Oh bugger

Coal is getting bad press - not climate or ecologically friendly.


US scientists say Britain's new generation of coal-fired power stations would undermine climate change efforts.

The British government will lose its leadership position on climate change and risk scuppering a global deal to cut emissions if it presses ahead with a new generation of dirty coal power, say leading US scientists and environmental leaders.

The heads of three influential groups, representing more than 2 million members, have written to the foreign secretary, David Miliband, warning that the UK proposals for up to eight new coal plants threatens the chance of the US joining a post-Kyoto international agreement to be agreed in 2009.

It is the first public sign of growing international anger over the plans and will add to pressure on Miliband and the environment secretary, Hilary Benn, to oppose the government's new coal policy in cabinet. Most immediate is the decision on whether to approve the first major planning application for a new coal plant at Kingsnorth in Kent, the site of this month's Climate Camp protest.

In the UK, there has already been heavy criticism of the plans to build new coal plants, without technology to capture and bury the large volumes of carbon dioxide emitted. Lord Smith, the new head of the government's Environment Agency, recently added forcefully to condemnations by the Environmental Audit Committee, the Royal Society, City investment groups, the government's environmental advisor Jonathon Porritt, former chief scientist Professor Sir David King, and the Institute for Public Policy Research think-tank.

The letter, now revealed to the Guardian, is signed by the heads of the Sierra Club, the Union of Concerned Scientists and the Natural Resources Defense Council. It argues Britain is in a particularly important position because of "your government's historic commitment to lead on global warming in Europe and around the world."

It adds: "As proposed, these conventional coal plants lack any limits on their emissions of carbon dioxide and would drastically increase the UK's carbon dioxide emissions and make achievement of your stated pollution reduction goals extraordinarily difficult, if not impossible. Building new conventional plants and setting the UK up to fail and lose its leadership mantle will make our work in the US all the more difficult."

Tim Jones, climate policy officer for the World Development Movement anti-poverty campaign group, said the concern was shared across the developing world, especially where emerging environment campaigns are arguing for much poorer nations to cut emissions, and rich countries like the UK are being blamed for changes such as typhoons, drought and rising sea levels.

"They can adapt to one to two degrees of warming, but if it's more than that they can't adapt; they are just filled with despair," said Jones.

British officials and ministers are understood to have already been challenged over plans for unabated coal power by other governments.

The US intervention - signed by Carl Pope, the Sierra Club's executive director, Kevin Knobloch, the UCS president, and Frances G Beinecke, the NRDC director follows an unprecedented campaign against new coal power in the US which has led to 66 of a proposed 150 new plants being abandoned or rejected by politicians and the courts, and most of the remainder locked in legal battles.

But although the two main candidates for the US presidential election in November, John McCain and Barack Obama, have both declared their support for international emissions cuts, campaigners warn that any deal would also have to be approved by Congress, which would need to know there was public support for such a move, particularly during a recession.

'If the UK takes a firm stand and rejects conventional coal it will send a strong, clear message to our new President and a new Congress, as well as to other countries considering new coal plants,' the letter adds.

Replying for the British government, the energy minister at DBERR, Malcolm Wicks, said "as a 'live' planning case I cannot comment on the merits or otherwiseor on the timing of any decision".

In a Guardian interview earlier this month, Wicks widened the government's argument in favour of coal, saying that new power stations were not just essential for energy security but also to allow the development of carbon capture and storage technology. Without that technology, "all is lost on global warming", he said, because of China's reliance on the fuel. "The idea that if we showed some kind of lead and we in Britain say no to coal and China will say 'OK we will follow' is just daft," he said. Green campaigners reject the idea that CCS cannot be developed without new, unabated power stations.

A recent report by the IPPR said the European Union's goal of reducing emissions from the power sector and heavy industry through its emissions trading scheme would collapse if the go-ahead were given to seven new coal plants in the UK and up to 75 across Europe

While i accept your post concerning coal and effects on the environment (one of
my reasons for investing in KAH long term), the fact remains that coal is still the most widely used form to produce energy. As far as the UK is concerned, we are but a drop in the ocean compared with China and India to mention two. With WTN and other such companies, its coking coal they produce for the making of steel and my reason for holding, along with they up for sale and are being checked out by several interested parties.
cyril

http://www.financialpost.com/story.html?id=780638
cyril

MELBOURNE, Sep 10, 2008 (Dow Jones Commodities News via Comtex) -- BHP
BHP Billiton Ltd. (BHP.AU) said Wednesday demand from steel mills for coking coal remains strong and that it plans to build on its coal position in the Bowen Basin in the Australian state of Queensland.
"The outlook for the metallurgical coal market is strong with robust demand from key growth markets," BHP Coal President Dave Murray said in a statement.

