Coal

Mongolian coal IPO may keep wandering

22 June 2018

The Central Asian nation revived plans to list its prize mine, seven years after it tried at a $15 bln valuation. Coal prices have rebounded from 2015 lows and Chinese demand is strong. With just one big customer and years of false starts, though, investors will need convincing.

Duke Energy draws power from climate activism

22 March 2018

America’s largest electricity generator plans to phase out coal and slash carbon emissions. Gas and renewables make business sense regardless of the Trump administration’s policy-reversal efforts, it claims. Duke’s stance and transparency put Exxon’s climate disclosures to shame.

Cold snap chills prospects of U.S. coal subsidies

9 January 2018

The federal energy regulator nixed Energy Secretary Rick Perry’s proposal to prop up nuclear and coal power. Instead grid operators will be asked how to improve energy reliability. That’s more logical, especially after bad weather showed no fuel source is immune from disruption.

America better at finding natural gas than using it

29 December 2017

Booming production has made the country a net exporter. But consumers are on pace to use less electricity from natural gas in 2017. As issues from Atlanta to Florida pressure the grid, shale’s promises of “energy independence” hit policy and infrastructure obstacles.

U.S. coal country’s best hope is gas, not coal

6 December 2017

The EIA says natural gas output from shale in the Appalachian region – traditionally America’s coal heartland – far outgrew other areas. Efficiency gains will further cut gas costs. Dirtier miners may lobby for Washington handouts, but the shift is already well under way.

Trump’s coal push loses power as U.S. goes green

14 November 2017

An administration plan to subsidize solid fuels has stirred a backlash from industry, which fears distorted power prices. Meanwhile U.S. carbon emissions from coal fell at a record pace in 2015. Environmental and economic forces conspire against the president’s campaign pledge.

Harvey exposes flaws in U.S. energy-dominance plan

28 August 2017

Trump aims to boost American fuel exports by fostering coal and oil drilling. But the deluge in Texas has disrupted 16 percent of the nation’s refining capacity. Tackling climate change and hardening energy infrastructure should take priority over the president’s pet projects.

Trump’s dressed-up coal pitch lacks rich seam

24 August 2017

A U.S. government report properly identifies cheap natural gas for making the solid carbon uneconomic and undermining grid reliability. Some suggested remedies make sense, but others seem designed more to appease a president pledging to save coal jobs than to address the problem.

Sydney meets Shandong in $2.5 bln share sale

4 August 2017

Yancoal is raising more than 10 times its own market cap to buy Rio Tinto’s coal unit. To get this done, the indebted small-cap had to bring in some unusual underwriters. The result is a novel blend of Australian public-company process and Chinese state capitalism.

German climate change policy takes Trumpian turn

18 July 2017

Angela Merkel has castigated the U.S. President for pulling out of the Paris accord. Yet two German states are putting mining jobs ahead of cutting carbon emissions. If they don’t reconsider, the Chancellor’s green credentials – and the global agreement – will suffer a blow.

Rio Tinto right to take China’s $2.7 bln and run

27 June 2017

In selling a group of thermal coal mines, the miner weighed up a higher, less certain price from China’s Yancoal, or a lower, more secure bid from Glencore. The former looks better. Selling to China could bring other benefits. The main thing is to get shot of dirty fuel assets.

Natural gas inflicts fresh wounds on old victim

22 June 2017

Southern risks a new writedown after regulators tired of waiting for a novel “clean-coal” plant. As with its troubled nuclear project, the $50 bln U.S. utility tried untested designs. Efforts to diversify fuel sources are admirable but cheap gas prices continue to crush them.

Glencore misreads Chinese tea leaves in bid battle

21 June 2017

Rio Tinto still wants to sell $2.5 bln of coal assets to China's Yancoal, rather than taking $100 mln more from the Swiss trader. Worries that Beijing would create problems for the gatecrasher probably played a role. A sharply higher offer could persuade Rio to reconsider.

Packaging veteran ticks right boxes for BHP

16 June 2017

The Anglo-Australian mining giant named Ken MacKenzie as its new chairman. The former manufacturing executive lopped heads and boosted returns at his last job, and was unsentimental about weak business lines. Activist investor Elliott is pleased. Other shareholders should be too.

Doublethink threatens Chinese green leadership

14 June 2017

Donald Trump has gifted China the chance to lead the charge against climate change. But the country must conquer a contradiction. Beijing bureaucrats may love cleantech investment, but as economic growth slows, they fear the costs of regulation and restructuring.

Glencore looks well-placed to snatch Rio coal unit

12 June 2017

The trading giant has shoved aside Yancoal's slow-moving purchase of Rio Tinto assets with a $2.6 bln cash bid - $100 mln over Yancoal's still not-quite-financed offer. Glencore is betting Yancoal has thin political support and weak financial firepower. That seems shrewd.

Noble Group founder bows out on a low

11 May 2017

Chairman Richard Elman is stepping down as the embattled commodity trader confirmed a quarterly net loss of $130 mln. An earlier profit warning had already slashed 32 pct from its shares. Despite a rights issue and a slew of other initiatives, investor confidence is shot to bits.

Indian tycoon bets house on Africa in Anglo raid

16 March 2017

Anil Agarwal's personal 2 bln pound raid on Anglo American reveals a wish to build a global mining giant. There is little overlap with his London-listed Vedanta. But Agarwal has a keen interest in Southern Africa - and a 12 pct stake would give him prime position in any break-up.

North Korea’s pressure points are hard to push

9 March 2017

Pyongyang's missiles and an alleged murder are vexing its few friends; China's ban on coal imports suggests a fresh desire to tame its neighbour. Old foes like the U.S. could also apply more pressure through secondary sanctions. But that may, in turn, worsen relations with China.

Chinese make bold coal bet on Rio Tinto leftovers

25 January 2017

Chinese-backed Yancoal will pay up to $2.6 bln for Rio's thermal coal unit. Getting this transformational deal past regulators and raising the necessary capital will take some doing. A full price tag looks brave, too, given a big run-up in prices and an uncertain sector outlook.