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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, 21 October 20
MARKET INSIGHT - INTERMODAL
The second wave of COVID-19 is now a reality; offices are closing again, and stricter rules and regulations are being implemented in public spaces. ...
Tuesday, 20 October 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.82 PCT - XINHUA
China Taiyuan coal transaction price index stood at 127.49 points Monday, up 0.82 percent week on week.
The index, released by China ...
Tuesday, 20 October 20
BIMCO 'SHIPLEASE' TERM SHEET - WATSON FARLEY & WILLIAMS
KNOWLEDGE TO ELEVATE
The ever-growing importance of sale and leaseback transactions as an alternative to financing ships by way of loan, makes ...
Friday, 16 October 20
KOMIPO ON BEHALF OF K GENCO'S INVITED BIDS FOR TOTAL 715,000 MT MIN. 5,700 NAR COAL FOR DECEMBER
COALspot.com: Korea Midland Power Co., Ltd (KOMIPO) on behalf of EWP, KOSPO, KOSEP and KOWEPO has issued an international tender for total 715,000& ...
Wednesday, 14 October 20
CHINA COKING COAL FUTURES RALLY ON REPORTED BAN ON AUSTRALIA CARGOES - REUTERS
Dalian coking coal futures rallied for a sixth straight session on Tuesday after reports surfaced that China had stopped buying coal from Australia ...
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- Central Java Power - Indonesia
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- Sinarmas Energy and Mining - Indonesia
- Directorate Of Revenue Intelligence - India
- Posco Energy - South Korea
- Gujarat Sidhee Cement - India
- Globalindo Alam Lestari - Indonesia
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- Star Paper Mills Limited - India
- Romanian Commodities Exchange
- Samtan Co., Ltd - South Korea
- Africa Commodities Group - South Africa
- Petrochimia International Co. Ltd.- Taiwan
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- Economic Council, Georgia
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- International Coal Ventures Pvt Ltd - India
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- Chamber of Mines of South Africa
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- Chettinad Cement Corporation Ltd - India
- Coal and Oil Company - UAE
- Banpu Public Company Limited - Thailand
- Sojitz Corporation - Japan
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- AsiaOL BioFuels Corp., Philippines
- Indian Energy Exchange, India
- Singapore Mercantile Exchange
- The Treasury - Australian Government
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- Orica Australia Pty. Ltd.
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- Larsen & Toubro Limited - India
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- Standard Chartered Bank - UAE
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- Holcim Trading Pte Ltd - Singapore
- GMR Energy Limited - India
- Mercuria Energy - Indonesia
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- Wood Mackenzie - Singapore
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- Sakthi Sugars Limited - India
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- Ambuja Cements Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Straits Asia Resources Limited - Singapore
- Indo Tambangraya Megah - Indonesia
- Electricity Generating Authority of Thailand
- Price Waterhouse Coopers - Russia
- Global Business Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Ministry of Transport, Egypt
- Edison Trading Spa - Italy
- Aditya Birla Group - India
- Aboitiz Power Corporation - Philippines
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- Xindia Steels Limited - India
- Georgia Ports Authority, United States
- Indogreen Group - Indonesia
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- Salva Resources Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Makarim & Taira - Indonesia
- Electricity Authority, New Zealand
- Kobexindo Tractors - Indoneisa
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- Port Waratah Coal Services - Australia
- Asmin Koalindo Tuhup - Indonesia
- Energy Development Corp, Philippines
- Kumho Petrochemical, South Korea
- Vedanta Resources Plc - India
- Parliament of New Zealand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Barasentosa Lestari - Indonesia
- Goldman Sachs - Singapore
- PetroVietnam Power Coal Import and Supply Company
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- GN Power Mariveles Coal Plant, Philippines
- Bhatia International Limited - India
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- Semirara Mining Corp, Philippines
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- PTC India Limited - India
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- Independent Power Producers Association of India
- Kideco Jaya Agung - Indonesia
- LBH Netherlands Bv - Netherlands
- Intertek Mineral Services - Indonesia
- Deloitte Consulting - India
- MS Steel International - UAE
- SMC Global Power, Philippines
- Coastal Gujarat Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- IEA Clean Coal Centre - UK
- Petron Corporation, Philippines
- India Bulls Power Limited - India
- Australian Coal Association
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- Sree Jayajothi Cements Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Toyota Tsusho Corporation, Japan
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- Binh Thuan Hamico - Vietnam
- Interocean Group of Companies - India
- Parry Sugars Refinery, India
- The University of Queensland
- Meralco Power Generation, Philippines
- Simpson Spence & Young - Indonesia
- The State Trading Corporation of India Ltd
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Energy Link Ltd, New Zealand
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- Medco Energi Mining Internasional
- Latin American Coal - Colombia
- Ministry of Finance - Indonesia
- PowerSource Philippines DevCo
- Billiton Holdings Pty Ltd - Australia
- Mjunction Services Limited - India
- Cigading International Bulk Terminal - Indonesia
- Therma Luzon, Inc, Philippines
- CNBM International Corporation - China
- Miang Besar Coal Terminal - Indonesia
- Renaissance Capital - South Africa
- Metalloyd Limited - United Kingdom
- Eastern Energy - Thailand
- Wilmar Investment Holdings
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- Australian Commodity Traders Exchange
- Central Electricity Authority - India
- GAC Shipping (India) Pvt Ltd
- Global Coal Blending Company Limited - Australia
- SMG Consultants - Indonesia
- New Zealand Coal & Carbon
- Riau Bara Harum - Indonesia
- Indian Oil Corporation Limited
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- Bukit Baiduri Energy - Indonesia
- Eastern Coal Council - USA
- Orica Mining Services - Indonesia
- Sical Logistics Limited - India
- Cement Manufacturers Association - India
- Ministry of Mines - Canada
- Vizag Seaport Private Limited - India
- Mercator Lines Limited - India
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- Planning Commission, India
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