Thursday, 26 Jan 2012
US coal giant Peabody Energy has moved to capitalize on red hot demand for producing Australian coal mines, hiring UBS to find a buyer for its Wilkie Creek mine in Queensland state.
The mine, which produces over 2 million tons of thermal coal a year in the Surat Basin, is likely to interest North Asian buyers who already account for nearly all its exports.
Peabody acquired Wilkie Creek a decade ago, but sees it as non-core following its AUD 4.9 billion (USD 5.1 billion) takeover of Macarthur Coal last year. Macarthur’s mines are clustered in the Bowen Basin, so selling Wilkie Creek would allow Peabody to concentrate on its operations there.
The decision to sell Wilkie Creek, which has a resource of over 500,000 tons of thermal coal for use in power stations, was disclosed by Peabody in its full year earnings announcement Tuesday.
(Sourced from Wall Street Journal)
Showing posts with label U.S. coal producer. Show all posts
Showing posts with label U.S. coal producer. Show all posts
Thursday, January 26, 2012
Sunday, January 22, 2012
Coal fired generation and consumption declines span US
Sunday, 22 Jan 2012
Argus quoted the Energy Information Administration said coal-fired generation declined across the US in October despite overall generation rising slightly while natural gas picked up share in the eastern part of the country.
Coal-fired generation fell 4.1pc on the year in October, and natural gas-fired generation rose 1.7pc, EIA's Electric Power Monthly report showed. The month matches the trend in 2011. On a year-to-date basis, coal-fired generation fell 4.2pc in the first 10 months of the year compared with natural gas generation gaining 1.6pc.
Net generation from coal totalled 126.9mn MWH, the lowest October output since at least 2009. Coal generation fell in 30 states and rose in 15 states from a year prior. EIA said meanwhile, natural gas-fired generation fell in 17 states.
Output from all fuel sources rose 0.4pc in October from a year earlier with 22 states posting declines. Hydroelectric, wind and other renewables posted strong gains to grow their share to 15.3pc of total generation from 12.8pc a year prior. Coal's share of generation fell to 41pc from 42.9pc a year prior.
Falling natural gas prices are pressuring coal demand especially in the eastern US at the same time that environmental regulations and a slow economic turnaround have caused power companies to examine their fuel choices.
Natural gas generation rose in 20 of the states where coal-fired output fell. The gains were concentrated in states east of the Mississippi River particularly the mid-Atlantic and the eastern areas of the Midwest.
According to EIA electric utilities which account for the bulk of power generation and consumption spent an average USD 4.72 per mmBtu burning natural gas in October, 5¢ lower than a year earlier while the cost of coal increased 13¢ to $2.42 per mmBtu.
(Sourced from Argus)
Argus quoted the Energy Information Administration said coal-fired generation declined across the US in October despite overall generation rising slightly while natural gas picked up share in the eastern part of the country.
Coal-fired generation fell 4.1pc on the year in October, and natural gas-fired generation rose 1.7pc, EIA's Electric Power Monthly report showed. The month matches the trend in 2011. On a year-to-date basis, coal-fired generation fell 4.2pc in the first 10 months of the year compared with natural gas generation gaining 1.6pc.
Net generation from coal totalled 126.9mn MWH, the lowest October output since at least 2009. Coal generation fell in 30 states and rose in 15 states from a year prior. EIA said meanwhile, natural gas-fired generation fell in 17 states.
Output from all fuel sources rose 0.4pc in October from a year earlier with 22 states posting declines. Hydroelectric, wind and other renewables posted strong gains to grow their share to 15.3pc of total generation from 12.8pc a year prior. Coal's share of generation fell to 41pc from 42.9pc a year prior.
Falling natural gas prices are pressuring coal demand especially in the eastern US at the same time that environmental regulations and a slow economic turnaround have caused power companies to examine their fuel choices.
Natural gas generation rose in 20 of the states where coal-fired output fell. The gains were concentrated in states east of the Mississippi River particularly the mid-Atlantic and the eastern areas of the Midwest.
According to EIA electric utilities which account for the bulk of power generation and consumption spent an average USD 4.72 per mmBtu burning natural gas in October, 5¢ lower than a year earlier while the cost of coal increased 13¢ to $2.42 per mmBtu.
(Sourced from Argus)
Monday, December 12, 2011
CoalTek in USD 350 million venture in China
Monday, 12 Dec 2011
A Marlboro company is using microwave technology to upgrade low quality coal so it can be used at a majority of the world’s power plants.
CoalTek recently announced a USD 350 million plus joint venture with Chinese partners to build and operate its first commercial clean coal processing facility in Inner Mongolia.
According to the company, it’s the first Sino US clean coal project licensed by the Chinese government since a 2009 strategic partnership agreement announced by president Mr Obama and Chinese president Mr Hu Jin Tao.
Mr Chris Poirier CEO of CoalTek said that “It’s a landmark, groundbreaking approval. We went through a very, very rigorous process to demonstrate our technology.”
According to Mr Poirier, coal is the biggest source of stored energy in the world, and more than 6 billion tons a year are mined and consumed, primarily in power generation and steel manufacturing.
