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Trump budget sustains coal support

  • Market: Coal
  • 11/03/19

President Donald Trump's fiscal 2020 year budget proposes less restrictive cuts for coal-related programs than for other government areas, in some cases even increasing funding.

The proposed budget released today would trim funding to the Interior Department's Bureau of Land Management (BLM) and Office of Surface Mining Reclamation and Enforcement (OSMRE) by 11.7pc and 23.2pc, respectively, to $1.4bn and $634.1mn for the year starting 1 October. And the Department of Energy budget would decrease by 11pc to $31.7bn.

Those proposed reductions pale with the 31pc cut planned for the US Environmental Protection Agency (EPA).

The administration said it is putting a priority on finalizing rule proposals including EPA's Affordable Clean Energy rule and revisions to the Waters of the US rule. It also wants to increase spending on fossil fuel research and "cut red tape" that has lengthened the permitting process for energy projects.

"The United States has among the most abundant and diverse energy resources in the world, including oil, gas, coal, nuclear, and renewables," the administration said its proposal for the Energy Department. "The ability of entrepreneurs and businesses to commercialize technologies that take full advantage of those resources is paramount to promoting US economic growth, security, and competitiveness."

The budget would expend Energy Department spending on research and development of early-stage nuclear and fossil fuel technology by $127mn and increase overall appropriations for the Office of Fossil Energy Research and Development by $60mn, to $562mn. It also would increase spending on improving the mine review process within OSMRE by $3.8mn and raise BLM's coal management program funding by $7.89mn, to $19.8mn.

At the same time, the administration is proposing reducing some renewables funding, including eliminating the Energy Department's Advanced Research Projects Agency-Energy program. The department is proposing cutting the Office of Energy Efficiency and Renewable Energy's budget to $343mn from $2.3bn, although funding would be supplemented with prior year balances of $353mn.

The administration's plan faces significant hurdles within Congress. Lawmakers rejected the last two proposed budgets, which also sought deep cuts to non-defense spending. And Democrats, who are now in control of the US House of Representatives, have expressed opposition to funding cuts on programs related to energy efficiency, advanced renewable energy technology and climate change.

EPA total appropriations would sink to $6.07bn from the $8.83bn allocated in the agency's fiscal 2019 continuing resolution. This includes a $3mn increase in appropriations "to execute a delegation to states and to develop and implement a permit program for coal combustion residuals."

The US Mine Safety and Health Administration (MSHA), meanwhile, is proposing consolidating coal and non-coal mine enforcement activities. That "would provide the flexibility to address industry changes and maximize the efficient use of MSHA's resources," the Department of Labor said.

The department wants to set aside $262.6mn for the restructured enforcement arm, which is $273,000 less than what was enacted for the divisions in fiscal 2019.

The administration is proposing a total $376mn in appropriations for MSHA this coming year, up from $373.8mn enacted for the current year. Most of the increase is for information technology modernization.


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28/02/25

Low flood risk expected for upper Mississippi River

Low flood risk expected for upper Mississippi River

Houston, 28 February (Argus) — The spring flood risk is low along the upper Mississippi River, as area soils and streams have amble capacity to accommodate seasonal precipitation, according to the National Weather Service (NWS). Precipitation in the Corn Belt has been below normal this winter, keeping the region abnormally dry, the NWS said Thursday in its second Spring Flood Outlook . Minimal snow pack has formed in the Northern Plains following lackluster winter precipitation. Both these factors have reduced the risk for March-April flooding along the upper Mississippi River. Around 0-2in of water equivalent are in the snowpack along the northern stretches of Minnesota, Wisconsin and Michigan. In addition, stream flows are below normal, giving them more capacity to handle spring rains and snow melt. In other areas of the Corn Belt and the Northern Plains, unfrozen soil is expected to soak up precipitation, asmoisture levels remain below normal. Southern Illinois and Missouri have no frozen soil, completely thawing since the previous outlook . Iowa has 16-24in of frozen soil, slightly higher over the past two weeks. Northern states such as Minnesota and Wisconsin still have an average of 24-36in of frost depth. These states have the entire month of March to defrost and gain moisture levels, since the majority of spring planting for the Corn Belt begin in April. Normal precipitation is projected for the upper Mississippi River basin through the first half of March, according to the NWS' Climate Prediction Center. The seasonal temperatures outlook for March-April are near normal, while precipitation is anticipated to be above average. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Upper Mississippi River ice thickens before March


