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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, 16 December 20
CHINA TO BOOST DOMESTIC SUPPLY - FITCH
China’s benchmark Qinhuangdao 5,500kcal/kg coal price rose above the government’s upper yellow interval of CNY600/tonne in early Octobe ...
Wednesday, 16 December 20
INDONESIAN COAL RECOVERING - FITCH
Commenting on Indonesian coal, Fitch Ratings, the Indonesian 4,200 kcal index has begun to recover, improving to over USD 29 in November compared t ...
Tuesday, 15 December 20
NEWCASTLE PRICES RECOVER - FITCH
Prices for the benchmark Newcastle 6,000 kcal/kg grade coal have rebounded to over USD 70/tonne since late November as major Asian economies ease l ...
Tuesday, 15 December 20
APAC COAL PRICES REBOUND ON IMPROVED DEMAND AND SUPPLY CUTS - FITCH RATINGS
Prices for the benchmark Newcastle 6,000kcal/kg grade coal have rebounded to over USD70/tonne since late November as major Asian economies ease loc ...
Tuesday, 15 December 20
CHINA EXTENDS FULL OPEN GESTURE TO IMPORTED COAL EXCEPT FOR AUSTRALIA - GLOBAL TIMES
Domestic, overseas suppliers will take up share with easier clearance
China's top economic planner on Saturday gave approval to ...
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Showing 706 to 710 news of total 6871 |
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- Antam Resourcindo - Indonesia
- Commonwealth Bank - Australia
- Essar Steel Hazira Ltd - India
- ICICI Bank Limited - India
- Wilmar Investment Holdings
- Dalmia Cement Bharat India
- Bukit Baiduri Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Mjunction Services Limited - India
- International Coal Ventures Pvt Ltd - India
- Bharathi Cement Corporation - India
- Kobexindo Tractors - Indoneisa
- Chamber of Mines of South Africa
- Binh Thuan Hamico - Vietnam
- Singapore Mercantile Exchange
- Goldman Sachs - Singapore
- Bulk Trading Sa - Switzerland
- Medco Energi Mining Internasional
- GN Power Mariveles Coal Plant, Philippines
- LBH Netherlands Bv - Netherlands
- The Treasury - Australian Government
- Ambuja Cements Ltd - India
- Economic Council, Georgia
- Salva Resources Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- White Energy Company Limited
- Kepco SPC Power Corporation, Philippines
- Edison Trading Spa - Italy
- Central Java Power - Indonesia
- Minerals Council of Australia
- Interocean Group of Companies - India
- San Jose City I Power Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Videocon Industries ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Trasteel International SA, Italy
- Madhucon Powers Ltd - India
- AsiaOL BioFuels Corp., Philippines
- McConnell Dowell - Australia
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- Electricity Generating Authority of Thailand
- Therma Luzon, Inc, Philippines
- The State Trading Corporation of India Ltd
- Savvy Resources Ltd - HongKong
- Anglo American - United Kingdom
- Global Coal Blending Company Limited - Australia
- Orica Australia Pty. Ltd.