(Sourced from Boston Herald.com)
A Marlboro company is using microwave technology to upgrade low quality coal so it can be used at a majority of the world’s power plants.
CoalTek recently announced a USD 350 million plus joint venture with Chinese partners to build and operate its first commercial clean coal processing facility in Inner Mongolia.
According to the company, it’s the first Sino US clean coal project licensed by the Chinese government since a 2009 strategic partnership agreement announced by president Mr Obama and Chinese president Mr Hu Jin Tao.
Mr Chris Poirier CEO of CoalTek said that “It’s a landmark, groundbreaking approval. We went through a very, very rigorous process to demonstrate our technology.”
According to Mr Poirier, coal is the biggest source of stored energy in the world, and more than 6 billion tons a year are mined and consumed, primarily in power generation and steel manufacturing.
(Sourced from Boston Herald.com)
Thursday, November 17, 2011
Iron ore and coal shipments decline on US Great Lakes
Thursday, 17 November 2011
According to the Lake Carriers' Association, iron ore shipments on the US Great Lakes fell in October, dropping 11 percent from September to 5.7 million nt. Nonetheless, year-on-year iron ore shipments were still up 13 percent. Shipments from US ports totaled 5.1 million nt, an increase of 18 percent compared to a year ago. However, loadings at Canadian ports slipped 16.3 percent from a year ago. Through October the iron ore trade stands at 48.8 million nt, an increase of nearly 11 percent compared to year ago levels.
Additionally, shipments of coal on the US Great Lakes totaled 3 million net tons (nt) in October, an 11 percent decrease from September and 9.6 percent less than in October 2010. The trade slumped even more--20.7 percent--when compared to the five-year average for October. Year-to-date, the coal trade stands at 22.1 million nt, a decrease of 14.1 percent compared to a year ago.
Tags: Met Coke , iron ore , Canada , USA , raw mat , North America , trading , freight
Sourced:SteelOrbis
According to the Lake Carriers' Association, iron ore shipments on the US Great Lakes fell in October, dropping 11 percent from September to 5.7 million nt. Nonetheless, year-on-year iron ore shipments were still up 13 percent. Shipments from US ports totaled 5.1 million nt, an increase of 18 percent compared to a year ago. However, loadings at Canadian ports slipped 16.3 percent from a year ago. Through October the iron ore trade stands at 48.8 million nt, an increase of nearly 11 percent compared to year ago levels.
Additionally, shipments of coal on the US Great Lakes totaled 3 million net tons (nt) in October, an 11 percent decrease from September and 9.6 percent less than in October 2010. The trade slumped even more--20.7 percent--when compared to the five-year average for October. Year-to-date, the coal trade stands at 22.1 million nt, a decrease of 14.1 percent compared to a year ago.
Tags: Met Coke , iron ore , Canada , USA , raw mat , North America , trading , freight
Sourced:SteelOrbis
Friday, August 26, 2011
US coal giant says taxes make Australian investment less attractive
Fri, August 26, 2011
By Matt Chambers, The Australian
Peabody Energy says the government is making it less attractive to invest in Australia because of proposed taxes.
The US coal giant, jointly bidding $4.7 billion for Macarthur Coal with the world's biggest steel company ArcelorMittal, also says there is a heightened sovereign risk.
Speaking in Sydney yesterday, senior vice-president of investor relations, Vic Svec, said despite Peabody's continued investment in Australia, there was no question that the nation's relative advantage in attracting foreign investment was shrinking under the current government.
"It's really only in the last year you've heard sovereign risk being associated with Australia, and we don't like that," he said.
Peabody is Australia's fifth-biggest coal producer, but it will jump to the third-biggest if it is successful in the joint $15.50-a-share cash bid for Macarthur.
"We want Australia to be more welcoming to capital, as opposed to less welcoming, to ensure we don't take a meat cleaver to the milk cow," Mr Svec said.
He said Australia was "absolutely" becoming less welcoming to capital through the proposed mining and carbon taxes.
Peabody, the world's biggest non-government coal company, sold 246 million tonnes of coal last year - all from the US, apart from 27 million tonnes in Australia.
Despite this, its Australian operations accounted for 60 per cent of the company's earnings because most of the US coal is contracted domestically for much lower prices than are fetched on export markets.
Mr Svec said he had not planned for any formal meetings with Macarthur during his visit, but the company continued to engage with its target and hoped that an agreement could be reached.
"Their mantra of taking no action seems to be going on for a pretty long time," he said.
When Macarthur released its full-year profit on Wednesday, the company said it remained in conversations with other potential suitors but that nothing had eventuated and that shareholders should take no action on the Peabody bid.
A recommendation from the Macarthur board is expected before the end of the month.
Mr Svec said Macarthur's inability to hit production targets in four of the past five years was indicative of either poor forecasting, poor operations, or both.
Peabody had begun to receive some acceptances for its offer, Mr Svec said.
But it is only a trickle at this stage and has not strengthened the Peabody/Arcelor stake in Macarthur more than one percentage point beyond the 16 per cent it was at when the bid was lobbed a month ago.
