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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, 08 December 20
MARKET ANALYSIS - ALLIED SHIPPING
It is now undisputed that oil consumption for 2020 will post a considerable drop, as demand for several petroleum products has plummeted since the ...
Tuesday, 08 December 20
PANAMAX: THE OVERALL MARKET SEEMS TO BE UNDER NEGATIVE PRESSURE - ALLIED
Capesize
A rather indifferent week for the Capesize market, with BCI 5TC figure finishing the week with slight losses of 0.8%. The Atlantic enj ...
Friday, 04 December 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 ...
Friday, 04 December 20
THE INDONESIA COAL PRICE REFERENCE REACHES THREE MONTH HIGH ON IMPROVING DEMAND OUTLOOK
COALspot.com: The Indonesia Coal Price Reference reaches three month high on improving demand outlook . The Indonesia Coal Price Reference rose by& ...
Wednesday, 02 December 20
GLOBAL MINING SECTOR OUTLOOK STABLE DUE TO CHINA'S RECOVERY - FITCH RATINGS
China’s post-pandemic economic recovery and sizeable infrastructure-focused government stimulus boosted global metals and mining prices, help ...
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Showing 716 to 720 news of total 6871 |
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- Savvy Resources Ltd - HongKong
- Toyota Tsusho Corporation, Japan
- Meralco Power Generation, Philippines
- Intertek Mineral Services - Indonesia
- Coalindo Energy - Indonesia
- Wood Mackenzie - Singapore
- Indian Oil Corporation Limited
- Videocon Industries ltd - India
- Romanian Commodities Exchange
- International Coal Ventures Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Jindal Steel & Power Ltd - India
- Sarangani Energy Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Mintek Dendrill Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Goldman Sachs - Singapore
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Makmur.PT - Indonesia
- Indo Tambangraya Megah - Indonesia
- SMG Consultants - Indonesia
- Antam Resourcindo - Indonesia
- CIMB Investment Bank - Malaysia
- Gujarat Sidhee Cement - India
- Mjunction Services Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Deloitte Consulting - India
- Central Electricity Authority - India
- Baramulti Group, Indonesia
- TeaM Sual Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Asmin Koalindo Tuhup - Indonesia
- Mercator Lines Limited - India
- Kumho Petrochemical, South Korea
- Grasim Industreis Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Merrill Lynch Commodities Europe
- Interocean Group of Companies - India
- Bulk Trading Sa - Switzerland
- Standard Chartered Bank - UAE
- Holcim Trading Pte Ltd - Singapore
- Cement Manufacturers Association - India
- The State Trading Corporation of India Ltd
- Pendopo Energi Batubara - Indonesia
- Simpson Spence & Young - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Global Business Power Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Leighton Contractors Pty Ltd - Australia
- Siam City Cement - Thailand
- ICICI Bank Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Makarim & Taira - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Star Paper Mills Limited - India
- London Commodity Brokers - England
- Malabar Cements Ltd - India
- Xindia Steels Limited - India
- Anglo American - United Kingdom
- Minerals Council of Australia
- CNBM International Corporation - China
- Karbindo Abesyapradhi - Indoneisa
- Posco Energy - South Korea
- Riau Bara Harum - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Binh Thuan Hamico - Vietnam
- IEA Clean Coal Centre - UK
- Indonesian Coal Mining Association
- Renaissance Capital - South Africa
- Bukit Baiduri Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Ministry of Mines - Canada
- Semirara Mining Corp, Philippines
- Salva Resources Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- VISA Power Limited - India
- European Bulk Services B.V. - Netherlands
- Energy Link Ltd, New Zealand
- Petron Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Australian Coal Association
- Coastal Gujarat Power Limited - India
- Jaiprakash Power Ventures ltd
- Bhatia International Limited - India
- Sindya Power Generating Company Private Ltd
- Kepco SPC Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Iligan Light & Power Inc, Philippines
