Besides the obvious attack by the government on the coal industry, with regulations resulting in high operational cost designed to cripple coal in America, there are some other reasons why coal has been diminishing in the midst of a surge in coal demand outside of America.
In states like Kentucky and West Virginia, for example, easily accessed coal has already been mined, resulting in higher costs to mine the thinner deposits.
The other major challenge is the discovery and supply of natural gas in America, which has resulted in cheaper energy, putting pressure on coal as a fuel source in the United States.
One area that coal should continue to do very well in is high-grade metallurgical coal, which is used to produce steel. This won't save the coal industry in America, but it will keep some regions of the country in good condition.
Another key element is the lack of export terminals to meet the growing demand of coal in every other country in the world outside of the United States. At this time there are projects in the works to build five coal export terminals in Washington and Oregon to help meet that growing need. Most coal companies benefiting from that will be producing in the western part of the U.S. It is uncertain as to how many of those will be built and how long it'll take to bring them to operational status.
Projections by the International Energy Agency show that coal demand will jump by 1.2 billion tons over the next several years, which should make it the No. 1 global fuel source at that time.
So while coal demand is falling in America, every other country on the face of the planet that uses coal has been increasing it as an energy source for their needs.
China is the driving force behind coal demand, with India boosting its coal usage as well. For the United States, at this time Europe is the biggest importer of coal from the country.
If this continues for years into the future, which it undoubtedly will, coal demand in America could rise again, but it'll take many years before that happens. For now, investors should look for coal companies positioned to primarily serve the Chinese market, as Chinese demand accounts for half or more of all coal demand in the world as of this writing.
Showing posts with label Coal. Show all posts
Showing posts with label Coal. Show all posts
Friday, February 15, 2013
Friday, October 19, 2012
Parets Likes Natural Gas, Coal, Over Crude
Saying crude oil at this time "is a mess," J.C. Parets said in regard to energy and commodities in general, investors need to look elsewhere for gains, as he sees the fall from $100 as a trend that is likely to continue at this time.
Parets, who is the founder of Eagle Bay Capital, sees the energy place to be as natural gas, and says coal is also worth a look, as it could move up on the sails of natural gas.
He said, "If we're right on natural gas and continue to see higher prices, I think we should continue to see higher prices for coal as well."
The trend that needs to be followed at this time in the sector is natural gas versus oil, not crude oil in and of itself.
The reason natural gas is so appealing to Parets is it continues to be way below its historic 10-year average in relationship to oil, which has been about 10-to-1. In the spring of 2012 it jumped to 54-to-1.
Tuesday, May 22, 2012
BHP (BHP), Coal Unions Reach Impasse
BHP Billiton and the coal unions of Queensland haven't come to an agreement over safety staffing issues, and the radical unions have threatened to strike on Thursday, according to the Daily Telegraph.
BMA asset president Stephen Dumble said this, "Each of the solutions BMA has proposed has been rejected by the unions.
"The current BMA enterprise agreement negotiation is at an impasse over exactly this type of issue where unions want to ignore current market and employment trends and instead preserve a status quo position for their own industrial ends.
"The issue in question is too important to be caught up in this way. It is a real issue which demands a real solution."
Contractors are now running the safety staffing operations at the company.
The coal unions have also rejected a far-too-generous pay offer of an additional 15 percent over the next three years, which also includes a $15,000 bonus.
BHP has threatened to take that off the table if an agreement isn't reached soon.
They should take if off the table with the commodities markets weakening, with more contraction expected to happen in the short term. Over the long haul commodity prices will continue to rise as demand will guarantee the bull market in commodities will continue.
BHP closed Monday at $64.47, gaining $1.98, or 3.17 percent.
BMA asset president Stephen Dumble said this, "Each of the solutions BMA has proposed has been rejected by the unions.
"The current BMA enterprise agreement negotiation is at an impasse over exactly this type of issue where unions want to ignore current market and employment trends and instead preserve a status quo position for their own industrial ends.
"The issue in question is too important to be caught up in this way. It is a real issue which demands a real solution."
Contractors are now running the safety staffing operations at the company.
The coal unions have also rejected a far-too-generous pay offer of an additional 15 percent over the next three years, which also includes a $15,000 bonus.
BHP has threatened to take that off the table if an agreement isn't reached soon.
