Peabody

IEEFA Research

IEEFA update: Peabody Energy flirts with bankruptcy—again

IEEFA update: Peabody Energy flirts with bankruptcy—again

Bear market for coal, new financial pressures push world’s largest coal company towards default

Just three-and-a-half years after emerging from its previous bankruptcy, Peabody Energy—the world’s largest private coal miner—admitted to investors on Monday that it could face yet another trip to bankruptcy court in the coming months. Coal bankruptcies in the United States have become increasingly common. Cheap gas and renewable power have steadily replaced coal in the […]

IEEFA report: BlackRock’s fossil fuel investments wipe US$90 billion in massive investor value destruction

IEEFA report: BlackRock’s fossil fuel investments wipe US$90 billion in massive investor value destruction

Investors need to ask why

August 1, 2019 (IEEFA Asia Pacific)  ̶  BlackRock, the world’s largest fund manager with US$6.5 trillion of assets under management – bigger in value than the third largest economy in the world – continues to ignore the serious financial risks of putting money into fossil fuel-dependent companies, a new report has found. Produced by the […]

IEEFA U.S.: Peabody quietly lays off over 150 long-time Native American miners ahead of Kayenta coal closure

IEEFA U.S.: Peabody quietly lays off over 150 long-time Native American miners ahead of Kayenta coal closure

Nearly half of workforce let go; No word from corporate headquarters on long-term fate of remaining employees or of company resolve to honor reclamation responsibilities and local jobs promises

Peabody Energy during the first quarter of the year quietly reduced the size of the workforce at Kayenta Mine in northeastern Arizona by 46 percent, from 336 miners to 182. In March, Peabody acknowledged publicly it had recently let go 40 Kayenta mine workers. The company has been silent beyond that announcement. The latest information […]

and June 11, 2019 Read More →
IEEFA U.S.: Imminent Hopi-Navajo budget crisis as coal industry collapses

IEEFA U.S.: Imminent Hopi-Navajo budget crisis as coal industry collapses

Federal action required, potential for bipartisan national coalfield reinvestment legislation: past models include Hurricanes Katrina and Sandy response, bailout of auto industry, mitigation for military base closures

May 30, 2019 (IEEFA) – Closure this year of the Navajo Generating Station (NGS) and Kayenta Mine will gut tribal government budgets in northern Arizona, according to a report published today by the Institute for Energy Economics and Financial Analysis. In response to the planned closures, Navajo Nation will reduce public-service expenditures by 23 percent […]

IEEFA U.S.: Solar tax credit extension through 2024 critical for coalfield communities

IEEFA U.S.: Solar tax credit extension through 2024 critical for coalfield communities

Support needed during energy transition — Navajo Generating Station/Kayenta Mine cited as ‘prime examples’

(IEEFA U.S.) — The federal solar tax credit should be extended by at least four years in coalfield areas, like the ones around the Navajo Generating Station (NGS) and Kayenta Coal Mine in Arizona, according to a briefing  note released today by the Institute for Energy Economics and Financial Analysis (IEEFA). “Scheduled curtailment of the […]

IEEFA report: Powder River Basin coal industry  is in long-term decline

IEEFA report: Powder River Basin coal industry is in long-term decline

Fast-changing markets indicate deeper downturns to come in Montana and Wyoming

March 18, 2019 (IEEFA U.S.) — Coal producers in the Powder River Basin continue to lose customers as utilities across the U.S. embrace a shift toward cleaner and cheaper forms of power generation, according to a report published today by the Institute for Energy Economics and Financial Analysis (IEEFA). The report — Powder River Basin Coal […]

IEEFA update: Navajo coal mine and plant acquisition plan raises liability issues

IEEFA update: Navajo coal mine and plant acquisition plan raises liability issues

Failure to address employee benefits, maintenance, and cleanup costs

March 8, 2019 (IEEFA New Mexico) — The Navajo Transitional Energy Company’s (NTEC) proposed acquisition of the failing coal-fired Navajo Generating Station (NGS) and its feeder Kayenta Mine continue to raise questions about possible consequences should the sale be allowed to move forward. In addition to wide concerns about the financial viability of the project, the […]

IEEFA report: Every two weeks a bank, insurer or lender announces new coal restrictions

IEEFA report: Every two weeks a bank, insurer or lender announces new coal restrictions

Major financial institutions restricting coal funding tops 100

SYDNEY, February 27, 2019 (IEEFA) – Research from the Institute for Energy Economics and Financial Analysis (IEEFA) today reveals over 100 major global financial institutions have introduced policies restricting coal funding. The report, “Over 100 Global Financial Institutions Are Exiting Coal, With More to Come,” finds global capital is fleeing the coal sector at an electrifying […]

and February 26, 2019 Read More →
IEEFA report: Business case for acquiring failing plant and Kayenta mine poses ‘serious financial risk’ to Navajo Nation

IEEFA report: Business case for acquiring failing plant and Kayenta mine poses ‘serious financial risk’ to Navajo Nation

‘Little clarity, no certainty’ seen in NTEC plan; reclamation liabilities loom large

February 22, 2019 (IEEFA Arizona) — The Institute for Energy Economics and Financial Analysis (IEEFA) published a report today concluding that a tribal company’s plan to acquire the failing Navajo Generating Station (NGS) and its companion mine would most likely create a money-losing enterprise.  The report—“NTEC’s Plant/Mine Acquisition Plan Puts Navajo Nation at Serious Financial Risk”—concludes […]

