RBC Capital Markets declared that the report of cancellation by a Chinese purchaser of an Australian coal cargo during shipment may not signal a slump in demand from power plant operators in the Asian nation. For full story, click here
Coal stocks have been hit hard in this recession, given slumping electricity demand in the U.S. and the sharp drop-off of steel demand. For shareholders of Patriot Coal Corp (PCX: NYSE), the pain has been particularly acute. The stock lost 96 per cent of its value since last June's record highs. This year alone, Patriot's stock is down 41 per cent versus a 1 per cent decline by the Dow Jones U.S. Coal Index.
The coal mining industry and related infrastructure needed investment of more than R150 billion over the next 10 years to meet growing domestic demand and exports, a coal conference held yesterday in Cape Town was told. For full story, click here
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