Coal consumption in 2016 could drop to 636 million st: analyst
As El Nino continues to moderate weather conditions across much of the US, the effects could reduce coal burn as low as 636 million st in 2016 with Central Appalachia Continue Reading
Climate deal may be terminal for coal, but death will be lingering: Russell
It’s tempting to take the champagne-fueled view that the historic global climate agreement reached in Paris signals the death of coal, but even if the dirty fuel is terminal, it Continue Reading
In Asia, King Coal Hard to Dethrone
The Philippines is set to open 23 coal-fired power plants over the next five years to meet rising electricity demand, illustrating the challenge climate-talk negotiators face in crafting a deal Continue Reading
Former Massey executive found guilty of conspiracy in West Virginia mine blast
Former Massey Energy Chief Executive Don Blankenship was found guilty in federal court on Thursday of conspiring to violate safety standards at the Upper Big Branch mine, the site of Continue Reading
Natgas overtakes coal as top U.S. power source in September
The price in relation to gallons of gas is displayed on a pump at a natural gas station in San Diego, California November 3, 2015. Natural gas surpassed coal in Continue Reading
Coal generation falls more than most US utilities had forecast: RETAC survey
Utilities are burning less coal than they previously expected, a survey the US Surface Transportation Board conducted shows. During a Rail Energy Transportation Advisory Committee hearing Tuesday in Washington, committee Continue Reading
Ukraine seeks imports of anthracite coal as shortages loom
Ukraine is seeking extra imports of anthracite coal from South Africa and other sources on looming shortages after supplies from Russia and territories controlled by pro-Russian separatists in Donetsk and Continue Reading
Coal Miners Feel the Burn
Coal-mining companies whose stock prices have tumbled could use some friends. Instead, they have become the target of campaigners hoping to cast the sector as the new Big Tobacco. With Continue Reading
Report: Senators voting against EPA rules received more coal industry cash
Legislators opposing new Environmental Protection Agency efforts to mitigate climate change have received large sums of cash from the coal industry, according to an analysis released Thursday by Maplight , an independent research group that tracks the influence of money in politics. Maplight’s analysis compared coal industry donations to two groups of senators: those who recently voted to block new EPA regulations designed to limit greenhouse gas and carbon emissions, and those who voted to leave the rules intact. The group of senators who opposed the EPA rules “received, on average, 17 times as much money ($75,802) from the coal mining industry compared to senators voting against them ($4,464)” over the six year period beginning in April 2009 and ending in March of this year, Maplight said in a statement. EPA rules mandate that states cut power-plant emissions by 32 percent , compared to 2005 levels, by the year […]
British economy stepping away from coal
British energy secretary says coal-fired power will come to an end by the middle of the next decade. UPI/Stephen Shaver LONDON, Nov. 18 (UPI) — Joining other major world economies, the British government announced plans to phase coal out of its energy portfolio within the next decade. "It cannot be satisfactory for an advanced economy like the U.K .to be relying on polluting, carbon intensive 50-year-old coal-fired power stations," British Energy and Climate Change Secretary Amber Rudd said in a statement. Rudd said the government would start restricting the reliance on coal-fired power by 2023 and close all coal-fired power stations by 2025. A federal plan in the United States calls for a 32 percent reduction in emissions of carbon dioxide, a potent greenhouse gas, by 2030. State governments under the plan are called on to outline their own agendas. New York’s government was praised for setting a gold […]
Hillary Clinton Unveils Plan to Aid Coal Communities Hit By Shift to Cleaner Energy
Democratic presidential front-runner Hillary Clinton on Thursday released a $30 billion plan aimed at revitalizing communities dependent on coal production, seeking to mitigate the economic impact of the nation’s shift from an electricity source that is both plentiful and polluting. Coal emits more pollution than any other energy type and its use has been on the decline as the nation works to adopt cleaner sources of energy. Mrs. Clinton’s plan includes federal money to spur new types of economic development in coal dependent communities, such as those throughout Appalachia, by building up infrastructure, expanding broadband access and giving tax breaks for new investment in communities hit by a decline in coal production. “Building a 21st century clean energy economy in the United States will create new jobs and industries, deliver important health benefits, and reduce carbon pollution,” the campaign said in a fact sheet. “But we can’t ignore the […]
Want to Burn Coal and Save the Planet? Japan Touts a Solution
