Coal stocks were on fire Tuesday in response to President Donald Trumpâ€™s move to unwind an Obama-era environmental plan that targeted coal-fired power plants.
Trump signed an executive order to roll back multiple climate actions taken by former President Barack Obamaâ€™s EPA. The main subject of the order is the Clean Power Plan, which was put on hold by an ongoing court battle. Critics have argued that the Clean Power Plan would spell the end for hundreds of power plants that would be unable to meet its stringent emissions rules.
â€œThe action Iâ€™m taking today will eliminate federal overreach, restore economic freedom and allow our companies and our workers to thrive, compete and succeed on a level playing field,â€ Trump said.
With the president moving to dismantle the Clean Power Plan, miners are breathing a sigh of relief.
â€œTune into the End of the War on Coal,â€ the American Coal Council wrote in a tweet ahead of Tuesdayâ€™s announcement.
Similarly, Vice President Mike Pence declared, â€œThe war on coal is over.â€
Tune into the End of the War on Coal Today at 2 pm EDT.https://t.co/Mz9nYRmLJY— ACC (@AmericanCoal) March 28, 2017
The wide-ranging executive order, which Trump signed at the Environmental Protection Agency, also reverses a ban on leasing federal land to coal companies.
Ramaco Resources, a producer of metallurgical coal with mines in West Virginia, Virginia and Pennsylvania, surged 10.6% following the announcement. Cloud Peak Energy (NYSE:CLD), CONSOL Energy (NYSE:CNX) and bankrupt Peabody Energy (OTC:BTUUQ) also posted strong gains.
â€œAmerican energy resources give us a competitive advantage in the global economy, and the presidentâ€™s effort to capitalize on those resources is vital to stimulating economic growth,â€ U.S. Chamber of Commerce President and CEO Thomas Donohue said in a statement. â€œThe U.S. Chamber has long argued that EPAâ€™s power plant regulations are not only unlawful, they are a bad deal for American families and businesses.â€