Blaze Signs Partnership Agreement With Greenfields
News: Canadian mining company Blaze Energy has signed a new partnership agreement with US mining company GreenFields, Energy Business Review reports. The agreement will see Blaze purchase a minimum of CAD4.2mn (US$4.08mn) worth of coal from Greenfields, which will then be processed and sold from the GreenFields coal mine in West Virginia, US. Blaze stated that the deal would help it to meet its pending coal sales agreements.
BMI View: Coal output will experience low growth over our forecast period, growing at an average of 0.6% per annum from 2013 to 2017, reaching 952mn tonnes (mnt) in 2017. We forecast US coal production and consumption will see gains in the coming quarters as coal has been able to recover some of its market share in electricity production, due to recovering natural gas prices and a rise in demand of Asian imports. However, rising exports are unlikely to fix the industry's medium-term woes. Stagnant medium-term domestic coal demand and an increasingly unfriendly regulatory environment will weigh on coal miners, leading to production cutbacks, asset sales and potential consolidation.