An employee stands in front of stockpiles of coal inside a storage yard in Fukushima. Japan is the biggest backer of public coal financing globally, according to a June report co-authored by the Natural Resources Defense Council, a U.S. environmental group, and partners. For all the talk of a solar boom in Japan, coal still has a future there, and potentially a big one at that. Japan’s government and industry are backing emerging coal technologies they say are less damaging to the environment. While they’re pushing the most polluting fossil fuel at home and abroad, Japan’s government will be trying to burnish its environmental credentials at climate talks that begin at the end of the month in Paris. Japan is the biggest backer of public coal financing globally, according to a June report co-authored by the Natural Resources Defense Council, a U.S. environmental group, and partners. The country also […]
China Burns Much More Coal Than Reported, Complicating Climate Talks
BEIJING — China , the world’s leading emitter of greenhouse gases from coal, has been burning up to 17 percent more coal a year than the government previously disclosed, according to newly released data. The finding could complicate the already difficult efforts to limit global warming . Even for a country of China ’s size, the scale of the correction is immense. The sharp upward revision in official figures means that China has released much more carbon dioxide — almost a billion more tons a year according to initial calculations — than previously estimated. The increase alone is greater than the whole German economy emits annually from fossil fuels. Officials from around the world will have to come to grips with the new figures when they gather in Paris this month to negotiate an international framework for curtailing greenhouse-gas pollution. The data also pose a challenge for scientists who […]
Whiplash: Shift in federal coal policies stokes fear in rural areas
Brenda Atkins, director of plant operations the Seminole Electric coal fire generation power plant, sits outside the plant in Palatka, Fla. (Garrett Hubbard/Courtesy of NRECA) PALATKA, Fla. — When the Arab embargoes of the 1970s threatened the country’s oil supply, the U.S. government issued an edict to the nation’s electricity producers: Start burning coal. So the local utility managers in rural Putnam County, Fla., did just that. The community-owned utility took out government loans and built its first power plant, using generators that made electricity from cheap Appalachian coal. Things were fine for more than three decades, until Washington delivered a new edict with precisely the opposite instructions: For the sake of the planet, stop burning coal . Now the little utility faces an uncertain future, and it is hardly alone. As the country’s electricity providers prepare to comply with new federal regulations that restrict the use of coal, […]
Alpha Natural to Sell Inactive Coal Mines
Alpha Natural Resources is selling a collection of closed coal mines as it revamps its business in bankruptcy. At least 16 idled mines in West Virginia, Kentucky, Tennessee and Illinois are being put up for sale in Alpha’s chapter 11 bankruptcy proceeding , which began in August. The company has set a Jan. 20, 2016, target date for bids and would like to seek a bankruptcy judge’s approval for sales by February, according to papers filed Thursday in the U.S. Bankruptcy Court in Richmond, Va. Alpha is one of a number of coal mining operations to take shelter in bankruptcy in a bid to weather widespread distress in the market . This week, the company said it expects to have a draft business plan ready by the end of October. Shedding unprofitable assets is part of that plan, the company said. Many of the mines have already been marketed. […]
China 2016 coal imports could fall a further 25 million tonnes
A man stands amidst coal at a factory in Shaoxing, Zhejiang province, April 29, 2014. Coal shipments to top importer China could fall a further 25 million tonnes in 2016, analysts said on Monday, with foreign suppliers struggling to compete in a massively oversupplied market. Shipments of coal to China over the first nine months to September fell 29.8 percent to 156.36 million tonnes. Volumes are on track to fall about 60 million tonnes in 2015. The recent government push to support its domestic market and focus on cleaner energy sources has raised doubts over whether its status as an importer is sustainable. "We assume a further 25 million tonne drop from China," said Fabio Gabrieli, director of dry bulk analysis at Mercuria Energy Trading, speaking at the Coaltrans world coal conference. "We believe that next year what China drops is going to impact Indonesian exports," Gabrieli said, adding […]
Oakland Coal Terminal Becomes a Political Flash Point
