Coal Age

DEC 2012

Coal Age Magazine - For more than 100 years, Coal Age has been the magazine that readers can trust for guidance and insight on this important industry.

Issue link:

Contents of this Issue


Page 15 of 75

news continued m PEOPLE IN THE NEWS Peabody Energy Chairman and CEO Gregory H. Boyce has been inducted into the Mining Foundation of the Southwest's American Mining Hall of Fame. Over a three-decade career in mining and energy, Boyce has worked across a wide range of commodities, including copper, uranium, gold and coal. He previously held roles with Kennecott Gregory Boyce Copper and Rio Tinto, before joining Peabody Energy in 2003 as president and COO. In 2006, Boyce rose to president and CEO of Peabody and was elected as chairman of the board in 2007. Under Boyce's leadership, Peabody has grown significantly and expanded globally. He is the only CEO to be named among the top chief executives for both the energy and mining sectors, garnering recognition from Institutional Investor magazine and the Global Energy Awards. In 2012, Boyce was named one of America's Most Valuable CEOs by Chief Executive magazine, ranking 36th among S&P 500 chief executives. During his tenure, Peabody has earned more than 100 major honors for safety, financial and environmental excellence. American Electric Power (AEP) has announced organizational and executive leadership changes as part of a corporate-wide repositioning effort. Lana L. Hillebrand will join AEP as senior vice president and chief adminDennis Welch istrative officer. Dennis E. Welch, currently Barbara Radous executive vice president and chief administrative officer, will become executive vice president and chief external officer. Barbara D. Radous, currently senior vice president of shared services, will become senior vice president of repositioning and program management office. Craig T. Rhoades, currently vice president of customer services, marketing and distribution services, will become vice president of supply chain, procurement and fleet. Drummond Ltd. announced that Augusto Jimenez has tendered his resignation as president of Drummond Ltd. Colombia. Jose Miguel Linares, vice president of legal, will assume the duties of interim president while a search is completed for a candidate for president. Cliffs Natural Resources Inc. has elected Timothy W. Sullivan, executive adviser of CCMP Capital Advisors LLC and former president and CEO of Bucyrus International Inc., to the board of directors. J.H. Fletcher & Co. has appointed Lenny Novak sales director— industrial minerals. Strongwell Corp. has appointed David Gibbs vice president of sales and engineering and Mike Leonard Novak Carr director of sales. David Gibbs Mike Carr Gateway Safety has appointed Greg Schmidt product development manager. Eurotire has appointed Courtland Acosta business development Greg Schmidt manager, Mexico and Central America. LOESCHE ThermoProzess GmbH has appointed Michael Nisch director of sales of Thermo Process Technology. 14 Likewise, the federal agency claims surface mining began November 1, 2007, at the 768-acre Hale Fork site in Floyd and Magoffin counties in eastern Kentucky, also without a CWA permit. Judge Amul Thapar heard a motion to dismiss the Frasure Creek suit in November, according to the company's Lexington, Ky., attorney, Martin Cunningham. Cunningham said he doubts a settlement can be reached with EPA and the Department of Justice, which is representing EPA, in the suit. "We had been talking with DoJ and EPA even before the suit was filed. I do not believe there will be a settlement because the two sides are pretty far apart." As a result, it is unclear if an out-of-court agreement can be reached before the case is set for trial, he added. The judge is expected to conduct a telephone conference with attorneys in January. Essar Minerals, a subsidiary of Mumbai, India-based Essar, acquired Trinity and its subsidiaries in 2010 for approximately $600 million from Denham Capital, a global private equity firm in Boston, Mass. Alliance Sees Markets Improving As it pursues sustained growth with new mine projects, primarily in the high-sulfur Illinois Basin, Alliance Resource Partners sees a light at the end of the tunnel for beleaguered coal operators eager to bid farewell to a frustrating 2012. "We do begin to see improvement in 2013," with the market supply/demand equation in relative balance by the end of next year, Brian Cantrell, senior vice president and CFO of the Tulsa, Okla.based company, told the Dahlman Rose & Co. 3 rd Annual Global Metals, Mining and Materials Conference in New York in November. Alliance, the third-largest coal producer in the Eastern United States, is forecasting demand for steam coal to grow by about 3% in 2013 while production remains relatively flat. "We're assuming normal weather patterns and higher natural gas prices in those estimates," he said. According to Cantrell, the current demand curve benefits coal, particularly the IB variety that is dear to Alliance's heart and bottom line. "Coal is beginning to regain some of the market share it lost to natural gas for power generation," he said. In early 2012, coal's share dipped to 32% as electric utilities increasingly switched to gas, whose prices hovered near record lows. By late in the year, coal started to rebound, eclipsing a 37% share and appears poised to surpass 40% in 2013, Cantrell said. Cantrell also provided a perspective on coal markets. From 2010 "when things looked quite a bit better in U.S. coal markets, the market was undersupplied by 16.6 million tons," he said. "By 2011 we switched to an oversupply situation and in 2012 current estimates are we'll be oversupplied by about 18 million tons." Considering both the low gas prices and the abnormally mild winter of 2011-12, U.S. coal demand was expected to fall to about 835 million in 2012, he added. However, "It hasn't been all doom and gloom," Cantrell stressed. "One relative bright spot has been exports, which have grown significantly to 125 million tons in 2012, much on demand strength coming out of China, India and Europe. Steam coal exports have shown strength, growing 47% in 2011, and we expect them to increase another 14% or so this year." December 2012

Articles in this issue

Links on this page

Archives of this issue

view archives of Coal Age - DEC 2012