- Posco Energy - South Korea
- The University of Queensland
- Formosa Plastics Group - Taiwan
- Ministry of Transport, Egypt
- SMC Global Power, Philippines
- Bhushan Steel Limited - India
- PTC India Limited - India
- Electricity Authority, New Zealand
- India Bulls Power Limited - India
- Carbofer General Trading SA - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Eastern Coal Council - USA
- Siam City Cement - Thailand
- PNOC Exploration Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Malabar Cements Ltd - India
- GVK Power & Infra Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Jaiprakash Power Ventures ltd
- CNBM International Corporation - China
- Kartika Selabumi Mining - Indonesia
- SN Aboitiz Power Inc, Philippines
- Africa Commodities Group - South Africa
- Orica Mining Services - Indonesia
- Lanco Infratech Ltd - India
- Energy Development Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Indogreen Group - Indonesia
- Barasentosa Lestari - Indonesia
- Sical Logistics Limited - India
- Mintek Dendrill Indonesia
- Coal and Oil Company - UAE
- Power Finance Corporation Ltd., India
- Krishnapatnam Port Company Ltd. - India
- OPG Power Generation Pvt Ltd - India
- Tata Chemicals Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Coalindo Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kumho Petrochemical, South Korea
- Kohat Cement Company Ltd. - Pakistan
- Bangladesh Power Developement Board
- Bhoruka Overseas - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- South Luzon Thermal Energy Corporation
- Miang Besar Coal Terminal - Indonesia
- Indian Energy Exchange, India
- Tamil Nadu electricity Board
- CIMB Investment Bank - Malaysia
- Star Paper Mills Limited - India
- Thiess Contractors Indonesia
- Indo Tambangraya Megah - Indonesia
- Grasim Industreis Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Price Waterhouse Coopers - Russia
- Deloitte Consulting - India
- Manunggal Multi Energi - Indonesia
- Vizag Seaport Private Limited - India
- Sree Jayajothi Cements Limited - India
- Latin American Coal - Colombia
- Cigading International Bulk Terminal - Indonesia
- GMR Energy Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Parry Sugars Refinery, India
- Aboitiz Power Corporation - Philippines
- Rio Tinto Coal - Australia
- Planning Commission, India
- Romanian Commodities Exchange
- Cement Manufacturers Association - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Billiton Holdings Pty Ltd - Australia
- MS Steel International - UAE
- Borneo Indobara - Indonesia
- Kideco Jaya Agung - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sojitz Corporation - Japan
- Timah Investasi Mineral - Indoneisa
- Kaltim Prima Coal - Indonesia
- Vedanta Resources Plc - India
- Attock Cement Pakistan Limited
- Banpu Public Company Limited - Thailand
- Intertek Mineral Services - Indonesia
- Australian Coal Association
- London Commodity Brokers - England
- Energy Link Ltd, New Zealand
- Aditya Birla Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- Larsen & Toubro Limited - India
- Indian Oil Corporation Limited
- Ind-Barath Power Infra Limited - India
- Toyota Tsusho Corporation, Japan
- Mercator Lines Limited - India
- New Zealand Coal & Carbon
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Finance - Indonesia
- Gujarat Sidhee Cement - India
- Vijayanagar Sugar Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Wood Mackenzie - Singapore
- Chettinad Cement Corporation Ltd - India
- Straits Asia Resources Limited - Singapore
- Bukit Makmur.PT - Indonesia
- SMG Consultants - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petron Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Karaikal Port Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Xindia Steels Limited - India
- Meralco Power Generation, Philippines
- IEA Clean Coal Centre - UK
- ASAPP Information Group - India
- Alfred C Toepfer International GmbH - Germany
- Pendopo Energi Batubara - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Sakthi Sugars Limited - India
- Indonesian Coal Mining Association
- Maheswari Brothers Coal Limited - India
- Parliament of New Zealand
- Marubeni Corporation - India
- Rashtriya Ispat Nigam Limited - India
- Meenaskhi Energy Private Limited - India
- Agrawal Coal Company - India
- Global Business Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Heidelberg Cement - Germany
- Standard Chartered Bank - UAE
- Sarangani Energy Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- PowerSource Philippines DevCo
- Georgia Ports Authority, United States
- Merrill Lynch Commodities Europe
- TeaM Sual Corporation - Philippines
- Semirara Mining Corp, Philippines
- Altura Mining Limited, Indonesia
- Riau Bara Harum - Indonesia
- Ministry of Mines - Canada
- Baramulti Group, Indonesia
- Thai Mozambique Logistica
- Oldendorff Carriers - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Independent Power Producers Association of India
- Central Electricity Authority - India
- Bhatia International Limited - India
- Coastal Gujarat Power Limited - India
- Makarim & Taira - Indonesia
- Australian Commodity Traders Exchange
- Renaissance Capital - South Africa
- GAC Shipping (India) Pvt Ltd
- Uttam Galva Steels Limited - India
- Global Green Power PLC Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Mercuria Energy - Indonesia
- Indika Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Directorate General of MIneral and Coal - Indonesia
- Metalloyd Limited - United Kingdom
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Directorate Of Revenue Intelligence - India
- VISA Power Limited - India
- Sindya Power Generating Company Private Ltd
- Gujarat Mineral Development Corp Ltd - India
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