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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, 02 December 20
INDONESIA CONSIDERING CLOSING 3,400MW SURALAYA COAL PLANT - THE JAKARTA POST
The government is considering to shut down the aging Suralaya coal-fired power plant (PLTU) in Cilegon, Banten, and replace it with green energy, a ...
Wednesday, 02 December 20
MARKET INSIGHT - INTERMODAL
It has been another busy week in the dry bulk secondhand market; a healthy number of sales reported predominantly from Japanese owners while owner& ...
Thursday, 26 November 20
COAL FINANCING QUICKLY DRYING UP WORLDWIDE - ANALYSTS : REUTERS
Financing for coal projects is drying up at ever increasing rates as more countries target zero carbon emissions amid an energy transition sweeping ...
Wednesday, 25 November 20
LIBOR REPLACEMENT AND SHIP FINANCE - WHERE IS IT HEADING? - WFW
The likely replacement of the LIBOR at the end of 2021 creates difficult technical and practical issues for all sectors of business and finance. Th ...
Wednesday, 25 November 20
DRY BULK SHIPPING: CHINA REMAINS THE DRIVING FACTOR, BUT COAL POLICY IS DISRUPTING THE MARKET - PETER SAND, BIMCO
The second half of the year has provided some cheer for the dry bulk market, with all ships in the spot market averaging earnings above the break-e ...
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- Neyveli Lignite Corporation Ltd, - India
- PNOC Exploration Corporation - Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- London Commodity Brokers - England
- Madhucon Powers Ltd - India
- Bangladesh Power Developement Board
- IEA Clean Coal Centre - UK
- Kapuas Tunggal Persada - Indonesia
- GAC Shipping (India) Pvt Ltd
- Iligan Light & Power Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Ambuja Cements Ltd - India
- Petron Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- ASAPP Information Group - India
- Rio Tinto Coal - Australia
- Indika Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Anglo American - United Kingdom
- Mercator Lines Limited - India
- Australian Commodity Traders Exchange
- AsiaOL BioFuels Corp., Philippines
- Oldendorff Carriers - Singapore
- New Zealand Coal & Carbon
- Economic Council, Georgia
- Larsen & Toubro Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Eastern Energy - Thailand
- Jindal Steel & Power Ltd - India
- Indian Energy Exchange, India
- Siam City Cement - Thailand
- Ministry of Mines - Canada
- International Coal Ventures Pvt Ltd - India
- Indogreen Group - Indonesia
- Mjunction Services Limited - India
- Makarim & Taira - Indonesia
- PTC India Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Price Waterhouse Coopers - Russia
- Medco Energi Mining Internasional
- Standard Chartered Bank - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
- IHS Mccloskey Coal Group - USA
- Merrill Lynch Commodities Europe
- Samtan Co., Ltd - South Korea
- Indian Oil Corporation Limited
- CNBM International Corporation - China
- Goldman Sachs - Singapore
- Toyota Tsusho Corporation, Japan
- Semirara Mining Corp, Philippines
- Carbofer General Trading SA - India
- Latin American Coal - Colombia
- LBH Netherlands Bv - Netherlands
- Directorate Of Revenue Intelligence - India
- Salva Resources Pvt Ltd - India
- Parliament of New Zealand
- Binh Thuan Hamico - Vietnam
- Savvy Resources Ltd - HongKong
- Bahari Cakrawala Sebuku - Indonesia
- Port Waratah Coal Services - Australia
- Uttam Galva Steels Limited - India
- Wood Mackenzie - Singapore
- Orica Australia Pty. Ltd.
