Monday, 14 Nov 2011
According to data from the US Department of Commerce, US coking coal exports excluding shipments to Canada slipped 0.3 million tonne on August to 4.8 million tonne in September. This marks an increase of 1.5 million tonne year on year.
The department said that coking coal exports to China saw a significant recovery, up 57% month on month to a 6-month high of 0.5 million tonne. By contrast, exports to South Korea and Japan both declined to 0.2 million tonne and 0.4 million tonne respectively.
(sourced from ssyonline)
Showing posts with label U.S.coal producers. Show all posts
Showing posts with label U.S.coal producers. Show all posts
Monday, November 14, 2011
Friday, November 11, 2011
Macarthur offer further extended
Friday, 11 November 2011
PEAMCoal Pty Ltd (PEAMCoal), owned by the US coal giant Peabody Energy Corp., has announced that it has extended the offer period under its takeover bid for all the ordinary shares of Australia-based low-volatile metallurgical coal producer Macarthur Coal Limited by two weeks. The offer will now close on November 25, 2011, unless further extended.
As SteelOrbis previously reported, PEAMCoal will increase the offer price for all shareholders from A$16.00 to A$16.25 per share if it acquires relevant interests in at least 90 percent of Macarthur shares by November 25, 2011. Reaching the 90 percent relevant interest threshold will allow PEAMCoal to compulsorily acquire all outstanding Macarthur shares.
Tags: Met Coke , Australia , USA , Macarthur Coal , raw mat , North America , Oceania , mining , M&A
(sourced steelorbis)
PEAMCoal Pty Ltd (PEAMCoal), owned by the US coal giant Peabody Energy Corp., has announced that it has extended the offer period under its takeover bid for all the ordinary shares of Australia-based low-volatile metallurgical coal producer Macarthur Coal Limited by two weeks. The offer will now close on November 25, 2011, unless further extended.
As SteelOrbis previously reported, PEAMCoal will increase the offer price for all shareholders from A$16.00 to A$16.25 per share if it acquires relevant interests in at least 90 percent of Macarthur shares by November 25, 2011. Reaching the 90 percent relevant interest threshold will allow PEAMCoal to compulsorily acquire all outstanding Macarthur shares.
Tags: Met Coke , Australia , USA , Macarthur Coal , raw mat , North America , Oceania , mining , M&A
(sourced steelorbis)
Friday, October 14, 2011
BHP set to bid $6bn for US coal giant Walter Energy
By Sarah-Jane Tasker,The Australian
October 15, 2011
BHP Billiton, the world's biggest mining company, is considering a $US6 billion ($5.86bn) takeover of a US coal producer to support its view that supply of the sought-after commodity will be scarcer than iron ore in the next decade.
Speculation from London yesterday suggested that the global major, fresh from receiving approval this week for its $30bn Olympic Dam copper and uranium expansion in South Australia, was circling Walter Energy, the world's largest producer of coal used for steelmaking.
The Birmingham, Alabama-based company was put in play in July, when activist hedge fund Audley Capital wrote to the board calling for it to seek a buyer because it lacked the leadership to take advantage of an "unprecedented market opportunity" after coal prices jumped.
Walter, whose share price has been cut in half since April, rebounded strongly on the takeover speculation. It jumped 13 per cent in New York to $US75.22 -- the biggest gain in five weeks.
With Walter Energy's market capitalised at about $US4.7bn, a bid of about $US6bn could be the target in any takeover move, given that analysts expect a 30 per cent bid premium.
Walter, which operates mines in Alabama, West Virginia, British Columbia and Wales, acquired Vancouver-based Western Coal in April for $C5.3bn, boosting its reach into Canada.
BHP chief executive Marius Kloppers is expected to be in Canada early next week, after the company's annual general meeting in London, where he is to meet Saskatchewan Premier Brad Wall.
While his visit is said to be an attempt to ease tensions between the miner and the government -- after BHP's $US39bn bid for Potash Corporation of Saskatchewan was killed off earlier this year because of political opposition to the deal -- it is also timely because of the bid speculation.
The global major's successful acquisitions this year were in shale gas in the US through a $US12.1bn bid for Petrohawk -- the miner's biggest acquisition -- and the $US4.75bn purchase of Chesapeake Energy's Arkansas shale ground.
But with the company tipping coal demand to increase in a supply-constrained market, its attention could now be turning to the steelmaking commodity.
BHP's chief executive of ferrous and coal, Marcus Randolph, said the company expected coking coal to be scarcer than iron ore over the next decade.
"We are more bearish about iron ore than coking coal," Mr Randolph said during the annual World Steel Association conference in Paris last week.
