U.S. Coal Giant Is ‘Unglued’ as $800 Million Takeover Sours
- Contura shares fall to record low after unexpected loss
- Prices for met coal “were significantly below expectations”
Photographer: Luke Sharrett/Bloomberg
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U.S. miner Contura Energy Inc.’s $800 million bet on international coal markets is souring.
In November 2018, when Contura bought Alpha Natural Resources and became America’s biggest supplier of metallurgical coal, global prices for the fuel were climbing -- bolstered by demand, particularly in China. Since then, trade tensions have escalated, curbing purchases of both steel and the coal used to make it. On Thursday, the miner reported $40 million in third-quarter earnings, less than half of what analysts estimated, and suspended share buybacks.