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Peabody Impairs North Antelope Rochelle Coal Mine Value

Coal News - Published on Fri, 07 Aug 2020

Image Source: Peabody North Antelope Rochelle Coal Mine
Peabody impaired the value of its North Antelope Rochelle Mine in Powder River Basin in US by USD1.42 billion driven by changes in multiple assumptions, including lower long-term natural gas prices, timing of coal plant retirements and continued growth from renewable generation. These factors have contributed to the company projecting that coal's share of the US generation mix will continue to be lower than prior year levels.

Peabody said “US thermal coal conditions remain especially challenging given weak overall electricity demand, high customer inventory levels and continued low natural gas prices. These factors have accelerated the secular decline already underway in the industry. Total US electricity generation year-to-date through June was down approximately 4 percent, with coal generation falling 31 percent to 17 percent of the generation mix as natural gas and wind took market share, rising to 39 percent and 9 percent, respectively, of the generation mix.”

North Antelope Rochelle Mine is located 65 miles south of Gillette in Wyoming producing thermal coal by open pit mining. 85.3 million tons of coal sold from North Antelope Rochelle Mine in 2019

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Posted By : Yogender Pancholi on Fri, 07 Aug 2020
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