A major commodities shipping terminal would be adjacent to the Port of Oakland, above. OAKLAND, Calif.—A proposal that could make this city a gateway for Utah coal to be shipped overseas has become a political flash point and put pressure on Gov. Jerry Brown, a former mayor known for his warnings on climate change, to come out against the project. The proposed deal would grant four coal-producing counties in Utah rail access to a major commodities shipping terminal under development on city land, adjacent to the Port of Oakland, in exchange for a $53 million investment. City officials hope the redevelopment plan, on an old Army base, would bring thousands of jobs to a city that still has pockets of poverty and violence even as the region’s tech sector booms and housing costs rise. California ports in Stockton, Richmond and Long Beach export coal, but because of climate change […]
U.S. coal sector in downturn
Fitch Ratings finds regulatory policies in part behind a downturn in the U.S. coal sector. File photo by Debbie Hill/UPI NEW YORK, Oct. 16 (UPI) — The mineral mining sector in the United States is showing signs of serious decline brought on by bankruptcies in the coal sector, Fitch Ratings said. "A spate of coal defaults has resulted from unsustainably high debt leverage from past acquisitions amid an environment of weak coal pricing," Fitch said in an industry profile. "The low pricing and defaults were driven by over-supply of steam coal and metallurgical coal, burdensome regulations, and competition from low priced natural gas for electric generation business." A federal Clean Power Plan set a goal of cutting emissions of carbon dioxide, a potent greenhouse gas, by 32 percent of their 2005 baseline by 2030, 9 percent more than in the original proposal. States need to meet specific emission reductions […]
US 2015 coal consumption for power sector to fall 8.2% to 781.4 million st: EIA
US coal consumption for the power sector will total an estimated 781.4 million st in 2015, down 8.2% from last year and the lowest amount since 1989, according to the October edition of the US Energy Information Administration’s Short Term Energy Outlook released Tuesday. A projected 28% drop in natural gas prices compared with 2014 and weak demand due to mild weather have continued to drive consumption estimates down, said Elias Johnson, coal analyst for the EIA. "We’re not having any of the problems with adequate supplies in storage that we had last year," Johnson said. "The mild summer weather didn’t put pressure on generation of any type." Should the figure hold, it would be the lowest overall coal consumption since 1987, when 836.9 million st was consumed, according to the agency. Article continues below… Sign up to Electricity Alert today. Platts Electricity Alert provides real-time news and market […]
After calamitous year for coal, U.S. consumers hold key for rails
A shovel is placed over coal briquettes during a protest in front of the chancellery in Berlin December 3, 2014. Investors in U.S. railroad stocks, who have been punished in 2015 by an accelerating decline in high-margin coal shipments, now are pinning their long-term hopes on a resurgence in consumer spending. Their bet is that a strengthening economy will produce enough demand that railroads will be able to replace the income lost to years of declining coal use with so-called intermodal shipping – the movement of containers stuffed with clothing, furniture and other consumer goods. Thanks to environmental rules regulating power plant emissions, coal use has declined steadily since peaking in 2008. So far this year, freight volumes have tumbled 9.2 percent as low energy prices encouraged utilities to switch to burning cheaper natural gas, while the strong U.S. dollar has hurt exports. The accelerated decline this year has […]
Coal mine starts continue to decline
graph of U.S. coal mine starts and total production, as explained in the article text Source: Mine Safety and Health Administration (MSHA) Note: Reactivated mines are those mines with production reported in previous years but not in the preceding year. The number of new and reactivated coal mines that began production in 2013 fell to the lowest level in at least the past 10 years. The addition of 103 mines in 2013 came as 271 mines were idled or closed, resulting in a 14% decline in the total number of producing coal mines from 2012 to 2013. The 2013 total was 397 fewer coal mines than in 2008, when coal production was at its highest. Although preliminary 2014 data on coal production from the Mine Safety and Health Administration indicate a slight increase both in production and in new and reactivated mines for 2014, these levels will still be […]
Coal use in China is slowing
U.S. Energy Information Administration, China National Bureau of Statistics (NBS) Source: Economic deceleration, industry restructuring, and new energy and environmental policies have slowed the growth of coal consumption in China and are also driving more centralized and cleaner uses of coal. After nearly a decade of rapid growth, energy-based consumption of coal, which currently supplies two-thirds of China’s overall energy use, grew only 1% to 2% in 2012 and 2013 and was essentially flat in 2014. Total energy consumption in China has slowed as its economic growth has eased and as the composition of gross domestic product (GDP) has shifted. In 2013, the service sector share (47%) of GDP surpassed the industry sector share (44%) for the first time in Chinese history. The service sector share increased to 48% in 2014, already exceeding the government’s 47% goal for 2015. Policies to accelerate the development of service industries are likely […]
