For thousands of years coal has been used as an important source of energy, including a crucial role as a driving force in the Industrial Revolution. Today, coal is the largest source of energy for electricity generation in the world. Coal provides 27 percent of global primary energy needs and generates 41 percent of the world's electricity.
China has made no secret that it is in the process of diversifying its power production and, logically, through that process thermal coal will begin to represent an increasingly smaller percentage of the total energy produced.
Upgrade season is on and for coal and things seem to be heating up. Coal prices appear to be at a bottom and credit markets are beginning to work again, which should provide a positive catalyst for the industry. Cancellations of mining projects stabilized in February as well. To add to the positive news, J.P. Morgan on Monday upgraded mining firms Joy Global (JOYG) and Bucyrus International Inc. (BUCY) to neutral from underweight.
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