Coal Industrialization

Coal plant retirements in 2012 look to be 9,000 megawatts against 318,000 megawatts of capacity, a bit less than 3% of the total. More than 1,000 megawatts of the new plant total is coal-fired.  John Hanger

Meanwhile, “Dale Earnhardt Jr. will be touting coal in a newly released commercial by American Coalition for Clean Coal Electricity.”  Fuel Fix  Heat Sends U.S. Nuclear Power Production to 9-Year Low at Business Week.  “Several nuclear plants…were shut down”  Mcall

Coal investors continue to zone in on the rightsizing of the US coal market.  Yesterday Cloud Peak Energy (CLD) reported solid results, especially considering the industry trough (results and conference call transcript).  Cloud has large free cash flow which they are keen on reinvesting into long term export projects.  Look for ISA to have more to say on Cloud in the future.

Perhaps the super-cycle theme still lives.  “China has quietly increased its budget for railway investment this year by 16%”  WSJ

China’s lower manufacturing reading masks ‘notable rebound’ at Mining.

India Blackout Shows Urgent Need For Infrastructure Spending Boost at IB Times.

Copper and Freeport McMoRan: Bear Flag or Base?  ChessNwine

As I continue to consider the industry participants, many ideas are becoming clear.  Importantly, the low cost producers are eating the high cost, over indebted players’ lunch.  Stay tuned and be patient as we wait on natural gas.