BHP Billiton Sees Rocky Outlook for Coal
A multiyear downturn in the energy commodity, used to generate electricity and make steel, is worsening as miners continue to produce too much supply and China’s economy slows, said Mike Henry. China’s restrictions on certain types of highly polluting coa l, introduced earlier this year as part of an accelerating campaign to clean up its air, have added to a significant glut in the global market for the fuel, the mining executive said on Friday. “There are no signs of things getting better in the immediate term,” he said during a speech in Brisbane, Australia, according to prepared remarks. Coal prices have been tumbling since 2011 as cooling demand for the fuel was met by rising supplies from new mines planned when the market was booming. Price declines have deepened this year. The value of metallurgical coal, which is burned for steelmaking, is down as much as 30% from […]
Coal’s Answer to Decade-Low Prices Is Even Lower Prices
Coking coal is testing one of the basics of Econ 101: that low prices are the cure for low prices. The global metallurgical coal benchmark for the fourth quarter settled last week at $89 a metric ton, down 4.3 percent from the previous period to the lowest level since March 2005, according to Doyle Trading Consultants, a Grand Junction, Colorado-based industry analyst. Even so, at least three-fifths of the material that moves by sea, some 180 million metric tons of the steelmaking component, are generating a return amid a glut as the crude oil rout and a weaker Australian dollar lower costs for the world’s largest met coal exporter, Bloomberg Intelligence data show. “The prices have to get low enough to where the Australians can’t even tolerate them,” said Jim Thompson, director of coal for IHS Inc. in Knoxville, Tennessee. “Then maybe we can get around to solving the […]
Output per miner-hour rises as smaller coal mines close
graph of coal productivity and number of U.S. coal mines, as explained in the article text Coal mining productivity increased in 2013, averaging 5.5 short tons per miner hour, reversing a trend of declining productivity since at least 2000. Preliminary data from the Mine Safety and Health Administration indicate a further increase in 2014. Improved productivity at the largest mines, as well as the shrinking number of smaller coal mines, contributed to the rise in overall productivity. U.S. coal producers improved mining productivity by 6.7% in 2013, reaching 5.5 short tons per miner hour. Nine out of the 14 U.S. coal supply regions , representing 79% of 2013 coal production, showed productivity gains in 2013, the most recent year with detailed productivity statistics. While some productivity gains result from improved mining technology, most of the productivity improvement is attributable to the closing of less-efficient mines with lower labor productivity. […]
Scotland examines next steps after coal plant closure
The Scottish government blames British policies for pushing utility company to decide to close coal-powered plant next year. File Photo by Stephen Shaver/UPI EDINBURGH, Scotland, Aug. 18 (UPI) — The Scottish government said Tuesday it was setting up a panel to look into the impact of the closure of the Longannet coal power plant, the country’s last. "ScottishPower’s decision to close Longannet in March 2016 is deeply regrettable and has far-reaching consequences for Scotland," Scottish Energy Minister Fergus Ewing said in a statement. "This is a worrying time for Longannet workers, and the Scottish government and its agencies will do everything possible to support the 230 directly employed staff who will be affected by this announcement." The utility said the combination of high carbon taxes and high transmission charges meant it had to shut down the coal plant by next year. With 46 years in service, Longannet is the […]
The Trick That’s Going to Keep America’s Coal Alive
A miner operates the shearer in a longwall coal mine in Johnson City, Illinois. Photographer: Andrew Harrer/Bloomberg A 30-year-old mining technique is becoming all that’s keeping a group of U.S. coal producers from joining their competitors in bankruptcy. Coal, already locked in a battle with cheap natural gas, now faces federal environmental rules that threaten to reduce its share of power generation to the lowest in 66 years. Companies from Illinois to Northern Appalachia are responding by leaning more heavily than ever on longwall-mining, a technology that’ll be used to produce a quarter of America’s coal this year, up from 19 percent in 2013. Investors are backing the miners who rely on the efficient approach. Think of a giant deli slicer with multiple revolving blades that cuts coal from a seam into slices. Eighty percent of analysts covering Foresight Energy LP and CNX Coal Resources LP, both known for […]
New Zealand marks end to coal power
