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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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Friday, 13 November 20
SHIPPING OUTLOOK TURNS STABLE ON EBITDA GROWTH, IMPROVING SUPPLY-DEMAND BALANCE - MOODY’S
Outlook revised to stable from negative.
The global shipping industry is on course to perform better overall than we had previously ex ...
Friday, 13 November 20
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - XINHUA
China’s benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Monday, 09 November 20
INDONESIA MAY CUT BIODIESEL USE TARGET AS SUBSIDY FUND DEPLETES - FITCH
The Indonesian government may rein in its push to increase use of biodiesel as it now comes at higher cost following a fall in crude oil prices and ...
Monday, 09 November 20
SOUTH AFRICA: COAL MARKET CONDITIONS HAVE ' DETERIORATED MATERIALLY' - IEEFA
The Asian seaborne thermal coal pool is drying out
Resource Generation Ltd’s proposed but long delayed Boikarabelo coal mine i ...
Friday, 06 November 20
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - XINHUA
China’s benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
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- Jorong Barutama Greston.PT - Indonesia
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- Merrill Lynch Commodities Europe
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- Billiton Holdings Pty Ltd - Australia
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- PowerSource Philippines DevCo
- Sinarmas Energy and Mining - Indonesia
- Kartika Selabumi Mining - Indonesia
- Videocon Industries ltd - India
- Bhoruka Overseas - Indonesia
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- New Zealand Coal & Carbon
- PNOC Exploration Corporation - Philippines
- Sical Logistics Limited - India
- India Bulls Power Limited - India
- Lanco Infratech Ltd - India
- ICICI Bank Limited - India
- Eastern Energy - Thailand
- Toyota Tsusho Corporation, Japan
- McConnell Dowell - Australia
- Vijayanagar Sugar Pvt Ltd - India
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- Altura Mining Limited, Indonesia
- Samtan Co., Ltd - South Korea
- Carbofer General Trading SA - India
- Therma Luzon, Inc, Philippines
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- Orica Mining Services - Indonesia
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- Jindal Steel & Power Ltd - India
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- Medco Energi Mining Internasional
- Orica Australia Pty. Ltd.
- TeaM Sual Corporation - Philippines
- The Treasury - Australian Government
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- Bharathi Cement Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Ministry of Transport, Egypt
- Antam Resourcindo - Indonesia
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- Goldman Sachs - Singapore
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- Bank of Tokyo Mitsubishi UFJ Ltd
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- Chamber of Mines of South Africa
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- Petrochimia International Co. Ltd.- Taiwan
- Global Coal Blending Company Limited - Australia
- Central Electricity Authority - India
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- Trasteel International SA, Italy
- CIMB Investment Bank - Malaysia
- Bukit Makmur.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- Intertek Mineral Services - Indonesia
- Posco Energy - South Korea
- Ministry of Mines - Canada
- Economic Council, Georgia
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- Thai Mozambique Logistica
- Parry Sugars Refinery, India
- Cigading International Bulk Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMG Consultants - Indonesia
- Mjunction Services Limited - India
- Bulk Trading Sa - Switzerland
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- Bukit Asam (Persero) Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Marubeni Corporation - India
- Iligan Light & Power Inc, Philippines
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- Metalloyd Limited - United Kingdom
- IHS Mccloskey Coal Group - USA
- Meralco Power Generation, Philippines
- Ministry of Finance - Indonesia
- Kideco Jaya Agung - Indonesia
- Barasentosa Lestari - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- CNBM International Corporation - China
- Directorate General of MIneral and Coal - Indonesia
- Sree Jayajothi Cements Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Malabar Cements Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Bahari Cakrawala Sebuku - Indonesia
- Commonwealth Bank - Australia
- Coastal Gujarat Power Limited - India
- Central Java Power - Indonesia
- The State Trading Corporation of India Ltd
- Xindia Steels Limited - India
- Bayan Resources Tbk. - Indonesia
- Formosa Plastics Group - Taiwan
- Port Waratah Coal Services - Australia
- Kalimantan Lumbung Energi - Indonesia
- Jaiprakash Power Ventures ltd
- LBH Netherlands Bv - Netherlands
- Heidelberg Cement - Germany
- Singapore Mercantile Exchange
- Bhatia International Limited - India
- International Coal Ventures Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Energy Link Ltd, New Zealand
- GMR Energy Limited - India
- Larsen & Toubro Limited - India
- Ambuja Cements Ltd - India
- Parliament of New Zealand
- Banpu Public Company Limited - Thailand
- Sindya Power Generating Company Private Ltd
- Kepco SPC Power Corporation, Philippines
- Madhucon Powers Ltd - India
- Australian Commodity Traders Exchange
- Global Green Power PLC Corporation, Philippines
- Tamil Nadu electricity Board
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- Coalindo Energy - Indonesia
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- Kapuas Tunggal Persada - Indonesia
- Ind-Barath Power Infra Limited - India
- GAC Shipping (India) Pvt Ltd
- Anglo American - United Kingdom
- Savvy Resources Ltd - HongKong
- Directorate Of Revenue Intelligence - India
- Sakthi Sugars Limited - India
- Uttam Galva Steels Limited - India
- Petron Corporation, Philippines
- Siam City Cement PLC, Thailand
- Electricity Generating Authority of Thailand
- Krishnapatnam Port Company Ltd. - India
- Neyveli Lignite Corporation Ltd, - India
- Georgia Ports Authority, United States
- OPG Power Generation Pvt Ltd - India
- Australian Coal Association
- Renaissance Capital - South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- The University of Queensland
- Mintek Dendrill Indonesia
- Semirara Mining Corp, Philippines
- European Bulk Services B.V. - Netherlands
- South Luzon Thermal Energy Corporation
- Energy Development Corp, Philippines
- Indian Energy Exchange, India
- Bhushan Steel Limited - India
- PTC India Limited - India
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Essar Steel Hazira Ltd - India
- Planning Commission, India
- Dalmia Cement Bharat India
- Power Finance Corporation Ltd., India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Africa Commodities Group - South Africa
- MS Steel International - UAE
- Rio Tinto Coal - Australia
- Indian Oil Corporation Limited
- Vedanta Resources Plc - India
- Coal and Oil Company - UAE
- Kobexindo Tractors - Indoneisa
- Star Paper Mills Limited - India
- White Energy Company Limited
- Electricity Authority, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Meenaskhi Energy Private Limited - India
- VISA Power Limited - India
- Attock Cement Pakistan Limited
- Gujarat Sidhee Cement - India
- Alfred C Toepfer International GmbH - Germany
- IEA Clean Coal Centre - UK
- San Jose City I Power Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Indonesian Coal Mining Association
- Edison Trading Spa - Italy
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Coal Council - USA
- PetroVietnam Power Coal Import and Supply Company
- Asmin Koalindo Tuhup - Indonesia
- Bukit Baiduri Energy - Indonesia
- Baramulti Group, Indonesia
- Tata Chemicals Ltd - India
- Grasim Industreis Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Thiess Contractors Indonesia
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- Wilmar Investment Holdings
- Ceylon Electricity Board - Sri Lanka
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- Minerals Council of Australia
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- Standard Chartered Bank - UAE
- Interocean Group of Companies - India
- Sarangani Energy Corporation, Philippines
- London Commodity Brokers - England
- Offshore Bulk Terminal Pte Ltd, Singapore
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