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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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Tuesday, 29 September 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.73 PCT - XINHUA
China Taiyuan coal transaction price index stood at 125.91 points Monday, up 0.73 percent week on week.
The index, released by China ...
Tuesday, 29 September 20
SHIPPING MARKET - ALLIED
Here we are, just a short breath before the final quarter of the year, and many are now debating to what extent we can really expect a firm dry bul ...
Tuesday, 29 September 20
INDONESIAN COAL COMPANIES' EARNINGS TO WEAKEN IN 2H20 - FITCH RATINGS
Rated Indonesian coal miners and contractors will have weaker operating and financial performances in the second half of 2020 than in the first, sa ...
Tuesday, 29 September 20
RUSSIA'S COAL PRODUCTION TO DROP BY 10.5% IN 2020, SAYS MINISTRY - TASS
Russia’s Economic Development Ministry projects a 10.5% decrease in coal production in the country in 2020 compared with last year to 395 mln ...
Monday, 28 September 20
NEW LNG PROJECTS - ALL DRESSED UP AND NO PLACE TO GO - WOOD MACKENZIE
It was meant to be another boom year. After a record 70 mmtpa of new LNG capacity was sanctioned in 2019, at least as much capacity was lined up fo ...
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- Indonesian Coal Mining Association
- Petron Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Uttam Galva Steels Limited - India
- Agrawal Coal Company - India
- Thiess Contractors Indonesia
- Interocean Group of Companies - India
- Jindal Steel & Power Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Meralco Power Generation, Philippines
- Energy Development Corp, Philippines
- Bukit Makmur.PT - Indonesia
- Indogreen Group - Indonesia
- Coalindo Energy - Indonesia
- Mjunction Services Limited - India
- Trasteel International SA, Italy
- Neyveli Lignite Corporation Ltd, - India
- Salva Resources Pvt Ltd - India
- Parry Sugars Refinery, India
- TNB Fuel Sdn Bhd - Malaysia
- Ambuja Cements Ltd - India
- India Bulls Power Limited - India
- Mercator Lines Limited - India
- Banpu Public Company Limited - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Riau Bara Harum - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Xindia Steels Limited - India
- ASAPP Information Group - India
- Indian Oil Corporation Limited
- Australian Commodity Traders Exchange
- Manunggal Multi Energi - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Therma Luzon, Inc, Philippines
- The State Trading Corporation of India Ltd
- Oldendorff Carriers - Singapore
- Intertek Mineral Services - Indonesia
- Mintek Dendrill Indonesia
- Merrill Lynch Commodities Europe
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sical Logistics Limited - India
- South Luzon Thermal Energy Corporation
- Central Electricity Authority - India
- Meenaskhi Energy Private Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Videocon Industries ltd - India
- Electricity Authority, New Zealand
- Barasentosa Lestari - Indonesia
- SMG Consultants - Indonesia
- Maheswari Brothers Coal Limited - India
- Orica Mining Services - Indonesia
- Vedanta Resources Plc - India
- The University of Queensland
- Sindya Power Generating Company Private Ltd
- Malabar Cements Ltd - India
- Eastern Energy - Thailand
- Savvy Resources Ltd - HongKong
- ICICI Bank Limited - India
- Mercuria Energy - Indonesia
- Edison Trading Spa - Italy
- Planning Commission, India
- Carbofer General Trading SA - India
- Ministry of Finance - Indonesia
- Gujarat Electricity Regulatory Commission - India
- VISA Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Lanco Infratech Ltd - India
- Bukit Baiduri Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Straits Asia Resources Limited - Singapore
- Binh Thuan Hamico - Vietnam
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Eastern Coal Council - USA
- Bhoruka Overseas - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Sidhee Cement - India
- Energy Link Ltd, New Zealand
- Parliament of New Zealand
- Coastal Gujarat Power Limited - India
- Iligan Light & Power Inc, Philippines
- CNBM International Corporation - China
- Siam City Cement PLC, Thailand
- Minerals Council of Australia
- Dalmia Cement Bharat India
- Singapore Mercantile Exchange
- Medco Energi Mining Internasional
