Coal

Glencore split could spring-clean dusty valuation

18 February 2020

The commodity giant’s coal operations dragged in 2019. Spinning them off into a separate entity would underline the low-carbon potential of the copper and cobalt assets left behind. That could leave billionaire CEO Ivan Glasenberg with a more valuable overall cake.

Siemens CEO’s climate blog sends semi-woke signal

13 January 2020

Joe Kaeser has admitted the 98 bln euro German engineer should not be working on Australia’s Adani coal mine, but cannot pull out. Creating a panel to vet deals for their greenness, and possibly nix them, is partial penance. The CEO’s public disapproval may be a better deterrent.

Total’s Indian deal offers only a soft premium

15 October 2019

The French energy giant’s bid for part-control of Adani Gas is worth a measly 9% over the pre-deal price. That won’t entice public investors, allowing Total to buy a 37% stake from the namesake family. At least having a foreign partner may provide a governance uplift in value.

India’s coal-fired growth requires some shovelling

30 August 2019

New Delhi, trying to juice the economy, will allow 100% foreign investment in the fuel. Local demand is rising, but resource giants have had bad experiences on the ground, and big miners are pulling out of thermal coal. India will have to work hard to make its tardy policy work.

Coal bears marks of Beijing’s policy smudges

15 May 2019

China is moving away from the smoke stack, but imports of the black stuff rose 14% in April. That’s deceptive: it’s a fuel caught in transition, between demand for blue skies and blue-collar jobs. Domestic supply will rise, but long-term, foreign purchases are likely to fall.

Trouble in Paradise highlights U.S. coal’s dilemma

15 February 2019

The Kentucky power plant is one of two being closed because the fuel is no longer economical. Struggling supplier Murray Energy, run by a big Trump supporter, reckons overseas markets are its salvation. But they are unlikely to come to the rescue of the American industry.

Market forces put more coal in Trump’s stocking

12 December 2018

U.S. usage of the black stuff will hit a 39-year low and plant closings double in 2018 despite the president’s support. Cheaper natural gas and renewables are driving the trend, and will encourage other countries to follow. Miners will suffer but the world will breathe easier.

Trump red-tape cost-cuts forget clean-air benefits

30 October 2018

The White House touts reductions in U.S. regulatory costs of $33 bln since the president took office. Yet clean air and water, in particular, bring huge social and financial benefits, including reduced rates of dementia. Saving short-term pennies will cost long-term pounds.

U.S. coal-power plan blows little but hot air

21 August 2018

Donald Trump wants to let states set their own emissions rules. It may save some coal plants for a while. But banks prefer not to fund them, other electricity sources are cheaper – or soon will be – and renewable energy provides far more jobs. These trends will win out.

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.