27/02/25
News
27/02/25

Upper Mississippi River ice thickens before March

Houston, 27 February (Argus) — Ice measurements near the upper Mississippi River were thicker than the previous readings, the US Army Corps of Engineers (Corps) reported on 26 February. The Lake Pepin ice depth results traditionally help determine when the upper Mississippi River will reopen for spring transit. The second ice measurements taken this week revealed deeper ice than the week prior . The ice along mile 770 of the lake thickened by 1in to 20in which is also thicker than the same time last year. This measurement is 4in more than the five-year average for the period and slightly above average for overall ice thickness for this time of the year, according to the Corps. Nevertheless, ice did melt at the ends of the Lake because of warmer temperatures this week. If high temperatures and winds continue through the coming weeks, Lake Pepin's ice will begin to dissipate, said Corps civil engineering technician Alan Vanguilder. But should temperatures fail to increase by mid March, the reopening of the upper Mississippi could be delayed. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Japanese utility Tepco faces nuclear restart delay


27/02/25
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27/02/25

Japanese utility Tepco faces nuclear restart delay

Osaka, 27 February (Argus) — Japanese utility Tokyo Electric Power (Tepco) is facing a possible further delay in restarting its Kashiwazaki-Kariwa nuclear power plant in Niigata prefecture, as the company is likely to miss a deadline for installing anti-terrorism facilities at the No.7 and No.6 reactors. Under Japanese nuclear safety regulations, nuclear power plant operators are required to build emergency control facilities in the event of severe accidents such as an aircraft crash or terrorist attack, within five years of receiving approvals to upgrade a reactor. Operators that miss the deadline will have to shut down their reactors. Tepco said on 27 February that it has revised its target date to complete the counter-terrorism measures at the 1,356MW Kashiwazaki-Kariwa No.7 reactor from March 2025 to August 2029, after reviewing the upgrade construction process. This means that Tepco will not be able to meet its October 2025 deadline. This will force the reactor to shut for an extended period to complete the reinforcement work, even if Tepco secures local government approval to restart and successfully resumes operations before the deadline. Tepco has also extended a target date to complete the counter-terrorism measures at the 1,356MW Kashiwazaki-Kariwa No.6 reactor from September 2026 to September 2031, later than the September 2029 deadline. The Kashiwazaki-Kariwa No.7 and No.6 reactors have been closed since August 2011 and March 2012 respectively, following the March 2011 Fukushima nuclear disaster. The reactors have already cleared the post-Fukushima stricter safety inspection by the Nuclear Regulation Authority (NRA), but still need to secure local approval as the final hurdle. Niigata governor Hideyo Hanazumi has been cautious about whether to approve the restoration of the Kashiwazaki-Karaiwa nuclear plant because of safety concerns, reiterating he will prioritise the concerns of local residents. Tepco has tried to restart the No.7 reactor first, while completing the loading of nuclear fuel into the reactor in April 2024. But given that the October 2025 deadline for the No.7 reactor is looming, the company may refocus on restoring the No.6 reactor to utilise it until its safety deadline of September 2029. Tepco plans to load nuclear fuel into the No.6 reactor on 10 June. The possible return of the Kashiwazaki-Kariwa nuclear plant will symbolic of Tepco's progress, given it has scrapped the melted-down Fukushima Daiichi and its nearby Fukushima Daini nuclear plants. Kashiwazaki-Kariwa is now Tepco's sole nuclear plant, and its return is expected to help ease the risk of an electricity shortage like the one that occurred in January 2021 in the Tokyo metropolitan area. Tepco estimates that the restart of one nuclear reactor, which can produce 10TWh/yr of electricity, will help boost the company's profits by around ¥100bn ($668mn). It also expects the return of the Kashiwazaki-Kariwa No.7 reactor will help reduce CO2 emissions by around 3.3mn t/yr. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Illinois River lock reopening delayed: Corps