The era of coal is over, the government in New Zealand says as it phases in more renewable energy on its electric grid. Photo by Reinhard Tiburzy/Shutterstock WELLINGTON, New Zealand, Aug. 6 (UPI) — Coal-fired power is coming to an end in New Zealand as the country focuses on taking the global pole position in renewables, the energy minister said. "Historically coal has played an important role in ensuring the security of New Zealand’s electricity supply, particularly in dry years where our hydro-lake levels are low," New Zealand Energy and Resources Minister Simon Bridges said in a statement. "But significant market investment in other forms of renewable energy in recent years, particularly in geothermal, means that a coal backstop is becoming less of a requirement." Utility Genesis Energy said Thursday it’s on pace to shut down its last two coal-fired power plants by December 2018, effectively marking the end […]
Big U.S. coal miner Alpha Natural files for bankruptcy
Alpha Natural Resources Inc, one of the largest U.S. coal companies, became the latest in the hard-hit industry to seek bankruptcy on Monday. The move comes as President Barack Obama is expected to unveil tough new measures to cut greenhouse gas emissions from coal-fired power plants. Alpha blamed its Chapter 11 bankruptcy on tougher regulatory standards and policies that favor renewable energy, as well tumbling prices for its coal. Alpha is the world’s third-largest supplier of metallurgical coal used in making steel and has also been hit by a slowdown in China. Walter Energy Inc and Patriot Coal Corp also filed for bankruptcy protection this year. Energy Future Holdings Corp, a power company that also has a large coal mining business, has been in bankruptcy since 2014. Alpha Natural, with total liabilities of $7.11 billion, has reported adjusted losses for the past 14 quarters. The company said on Monday […]
Alpha Natural Resources to Seek Chapter 11
The ailing U.S. coal industry is about to get another black mark. Alpha Natural Resources Inc. is expected to file for chapter 11 bankruptcy protection early Monday to cut its more than $3 billion debt load, according to people familiar with the matter, as a severe slump in coal prices continues to wreak havoc on the industry. The Bristol, Va., company, one of the largest U.S. coal producers, hasn’t completed the terms of a restructuring plan but will likely sell some of its best mines or turn them over to creditors and close others during its trip through bankruptcy court, the people said. Alpha has secured as much as $600 million in bankruptcy financing from senior lenders and secured bondholders to fund its operations during its chapter 11 case, some of the people said. A steep drop in coal prices has Alpha and its rivals bleeding cash and choking […]
Coal Left Fighting Over America’s Last Plants as Rules Mount
U.S. power plants are burning the least amount of coal seasonally in more than a decade, and yet supplies continue to climb. For the latest front in the war on coal, look no further than the Coffeen Power Station, about 60 miles south of Springfield, Illinois. Trains roll into Dynegy Inc.’s plant hauling coal mined halfway across the country in Wyoming’s Powder River Basin — even though there’s a mine just a few miles down the road. That galls Illinois state representative John Bradley, who’s pushing for legislation that’ll boost the use of the state’s own supply. “Powder River Basin coal is not as good as coal from Illinois,” Bradley, a Democrat, said by phone. “Illinoisans are sitting on better coal than any other in the country.” America’s coal miners are getting so desperate, beaten down by the lowest prices in eight years, increasing competition and mounting environmental regulations, […]
Three Years Ago This Coal Mine Was Worth $624 Million. Now It Sold for $1
The destructive force of a collapse in world coal prices has been underscored by the sale of a mine valued at A$860 million ($631 million) three years ago for just a dollar. Brazilian miner Vale SA and Japan’s Sumitomo Corp. sold the Isaac Plains coking-coal mine in Australia to Stanmore Coal Ltd., the Brisbane-based company said Thursday in a statement. Sumitomo bought a half stake for A$430 million in 2012. A slump in the price of coking coal, used to make steel, to a decade low is forcing mines to close across the world and bankrupting some producers. Alpha Natural Resources Inc., the biggest U.S. producer, plans to file for bankruptcy protection in Virginia as soon as Monday, said three people with direct knowledge of the matter. It was valued at $7.3 billion in 2008. Isaac Plains in Queensland “was one of the most exciting coal projects in Australia,” […]
Arch Coal’s Future Gets Darker
One of the world’s largest coal companies in terms of reserves, Arch has seen its stock slump some 99.7% in the past five years to 20 cents recently. That should be a more respectable $2 or so after Monday—but only because the number of shares will fall due to a reverse stock split . Big Coal is at once a faint shadow of itself yet still vital economically. Mainly used for power generation and metallurgy, the percentage of U.S. electricity from coal-fired plants recently fell to 30% , just below the share from natural gas, according to SNL Energy. Five years ago, coal had twice the share of gas at 44%. But years of cheap, abundant shale output and tightening environmental standards have led many utilities to shut coal plants. That shift hasn’t been enough to absorb the glut of North American gas, something that would be a relief […]
