Armstrong Energy is facing challenges from the market that may threaten the viability and profitability of its proposed coal export terminal in Louisiana, a new Public Citizen report (Armstrong Coal final report) finds. A failed company and abandoned export terminal would create significant costs for Plaquemines Parish.
In the report, “RAMming It Down Our Throats: Armstrong Energy Could Leave Louisiana Taxpayers Holding the Bag on Its Proposed RAM Terminal,” Public Citizen looked at Armstrong Energy’s financial condition and the effect of market conditions on the coal export company.
“Armstrong Energy is in hot water,” said Hillary Corgey, researcher for Public Citizen and the report’s author. “Between rising debt, market conditions unfavorable to coal, and climate change, the RAM Terminal may have a good chance of sinking, both in terms of its hurricane-prone location and the viability of the company.”
The RAM Terminal is to be built near the 150-year old community of Ironton in Plaquemines Parish, La., 30 miles south of New Orleans. The terminal is to be fully operational within two years of construction and ship 10 million tons of coal. Two hearings on August 14 and 15 attracted more than 100 residents who oppose the terminal’s latest push for permits.
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