Coal Exports: Caveat Investor
As domestic demand for coal has tumbled, the coal industry has grown increasingly desperate to shore up falling revenues by exporting coal to Asia. And that’s why there have been so many controversial proposals to develop coal export terminals in the Pacific Northwest: the industry thinks that the Northwest offers the cheapest route to move coal from Montana and Wyoming to China, Korea, and Taiwan.
Yet careful Sightline analysis shows that the numbers simply don’t add up to profits for anyone investing in these proposals. Instead, they are highly risky financial ventures with the potential for massive and irreversible losses.
Posts on Coal Exports: Caveat Investor
Coal prices have collapsed...leaving Northwest export projects hanging by a thread.
The only new coal export investors are risk-hungry speculators.
Goldman Sachs divests from Gateway Pacific coal company.
Last quarter, the PRB coal exporter only earned money betting against coal.
Asian coal price collapse spells bad news for Gateway Pacific backer.
Ambre Energy and Arch face an increasingly grim financial picture.
Would-be coal exporter is playing hide-and-seek with its finances.
Powder River Basin coal giant earned more shorting coal than exporting it.
Financing failure at Montana mine suggests a cloudy future for coal exports.
Coal's price collapse spells trouble for terminals' investors.