"BHP Billiton continues to build on its position within the Bowen Basin to accelerate growth and bring new production to meet the needs of our customers and generate value for our shareholders."

BHP and joint venture partner Mitsubishi Corp. (8058.TO) said Wednesday they have completed their purchase of the New Saraji project from New Hope Corp. Ltd. (NHC.AU) and will commence an exploration and evaluation program there immediately.

New Hope Corp. said that following the A$2.45 billion sale it would assess its capital structure and consider potential uses of the proceeds from the sale.

-By Alex Wilson, Dow Jones Newswires; 61-3-9671-4313; alex.wilson@dowjones.com
cyril

Just hoping the am's rise is not a false dawn? This might help,

http://network.nationalpost.com/np/blogs/tradingdesk/archive/2008/09/11/plenty-of-value-in-western-canadian-coal.aspx
cyril

Not sure what to make of this rumour from the FT, I hold both and i'm hoping it
will bring added interest to both?

Cambrian Mining rose 13 per cent to 176p on talk that Western Canadian Coal, which also has a London listing, was poised to launch an offer for its rival. The two companies have a common investor, Audley Capital, the investment group run by Julian Treger. Audley's stake in Cambrian currently stands at 25 per cent.FT

cyril

200p...as I've said, this is not favourable

What you said was "100p" and as you well know, the reason for the fall is the
general market due to Lehmans Bros collapse along with many other houses in trouble. I'll suppose you'll be claiming credit for that soon?
I see a sea of red across the whole market, as far as WTN is concerned its trading a little above one times its earning for the coming year. Fundimentals will come through in the end as to when that is will depend i suppose on the hedge funds, who are shorting almost everything at the this minute,but come back it will.
cyril

http://www.investegate.co.uk/Article.aspx?id=200809140700062971B
A snippit from above,
Mr. Hogg continues, 'The second quarter is expected to be stronger as we achieve the full benefit of the current high coal price for all of our production, expect an improvement in the ratio of clean coal produced to waste removed and lower our mining costs.'
cyril

WTN is producing 3.5m/tonnes of coal with a $280 agreed price,if we break that down it works out as following.
3,500,000/365 = 9,589 tonnes/day @ $280 -120(conservative)=
9,589* 160= $1.534m a day, thats a whole lot of cash coming in.
Since that announcement 33 days have passed, so $50.6m earned.
cyril

WTN finished up 40% in Canada at $5.16 = 2.74p
cyril

WTN up over 13% this am, someway off the Canadian value. CBM also up 7%.
cyril

WTN for me is typical of a company that is outperforming all its value, but is
victim of todays market turmoil. Contracted sales of $2.8m a day with profit of $1m
giving a P/E of well under "ONE" and yet it flounders, frustrating to say the lest.
A post which sums up WTN's potential,remembering that they up for sale.

A major user of coal will value WTN solely on the basis of what it provides their business. If that value puts their offer well above WTN's market SP (which it will with WTN's coal reserves and current $1m daily profit, etc.), can anyone sensible believe they'll back out because overall stock market chaos, mug punters and forced hedge sellers have crapped on the SP?

An open market SP would normally be important in a takeover, but in this case it's irrelevant as CBM and Audley hold the vast majority of WTN shares, so a prospective buyer has no option but to negotiate directly with them if they wish to buy. As time passes, WTN will become increasingly cash-rich and the evidence is that WTN's sale price will increase with it.

Put aside the strategic review and whether a deal is about to be signed and focus instead on the fact that the SP should receive a major boost in about 6 weeks time when the Quarterly production figures are released and the sceptics are truly sorted out.

Seems their hope as 500,000 were bought at auction on the TSX at $4.55 Canadian, which is 241p which is over 1m.
And of course CBM which owns 46% is similarly traded.
cyril

As I've pointed out, WTN is running out of steam.
It's 165p now.

DO U THINK IT IS A BUY NOW AT 140P, CYRIL?

Maybe not...closed at 120p

Anyone can be a smart alec in todays market, was it just WTN or were you refering to the whole market? i doubt it, no info just one liners. Perhaps you can discredit the profits with facts and figures,which i doubt so not worth bothering
with you, i've seen so many of your type on other threads.
cyril

So it must be a very good opportunity to buy.

100p on the way very soon.