By Matt Chambers, The Australian
Peabody Energy says the government is making it less attractive to invest in Australia because of proposed taxes.
The US coal giant, jointly bidding $4.7 billion for Macarthur Coal with the world's biggest steel company ArcelorMittal, also says there is a heightened sovereign risk.
Speaking in Sydney yesterday, senior vice-president of investor relations, Vic Svec, said despite Peabody's continued investment in Australia, there was no question that the nation's relative advantage in attracting foreign investment was shrinking under the current government.
"It's really only in the last year you've heard sovereign risk being associated with Australia, and we don't like that," he said.
Peabody is Australia's fifth-biggest coal producer, but it will jump to the third-biggest if it is successful in the joint $15.50-a-share cash bid for Macarthur.
"We want Australia to be more welcoming to capital, as opposed to less welcoming, to ensure we don't take a meat cleaver to the milk cow," Mr Svec said.
He said Australia was "absolutely" becoming less welcoming to capital through the proposed mining and carbon taxes.
Peabody, the world's biggest non-government coal company, sold 246 million tonnes of coal last year - all from the US, apart from 27 million tonnes in Australia.
Despite this, its Australian operations accounted for 60 per cent of the company's earnings because most of the US coal is contracted domestically for much lower prices than are fetched on export markets.
Mr Svec said he had not planned for any formal meetings with Macarthur during his visit, but the company continued to engage with its target and hoped that an agreement could be reached.
"Their mantra of taking no action seems to be going on for a pretty long time," he said.
When Macarthur released its full-year profit on Wednesday, the company said it remained in conversations with other potential suitors but that nothing had eventuated and that shareholders should take no action on the Peabody bid.
A recommendation from the Macarthur board is expected before the end of the month.
Mr Svec said Macarthur's inability to hit production targets in four of the past five years was indicative of either poor forecasting, poor operations, or both.
Peabody had begun to receive some acceptances for its offer, Mr Svec said.
But it is only a trickle at this stage and has not strengthened the Peabody/Arcelor stake in Macarthur more than one percentage point beyond the 16 per cent it was at when the bid was lobbed a month ago.
Friday, January 14, 2011
Alpha Lifts 2011 Coking Coal Forecast on Australian Floods
Source :Bloomberg, by Mario Parker - Jan 14, 2011
Alpha Natural Resources Inc., the third-largest U.S. coal producer, lifted its 2011 forecast for coking coal because Australia’s worst flooding in 50 years may increase demand.
The company expects to ship between 13 million and 14.5 million tons of metallurgical coal, used to forge steel, up from an earlier forecast of 11.5 million to 13.5 million tons shipped, according to a statement today from Abingdon, Virginia- based Alpha.
Queensland supplies 50 percent of the world’s seaborne metallurgical coal, or about 140 million metric tons a year, according to Bank of America Merrill Lynch. The flooding in that region has affected an area larger than Texas and California combined.
“As a leading supplier and exporter of metallurgical coal in the United States, Alpha expects to benefit from the combination of a strong seaborne metallurgical coal market and increased metallurgical shipments,” Chief Executive Officer Kevin Crutchfield said in the statement.
Alpha fell $2.57, or 4 percent, to $61.43 as of 9:37 a.m. on the New York Stock Exchange. The shares have risen 26 percent in the year before today.
The company also said it expects its cost of coal sales for 2010 in the Eastern U.S. to be higher than earlier forecast. Alpha forecast the cost of coal sales to be as much as 7.9 percent higher, at $61.50 per ton, from its earlier expectation of as low as $57.
Alpha blamed poor rail service, bad weather, delayed export shipments and geology problems at its Emerald Mine near Waynesburg, Pennsylvania, for the lower operating results during the fourth quarter.
Alpha Natural Resources Inc., the third-largest U.S. coal producer, lifted its 2011 forecast for coking coal because Australia’s worst flooding in 50 years may increase demand.
The company expects to ship between 13 million and 14.5 million tons of metallurgical coal, used to forge steel, up from an earlier forecast of 11.5 million to 13.5 million tons shipped, according to a statement today from Abingdon, Virginia- based Alpha.
Queensland supplies 50 percent of the world’s seaborne metallurgical coal, or about 140 million metric tons a year, according to Bank of America Merrill Lynch. The flooding in that region has affected an area larger than Texas and California combined.
“As a leading supplier and exporter of metallurgical coal in the United States, Alpha expects to benefit from the combination of a strong seaborne metallurgical coal market and increased metallurgical shipments,” Chief Executive Officer Kevin Crutchfield said in the statement.
Alpha fell $2.57, or 4 percent, to $61.43 as of 9:37 a.m. on the New York Stock Exchange. The shares have risen 26 percent in the year before today.
The company also said it expects its cost of coal sales for 2010 in the Eastern U.S. to be higher than earlier forecast. Alpha forecast the cost of coal sales to be as much as 7.9 percent higher, at $61.50 per ton, from its earlier expectation of as low as $57.
Alpha blamed poor rail service, bad weather, delayed export shipments and geology problems at its Emerald Mine near Waynesburg, Pennsylvania, for the lower operating results during the fourth quarter.
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