Why Navajo Generating Station Is No Longer Commercially Viable

Why Navajo Generating Station Is No Longer Commercially Viable

The Institute for Energy Economics and Financial Analysis (IEEFA) has done extensive research into the difficult circumstances facing Navajo Generation Station. Key findings: Declining energy market prices and rising production costs have made power produced by the plant more expensive than competing sources. Market trends are not likely to change, leaving the plant’s financial viability […]

August 16, 2017 Read More →

More News and Commentary

U.S. energy transition hits Powder River Basin as coal production falls, mines close

S&P Global Market Intelligence ($): A sharp decline in coal demand from the U.S. power sector is wreaking havoc on the Powder River Basin as mine operators in the region scaled back production during 2020 with few indications of improved prospects for volumes. Production in the country’s largest coal-producing basin fell 21.8% year over year […]

February 9, 2021 Read More →

Kentucky utilities seek replacement power for three retiring coal units

S&P Global Market Intelligence ($): Louisville Gas and Electric Co. and Kentucky Utilities Co. are seeking generation capacity to meet a potential energy shortfall being created by the expected retirement of three coal units by 2028. The PPL Corp. subsidiaries expect to retire units 1 and 2 at the Mill Creek plant in Jefferson County, […]

January 12, 2021 Read More →
IEEFA: Malaysia’s CIMB announces coal financing phase-out by 2040 as Asia’s fossil fuel divestment drive accelerates

IEEFA: Malaysia’s CIMB announces coal financing phase-out by 2040 as Asia’s fossil fuel divestment drive accelerates

The first emerging markets bank to announce a progressive coal exit policy

Malaysia’s CIMB Group Holdings (CIMB) has announced a comprehensive coal exit policy with a commitment to phase out both project and general corporate financing of thermal coal mining and coal-fired power generation across its portfolio by 2040. This is a first in several ways. CIMB is the first Malaysian bank to act on a formal […]

December 8, 2020 Read More →
IEEFA update: Peabody Energy flirts with bankruptcy—again
and

IEEFA update: Peabody Energy flirts with bankruptcy—again

Bear market for coal, new financial pressures push world’s largest coal company towards default

Just three-and-a-half years after emerging from its previous bankruptcy, Peabody Energy—the world’s largest private coal miner—admitted to investors on Monday that it could face yet another trip to bankruptcy court in the coming months. Coal bankruptcies in the United States have become increasingly common. Cheap gas and renewable power have steadily replaced coal in the […]

Peabody warns of possible second bankruptcy in five years as coal industry declines

S&P Global Market Intelligence ($): The world’s largest private coal company Peabody Energy Corp. said it is in danger of its second bankruptcy filing in five years on the back of poor performance and worsening market conditions amid the coronavirus pandemic. There is “substantial doubt” the company will be able to meet its outstanding obligations […]

November 10, 2020 Read More →

Insurance company seeking collateral from Peabody to cover the coal miner’s cleanup bonds

St. Louis Post-Dispatch: An insurance company is demanding nearly $128 million in collateral from Peabody Energy Corp., citing the company’s “deteriorating” financial condition. In a lawsuit filed Thursday by Argonaut Insurance Co., the company says it has issued over $202 million in surety bonds to Peabody-associated entities around the globe. They are mostly reclamation-type bonds […]

November 3, 2020 Read More →

IEEFA: Why 2020 is turning out be a pivotal year for fossil fuel exits

The writing is on the wall for coal, and now globally significant financial institutions are starting to shun high risk oil and gas projects

What started as a trickle is turning into a rush for the exit as countries, financial institutions and companies commit to quitting coal – and increasingly oil and gas as well. 2020 to-date has seen 56 global banks, insurers, pension funds and asset managers announce new or expanded coal exit policies – 143 globally significant […]

October 30, 2020 Read More →

Judge rejects Peabody, Arch plan for coal mining joint venture in Powder River Basin

Wyoming Public Media: A federal judge has ruled against a proposed joint venture between the two largest coal producers in the nation. District Judge Sarah Pitlyk found that consolidating seven of Arch Resources Inc. and Peabody Energy Corp’s mines in the Powder River Basin and Colorado wouldn’t bode well for the region’s market. The move […]

September 30, 2020 Read More →
IEEFA U.S.: Peabody’s $1.42 billion write-down concedes coal mines have little value and dim future

IEEFA U.S.: Peabody’s $1.42 billion write-down concedes coal mines have little value and dim future

Trouble at biggest mine in Powder River Basin speaks volumes about state of industry

Peabody Energy, the world’s largest privately owned coal company and the biggest U.S. coal producer, has finally acknowledged a long-apparent reality: Thermal coal mines in the U.S. have little value anymore and not much of a future.  The company said as much earlier this month when it slashed the book value of the largest coal […]

August 6, 2020 Read More →

Energy transition prompts Peabody to write down value of largest U.S. coal mine by $1.42 billion

S&P Global Market Intelligence ($): The largest coal mining company in the United States substantially lowered the value of one of its top-producing thermal coal assets based on low expectations for future coal demand. Peabody Energy Corp. impaired the value of its North Antelope Rochelle coal mine in Wyoming by $1.42 billion in the second […]

August 6, 2020 Read More →