Tag: Powder River Basin coal mines

Today Peabody Would Lose Money on Coal Exports

CLARK WILLIAMS-DERRY – On Oct. 22, 2013, Sightline released a new report: Peabody Energy, Gateway Pacific, and the Asian Coal Bubble. The report shows that at today’s prices, there’s no way for Peabody to make money shipping coal to Asia. Peabody’s strategy is now to hope that the Asian coal bubble re-inflates—which is an increasingly risky bet, given the collapse of Asian coal prices, recent steps by China to curb coal demand, and the oversupply of coal from other Pacific Rim exporters.