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The Globe and Mail reported that a slump in coal prices is hurting mining in British Columbia and has caused US-based Walter Energy Inc. (NYSE:WLT) to cease mining operations in the province.
The Globe and Mail reported that a slump in coal prices is hurting mining in British Columbia and has caused US-based Walter Energy Inc. (NYSE:WLT) to cease mining operations in the province.
Similarly, Teck Resources (TSX:TCK.B) is unsure whether it will restart operations at its BC mine. However, HD Mining International Ltd. is considering a new coal venture in the province and London’s Anglo American plc (LSE:AAL) has just begun a BC mine expansion project.
As quoted in the market news:
The coal industry has traditionally been a key driver of B.C.’s economy, with companies generating billions of dollars in revenue every year and employing thousands of workers. Now producers are starting to question the viability of their projects as prices hit new lows.
According to the Globe, Raymond James Ltd. analyst Alex Terentiew said:
We maintain a fairly negative near-term outlook regarding the metallurgical market, given our prognosis of current levels of oversupply, continued supply growth from a handful of players and only modest growth in demand.
Click here to read the full Globe and Mail article.