Denver Coal Club The Powder River Basin: Its Current Status and
Prospects Burnham Coal, LLCMarch 21, 2013
Slide 2
Burnham Coal, LLCMarch 21, 2013 Disclaimer Its tough making
predictions, especially about the future. - Yogi Berra, variations
by Casey Stengel, Mark Twain, et. al. predicting the future is
easy. It's trying to figure out what's going on now that's hard.
Fritz R. S. Dressler
Burnham Coal, LLCMarch 21, 2013 For the first time since 1978,
PRB producers are experiencing a prolonged decline in
production
Slide 5
Burnham Coal, LLCMarch 21, 2013 Dont expect increased
production in 2013
Slide 6
Burnham Coal, LLCMarch 21, 2013 Long term planned and potential
production capacity has not decreased
Slide 7
Burnham Coal, LLCMarch 21, 2013 Existing mines and
projects
Slide 8
Australian interest in U.S. coal (the grass is always greener):
Ambre Energy buys 50% interest in Decker and Black Butte mines
acquisition of the remaining 50% of Decker is Pending
Australian-American Many Stars project in Montana County Coal ltd.,
wants to develop two coal mines in the PRB Continental Coal Ltd. Is
in discussions with the Crow Nation to acquire a large coal deposit
in Montana. Burnham Coal, LLCMarch 21, 2013
Slide 9
Current cost related trends Burnham Coal, LLCMarch 21,
2013
Slide 10
Burnham Coal, LLCMarch 21, 2013 Productivity began falling in
2001 42.0 TPMH 28.3 TPMH
Slide 11
Burnham Coal, LLCMarch 21, 2013 Ratios are climbing
Slide 12
Burnham Coal, LLCMarch 21, 2013 Reserves are getting more
expensive
Slide 13
Burnham Coal, LLCMarch 21, 2013 Thoughts on companies and
mines
Slide 14
Where will the coal go? Burnham Coal, LLCMarch 21, 2013
Slide 15
Burnham Coal, LLCMarch 21, 2013 Domestic markets are not
expected to improve
Slide 16
Burnham Coal, LLCMarch 21, 2013 Are exports the answer?
Slide 17
Forecasts everybody agrees that the demand is there. But lets
look at history. Burnham Coal, LLCMarch 21, 2013
Slide 18
Burnham Coal, LLCMarch 21, 2013
Slide 19
Los Angeles Export Terminal (LAXT) Utah exports jump from 0.5
Mt in 1987 to 3.0 Mt in 1993. Work starts on LAXT in 1993. Utah
exports peak at 5.3 Mt in 1996. Port opens in 1997. LAXT closes due
to lack of business in 2002. Burnham Coal, LLCMarch 21, 2013
Slide 20
U.S. Coal Export History Burnham Coal, LLCMarch 21, 2013
Slide 21
Historically, the U.S. has been the swing supplier Burnham
Coal, LLCMarch 21, 2013
Slide 22
U.S. producers have an transportation disadvantage from mine to
port. Burnham Coal, LLCMarch 21, 2013
Slide 23
West Coast Transportation Routes Burnham Coal, LLCMarch 21,
2013
And a transportation disadvantage from port to customer.
Burnham Coal, LLCMarch 21, 2013
Slide 26
The U.S. has a seaborne disadvantage to Asia Burnham Coal,
LLCMarch 21, 2013
Slide 27
Burnham Coal, LLC Port Capacity and Proposed Expansions (Mt)
March 21, 2013
Slide 28
Environmental opposition to ports: EPA wants full review of
Oregon coal-export project Oregon governor wants study of
coal-export impacts Port of St. Helens eyed for coal terminal,
Columbia Riverkeeper mounts no campaign RFK Jr. calls coal
corrupting at Portland rally Burnham Coal, LLCMarch 21, 2013
Slide 29
Environmental opposition is not limited to ports: Federal coal
sales in Powder River Basin draw suit Montana agency challenged
over coal mine permits Backers of Tongue River Railroad told to
resubmit application Seattle City Council Votes Unanimously (and
Symbolically) Against Coal City of Helena Oks coal-train letter to
Amy Corps Missoula City Council supports study of coal trains
effects Spokane wants more study of coal trains At chambers
request, county commissioners back coal development (Yellowstone
County, MT) Burnham Coal, LLCMarch 21, 2013
There is nothing stable in human affairs: therefore, avoid
undue elation in prosperity and undue depression in adversity. -
Socrates Burnham Coal, LLCMarch 21, 2013
Slide 34
Contact Information: Bob Burnham Burnham Coal, LLC 16357 W. 76
th Ave Arvada, CO 80007 303.517.7826 [email protected] Burnham
Coal, LLCMarch 21, 2013