By October 28, 2015 Read More →

Top Montana coal producer likely to cut exports to Asia

Montana coal company cites global pressure on industry

Montana coal

Montana coal producer Cloud Peak Energy said it has re-negotiated its long-term contract with terminals in Canada as exports continue to drop.  Cloud Peak Energy photo.

BILLINGS, Mont. РThe largest producer of Montana coal expects to reduce shipments to Asia next year through a West Coast port as exports of the fuel from the United States continue to slide.

Cloud Peak Energy announced Wednesday that it had re-negotiated its long-term agreement to ship coal through British Columbia’s Westshore Terminals. The Gillette, Wyoming-based company says production volumes at its Spring Creek Mine near Decker, Montana would be reduced accordingly.

Montana Coal Council director Bud Clinch says the lost shipments would reduce state tax revenue by up to $15 million in 2016.

Cloud Peak exported more than 4 million tons of coal from Spring Creek last year.

U.S. coal exports peaked in 2012. The most recent federal data shows they have since fallen by almost 50 per cent on a monthly basis.

The Canadian Press

Posted in: Energy Financial

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