When coal prices are rising, Levy taught him, buy coal-shipping railroads.
Several studies find, for instance, that when an electricity generator can choose between the output of many nearby coalmines that produce coal of a particular quality, it tends to buy its coal on an open market.
And so Blankenship was able to buy met coal reserves on the cheap.
Last year, Mr. Choudhury, the company's chairman, said fear of probes into alleged wrongdoing was slowing decision-making at NTPC over operational issues, including whether to buy overseas coal blocks to reduce supply deficits.
It is now trying to preserve some of the remnants of Britain's uncompetitive coal industry and, though both ministers and PowerGen deny they have an agreement, the government is hoping that, in a spirit of co-operation, the big generators will buy more coal.
Led by patriarch Aburizal Bakrie, the family is proposing to buy back its coal mines that were injected into the venture, along with other non-family assets.
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He then used the money to buy stakes in two coal-mining ventures in Indonesia.
So it can buy royalty streams from coal mining companies (most collect royalties from reserves as well as mining their own coal) at five to seven times cash flow and still boost returns to its own unit holders.
If a coal-focused utility wanted to stay in business it would have to buy sufficient credits to balance out its coal.
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In the depths of the energy price collapse of the mid-1980s Corbin (Corby) Robertson Jr. risked just about everything he owned to buy a billion tonnes of coal in the ground.
Yanzhou Coal Mining (12, YZC) is the only Chinese coal stock you can buy.
Enterprises fuelled by coal generally need to buy more allowances than those using gas, because their CO2 emissions are higher.
The price of fuel is tempting coal mine owners to dig more holes and buy more trucks to shift the dirt.
The Bakries, backed by the independent non-executive directors, have offered to buy back Bumi Resources, leaving Bumi PLC with the Berau coal-mining assets in a deal that would leave shareholders with a loss of about 50% on their original investment.
Kinder says he's looking for other pipeline partnerships to buy, and Kinder Morgan is expanding into terminals that handle coal and other dry bulk materials, hoping to capitalize on long-term trends such as the shift by electric utilities away from Appalachian coal toward cleaner- burning western coal.
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