"Between now and 2020 there is going to be a lot more iron ore supply coming into the market than coking coal, and our expectation is that, of the two, the scarcer over that period of time will be coking coal."
One analyst said while it would be a surprise if BHP did bid for Walter, the activity could not be ruled out. "Mr Kloppers' acquisition agenda has always been assets that are large scale, low cost, easy to mine and a strong export market for the product. While this ticks all the boxes, it is not totally compelling," he said.
Rival bidders for Walter Energy could include Anglo American, Rio Tinto, Brazil's Vale and CSN. It was flagged early last month that Anglo American was considering a $US7.5bn bid for Walter.
Britain's Independent newspaper reported there was "vague speculation" that JPMorgan and Goldman Sachs had been called in as advisers to potential bidders.
BHP said it did not comment on market speculation.
(sourced The Australian)
October 15, 2011
BHP Billiton, the world's biggest mining company, is considering a $US6 billion ($5.86bn) takeover of a US coal producer to support its view that supply of the sought-after commodity will be scarcer than iron ore in the next decade.
Speculation from London yesterday suggested that the global major, fresh from receiving approval this week for its $30bn Olympic Dam copper and uranium expansion in South Australia, was circling Walter Energy, the world's largest producer of coal used for steelmaking.
The Birmingham, Alabama-based company was put in play in July, when activist hedge fund Audley Capital wrote to the board calling for it to seek a buyer because it lacked the leadership to take advantage of an "unprecedented market opportunity" after coal prices jumped.
Walter, whose share price has been cut in half since April, rebounded strongly on the takeover speculation. It jumped 13 per cent in New York to $US75.22 -- the biggest gain in five weeks.
With Walter Energy's market capitalised at about $US4.7bn, a bid of about $US6bn could be the target in any takeover move, given that analysts expect a 30 per cent bid premium.
Walter, which operates mines in Alabama, West Virginia, British Columbia and Wales, acquired Vancouver-based Western Coal in April for $C5.3bn, boosting its reach into Canada.
BHP chief executive Marius Kloppers is expected to be in Canada early next week, after the company's annual general meeting in London, where he is to meet Saskatchewan Premier Brad Wall.
While his visit is said to be an attempt to ease tensions between the miner and the government -- after BHP's $US39bn bid for Potash Corporation of Saskatchewan was killed off earlier this year because of political opposition to the deal -- it is also timely because of the bid speculation.
The global major's successful acquisitions this year were in shale gas in the US through a $US12.1bn bid for Petrohawk -- the miner's biggest acquisition -- and the $US4.75bn purchase of Chesapeake Energy's Arkansas shale ground.
But with the company tipping coal demand to increase in a supply-constrained market, its attention could now be turning to the steelmaking commodity.
BHP's chief executive of ferrous and coal, Marcus Randolph, said the company expected coking coal to be scarcer than iron ore over the next decade.
"We are more bearish about iron ore than coking coal," Mr Randolph said during the annual World Steel Association conference in Paris last week.
"Between now and 2020 there is going to be a lot more iron ore supply coming into the market than coking coal, and our expectation is that, of the two, the scarcer over that period of time will be coking coal."
One analyst said while it would be a surprise if BHP did bid for Walter, the activity could not be ruled out. "Mr Kloppers' acquisition agenda has always been assets that are large scale, low cost, easy to mine and a strong export market for the product. While this ticks all the boxes, it is not totally compelling," he said.
Rival bidders for Walter Energy could include Anglo American, Rio Tinto, Brazil's Vale and CSN. It was flagged early last month that Anglo American was considering a $US7.5bn bid for Walter.
Britain's Independent newspaper reported there was "vague speculation" that JPMorgan and Goldman Sachs had been called in as advisers to potential bidders.
BHP said it did not comment on market speculation.
(sourced The Australian)
Sunday, August 14, 2011
U.S. may increase coal exports to Europe - Macquarie
Sunday, 14 Aug 2011
Macquarie Group Limited said that the U.S. may increase coal exports, further boosting supply of the commodity in Europe.
Mr Hayden Atkins, an analyst in London at Macquarie's commodities unit, said that "A big push to encourage natural gas burning in the U.S. may drive up coal exports to Europe, China and India."
According to a report on the website of the U.S. Energy Information Administration, the closing of Germany’s nuclear plants will increase demand in that nation. U.S. steam coal exports to Europe in the first quarter more than tripled from a year earlier to 4.9 million tonnes from 1.5 million tonnes.
U.S. coal exports are at their highest level since 1992. Exports to the Netherlands jumped to 1.1 million tonnes from 334,628 tonnes. Shipments to Germany went to 899,009 tonnes from 166,314 tonnes. Trade to the UK rose to 852,159 tonnes from 159,280 tonnes.
