Coal news and updates

Asian coal plants are causing acid rain in the U.S.

Catching a snowflake on your tongue just isn’t as fun when mercury-tainted precipitation enters the equation.

In central areas of North America, mercury levels in rain appear to be rising, according to a recent study from The Science of the Total Environment, despite the fact that mercury emissions — the bulk of which come from coal-fired plants — have been decreasing in the U.S. over the past 20 years.

It looks like the growth of coal plants in Asia may be partly to blame for the problem. Like its namesake, the Roman god Mercury known for speed and mobility, the heavy metal has managed to travel from far around the world to our North American backyards. The University of California Santa Cruz Newsletter reports:

Emissions from Asia have been increasing … and are transported over long distances in the upper atmosphere. The influence of the Sierra Nevada and Rocky Mountains on weather systems results in mercury from the upper atmosphere being deposited in precipitation in western states such as Nevada and Idaho and in the central United States, [Peter] Weiss-Penzias [environmental toxicologist at UC Santa Cruz] said.

An average unregulated coal plant emits about 170 pounds of the toxic stuff per year, but don’t worry, East Coasters. You’re reaping the benefits — that is, reduced levels of mercury in rain — of decades of environmental regulation in the U.S. and Canada.

Source: Grist

Cement companies struggle amid falling prices; only Shree Cement, Ultratech better equipped 
Only a select few large cement companies with pan-India presence and lighter balance sheets are expected to report growth in the next four quarters as their peers struggle amid slack demand, lower capacity utilisation, and falling cement prices. Companies including UltratechBSE 0.64 % Cement and Shree CementBSE 1.17 % are in a better position to glide past the tough operating scenario. 

In the past two and a half years, all India average cement prices have fallen from Rs 310 per 50 kg bag to Rs 244. Ultratech Cement and Shree Cement responded by reducing cost of operations by over 2% over the past year by operating their plants on multiple fuels. On the other hand, most large cement companies such as ACC, Ambuja Cements, and The Ramco Cements reported 3.5% increase in the production cost.

In times of low demand, cement companies enhance their revenue growth through volumes. Ultratech Cement and Shree Cement, as they can afford to take a price cut due to their lower cost of cement production, can enhance or maintain volume growth. Besides this, another factor that works for these companies is their diversified presence. Ultratech has pan­India presence while Shree Cement has presence in North, East and Central markets, where demand is relatively better in comparison with other regions. In addition, both companies have light balance sheet with their debt to equity less than 1. The performance of Ultratech in the December 2015 quarter demonstrates how well positioned it is with respect to the industry. Its volume grew by 7% year­on­year during the quarter compared with the 4­5% growth recorded by the industry. Some analysts have upgraded Ultratech's stock rating to 'Neutral' and 'Buy'. On the valuation front, considering FY17 estimated earnings, Ultratech Cement's enterprise value (EV) is 15.8 times its operating profit before depreciation ( EBITDA). The ratio is 11.8 for Shree Cement. This may seem expensive in comparison with their historical average. However, this premium is justified given their better growth prospects.

Source: Economic Times