Coal prices spiked in 2011, driven by massive demand from China. But as China invested billions to move domestic coal around the country more efficiently, coal prices began dropping and projects were abandoned.
Ambre Energy is getting out of the North American coal market, a victim of a sharp decline in international coal prices. The revelation, contained in an Australian regulatory filing, underscores the uncertainties facing coal exports in the Pacific Northwest.
Ambre is selling its interests in its Oregon and Washington projects to a U.S.-based private equity company, Resource Capital Funds of Denver, Colo. Ambre’s board has approved the $18 million deal, most of which will pay off debt, and company shareholders are expected to follow suit in December.