They should take if off the table with the commodities markets weakening, with more contraction expected to happen in the short term. Over the long haul commodity prices will continue to rise as demand will guarantee the bull market in commodities will continue.
BHP closed Monday at $64.47, gaining $1.98, or 3.17 percent.
Monday, October 25, 2010
Patriot Coal (NYSE:PCX) Challenged by Rising Costs, Geological Conditions
Citing probably operational inconsistency based on rising costs and geological conditions, Patriot Coal (NYSE:PCX) had their "Market Perform" rating maintained on them by FBR Capital.
"We are lowering our 2011 and 2012 estimates on Patriot Coal by an average of 4% and keeping our 4Q10 estimates unchanged after the company announced lower-than-expected 3Q10 earnings and steam coal sales outlook yesterday. However, we boosted our 2011 met coal volume slightly as the company laid out its growth pipeline and highlighted multiple levers it can pull to achieve that growth. While we like the progress made by PCX as it builds out its met production and opportunistically locks in favorable contracts, we continue to be concerned about tough geological conditions and rising costs, which create operational choppiness," said FBR.
Patriot was down $0.18 Friday, closing at $12.81, losing 1.39 percent percent. FBR has a price target of $18 on them, increasing it from $16.
"We are lowering our 2011 and 2012 estimates on Patriot Coal by an average of 4% and keeping our 4Q10 estimates unchanged after the company announced lower-than-expected 3Q10 earnings and steam coal sales outlook yesterday. However, we boosted our 2011 met coal volume slightly as the company laid out its growth pipeline and highlighted multiple levers it can pull to achieve that growth. While we like the progress made by PCX as it builds out its met production and opportunistically locks in favorable contracts, we continue to be concerned about tough geological conditions and rising costs, which create operational choppiness," said FBR.
Patriot was down $0.18 Friday, closing at $12.81, losing 1.39 percent percent. FBR has a price target of $18 on them, increasing it from $16.
Thursday, October 21, 2010
Peabody Energy (NYSE:BTU) Earnings Estimates Boosted by FBR Capital
FBR Capital reiterated their "Outperform" rating on Peabody Energy (NYSE:BTU), citing their strong performance in the third quarter. They also raised their earnings estimates for 2010-2012.
"This morning, we are increasing our 2010–2012 earnings estimates (EBITDA) on Peabody by about 2% after the company announced solid 3Q10 earnings, raised 2010 guidance, and sold additional coal at prices above expectations and in line with the forward curve. We continue to believe that Peabody is well positioned to benefit from growing seaborne demand and relatively less exposure to regulatory challenges domestically, where the company is also largely sold out for 2011. While the company's implied 4Q10 guidance may seem light, we remain focused on the key long-term catalysts for the company," said FBR.
"We are increasing our 2010 EPS/EBITDA estimates to $3.11/$1,884M, from
$2.99/$1,838M...We are also increasing our 2011 estimates to $4.00/$2,210M, from $3.83/$2,132M."
FBR has a price target of $61 on Peabody.
"This morning, we are increasing our 2010–2012 earnings estimates (EBITDA) on Peabody by about 2% after the company announced solid 3Q10 earnings, raised 2010 guidance, and sold additional coal at prices above expectations and in line with the forward curve. We continue to believe that Peabody is well positioned to benefit from growing seaborne demand and relatively less exposure to regulatory challenges domestically, where the company is also largely sold out for 2011. While the company's implied 4Q10 guidance may seem light, we remain focused on the key long-term catalysts for the company," said FBR.
"We are increasing our 2010 EPS/EBITDA estimates to $3.11/$1,884M, from
$2.99/$1,838M...We are also increasing our 2011 estimates to $4.00/$2,210M, from $3.83/$2,132M."
FBR has a price target of $61 on Peabody.
Thursday, October 7, 2010
Patriot Coal (NYSE:PCX) Downgraded by Brean Murray
Patriot Coal (NYSE:PCX) was downgraded by Brean Murray from "Buy" to "Hold," citing pricing and costs.
Brean said, "This downgrade is mostly due to our less bullish pricing expectations for lower-quality met coal and continued production/cost uncertainty. Patriot has had a number of unexpected issues over the past 4 months, resulting in low investor sentiment. We believe it's now a bit of a 'Show-Me' story."