- Economic Council, Georgia
- Cigading International Bulk Terminal - Indonesia
- Goldman Sachs - Singapore
- Global Coal Blending Company Limited - Australia
- Holcim Trading Pte Ltd - Singapore
- Marubeni Corporation - India
- Wilmar Investment Holdings
- Sojitz Corporation - Japan
- International Coal Ventures Pvt Ltd - India
- Siam City Cement - Thailand
- OPG Power Generation Pvt Ltd - India
- SMC Global Power, Philippines
- Grasim Industreis Ltd - India
- Price Waterhouse Coopers - Russia
- PNOC Exploration Corporation - Philippines
- IEA Clean Coal Centre - UK
- Tata Chemicals Ltd - India
- Australian Coal Association
- Borneo Indobara - Indonesia
- GAC Shipping (India) Pvt Ltd
- Deloitte Consulting - India
- Kobexindo Tractors - Indoneisa
- Larsen & Toubro Limited - India
- Posco Energy - South Korea
- Central Java Power - Indonesia
- Essar Steel Hazira Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining Corp, Philippines
- Attock Cement Pakistan Limited
- GMR Energy Limited - India
- Metalloyd Limited - United Kingdom
- Simpson Spence & Young - Indonesia
- Commonwealth Bank - Australia
- GN Power Mariveles Coal Plant, Philippines
- Renaissance Capital - South Africa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kaltim Prima Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Karaikal Port Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- London Commodity Brokers - England
- Port Waratah Coal Services - Australia
- Sakthi Sugars Limited - India
- Standard Chartered Bank - UAE
- Global Business Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Baramulti Group, Indonesia
- Antam Resourcindo - Indonesia
- Wood Mackenzie - Singapore
- MS Steel International - UAE
- TeaM Sual Corporation - Philippines
- Thai Mozambique Logistica
- McConnell Dowell - Australia
- Star Paper Mills Limited - India
- Samtan Co., Ltd - South Korea
- Ministry of Mines - Canada
- European Bulk Services B.V. - Netherlands
- Timah Investasi Mineral - Indoneisa
- San Jose City I Power Corp, Philippines
- Bharathi Cement Corporation - India
- Toyota Tsusho Corporation, Japan
- Bhatia International Limited - India
- Alfred C Toepfer International GmbH - Germany
- LBH Netherlands Bv - Netherlands
- Romanian Commodities Exchange
- Bulk Trading Sa - Switzerland
- Independent Power Producers Association of India
- White Energy Company Limited
- PTC India Limited - India
- Coal and Oil Company - UAE
- Kumho Petrochemical, South Korea
- The Treasury - Australian Government
- GVK Power & Infra Limited - India
- Indo Tambangraya Megah - Indonesia
- Directorate Of Revenue Intelligence - India
- Leighton Contractors Pty Ltd - Australia
- Anglo American - United Kingdom
- Cement Manufacturers Association - India
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- PowerSource Philippines DevCo
- Kepco SPC Power Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Bayan Resources Tbk. - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Pendopo Energi Batubara - Indonesia
- Aboitiz Power Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Makarim & Taira - Indonesia
- AsiaOL BioFuels Corp., Philippines
- CIMB Investment Bank - Malaysia
- Georgia Ports Authority, United States
- Power Finance Corporation Ltd., India
- Altura Mining Limited, Indonesia
- Jaiprakash Power Ventures ltd
- Indika Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Electricity Generating Authority of Thailand
- Latin American Coal - Colombia
- Madhucon Powers Ltd - India
- Globalindo Alam Lestari - Indonesia
- Rio Tinto Coal - Australia
- Ceylon Electricity Board - Sri Lanka
- Chamber of Mines of South Africa
- Orica Australia Pty. Ltd.
- New Zealand Coal & Carbon
- Kapuas Tunggal Persada - Indonesia
- Bhushan Steel Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Ministry of Transport, Egypt
- Bangladesh Power Developement Board
- Tamil Nadu electricity Board
- Kartika Selabumi Mining - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- IHS Mccloskey Coal Group - USA
- SN Aboitiz Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Heidelberg Cement - Germany
- Formosa Plastics Group - Taiwan
- Semirara Mining and Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Ind-Barath Power Infra Limited - India
- Aditya Birla Group - India
- Vizag Seaport Private Limited - India
- Africa Commodities Group - South Africa
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