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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 September 20
INDONESIA COAL PRICE REFERENCE DIVES FURTHER IN SEPTEMBER DUE TO SUBDUED DEMAND & GLOBAL OVERSUPPLY
Subdued demand & global oversupply pushed down this month's HBA
COALspot.com: The Indonesia Coal Price Reference ...
Tuesday, 01 September 20
WHY INDIA CAN'T MATCH THE GULF REGION'S RECORD-LOW SOLAR TARIFFS - IEEFA
5-10% annual decline in tariffs estimated for the next decade
A number of countries in the Gulf region have set record-low prices for solar in ...
Tuesday, 01 September 20
COVID-19 PUSHES US LNG INTO A TIGHT SPOT - DREWRY
The pandemic-led weak projections for economic growth will derail US LNG exports in full-year 2020 with the country also losing ground in the long ...
Monday, 31 August 20
DEFECTIVE PASSAGE PLANNING: UNSEAWORTHINESS OR A NAVIGATIONAL DECISION? THE CMA CGM LIBRA QUESTION SAILS ON TO THE UK SUPREME COURT - GARD
KNOWLEDGE TO ELEVATE
The UK Supreme Court has granted leave to appeal the recent decision in Alize 1954 v Allianz Elementar Versicherungs AG ( ...
Sunday, 30 August 20
PANAMAX - THIS WEEK THE DEMAND HAS PICKED UP, BUT THE TONNAGE LIST IS INCREASING DAY BY DAY - FEARNLEYS
Cape Size
More or less flat from previous week, with cape rates moving from US$ 19,500 to 18,900 on average. West Australia however being more ...
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- European Bulk Services B.V. - Netherlands
- Sree Jayajothi Cements Limited - India
- Mercuria Energy - Indonesia
- Xindia Steels Limited - India
- London Commodity Brokers - England
- San Jose City I Power Corp, Philippines
- Planning Commission, India
- South Luzon Thermal Energy Corporation
- Georgia Ports Authority, United States
- Ind-Barath Power Infra Limited - India
- Australian Commodity Traders Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GVK Power & Infra Limited - India
- Metalloyd Limited - United Kingdom
- New Zealand Coal & Carbon
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Anglo American - United Kingdom
- Bangladesh Power Developement Board
- CIMB Investment Bank - Malaysia
- Tamil Nadu electricity Board
- Global Green Power PLC Corporation, Philippines
- Altura Mining Limited, Indonesia
- Samtan Co., Ltd - South Korea
- Agrawal Coal Company - India
- Coastal Gujarat Power Limited - India
- Kumho Petrochemical, South Korea
- Siam City Cement PLC, Thailand
- Central Electricity Authority - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Central Java Power - Indonesia
- PTC India Limited - India
- Bukit Makmur.PT - Indonesia
- Cement Manufacturers Association - India
- Merrill Lynch Commodities Europe
- Gujarat Sidhee Cement - India
- The Treasury - Australian Government
- PNOC Exploration Corporation - Philippines
- Trasteel International SA, Italy
- Carbofer General Trading SA - India
- Madhucon Powers Ltd - India
- SMC Global Power, Philippines
- Cigading International Bulk Terminal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- TeaM Sual Corporation - Philippines
- Bharathi Cement Corporation - India
- Indo Tambangraya Megah - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Pendopo Energi Batubara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Simpson Spence & Young - Indonesia
- Attock Cement Pakistan Limited
- Gujarat Mineral Development Corp Ltd - India
- Aboitiz Power Corporation - Philippines
- Economic Council, Georgia
- Globalindo Alam Lestari - Indonesia
- Sarangani Energy Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Orica Australia Pty. Ltd.
