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
Fourteen protesters who claim a Massey Energy Co. surface mine in West Virginia could cause flooding and harm a nearby town were ticketed for trespassing Tuesday, state police said. For full story, click here
Rio Tinto recently gave a big break to JSW Steel Ltd. on an existing contract. The mining major’s move to cut its coking coal prices for the Indian company by 43 percent are a dark sign of things to come for coking coal miners.
Churchill Mining Plc announced that application has been made for the following shares to be admitted to trading on AIM; 200,000 new ordinary shares of 1 pence each pursuant to the exercise of options at an exercise price of 12 pence per share. For full story, click here
There’s no denying the worldwide recession has led to global cutbacks in the demand for most commodities, coal included. Coal producers like Peabody Energy have been forced to curtail production as demand slumps from both the steel industry and the energy sector.
On Tuesday, Indonesia’s parliament passed a much anticipated coal and mining law intended to raise government revenues and provide easier access for foreign investment. However, many feel the regulations outlined in the new law will only deter investment.
Indonesia’s parliament is set to pass a new law on coal and mining on Tuesday that promises more certainty for investors but may not be enough to attract major new foreign investment to exploit rich mineral resources. For full story, click here
Along with most in the commodity sector, the coal industry will likely take a hit in 2009, but many analysts are confident that coal demand along with prices will rebound in 2010. As energy demand from developing countries like China and India recovers, we’ll once again see upward movement in the coal price.
The metallurgical coal industry is set to face significant declines in price, according to analyst’s forecasts. Bloomberg conducted a survey of a nine-analyst panel whose median forecast placed the price of coking coal at $200 a tonne by April 2009. The individual forecasts ranged from $140 to $305 a tonne.
Coal is the best commodity to get into right now. The recent global economic downturn has led to a slump in coal demand and production cuts, however serious investors are not shying away from what they see as a most opportune time.
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