Investors shrugged off the downgrade, as Patriot surged to close Wednesday at $13.24, gaining $0.75, or 6 percent.
Brean said, "This downgrade is mostly due to our less bullish pricing expectations for lower-quality met coal and continued production/cost uncertainty. Patriot has had a number of unexpected issues over the past 4 months, resulting in low investor sentiment. We believe it's now a bit of a 'Show-Me' story."
Investors shrugged off the downgrade, as Patriot surged to close Wednesday at $13.24, gaining $0.75, or 6 percent.
Thursday, September 23, 2010
Teck (NYSE:TCK) Coal Sales Down on Westshore Terminals Capacity Issues
Teck Resources Limited (NYSE:TCK) said coal sales will be down because capacity constraint problems at Westshore Terminals.
The problem will affect coal sales not only for the current quarter, but also for the full year, driving them down.
Estimates for coal sales in the third quarter have been downwardly adjusted to a range of 5.2 million tons to 5.5 million tons, in contrast to original estimates of 5.8 million tons to 6.2 million tons.
Coal sales for the calendar year were downwardly revised from 23.5 million tons to 24.5 million tons to 23 million tons to 23.8 million tons.
Teck is taking interim steps to move their coal as the temporary constraints continue to hurt the business, by seeking alternative terminals to move their coal.
Westshore Terminals said the problem should be mitigated for 2011, expecting all of Teck's deliveries to be loaded for the year.
The problem will affect coal sales not only for the current quarter, but also for the full year, driving them down.
Estimates for coal sales in the third quarter have been downwardly adjusted to a range of 5.2 million tons to 5.5 million tons, in contrast to original estimates of 5.8 million tons to 6.2 million tons.
Coal sales for the calendar year were downwardly revised from 23.5 million tons to 24.5 million tons to 23 million tons to 23.8 million tons.
Teck is taking interim steps to move their coal as the temporary constraints continue to hurt the business, by seeking alternative terminals to move their coal.
Westshore Terminals said the problem should be mitigated for 2011, expecting all of Teck's deliveries to be loaded for the year.
Thursday, September 16, 2010
Coal Miners Protest Anti-Business Obama Administration, EPA
Coal miners from major mining states like West Virginia, Virginia, Ohio, Kentucky and Pennsylvania came by the 100s to Washington to protest against the Obama administration and its EPA, which in the eyes of the miners are attempting to destroy the coal industry which supplies for their families.
At issue is the war by the Obama administration against mountaintop removal mining via the tool of the Environmental Protection Agency.
Controversial EPA Administrator Lisa Jackson has stated her goal is to raise the so-called standards so high, that chance of having a permit issued for valley fills would be close to zero.
West Virginia state senator Jay Rockefeller blasted Jackson, saying she "doesn't understand the sensitivities economically of what unemployment means. Her job is relatively simple: clean everything up, keep it clean, don't do anything to disturb perfection. Well, you can't do coal and do that at the same time. God didn't make coal to be an easy thing to work with."
Rep. Hal Rogers, R-Ky., said she was practicing "strangulation by regulation."
Senate Minority Leader Mitch McConnell, R-Ky, said, "Send them a message on November 2," as the coal miners cheered. You get the feeling the message will be sent loud and clear.
At issue is the war by the Obama administration against mountaintop removal mining via the tool of the Environmental Protection Agency.
Controversial EPA Administrator Lisa Jackson has stated her goal is to raise the so-called standards so high, that chance of having a permit issued for valley fills would be close to zero.
West Virginia state senator Jay Rockefeller blasted Jackson, saying she "doesn't understand the sensitivities economically of what unemployment means. Her job is relatively simple: clean everything up, keep it clean, don't do anything to disturb perfection. Well, you can't do coal and do that at the same time. God didn't make coal to be an easy thing to work with."
Rep. Hal Rogers, R-Ky., said she was practicing "strangulation by regulation."
Senate Minority Leader Mitch McConnell, R-Ky, said, "Send them a message on November 2," as the coal miners cheered. You get the feeling the message will be sent loud and clear.
Monday, September 13, 2010
Goldman Sachs (NYSE:GS) Downgrades Mechel (NYSE:MTL)
With production of coal leveling off, Goldman Sachs (NYSE:GS) downgraded Mechel (NYSE:MTL) from "Buy" to "Neutral."
