Bloomberg reported that as a result of declining coal prices, Peabody Energy Corp. (NYSE:BTU) plans to cease production at its Queensland-based Wilkie Creek thermal coal mine by the end of the year.
Articles Tagged "thermal coal"
Bloomberg reported that Ivan Glasenberg, CEO of Glencore Xstrata plc (LSE:GLEN), is pushing his company to invest more in thermal coal than its three closest competitors, namely BHP Billiton Ltd. (ASX:BHP,NYSE:BHP,LSE:BLT), Anglo American plc (LSE:AAL) and Rio Tinto plc (ASX:RIO,NYSE:RIO,LSE:RIO).
Reuters reported that according to Glencore Xstrata plc (LSE:GLEN), thermal coal prices are likely to rise in the medium term, partially due to high electricity demand in Asia. The fact that the fuel is currently in oversupply due to "healthy exports from major producers" and "modest demand" will also contribute to a price rise.
Reuters reported that as China makes the switch to cleaner energy, its demand for thermal coal will drop; however, emerging markets in the same region will compensate for the Asian giant's absence.
There are four main types of coal: lignite, sub-bituminous, bituminous and anthracite. Here's a look at their characteristics and uses.
Reuters reported that according to the Bureau of Resources and Energy Economics, Australia is set to export 192 million tonnes of thermal coal from 2013 to 2014, a 6-percent increase. In the five years following that time, the country's exports of the fuel are expected to rise at an average rate of 8 percent.
Reuters reported that although Indonesia is the world's top exporter of thermal coal, every year over $5 billion worth of the fuel is mined illegally and as a result goes untaxed.
Bloomberg reported that Bank of America Corp. (NYSE:BAC) lowered its forecast for Q4 2013 Newcastle thermal coal prices by 12 percent, to $74 per metric ton. It believes that in 2014 the fuel's price will average $82, down 9.9 percent from its previous estimate.
The Financial Times reported that on Wednesday thermal coal in Australia's Newcastle port was trading around US$78, near its lowest price since 2009, as a result of low demand and "abundant" supply.
Bloomberg reported that European coal for 2014 tumbled to a record low as Chinese demand came under question under their new environmental measures.