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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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Thursday, 17 December 20
CHINA'S BAN IS LESS OF A THREAT TO AUSTRALIA'S COAL INDUSTRY THAN INTERNATIONAL CLIMATE AMBITION - IEEFA
Australian coal exporters will survive this near-term political fight but there are longterm structural headwinds
The decision by Ch ...
Thursday, 17 December 20
BUMA SIGNED US$1.0 BILLION WORTH OF EXTENSION CONTRACT WITH BERAU COAL
PT Bukit Makmur Mandiri Utama, subsidiary of PT Delta Dunia Makmur Tbk., has extended its mining services contracts with PT Berau Coal, in relation ...
Wednesday, 16 December 20
INDONESIA 2020 COAL CONSUMPTION ESTIMATED AT 140-145 MLN TONNES - OFFICIAL, REUTERS REPORTED
Indonesia’s domestic coal consumption is estimated at 140-145 million tonnes this year, Dodik Ariyanto, an official at the energy ministry, t ...
Wednesday, 16 December 20
RUSSIA REVISES DOWN EXPORT EXPECTATION - FITCH
The Ministry of Economy of Russia, the world’s third largest thermal coal exporting country, released its annual forecasts ...
Wednesday, 16 December 20
INDIAN COAL IMPORTS TO REMAIN SUBDUED - FITCH RATINGS
Fitch Rating commented on Indian Coal Imports, Fitch said, coal imports by Indian utilities fell by about 24% yoy to 44 million tonnes (mt) i ...
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- Bhushan Steel Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Africa Commodities Group - South Africa
- Baramulti Group, Indonesia
- VISA Power Limited - India
- Marubeni Corporation - India
- Bhatia International Limited - India
- Lanco Infratech Ltd - India
- Salva Resources Pvt Ltd - India
- Mercuria Energy - Indonesia
- White Energy Company Limited
- Romanian Commodities Exchange
- Sree Jayajothi Cements Limited - India
- Jaiprakash Power Ventures ltd
- Indian Energy Exchange, India
- Asmin Koalindo Tuhup - Indonesia
- Price Waterhouse Coopers - Russia
- Chettinad Cement Corporation Ltd - India
- Vizag Seaport Private Limited - India
- CIMB Investment Bank - Malaysia
- Meenaskhi Energy Private Limited - India
- Banpu Public Company Limited - Thailand
- Minerals Council of Australia
- Kumho Petrochemical, South Korea
- Alfred C Toepfer International GmbH - Germany
- Larsen & Toubro Limited - India
- Global Business Power Corporation, Philippines
- SMG Consultants - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- MS Steel International - UAE
- San Jose City I Power Corp, Philippines
- Energy Link Ltd, New Zealand
- Aditya Birla Group - India
- Billiton Holdings Pty Ltd - Australia
- PNOC Exploration Corporation - Philippines
- Standard Chartered Bank - UAE
- Gujarat Mineral Development Corp Ltd - India
- Australian Coal Association
- Wilmar Investment Holdings
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The State Trading Corporation of India Ltd
- Antam Resourcindo - Indonesia
- Uttam Galva Steels Limited - India
- Bhoruka Overseas - Indonesia
- Coalindo Energy - Indonesia
- Power Finance Corporation Ltd., India
- IHS Mccloskey Coal Group - USA
- Aboitiz Power Corporation - Philippines
- Mintek Dendrill Indonesia
- Straits Asia Resources Limited - Singapore
- Savvy Resources Ltd - HongKong
- Latin American Coal - Colombia
- Bahari Cakrawala Sebuku - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Cement Manufacturers Association - India
- Heidelberg Cement - Germany
- GVK Power & Infra Limited - India
- Therma Luzon, Inc, Philippines
- Gujarat Sidhee Cement - India
- Manunggal Multi Energi - Indonesia
- Siam City Cement - Thailand
- SMC Global Power, Philippines
- ASAPP Information Group - India
- Kapuas Tunggal Persada - Indonesia
- Sojitz Corporation - Japan
- IEA Clean Coal Centre - UK
- Kartika Selabumi Mining - Indonesia
- Globalindo Alam Lestari - Indonesia
- Intertek Mineral Services - Indonesia
- Essar Steel Hazira Ltd - India
- Orica Mining Services - Indonesia
- Timah Investasi Mineral - Indoneisa
- TeaM Sual Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- India Bulls Power Limited - India
- Deloitte Consulting - India
- Karbindo Abesyapradhi - Indoneisa
- Jorong Barutama Greston.PT - Indonesia
- Bulk Trading Sa - Switzerland
- Bukit Baiduri Energy - Indonesia
- Dalmia Cement Bharat India
- Ambuja Cements Ltd - India
- Goldman Sachs - Singapore
- Bangladesh Power Developement Board
- Australian Commodity Traders Exchange
- Central Electricity Authority - India
