jayajothi Cements Limited - India
- Chettinad Cement Corporation Ltd - India
- Videocon Industries ltd - India
- Toyota Tsusho Corporation, Japan
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Mines - Canada
- Coal and Oil Company - UAE
- Wilmar Investment Holdings
- Bukit Makmur.PT - Indonesia
- Georgia Ports Authority, United States
- White Energy Company Limited
- OPG Power Generation Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- LBH Netherlands Bv - Netherlands
- Oldendorff Carriers - Singapore
- Sinarmas Energy and Mining - Indonesia
- Kaltim Prima Coal - Indonesia
- Meralco Power Generation, Philippines
- PNOC Exploration Corporation - Philippines
- Power Finance Corporation Ltd., India
- ICICI Bank Limited - India
- Iligan Light & Power Inc, Philippines
- Tata Chemicals Ltd - India
- Orica Australia Pty. Ltd.
- Madhucon Powers Ltd - India
- New Zealand Coal & Carbon
- Kartika Selabumi Mining - Indonesia
- Bulk Trading Sa - Switzerland
- Heidelberg Cement - Germany
- Neyveli Lignite Corporation Ltd, - India
- Global Green Power PLC Corporation, Philippines
- Borneo Indobara - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Therma Luzon, Inc, Philippines
- Agrawal Coal Company - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Electricity Generating Authority of Thailand
- CNBM International Corporation - China
- TeaM Sual Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Coal Blending Company Limited - Australia
- Maheswari Brothers Coal Limited - India
- Medco Energi Mining Internasional
- Ministry of Transport, Egypt
- Alfred C Toepfer International GmbH - Germany
- Vedanta Resources Plc - India
- European Bulk Services B.V. - Netherlands
- Kalimantan Lumbung Energi - Indonesia
- Manunggal Multi Energi - Indonesia
- Aditya Birla Group - India
- Siam City Cement PLC, Thailand
- Mercator Lines Limited - India
- Sarangani Energy Corporation, Philippines
- Energy Development Corp, Philippines
- Petron Corporation, Philippines
- Indian Energy Exchange, India
- MS Steel International - UAE
- Parry Sugars Refinery, India
- Directorate General of MIneral and Coal - Indonesia
- Electricity Authority, New Zealand
- Timah Investasi Mineral - Indoneisa
- PowerSource Philippines DevCo
- Maharashtra Electricity Regulatory Commission - India
- Bhushan Steel Limited - India
- Star Paper Mills Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- SMG Consultants - Indonesia
- Intertek Mineral Services - Indonesia
- Minerals Council of Australia
- McConnell Dowell - Australia
- Miang Besar Coal Terminal - Indonesia
- Standard Chartered Bank - UAE
- Formosa Plastics Group - Taiwan
- Kobexindo Tractors - Indoneisa
- IHS Mccloskey Coal Group - USA
- Grasim Industreis Ltd - India
- Indian Oil Corporation Limited
- GAC Shipping (India) Pvt Ltd
- Coalindo Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Thai Mozambique Logistica
- Semirara Mining and Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Cement Manufacturers Association - India
- Mjunction Services Limited - India
- Edison Trading Spa - Italy
- Savvy Resources Ltd - HongKong
- Deloitte Consulting - India
- Ministry of Finance - Indonesia
- Malabar Cements Ltd - India
- Karaikal Port Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- GMR Energy Limited - India
- Baramulti Group, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Kideco Jaya Agung - Indonesia
- PTC India Limited - India
- Parliament of New Zealand
- AsiaOL BioFuels Corp., Philippines
- Karbindo Abesyapradhi - Indoneisa
- India Bulls Power Limited - India
- The State Trading Corporation of India Ltd
- Ind-Barath Power Infra Limited - India
- Altura Mining Limited, Indonesia
- Jaiprakash Power Ventures ltd
- Planning Commission, India
- Kumho Petrochemical, South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mintek Dendrill Indonesia
- VISA Power Limited - India
- Eastern Energy - Thailand
- Gujarat Electricity Regulatory Commission - India
- Krishnapatnam Port Company Ltd. - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Aboitiz Power Corporation - Philippines
- Riau Bara Harum - Indonesia
- Pendopo Energi Batubara - Indonesia
- San Jose City I Power Corp, Philippines
- GVK Power & Infra Limited - India
- Straits Asia Resources Limited - Singapore
- Interocean Group of Companies - India
- Vizag Seaport Private Limited - India
- Simpson Spence & Young - Indonesia
- Global Business Power Corporation, Philippines
- Central Electricity Authority - India
- Lanco Infratech Ltd - India
- Merrill Lynch Commodities Europe
- Indika Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercuria Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Meenaskhi Energy Private Limited - India
- Metalloyd Limited - United Kingdom
- ASAPP Information Group - India
- Singapore Mercantile Exchange
- Antam Resourcindo - Indonesia
- Central Java Power - Indonesia
- Gujarat Sidhee Cement - India
- Samtan Co., Ltd - South Korea
- Barasentosa Lestari - Indonesia
- London Commodity Brokers - England
- Jindal Steel & Power Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Petrochimia International Co. Ltd.- Taiwan
- Australian Commodity Traders Exchange
- Ambuja Cements Ltd - India
- Bangladesh Power Developement Board
- Siam City Cement - Thailand
- Goldman Sachs - Singapore
- Uttam Galva Steels Limited - India
- Independent Power Producers Association of India
- Gujarat Mineral Development Corp Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- Sindya Power Generating Company Private Ltd
- Bharathi Cement Corporation - India
- Energy Link Ltd, New Zealand
- Africa Commodities Group - South Africa
- Sakthi Sugars Limited - India
- Eastern Coal Council - USA
- Indonesian Coal Mining Association
- Larsen & Toubro Limited - India
- Indo Tambangraya Megah - Indonesia
- The University of Queensland
- Indogreen Group - Indonesia
- Bayan Resources Tbk. - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- The Treasury - Australian Government
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Dalmia Cement Bharat India
- Coastal Gujarat Power Limited - India
- Carbofer General Trading SA - India
- Rashtriya Ispat Nigam Limited - India
- Bhatia International Limited - India
- Globalindo Alam Lestari - Indonesia
- Sojitz Corporation - Japan
- Port Waratah Coal Services - Australia
- Trasteel International SA, Italy
- Wood Mackenzie - Singapore
- Commonwealth Bank - Australia
- Attock Cement Pakistan Limited
- Romanian Commodities Exchange
- Binh Thuan Hamico - Vietnam
- Pipit Mutiara Jaya. PT, Indonesia
- Orica Mining Services - Indonesia
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