- Kaltim Prima Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Neyveli Lignite Corporation Ltd, - India
- The University of Queensland
- SMG Consultants - Indonesia
- Makarim & Taira - Indonesia
- Manunggal Multi Energi - Indonesia
- Thiess Contractors Indonesia
- Directorate Of Revenue Intelligence - India
- Alfred C Toepfer International GmbH - Germany
- Aditya Birla Group - India
- Standard Chartered Bank - UAE
- Antam Resourcindo - Indonesia
- Bhushan Steel Limited - India
- Vizag Seaport Private Limited - India
- Malabar Cements Ltd - India
- Formosa Plastics Group - Taiwan
- LBH Netherlands Bv - Netherlands
- Grasim Industreis Ltd - India
- Karaikal Port Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Meralco Power Generation, Philippines
- MS Steel International - UAE
- McConnell Dowell - Australia
- Power Finance Corporation Ltd., India
- ICICI Bank Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Posco Energy - South Korea
- Baramulti Group, Indonesia
- ASAPP Information Group - India
- The State Trading Corporation of India Ltd
- Borneo Indobara - Indonesia
- Sindya Power Generating Company Private Ltd
- Jaiprakash Power Ventures ltd
- GMR Energy Limited - India
- Orica Mining Services - Indonesia
- Parliament of New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Petron Corporation, Philippines
- Eastern Energy - Thailand
- Rio Tinto Coal - Australia
- Jorong Barutama Greston.PT - Indonesia
- Uttam Galva Steels Limited - India
- Commonwealth Bank - Australia
- Indika Energy - Indonesia
- Global Business Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Ceylon Electricity Board - Sri Lanka
- VISA Power Limited - India
- Coal and Oil Company - UAE
- Bulk Trading Sa - Switzerland
- Renaissance Capital - South Africa
- Thai Mozambique Logistica
- Sinarmas Energy and Mining - Indonesia
- Indonesian Coal Mining Association
- Savvy Resources Ltd - HongKong
- Electricity Authority, New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Kideco Jaya Agung - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mjunction Services Limited - India
- Price Waterhouse Coopers - Russia
- Energy Development Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Finance - Indonesia
- Lanco Infratech Ltd - India
- Independent Power Producers Association of India
- Star Paper Mills Limited - India
- Jindal Steel & Power Ltd - India
- Toyota Tsusho Corporation, Japan
- Siam City Cement - Thailand
- Electricity Generating Authority of Thailand
- Africa Commodities Group - South Africa
- Vedanta Resources Plc - India
- Rashtriya Ispat Nigam Limited - India
- Sical Logistics Limited - India
- Leighton Contractors Pty Ltd - Australia
- Chettinad Cement Corporation Ltd - India
- Sojitz Corporation - Japan
- Marubeni Corporation - India
- Bahari Cakrawala Sebuku - Indonesia
- Edison Trading Spa - Italy
- Directorate General of MIneral and Coal - Indonesia
- Videocon Industries ltd - India
- Oldendorff Carriers - Singapore
- Mercator Lines Limited - India
- Maheswari Brothers Coal Limited - India
- International Coal Ventures Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Deloitte Consulting - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Iligan Light & Power Inc, Philippines
- Singapore Mercantile Exchange
- GAC Shipping (India) Pvt Ltd
- Australian Coal Association
- Miang Besar Coal Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- PowerSource Philippines DevCo
- PetroVietnam Power Coal Import and Supply Company
- Bukit Baiduri Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Mintek Dendrill Indonesia
- Heidelberg Cement - Germany
- Semirara Mining Corp, Philippines
- Chamber of Mines of South Africa
- Medco Energi Mining Internasional
- Ministry of Transport, Egypt
- Coalindo Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Therma Luzon, Inc, Philippines
- Riau Bara Harum - Indonesia
- Goldman Sachs - Singapore
- Eastern Coal Council - USA
- Bhoruka Overseas - Indonesia
- Gujarat Electricity Regulatory Commission - India
- IHS Mccloskey Coal Group - USA
- Global Coal Blending Company Limited - Australia
- Port Waratah Coal Services - Australia
- Minerals Council of Australia
- Latin American Coal - Colombia
- Tata Chemicals Ltd - India
- Kepco SPC Power Corporation, Philippines
- Ambuja Cements Ltd - India
- OPG Power Generation Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Sakthi Sugars Limited - India
- Binh Thuan Hamico - Vietnam
- India Bulls Power Limited - India
- Straits Asia Resources Limited - Singapore
- Bhatia International Limited - India
- Indogreen Group - Indonesia
- Indian Energy Exchange, India
- Wood Mackenzie - Singapore
- IEA Clean Coal Centre - UK
- White Energy Company Limited
- Wilmar Investment Holdings
- Indian Oil Corporation Limited
- Interocean Group of Companies - India
- Pipit Mutiara Jaya. PT, Indonesia
- Barasentosa Lestari - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Romanian Commodities Exchange
- Semirara Mining and Power Corporation, Philippines
- Ministry of Mines - Canada
- Holcim Trading Pte Ltd - Singapore
- Banpu Public Company Limited - Thailand
- Intertek Mineral Services - Indonesia
- Dalmia Cement Bharat India
- Larsen & Toubro Limited - India
- Essar Steel Hazira Ltd - India
- Parry Sugars Refinery, India
- CNBM International Corporation - China
- Kapuas Tunggal Persada - Indonesia
- Maharashtra Electricity Regulatory Commission - India
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