Goldman said they see a lack of upside for the company because of decreased catalysts to give coal momentum.
Seaborne coking coal and Russian markets were cited also as reasons to be Neutral on Mechel. Coal production has normalized giving little reason to think that'll change in the near term.
Goldman did upwardly revise their price target on the coal company from $29 to $30.
Goldman said they see a lack of upside for the company because of decreased catalysts to give coal momentum.
Seaborne coking coal and Russian markets were cited also as reasons to be Neutral on Mechel. Coal production has normalized giving little reason to think that'll change in the near term.
Goldman did upwardly revise their price target on the coal company from $29 to $30.
Thursday, September 9, 2010
Teck (NYSE:TCK) Notes Get "BBB-" Rating From Fitch
Fitch Ratings has assigned a "BBB-" to the $700 million in new notes offered by Teck Resources Limited (NYSE:TCK)(TSE:TCK-B).
Here's how Fitch rated the new notes for Teck:
- Issuer Default Rating (IDR) "BBB-";
- Senior Unsecured Notes "BBB-".
The senior unsecured notes are due 2021 and 2040.
Teck will use the notes to acquire up to $1 billion in total principal of existing notes due 2019.
Fitch keeps the rating outlook on Teck stable, citing their strong position in copper, low cost zinc operations, and leading position in the seaborne hard metallurgical coal market.
The stable outlook by Fitch assumes Teck will continue on with its current financial profile.
Here's how Fitch rated the new notes for Teck:
- Issuer Default Rating (IDR) "BBB-";
- Senior Unsecured Notes "BBB-".
The senior unsecured notes are due 2021 and 2040.
Teck will use the notes to acquire up to $1 billion in total principal of existing notes due 2019.
Fitch keeps the rating outlook on Teck stable, citing their strong position in copper, low cost zinc operations, and leading position in the seaborne hard metallurgical coal market.
The stable outlook by Fitch assumes Teck will continue on with its current financial profile.
Thursday, August 26, 2010
Citigroup (NYSE:C), Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS) Managing 'Coal India' IPO
Citigroup (NYSE:C), Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) will be among the financial institutions managing the initial public offering of Coal India, which is expected to raise up to $3 billion. The IPO is scheduled for October 18.
Assuming the approximate 632 million shares being offered are sold, it the $3 billion raised would be the largest IPO by a company in India.
The government of India has plans in place to sell stakes in close to 60 companies run by the state in order to tackle high deficits in the country. The divesting will be spread over the next several years.
In their fiscal 2011 year, they hope to raise up to $8.6 billion.
Also participating in the management of the IPO are Kotak Mahindra Capital, Enam Securities and Deutsche Bank (NYSE:DB).
Assuming the approximate 632 million shares being offered are sold, it the $3 billion raised would be the largest IPO by a company in India.
The government of India has plans in place to sell stakes in close to 60 companies run by the state in order to tackle high deficits in the country. The divesting will be spread over the next several years.
In their fiscal 2011 year, they hope to raise up to $8.6 billion.
Also participating in the management of the IPO are Kotak Mahindra Capital, Enam Securities and Deutsche Bank (NYSE:DB).
Coal Producers Peabody Energy (NYSE:BTU), Massey (NYSE:MEE), Alpha (NYSE:ANR), Consol (NYSE:CNX), Plunge on Recession Concerns
Coal firms Peabody Energy (NYSE:BTU), Alpha Natural Resources Inc. (NYSE:ANR), Massey Energy Co. (NYSE:MEE) and Consol Energy Inc. (NYSE:CNX) all plummeted in Wednesday's trading, as economic data continue to confirm we remain in a recession, with little hope of exiting it anytime soon.
Consol Energy could come under even more pressure, not only because of their coal exposure, but their natural gas exposure, which would be under pressure because of enormous supply, whether there was a recession or not.
With stimulus money leaving the economy, its naked state has again been exposed, and it is as weak as ever, putting pressure on providers of energy and raw materials.
Following on the footsteps of the horrid figures for house sales yesterday, new data showed the sales of new homes also plunged, down 12 percent, from June. That would put sales at the lowest level since statistics have been kept - 276,000 annually.
