Coal Shakedown

“China’s benchmark price for power-station coal fell for a 12th week to the lowest level since 2009 as electricity demand slowed and hydropower output increased.”  Business Week

“An Environmental Protection Agency mercury and air toxics rule, released in December, will lead to a reduction of 4.7 gigawatts in coal-fired generation, the agency estimated. FBR Capital Markets & Co. in New York estimated the drop might more than 10 times that much.” and “Coal may regain its lead later this year following a rebound in gas prices, said Brandon Blossman, director of coal and power research at Tudor, Pickering, Holt & Co. in Houston.”  Fuel Fix

Remember, underground coal mining is dangerous work as 6 died in Mexico last week.  Houston Chronicle.  Also, get accustomed to headlines like this:  Alliant closing Cassville coal plant at JS Online.

Tinkler Says He’ll Stick to A$5.3 Billion Whitehaven Offer as the coal company takeover drama continues in Australia at Bloomberg.

‘Fire sale’ in coal stocks at Stock Advisors.  You know I think he is too early and that he has picked the wrong stocks.

“I believe that the marketplace when coal prices drop, there’s a shakedown of marginal players and marginal assets. That will continue to go and I think that’s a natural process. We’ve seen this in the cycles before. But it also emphasizes the quality of low-cost assets that have flexibility.”  Consol’s CEO and Chairman in their latest conference call.

Natural Resource Partners (NRP) reports after the close tonight.  The stock is barely off new lows made on Friday.  ANR and JRCC report and have their conference calls Wednesday and Thursday.