Price pressures and fierce competition from the gas industry have put the US coal industry on a collapse path. Peabody Energy, the largest coal mining operator in America, announces that the company will have to resort to bankruptcy. The company's shares lost after nearly half of their value.
Peabody said about $ 71 million in interest payments could not be paid. Currently, there is a 30-day grace period, after which payment must be made, otherwise the company faces bankruptcy. Last year Peabody suffered losses of about $ 2 million.
The US coal industry is currently in a real struggle for survival. This is due not only to a drop in demand on world markets, but also to fierce competition from the gas industry. The price of coal has dropped by about 40 percent over the past five years, from about $ 75 per tonne to about $ 43 today. In addition, US coal sales are plagued by political efforts to reduce CO2 emissions. However, coal in the United States is still the source of almost half of the energy produced.
Peabody's competitors are also on the brink, with Arch Coal filing for state bankruptcy bailout this year. Last year, three more companies - Alpha Natural Resources, Walter Energy and Patriot Coal - went through this process.
Is the end of the US coal industry nearing?
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Azovpromstal® 21 March 2016 г. 10:02 |