- Miang Besar Coal Terminal - Indonesia
- Global Business Power Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- European Bulk Services B.V. - Netherlands
- Manunggal Multi Energi - Indonesia
- GVK Power & Infra Limited - India
- Coalindo Energy - Indonesia
- Bhushan Steel Limited - India
- Commonwealth Bank - Australia
- Meenaskhi Energy Private Limited - India
- Global Green Power PLC Corporation, Philippines
- Wilmar Investment Holdings
- MS Steel International - UAE
- OPG Power Generation Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Tamil Nadu electricity Board
- Altura Mining Limited, Indonesia
- Ministry of Finance - Indonesia
- PowerSource Philippines DevCo
- VISA Power Limited - India
- Deloitte Consulting - India
- Chettinad Cement Corporation Ltd - India
- Pendopo Energi Batubara - Indonesia
- India Bulls Power Limited - India
- TeaM Sual Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Videocon Industries ltd - India
- Maheswari Brothers Coal Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Ministry of Transport, Egypt
- The Treasury - Australian Government
- Kartika Selabumi Mining - Indonesia
- South Luzon Thermal Energy Corporation
- Heidelberg Cement - Germany
- Timah Investasi Mineral - Indoneisa
- Thai Mozambique Logistica
- Metalloyd Limited - United Kingdom
- Minerals Council of Australia
- Attock Cement Pakistan Limited
- Parry Sugars Refinery, India
- Bhatia International Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Meralco Power Generation, Philippines
- Borneo Indobara - Indonesia
- Gujarat Sidhee Cement - India
- Posco Energy - South Korea
- Lanco Infratech Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- San Jose City I Power Corp, Philippines
- Sakthi Sugars Limited - India
- The University of Queensland
- Karaikal Port Pvt Ltd - India
- SMG Consultants - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kepco SPC Power Corporation, Philippines
- Coastal Gujarat Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Essar Steel Hazira Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Singapore Mercantile Exchange
- Bukit Makmur.PT - Indonesia
- Sree Jayajothi Cements Limited - India
- Power Finance Corporation Ltd., India
- Jaiprakash Power Ventures ltd
- Antam Resourcindo - Indonesia
- The State Trading Corporation of India Ltd
- Ind-Barath Power Infra Limited - India
- Simpson Spence & Young - Indonesia
- Independent Power Producers Association of India
- Trasteel International SA, Italy
- Therma Luzon, Inc, Philippines
- Bharathi Cement Corporation - India
- Siam City Cement PLC, Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Energy Link Ltd, New Zealand
- Billiton Holdings Pty Ltd - Australia
- Vizag Seaport Private Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Central Java Power - Indonesia
- Sarangani Energy Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Asmin Koalindo Tuhup - Indonesia
- Barasentosa Lestari - Indonesia
- SMC Global Power, Philippines
- Tata Chemicals Ltd - India
- Star Paper Mills Limited - India
- Australian Coal Association
- Grasim Industreis Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Edison Trading Spa - Italy
- Bayan Resources Tbk. - Indonesia
- Malabar Cements Ltd - India
- McConnell Dowell - Australia
- Romanian Commodities Exchange
- Dalmia Cement Bharat India
- Sojitz Corporation - Japan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Leighton Contractors Pty Ltd - Australia
- Cement Manufacturers Association - India
- CIMB Investment Bank - Malaysia
- SN Aboitiz Power Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Kobexindo Tractors - Indoneisa
- ICICI Bank Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Holcim Trading Pte Ltd - Singapore
- Sical Logistics Limited - India
- Indonesian Coal Mining Association
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- Electricity Generating Authority of Thailand
- Aditya Birla Group - India
- Thiess Contractors Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Georgia Ports Authority, United States
- GMR Energy Limited - India
- Bulk Trading Sa - Switzerland
- Formosa Plastics Group - Taiwan
- Mintek Dendrill Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coal and Oil Company - UAE
- Banpu Public Company Limited - Thailand
- Orica Mining Services - Indonesia
- Planning Commission, India
- Kaltim Prima Coal - Indonesia
- Africa Commodities Group - South Africa
- Central Electricity Authority - India
- Mercuria Energy - Indonesia
- Energy Development Corp, Philippines
- White Energy Company Limited
- Kumho Petrochemical, South Korea
- Gujarat Mineral Development Corp Ltd - India
- Intertek Mineral Services - Indonesia
- Straits Asia Resources Limited - Singapore
- Interocean Group of Companies - India
- Electricity Authority, New Zealand
- Agrawal Coal Company - India
- Gujarat Electricity Regulatory Commission - India
- Xindia Steels Limited - India
- Marubeni Corporation - India
- Vijayanagar Sugar Pvt Ltd - India
- Renaissance Capital - South Africa
- Chamber of Mines of South Africa
- Eastern Coal Council - USA
- Bukit Asam (Persero) Tbk - Indonesia
- Baramulti Group, Indonesia
- Riau Bara Harum - Indonesia
- Kideco Jaya Agung - Indonesia
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