There is no doubt the slowdown will continue, and companies and investors should respond to that accordingly.
After all, if about $1 trillion in stimulus can do absolutely nothing to change the economy, adding another $1 trillion won't either, and it would be foolish and criminal to place that over the heads of the American people, as some are calling for the Federal Reserve and government to do.
While Arch Coal (NYSE:ACI) also fell in price, and exception was Patriot coal (NYSE:PCX), who managed to end Wednesday's trading session at $10.60, gaining $0.21, or 2.02 percent.
The only news there was Patriot's president and chief operating officer, Paul H. Vining, was stepping down.
Consol Energy could come under even more pressure, not only because of their coal exposure, but their natural gas exposure, which would be under pressure because of enormous supply, whether there was a recession or not.
With stimulus money leaving the economy, its naked state has again been exposed, and it is as weak as ever, putting pressure on providers of energy and raw materials.
Following on the footsteps of the horrid figures for house sales yesterday, new data showed the sales of new homes also plunged, down 12 percent, from June. That would put sales at the lowest level since statistics have been kept - 276,000 annually.
There is no doubt the slowdown will continue, and companies and investors should respond to that accordingly.
After all, if about $1 trillion in stimulus can do absolutely nothing to change the economy, adding another $1 trillion won't either, and it would be foolish and criminal to place that over the heads of the American people, as some are calling for the Federal Reserve and government to do.
While Arch Coal (NYSE:ACI) also fell in price, and exception was Patriot coal (NYSE:PCX), who managed to end Wednesday's trading session at $10.60, gaining $0.21, or 2.02 percent.
The only news there was Patriot's president and chief operating officer, Paul H. Vining, was stepping down.
Wednesday, July 7, 2010
Walter Energy (NYSE:WLT) Upgraded by FBR Capital Markets (Nasdaq:FBCM)
At one point in the trading day Tuesday, Walter Energy Inc. (NYSE:WLT) climbed 5.9 percent, peaking around 10:30 AM EDT, as FBR Capital Markets (Nasdaq:FBCM) upgraded the company from "Market Perform" to "Outperform."
Walter Energy had been moving nice on the year until about April 15, when they reached their 52-week high of $99.45 a share. It's been downhill since then, with the company plunging in value since then.
At the end of the trading session Tuesday, Walter finished at $61.27, down slightly by $0.19, or 0.31 percent.
Walter produces coal for the steel industry.
Walter Energy had been moving nice on the year until about April 15, when they reached their 52-week high of $99.45 a share. It's been downhill since then, with the company plunging in value since then.
At the end of the trading session Tuesday, Walter finished at $61.27, down slightly by $0.19, or 0.31 percent.
Walter produces coal for the steel industry.
Tuesday, June 8, 2010
Rio Tinto (NYSE:RTP) to Invest Billions in India Mining
Rio Tinto (NYSE:RTP) considers India one of its leading mining markets, and is prepared to invest billions of dollars into the region.
“India is high on our priority list and we are ready to spend billions of dollars in its mining sector,” said Rio Tinto chief financial officer Alan Davies.
Not only is Rio looking within physical India for mining project partners, they're also looking for Indian partners to explore outside of the country as well.
“We are talking to both these companies (Essar and Coal India Limited), as also other private majors from India, to work within the country and outside. New prospective markets are being explored, such as Brazil as also Canada, where Rio Tinto already has its operations,” added Davies.
While iron ore, coal and diamonds are the major minerals being looked at now, any good resource seems to be a possibility for lining up partners to work with.
“India is high on our priority list and we are ready to spend billions of dollars in its mining sector,” said Rio Tinto chief financial officer Alan Davies.
Not only is Rio looking within physical India for mining project partners, they're also looking for Indian partners to explore outside of the country as well.
“We are talking to both these companies (Essar and Coal India Limited), as also other private majors from India, to work within the country and outside. New prospective markets are being explored, such as Brazil as also Canada, where Rio Tinto already has its operations,” added Davies.
While iron ore, coal and diamonds are the major minerals being looked at now, any good resource seems to be a possibility for lining up partners to work with.
JPMorgan (NYSE:JPM) Denies $250 Million Coal Losses
Reports that JPMorgan (NYSE:JPM) has lost about $250 million in the quarter in losing coal bets is being denied by the giant financial institution, calling the reported losses, which originated in the New York Post, incorrect.