US coal carload volumes rise to highest total in 11 weeks: AAR
Coal carload volumes originated on US railroads reached to an 11-week high, according to data released Wednesday by the Association of American Railroads. For the week ending July 18, the AAR reported 99,975 coal carloads, up 4.9% from 95,318 carloads the previous week. It was the second straight week of coal shipment gains since a year-low 82,924 carloads were reported for the week ending July 4. It was the highest volume of coal carloads since 101,495 carloads for the week ending May 2. Despite the increase, the latest total marked the 15th week this year coal volumes were below 100,000 carloads. It is the most times in a year weekly volumes have remained that low since the AAR began such record keeping in 1988, more than doubling the previous high of seven weeks in 1989. Article continues below… Platts Coal Trader provides the latest prices for key benchmark coals, […]
Coal Miners Pressed on Cleanup Costs
State and federal regulators are pressing U.S. coal companies to prove that they can pay for the cost of cleaning up after they are finished mining, putting new financial pressure on an industry already facing historic strains. Regulators even in energy-friendly states such as Wyoming and West Virginia are stepping up oversight on coal companies amid concerns that taxpayers could be left on the hook for expensive and environmentally complicated cleanups if the companies go bankrupt. That has created a political challenge for governors of coal states, who don’t want to be viewed as pushing vital industries into further financial trouble. “It is tough times in the coal fields right now,” said Harold Ward, acting director of the mining and reclamation division at the West Virginia Department of Environmental Protection. “You hope for them to be successful, but you anticipate the worst.” Coal producers have been rocked by competition […]
Gas overtakes coal at US power stations
The US generated more of its electricity from gas than from coal for the first time ever in April — in a sign of how the shale boom is putting mounting pressure on the country’s mining industry. Plunging prices for natural gas, which have fallen alongside oil since last summer, led to it being used to generate 31 per cent of America’s electricity in April, while coal contributed 30 per cent. This was the first month in US history that gas-fired electricity generation surpassed coal-fired generation, according to SNL Energy, a research firm — although it came close in 2012 when gas prices were also very weak. In 2010, coal provided 45 per cent of US power. Since then, competition from cheap shale gas — unlocked by the rise of horizontal drilling and hydraulic fracturing — plus a growing regulatory burden on coal-fired power plants, has squeezed out coal […]
Gas overtakes coal at US power stations
The US generated more of its electricity from gas than from coal for the first time ever in April — in a sign of how the shale boom is putting mounting pressure on the country’s mining industry. Plunging prices for natural gas, which have fallen alongside oil since last summer, led to it being used to generate 31 per cent of America’s electricity in April, while coal contributed 30 per cent. This was the first month in US history that gas-fired electricity generation surpassed coal-fired generation, according to SNL Energy, a research firm — although it came close in 2012 when gas prices were also very weak. In 2010, coal provided 45 per cent of US power. Since then, competition from cheap shale gas — unlocked by the rise of horizontal drilling and hydraulic fracturing — plus a growing regulatory burden on coal-fired power plants, has squeezed out coal […]
Weekly US coal production estimates dip below 16 million st: EIA
Weekly US coal production totaled an estimated 15.5 million st in the week that ended Saturday, down 4.7% from the prior week and down 17.8% from the comparable week a year ago, US Energy Information Administration data showed Thursday. While EIA does not comment on its production estimates, the weekly production estimate came in below 16 million st for the fourth time in the last five weeks, as coal output continues to fall because of low natural gas prices. Coal production during the week that ended June 27 in Wyoming and Montana, mostly made up of output from the Powder River Basin, totaled an estimated 6.7 million st during the week, down 17% compared with last year, according to the EIA. Year-to-date coal production in Wyoming and Montana is estimated to total 195.3 million st, down 8% compared with the same period last year. Article continues below… Platts Coal […]
Michigan, Iowa utilities to go forward with coal retirements, conversions to gas