- OPG Power Generation Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- LBH Netherlands Bv - Netherlands
- Pipit Mutiara Jaya. PT, Indonesia
- Posco Energy - South Korea
- Eastern Coal Council - USA
- Indika Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Commonwealth Bank - Australia
- Kobexindo Tractors - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- Medco Energi Mining Internasional
- Energy Development Corp, Philippines
- Thai Mozambique Logistica
- Formosa Plastics Group - Taiwan
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- Mercator Lines Limited - India
- PowerSource Philippines DevCo
- Indonesian Coal Mining Association
- Interocean Group of Companies - India
- GAC Shipping (India) Pvt Ltd
- Port Waratah Coal Services - Australia
- Pendopo Energi Batubara - Indonesia
- South Luzon Thermal Energy Corporation
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate Of Revenue Intelligence - India
- Sakthi Sugars Limited - India
- Sarangani Energy Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Indian Oil Corporation Limited
- Tamil Nadu electricity Board
- New Zealand Coal & Carbon
- Georgia Ports Authority, United States
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Indogreen Group - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rashtriya Ispat Nigam Limited - India
- Madhucon Powers Ltd - India
- Petron Corporation, Philippines
- GMR Energy Limited - India
- Neyveli Lignite Corporation Ltd, - India
- London Commodity Brokers - England
- Siam City Cement PLC, Thailand
- Barasentosa Lestari - Indonesia
- Trasteel International SA, Italy
- Sinarmas Energy and Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Kepco SPC Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Xindia Steels Limited - India
- Sical Logistics Limited - India
- Coastal Gujarat Power Limited - India
- Global Coal Blending Company Limited - Australia
- Miang Besar Coal Terminal - Indonesia
- Anglo American - United Kingdom
- Mjunction Services Limited - India
- Central Java Power - Indonesia
- Bukit Makmur.PT - Indonesia
- ICICI Bank Limited - India
- Altura Mining Limited, Indonesia
- Videocon Industries ltd - India
- Agrawal Coal Company - India
- Orica Australia Pty. Ltd.
- Kalimantan Lumbung Energi - Indonesia
- European Bulk Services B.V. - Netherlands
- Malabar Cements Ltd - India
- Sindya Power Generating Company Private Ltd
- Metalloyd Limited - United Kingdom
- Borneo Indobara - Indonesia
- CNBM International Corporation - China
- Edison Trading Spa - Italy
- Toyota Tsusho Corporation, Japan
- Indo Tambangraya Megah - Indonesia
- Coal and Oil Company - UAE
- SN Aboitiz Power Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Binh Thuan Hamico - Vietnam
- Parry Sugars Refinery, India
- Electricity Authority, New Zealand
- Semirara Mining Corp, Philippines
- Wood Mackenzie - Singapore
- Carbofer General Trading SA - India
- Merrill Lynch Commodities Europe
- Semirara Mining and Power Corporation, Philippines
- Singapore Mercantile Exchange
- PTC India Limited - India
- Ministry of Transport, Egypt
- Leighton Contractors Pty Ltd - Australia
- The University of Queensland
- Ministry of Finance - Indonesia
- Oldendorff Carriers - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Maheswari Brothers Coal Limited - India
- Eastern Energy - Thailand
- Meralco Power Generation, Philippines
- Rio Tinto Coal - Australia
- Makarim & Taira - Indonesia
- Ministry of Mines - Canada
- Bayan Resources Tbk. - Indonesia
- Parliament of New Zealand
- Tata Chemicals Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Karaikal Port Pvt Ltd - India
- Grasim Industreis Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Kaltim Prima Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- The Treasury - Australian Government
- PetroVietnam Power Coal Import and Supply Company
- Attock Cement Pakistan Limited
- Chamber of Mines of South Africa
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Generating Authority of Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- McConnell Dowell - Australia
- Star Paper Mills Limited - India
- Riau Bara Harum - Indonesia
- Economic Council, Georgia
- Samtan Co., Ltd - South Korea
- Planning Commission, India
- Gujarat Electricity Regulatory Commission - India
- Bharathi Cement Corporation - India
- Renaissance Capital - South Africa
- Independent Power Producers Association of India
- Thiess Contractors Indonesia
- Iligan Light & Power Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
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