#coalexports

[dustinbleizeffer]

EarthFix reports that two original partners in the proposed Project Mainstay coal export port in Coos Bay have backed out, leaving a single backer; Metro Ports of California.

DKRW can tell you how difficult it is to find $2 billion in funding for a proposed coal-to-gas plant in Wyoming, and North American Power Group can testify to the difficulty of finding financial backers for an independent "trash coal" power plant in Wyoming (if you believe that's NAPG's actual goal). Markets can easily explain the challenges for DKRW and NAPG, but exporting PRB coal to Asia was supposed to be a supply-and-demand no-brainer. We're left wondering; how much of the financial jitters over the Project Mainstay have to do with a slightly cooling Asian coal market, and how much has to do with concerns over regulatory approval?

[dustinbleizeffer]

Arch Coal retains production capacity, hoping for bump later this year

This quote is from John W. Eaves, Arch’s president and chief executive officer, in the company's Feb. 3, 2013 report to investors:

“Looking ahead, we are seeing signs that a coal market rebound is possible in the second half of 2013,” said Eaves. “At Arch, we are running our operations in a manner that will enable us to capitalize on the rebound as it occurs.  We are proactively responding to increased interest for Western Bituminous coal after several years of weakness.  We are also making progress in realigning our asset portfolio in Appalachia — and expect our competitive position to be further enhanced as the Leer longwall starts up in the third quarter of 2013.  In the Powder River Basin, we are continuing to focus on controlling costs as we manage our operations at significantly reduced production levels.”