Despite the US Supreme Court’s ruling Monday against the Environmental Protection Agency’s Mercury and Air Toxics Standards rule, electric power utilities in Michigan and Iowa say they are moving forward with plans to close coal-fired power plants or convert existing coal burners to natural gas over the next several years. The Supreme Court Monday ruled the EPA erred by refusing to consider cost when deciding to regulate emissions of mercury from the power sector. The Michigan South Central Power Agency’s decision late last week to retire its 55-MW Endicott coal plant at Litchfield in June 2016, has nothing to with MATS, general manager Glen White said in a Monday interview. Endicott, which went into commercial operation in 1983, is equipped with a scrubber and already complied with MATS, which took effect in mid-April, White said. Article continues below… Platts Coal Trader provides the latest prices for key benchmark coals, […]
For U.S. power firms, EPA ruling barely a bump on road to natgas
For big U.S. power companies like FirstEnergy Corp, the Supreme Court’s decision knocking back landmark rules reducing air pollutants from coal-fired plants has arrived too late for them to turn away from a natural gas-fueled future. Big coal-fired generators said on Monday that they would press ahead with facility upgrades and plant closures even after the court invalidated one of President Barack Obama’s major environmental initiatives, which would set new limits on the amount of mercury and other hazardous pollutants. In a 5-4 decision, the court found that the U.S. Environmental Protection Agency (EPA) should have considered the compliance cost of the Mercury and Air Toxics Standards (MATS) rule. The EPA has estimated it would cost the power industry $9.6 billion a year to comply with the rule. While the prospect of a suspension in the rule – and increased demand for coal – cheered some investors on Monday, […]
Biggest Coal Shipper’s Power Plan Offers Relief From Bear Market
The coal market’s best hope of breaking a four-year losing streak may be its biggest supplier’s plan to burn more at home. Indonesia plans to expand generating capacity by 46 percent in four years with new power plants, half of them burning coal. If that happens, fuel consumption may triple to the equivalent of 76 percent of last year’s exports and boost prices more than 50 percent, the Indonesia Coal Mining Association says. The country currently consumes less electricity than Taiwan, a nation with about a 10th of its population. Benchmark Asian coal prices fell every year since 2010 after producers from Australia to Colombia flooded the market and demand faltered in China, the biggest consumer. “Any reduction in Indonesian exports helps the seaborne market,” said Ted O’Brien, chief executive officer of Doyle Trading Consultants, a coal industry analytical firm based in Grand Junction, Colorado. “Like other Asian countries, […]
US 2015 power-sector coal consumption to hit 1991 low: EIA
US coal consumption for the power sector will total an estimated 792.9 million st in 2015, the lowest amount since 1991, the Energy Information Administration said Tuesday. Lower natural gas prices are the main reason behind the decline, the agency said in the June edition of its Short Term Energy Outlook. In 2014, coal consumption in the power sector totaled 851.4 million st. Tuesday’s report is another indication of how far the US coal industry has fallen since the shale boom has increased gas supplies and lowered prices. The year-over-year drop comes despite the agency’s forecast for the average US residential electricity costumer to spend 4.8% more during June, July and August, reflecting a 2.6% increase in the average electricity usage and a 2.1% increase in the average retail price of electricity. Article continues below… Platts Coal Trader provides the latest prices for key benchmark coals, as well as: […]
Illinois Basin coal market stressed by low demand, prices
The Illinois Basin market continues to wilt as low spot demand and ongoing production leaves more tons on the ground and anxious producers with more to sell, market sources said Friday. "We’re at the point where it’s no longer rhetoric to say we’re going to leave coal in the ground rather than sell at these prices," one producer said. While there have been some indications of production discipline — notably Murray Energy’s recent announcement that it would lay off some Illinois Basin employees as well as rumored production cutbacks at some other basin mines — the market is still dealing with oversupply. "We haven’t been in the market for some time," one utility source said, adding that low power and gas prices are keeping them out of the IB market. "We’re long this year, building our stockpiles." Article continues below… Platts Coal Trader provides the latest prices for key […]
In Kentucky, talk of a ‘war on coal’ gives way to hope for new economy
HARLAN COUNTY, KY When Dan Mosley became head of Kentucky’s Harlan County government this year, he promised – like those elected before him – to defend the state’s beleaguered coal industry. But Mosley also vowed to do something else for his county: help build a new economy based on something other than coal. "The best business I’ve seen in town lately has been the U-Haul business because people are moving out," said Mosley, a boyish-looking father of two, speaking after a community meeting in the century-old coal town of Benham. "The time has come to wipe away our tears," he says. "We have no choice but to diversify.” Talk of an economic transition remains difficult in eastern Kentucky, where you can still spot bumper stickers that read "Mine Every Lump" and statues honor coal miners. These are the people Kentucky Republican Senator Mitch McConnell says are victims of an […]
