Clayton: PRB facing growing challenges as industry matures

摘要

While Kennecott Energy President and CEO Bret Clayton said his company is enjoying a number of advantages because it is a relatively new company, he noted that the Powder River Basin is facing growing challenges on several economic and regulatory fronts. Speaking Tuesday at the American Coal Council's Coal Market Strategies conference in Atlanta, Clayton detailed the PRB's economic challenges: Mining operations and rail capacity are nearing their thresholds, and mining costs are increasing for a variety of other reasons. Mining costs are increasing due to longer haul distances, increasing strip ratios, cost of reserves and aging equipment. Eastern producers are facing financial difficulties, Clayton noted, and while PRB producers aren't in dire financial straits, their challenges are no less compelling. "What percentage of eastern coal is currently in bankruptcy? The percentage is outstanding," he said. The PRB, meanwhile, faces similar challenges for meeting return on investment if not as dire a situation in the marketplace.