Merrill analysts including Mr Sabine Schels in London said that switching to natural gas from coal in U.S. power generation will accelerate in 2012 because of new Environ mental Protection Agency rules to cut emissions of sulfur dioxide and nitrogen oxides, Bank of America Merrill Lynch said July 19th 2011. The Cross State Air Pollution Rule requires 27 states in the eastern U.S. to cut sulfur dioxide emissions by 73% and nitrous oxides by 54% by 2014 compared with 2005 levels.
(sourced Bloomberg)
Macquarie Group Limited said that the U.S. may increase coal exports, further boosting supply of the commodity in Europe.
Mr Hayden Atkins, an analyst in London at Macquarie's commodities unit, said that "A big push to encourage natural gas burning in the U.S. may drive up coal exports to Europe, China and India."
According to a report on the website of the U.S. Energy Information Administration, the closing of Germany’s nuclear plants will increase demand in that nation. U.S. steam coal exports to Europe in the first quarter more than tripled from a year earlier to 4.9 million tonnes from 1.5 million tonnes.
U.S. coal exports are at their highest level since 1992. Exports to the Netherlands jumped to 1.1 million tonnes from 334,628 tonnes. Shipments to Germany went to 899,009 tonnes from 166,314 tonnes. Trade to the UK rose to 852,159 tonnes from 159,280 tonnes.
Merrill analysts including Mr Sabine Schels in London said that switching to natural gas from coal in U.S. power generation will accelerate in 2012 because of new Environ mental Protection Agency rules to cut emissions of sulfur dioxide and nitrogen oxides, Bank of America Merrill Lynch said July 19th 2011. The Cross State Air Pollution Rule requires 27 states in the eastern U.S. to cut sulfur dioxide emissions by 73% and nitrous oxides by 54% by 2014 compared with 2005 levels.
(sourced Bloomberg)
Saturday, March 5, 2011
U.S. coal use up 2 pct from last week-Genscape
Fri Mar 4, 2011 10:59pm GMT
* Coal consumption off 11 pct from same week 2010
* Winter storm in West, cold in East push power demand
HOUSTON, March 4 (Reuters) - U.S. coal consumption rose 2 percent this week, Genscape said on Friday, as a winter storm in the West and cold weather in the East supported heating
demand.
Use of coal dropped 11 percent from the same week in 2010.
In the populous East, coal use rose 1 percent from the previous week but was down 13 percent from the same week last year. The Midwest and Southeast are coal-dependent for power.
In the less populous West, which has fewer coal-fired power plants, coal use was up 3 percent week-to-week and up 5 percent year-over-year.
Coal use swings up and down seasonally, and varies from week to week and region to region, depending on electricity demand to power heaters and run air-conditioners.
Winter cold generally has less effect on coal use than summer heat because natural gas and oil meet much of the nation's heating needs. Air-conditioning relies more on electricity.
Coal plants produce 50 percent of U.S. electricity. Power generation accounts for more than 90 percent of U.S. coal consumption.
Genscape's regional indexes are calculated separately from the national index and do not always add up to the separately calculated U.S. total, Genscape has said.
Region March 2 Prev wk Yr ago Change wk Change yr
(Million tons) (Percent)
National 17.99 17.71 20.17 +2 -11
East 15.80 15.61 18.13 +1 -13
West 2.28 2.22 2.18 +3 +5
(Reporting by Bruce Nichols; Editing by Marguerita Choy,sourced:Thomson Reuters)
* Coal consumption off 11 pct from same week 2010
* Winter storm in West, cold in East push power demand
HOUSTON, March 4 (Reuters) - U.S. coal consumption rose 2 percent this week, Genscape said on Friday, as a winter storm in the West and cold weather in the East supported heating
demand.
Use of coal dropped 11 percent from the same week in 2010.
In the populous East, coal use rose 1 percent from the previous week but was down 13 percent from the same week last year. The Midwest and Southeast are coal-dependent for power.
In the less populous West, which has fewer coal-fired power plants, coal use was up 3 percent week-to-week and up 5 percent year-over-year.
Coal use swings up and down seasonally, and varies from week to week and region to region, depending on electricity demand to power heaters and run air-conditioners.
Winter cold generally has less effect on coal use than summer heat because natural gas and oil meet much of the nation's heating needs. Air-conditioning relies more on electricity.
Coal plants produce 50 percent of U.S. electricity. Power generation accounts for more than 90 percent of U.S. coal consumption.
Genscape's regional indexes are calculated separately from the national index and do not always add up to the separately calculated U.S. total, Genscape has said.
