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Thread: Fourth-largest coal producer in the US files for bankruptcy

  1. #1

    Fourth-largest coal producer in the US files for bankruptcy

    Cloud Peak Energy, the US' fourth-largest coal mining company, filed for Chapter 11 bankruptcy late last week as the company missed an extension deadline to make a $1.8 million loan payment.

    In a statement, Cloud Peak said it will continue to operate its three massive coal mines in Wyoming and Montana while it goes through the restructuring process. Colin Marshall, the president and CEO of the company, said that he believed a sale of the company's assets "will provide the best opportunity to maximize value for Cloud Peak Energy."

    Cloud Peak was one of the few major coal producers who escaped the significant coal industry downturn between 2015 and 2016. That bought it a reputation for prudence and business acumen.

    But thinning margins have strained the mining company as customers for thermal coal continue to dry up. Coal-fired electricity is expected to fall this summer, even though summer months are usually boom times for coal plants as air conditioning bolsters electricity demand. That's because cheap natural gas and a boost in renewable capacity have displaced dirtier, more expensive coal.
    Quote Originally Posted by dannno View Post
    Trump hasn't even been in 6 months, you can't call him a boondoggle President unless he has overseen a military boondoggle for at least a year or two.
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    When Donald Trump talks about torture, I don't know what he really believes for sure, but he gets attacked on what he says unjustly by the media and many people here

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  3. #2
    Cloud Peak currently has 1200 employees. There are about 52,000 coal mining jobs in the US so this company is about two percent of the industry.

    Trump will save them. China was buying. Now they are adding more tariffs to coal in response to Trump tariffs.

    ‘We are walking a tightrope’: US coal miners worried as Trump’s trade war sees Chinese demand for American coal dropping

    US coal mining companies are worried that US President Donald Trump’s intensifying trade dispute with China could hurt their booming export business, one of the ailing sector’s most important lifelines, according to industry players.

    This month, Beijing added coal and other energy products to a list of US goods facing import tariffs in retaliation for Trump administration levies. The measure has already dampened Chinese demand for US-mined coal, multiple US and Chinese industry sources said.

    For instance, trade sources said China National Building Material International, one of the biggest metallurgical coal importers in China, pulled back from supply talks with US coal broker XCoal and miner Consol Energy shortly after Beijing’s announcement.

    A source familiar with the matter said Consol had been in talks with China to supply up to 1 million tons per year of metallurgical coal but would not confirm whether the deal would be delayed. Officials at XCoal declined to comment.

    “We’re obviously watching it closely, particularly given what a bright spot exports have been for our industry of late,” said Ashley Burke, a spokeswoman for the National Mining Association, which represents US mining companies.

    The US Energy Information Administration (EIA) said coal exports to Asia doubled from 15.7 million tons in 2016 to 32.8 million tons in 2017. Exports to China totalled 3.2 million tons in 2017, up from zero in 2015 and 2016, according to the EIA.

    The coal industry’s concerns mirror the unease spreading in US farm country over consequences of the Trump administration’s protectionist stance, which has roiled foreign market for American crops.
    "The golden era of American energy is now underway!"

    (he was actually at a liquified natural gas terminal- cheap gas has been driving coal out of business)
    Last edited by Zippyjuan; 05-14-2019 at 07:32 PM.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  4. #3
    These guys have been in the danger zone a long time . Most of the product has to be shipped a long way for export . If they cannot cover a loan payment for a million or two then yes they probably need to sell some land . I am rooting for them but domestically they are of no large importance , they probably are good for about one and a half percent of national electricity . Seems like the NYSE was planning on taking them off in Feb .
    Do something Danke

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