26/02/25
News
26/02/25

Illinois River lock reopening delayed: Corps

Houston, 26 February (Argus) — The US Army Corps of Engineers (Corps) delayed the reopening of the Lockport Lock along the Illinois River by over a month after finding significant cracks in the lower gate walls. The Corps now estimates the lock to resume operations between 30 April and 6 May at the earliest. The Lockport Lock was previously scheduled to reopen on 25 March , after the two gates on the upper end of the lock were replaced. When the Corps dewatered the lock chamber earlier this month, severe cracks were found in both the lower gates. The Lockport Lock grants access to major trading hubs Chicago, Illinois, and Burns Harbor, Indiana, at the end of the Illinois River. The lock has been closed since 28 January. Major barge carriers had already planned transit routes for the previous reopening timeline of the Lockport Lock. These dates have been paused until April, instead of late February. The delayed timeline will prolong shipment of major products such as metals, asphalt, petcoke, fertilizer and biofuels. Another 5-6 weeks of work will be required for replacement of the lower gate walls, said the Corps. Both lower gates need to be pulled, and there are no spare castings for the Lockport gates, incurring an extended timeline. A different heavy lift crane must be brought in and funding must be acquired for the additional interim and permanent repairs, said the Corps. Work has already begun for replacement of the upper gates, including bulkheads, rebar installation and upper gates pulled into the chamber. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Colombia extends coal, oil export levy through 2025


26/02/25
News
26/02/25

Colombia extends coal, oil export levy through 2025

Bogota, 26 February (Argus) — Colombia has extended its 1pc surcharge on coal and crude exports to the full year 2025 — instead of the 90 days initially announced — to cover security costs, the country's new finance minister Diego Guevara said. President Gustavo Petro issued the decree on 17 February, after granting himself emergency powers to restore order after violence worsened in a region bordering Venezuela in late January. The levy will also apply to the sale of coal and crude in the domestic market. Petro had initially levied a 1pc surcharge on coal and crude exports for 90 days , with the aim of collecting up to 1.063 trillion pesos ($259mn), with about Ps259bn of that from crude and coal, to help cover security costs in the Catatumbo region. But the full-year surcharge now means the government would collect at least Ps2 trillion, Guevara said in a televised interview. The tax move could have severe consequences for the coal sector, possibly "bankrupting" many companies, and especially endangering smaller firms, Colombian coal federation president Carlos Cante said. "This is part of a strategy to end the international competitiveness of Colombian coal and justify an accelerated energy transition model that does not serve Colombia," Cante said. Fenalcarbon has warned that this new tax scheme could lead to "cascading taxation" that would not only affect large producers, but also small mining firms, which play a crucial role in regions such as La Guajira, Cesar and Norte de Santander. The federation has also noted that this tax burden would compromise the viability of exports and the economic stability of the sector, affecting communities that depend on mining activity. The Colombian mining association (ACM), said the new levy on the first sale and export of coal represents a new obstacle to the development of the sector. "This measure adds to an increasingly complex environment for the industry, which already has one of the highest royalty rates globally," ACM said. Coal and oil companies in Colombia pay an income tax of 35pc, the highest in the OECD nations and sharply higher than the Latin American average of 28pc. Colombia produced around 65mn t of steam coal, coking coal and metallurgical coke in 2024, accounting for 1.1pc of the country's gross domestic product. The new tax would reduce the competitiveness of Colombian coal, Fenalcarbon added. Mining and hydrocarbons made up 47pc of the country's total exports in 2024 of about $50bn, according to figures from statistics department Dane. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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