Region March 2 Prev wk Yr ago Change wk Change yr
(Million tons) (Percent)
National 17.99 17.71 20.17 +2 -11
East 15.80 15.61 18.13 +1 -13
West 2.28 2.22 2.18 +3 +5
(Reporting by Bruce Nichols; Editing by Marguerita Choy,sourced:Thomson Reuters)
Thursday, March 3, 2011
Arch Coal to pay USD 4 million for clean water violations
Thursday, 03 Mar 2011 |Reuters|
Reuters reported that Arch Coal Inc will pay a USD 4 million penalty for clean water violations at its mining operations in three states.
Arch Coal, which is the second largest US coal supplier, was charged with releasing too much iron, manganese, suspended solids and other pollutants into streams from four of its mining facilities in Virginia, West Virginia and Kentucky.
Ms Cynthia Giles, an assistant administrator at the Environmental Protection Agency, said that "Violations at mining operations can have significant environmental and public health consequences, including the pollution of the waters that people use for drinking, swimming and fishing."
She added that "It is critical that companies operating next door to homes, schools and other businesses meet the standards established to protect the health and the environment for these communities."
As part of the settlement, the company will take steps to prevent an estimated two million pounds of pollution from entering waterways. The company will also use a treatment system to reduce releases of selenium, a pollutant from mining, into streams.
Arch Coal, which is the second largest US coal supplier, was charged with releasing too much iron, manganese, suspended solids and other pollutants into streams from four of its mining facilities in Virginia, West Virginia and Kentucky.
Ms Cynthia Giles, an assistant administrator at the Environmental Protection Agency, said that "Violations at mining operations can have significant environmental and public health consequences, including the pollution of the waters that people use for drinking, swimming and fishing."
She added that "It is critical that companies operating next door to homes, schools and other businesses meet the standards established to protect the health and the environment for these communities."
As part of the settlement, the company will take steps to prevent an estimated two million pounds of pollution from entering waterways. The company will also use a treatment system to reduce releases of selenium, a pollutant from mining, into streams.
Friday, February 25, 2011
Kinder Morgan Strikes 15-Year Coal Handling Deal With Massey
Feb24,2011, 12:24 P.M.ETBy Matt Jarzemsky, Dow Jones Newswires
Kinder Morgan Energy Partners LP (KMP) has agreed to handle up to 6 million tons of Massey Energy Co. (MEE) coal a year through a Louisiana terminal.
Kinder Morgan Chief Executive Richard Kinder said in January that the company was seeking to expand storage capacity at its terminals business to take advantage of increasing demand for coal exports. U.S. coal producers are particularly well-positioned to take advantage of brisk Asian demand for the high-grade coal used in steelmaking, as Australian flooding has disrupted global supplies.
Kinder Morgan anticipates handling a minimum 4 million tons annually over the course of the 15-year deal. The coal will be offloaded at its IMT terminal in Myrtle Grove before being stored and loaded onto ocean vessels. It plans to spend $70 million expanding the facility.
Massey has struggled with losses since the disaster last April that killed 29 workers at its Upper Big Branch mine, suffering production shortfalls, higher costs and feuds with regulators. Late last month, the company agreed to sell itself to Alpha Natural Resources Inc. (ANR) in a cash-and-stock deal valued at roughly $7 billion.
Kinder Morgan, meanwhile, has reported improved results of late. Tuesday, Moody's Investors Service raised its outlook on the company, which is best known for its pipeline operations.
Kinder Morgan shares recently traded at $72.68, up 1.1%, while Massey was up 6 cents at $62.70.
Kinder Morgan Chief Executive Richard Kinder said in January that the company was seeking to expand storage capacity at its terminals business to take advantage of increasing demand for coal exports. U.S. coal producers are particularly well-positioned to take advantage of brisk Asian demand for the high-grade coal used in steelmaking, as Australian flooding has disrupted global supplies.
Kinder Morgan anticipates handling a minimum 4 million tons annually over the course of the 15-year deal. The coal will be offloaded at its IMT terminal in Myrtle Grove before being stored and loaded onto ocean vessels. It plans to spend $70 million expanding the facility.
Massey has struggled with losses since the disaster last April that killed 29 workers at its Upper Big Branch mine, suffering production shortfalls, higher costs and feuds with regulators. Late last month, the company agreed to sell itself to Alpha Natural Resources Inc. (ANR) in a cash-and-stock deal valued at roughly $7 billion.
Kinder Morgan, meanwhile, has reported improved results of late. Tuesday, Moody's Investors Service raised its outlook on the company, which is best known for its pipeline operations.
Kinder Morgan shares recently traded at $72.68, up 1.1%, while Massey was up 6 cents at $62.70.
Tags:high grade coking coal, steelmaking, steel mills, raw material, Alpha Natural Resources, cash-and-stock deal,
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