Glencore May Cut Coal Output Further to Combat Glut
Coal prices have fallen sharply since Glencore closed its purchase of Xstrata two years ago. In a rare public presentation, Glencore’s Australia-based head of global coal assets, Peter Freyberg, insisted coal was “a very, very important part” of the company, and that executives were considering options to acquire new assets or tie up with other producers with an eye to the long-term. When Glencore closed its purchase of fellow miner Xstrata PLC two years ago, Chief Executive Ivan Glasenberg said the blockbuster deal was “a big play on coal.” Since then, coal prices have fallen sharply, while Glencore’s market value has dropped close to its lowest level since it floated in London and Hong Kong in 2011. Both thermal coal, burned to generate electricity, and coking coal, used to make steel, are languishing due to oversupply caused by too many new projects coming on stream amid slowing demand, particularly […]
Weekly US coal production estimates fall to five-year low: EIA
Weekly US coal production totaled an estimated 15.1 million st in the week ended May 30, the lowest level in the last five years, US Energy Information Administration data showed Thursday. The estimate was down 6.1% from the prior week and down 20.7% from the year-ago week. It marks the 15th straight week of declining coal production estimates when compared with year-ago levels. The EIA does not comment on its production estimates, but low natural gas prices and increasing coal stockpiles are largely behind the drop in production. Platts unit Bentek Energy estimated coal stockpiles stood at 168.7 million st as of May 28, roughly 24% higher than the same time last year, and up 1% from the five-year average for the week. Article continues below… Platts Global Coal Alert brings real-time coal industry information to those who can’t afford to wait until tomorrow to get market coverage and […]
US coal exports down in April but show increased shipments to India
US coal exports totaled slightly more than 6.4 million mt in April, down 5.2% from the prior month and down 11.3% from the year-ago month, the US Census reported Wednesday. The weaker figures were partly due to weather-related delays in February, which pushed some loadings into March. However, the year-over-year decline also reflects continued weakness in the seaborne market for both thermal and metallurgical coal. Platts assessed the spot price for low vol US met coal FOB US East Coast on Wednesday at $102.50/mt, down 13.3% from a year-ago. Met coal exports totaled 3.8 million mt in April, down 20.2% from March and down 18.1% from the year-ago month. For the year, met coal exports total 16.1 million mt, down 19.5% compared with the same period last year. Article continues below… Platts Coal Trader provides the latest prices for key benchmark coals, as well as: Daily pricing for tons […]
As Coal Prices Fall, Miners Cut Output
SYDNEY—China’s appetite for coal used in steelmaking is faltering, deepening a market downturn miners say is the worst in recent memory. The price of steelmaking coal shipped from Australia, the world’s biggest exporter, has fallen 23% this year to roughly $86 a metric ton, its lowest level in nearly a decade. The slide extends a decline begun in 2011, during which the fuel’s value has slumped by around three-quarters. But analysts caution that prices will recover only if more cuts are made. The consultancy Wood Mackenzie doesn’t expect the oversupply of steelmaking coal, or coking coal, to clear up until about 2022. China, whose breakneck economic growth has been the engine for most global commodity markets, won’t need as much steelmaking coal in future, analysts now project. That leaves miners who rushed to open new pits in the boom years to struggle. Chinese sectors such as heavy industry and […]
Rhino Resource Partners idles majority of US Central Appalachia coal operations
Rhino Resource Partners is temporarily idling a majority of its US Central Appalachia coal operations because of the ongoing weakness in the coal markets, the producer said in a statement Tuesday. The company has sent out WARN notices to a total of 192 workers at its CAPP operations that include three surface mines and one underground mine at the Tug River, Rob Fork, and Deane mining complexes located in eastern Kentucky and West Virginia. Exactly how many employees that will ultimately be affected will depend on future market conditions for CAPP metallurgical and thermal coal, Rhino said. "We are taking difficult actions that are necessary due to the persistent weakness in the coal markets," CEO Joe Funk said in the statement. "Demand for Central Appalachia steam coal has fallen to unprecedented levels as utilities choose low-priced natural gas for electricity generation and other coal-fired capacity is shuttered due to […]