- India Bulls Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- Port Waratah Coal Services - Australia
- Indogreen Group - Indonesia
- Lanco Infratech Ltd - India
- Indian Energy Exchange, India
- Power Finance Corporation Ltd., India
- Eastern Coal Council - USA
- Wilmar Investment Holdings
- Barasentosa Lestari - Indonesia
- Ministry of Finance - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Manunggal Multi Energi - Indonesia
- Siam City Cement PLC, Thailand
- Central Java Power - Indonesia
- Electricity Generating Authority of Thailand
- Gujarat Mineral Development Corp Ltd - India
- Kobexindo Tractors - Indoneisa
- OPG Power Generation Pvt Ltd - India
- Bangladesh Power Developement Board
- PNOC Exploration Corporation - Philippines
- Vijayanagar Sugar Pvt Ltd - India
- The University of Queensland
- Orica Mining Services - Indonesia
- Rio Tinto Coal - Australia
- Marubeni Corporation - India
- Thai Mozambique Logistica
- Coal and Oil Company - UAE
- Kideco Jaya Agung - Indonesia
- Ind-Barath Power Infra Limited - India
- Samtan Co., Ltd - South Korea
- Trasteel International SA, Italy
- Energy Development Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Vedanta Resources Plc - India
- South Luzon Thermal Energy Corporation
- Kalimantan Lumbung Energi - Indonesia
- Singapore Mercantile Exchange
- Price Waterhouse Coopers - Russia
- Ambuja Cements Ltd - India
- New Zealand Coal & Carbon
- Rashtriya Ispat Nigam Limited - India
- Essar Steel Hazira Ltd - India
- PowerSource Philippines DevCo
- Thiess Contractors Indonesia
- Alfred C Toepfer International GmbH - Germany
- Uttam Galva Steels Limited - India
- Borneo Indobara - Indonesia
- GAC Shipping (India) Pvt Ltd
- Commonwealth Bank - Australia
- Maheswari Brothers Coal Limited - India
- Edison Trading Spa - Italy
- Medco Energi Mining Internasional
- Aboitiz Power Corporation - Philippines
- Bhushan Steel Limited - India
- Metalloyd Limited - United Kingdom
- Miang Besar Coal Terminal - Indonesia
- Tamil Nadu electricity Board
- Directorate Of Revenue Intelligence - India
- Altura Mining Limited, Indonesia
- Mercuria Energy - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Cigading International Bulk Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- Therma Luzon, Inc, Philippines
- Banpu Public Company Limited - Thailand
- Straits Asia Resources Limited - Singapore
- Global Green Power PLC Corporation, Philippines
- Independent Power Producers Association of India
- Agrawal Coal Company - India
- MS Steel International - UAE
- Chamber of Mines of South Africa
- Global Coal Blending Company Limited - Australia
- Indika Energy - Indonesia
- PTC India Limited - India
- Aditya Birla Group - India
- Eastern Energy - Thailand
- Carbofer General Trading SA - India
- IHS Mccloskey Coal Group - USA
- The Treasury - Australian Government
- Bank of Tokyo Mitsubishi UFJ Ltd
- Madhucon Powers Ltd - India
- Parry Sugars Refinery, India
- Meenaskhi Energy Private Limited - India
- Georgia Ports Authority, United States
- GN Power Mariveles Coal Plant, Philippines
- Heidelberg Cement - Germany
- Semirara Mining and Power Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- White Energy Company Limited
- Larsen & Toubro Limited - India
- Tata Chemicals Ltd - India
- Vizag Seaport Private Limited - India
- GVK Power & Infra Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ministry of Transport, Egypt
- Chettinad Cement Corporation Ltd - India
- Attock Cement Pakistan Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kartika Selabumi Mining - Indonesia
- Dalmia Cement Bharat India
- Karaikal Port Pvt Ltd - India
- McConnell Dowell - Australia
- Orica Australia Pty. Ltd.
- Sojitz Corporation - Japan
- Oldendorff Carriers - Singapore
- Bharathi Cement Corporation - India
- Latin American Coal - Colombia
- Economic Council, Georgia
- Kaltim Prima Coal - Indonesia
- Sakthi Sugars Limited - India
- GMR Energy Limited - India
- Planning Commission, India
- Kohat Cement Company Ltd. - Pakistan
- SN Aboitiz Power Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- SMC Global Power, Philippines
- Australian Commodity Traders Exchange
- Electricity Authority, New Zealand
- Sinarmas Energy and Mining - Indonesia
- LBH Netherlands Bv - Netherlands
- Parliament of New Zealand
- Sical Logistics Limited - India
- ASAPP Information Group - India
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