JPMorgan spokeswoman Kristin Lemkau said the story wasn't accurate, adding there would be no further comment, while the bank outlet in London also said they don't comment on trading positions taken by the company.
The question is whether or not the story was correct, but just too exuberant in its losses reported on for the company. Maybe it was huge losses but just not to the level mentioned.
Even if the numbers were correct, it wouldn't have much impact on the bottom line of the company, as shown by the market shrugging off the news as pretty much irrelevant.
What could result from the alleged losses would be the way politicians may use it to try to shut down proprietary trading at the financial institutions.
In unrelated JPMorgan news, they had their 12-month price target slashed by analyst Richard Bove from $55 to $47.
JPMorgan spokeswoman Kristin Lemkau said the story wasn't accurate, adding there would be no further comment, while the bank outlet in London also said they don't comment on trading positions taken by the company.
The question is whether or not the story was correct, but just too exuberant in its losses reported on for the company. Maybe it was huge losses but just not to the level mentioned.
Even if the numbers were correct, it wouldn't have much impact on the bottom line of the company, as shown by the market shrugging off the news as pretty much irrelevant.
What could result from the alleged losses would be the way politicians may use it to try to shut down proprietary trading at the financial institutions.
In unrelated JPMorgan news, they had their 12-month price target slashed by analyst Richard Bove from $55 to $47.
Wednesday, May 26, 2010
Massey Energy (NYSE:MEE) Not for Sale
Massey Energy (NYSE:MEE) said the rumors and reports stating they're for sale are false, and there is not truth to them whatsoever.
Some of this is evidently being circulated because of moves by the company to sell some assets or enter into some joint ventures with other companies.
Regions where Massey is looking at doing deals in are the United States, Australia, Mongolia and India.
Massey is looking to partner with Jindal Steel & Power (JNSP.BO), based in India, to develop and operate underground coal mines in that country.
Some of this is evidently being circulated because of moves by the company to sell some assets or enter into some joint ventures with other companies.
Regions where Massey is looking at doing deals in are the United States, Australia, Mongolia and India.
Massey is looking to partner with Jindal Steel & Power (JNSP.BO), based in India, to develop and operate underground coal mines in that country.
Saturday, April 17, 2010
Adaro (JK:ADRO) Coal Railway Deal
Indonesian Coal Railway
The largest coal producer in Indonesia, PT Adaro Energy Tbk (JK:ADRO), will make a bid for a tender for a $1.5 billion railway project which will allow coal to be transported in Kalimantan.
The coal railway would be 115 miles long and connect Puruk Cahu to Bangkuang in Central Kalimantan.
There are approximately 4.8 billion tons of coal reserves in the central part of Kalimantan, and this will be the first of four proposed railway projects ultimately expected to be a length of 1,136 miles, linking ports with coal mines.
Others interested in investing in the coal railway are Itochu Corp and China Harbour Engineering Co.
The largest coal producer in Indonesia, PT Adaro Energy Tbk (JK:ADRO), will make a bid for a tender for a $1.5 billion railway project which will allow coal to be transported in Kalimantan.
The coal railway would be 115 miles long and connect Puruk Cahu to Bangkuang in Central Kalimantan.
There are approximately 4.8 billion tons of coal reserves in the central part of Kalimantan, and this will be the first of four proposed railway projects ultimately expected to be a length of 1,136 miles, linking ports with coal mines.
Others interested in investing in the coal railway are Itochu Corp and China Harbour Engineering Co.
Monday, March 29, 2010
Teck Resources (NYSE:TCK) Increasing Coal Production by 50 Percent in 5 Years
Teck Resources Coal Production
Teck Resources (NYSE:TCK) has stated it wants to increase its coal production by 50 percent within five years as demand for coking coal skyrockets.
This is probably a realistic goal if it's predicated upon China's hunger for coking coal, as they can't get enough of it to feed their needs, even after they increased coal imports by 500 percent last year.
In 2010 expectations are China will import over 30 million tons of coal this year, as their domestic supply can't keep up with their demand from steel mills.
Steel production is projected to continue to increase in China for some time, and that will guarantee demand for coking coal will increase with it.
Teck Resources will increase revenue and profits with it if they can meet their coal production goals.
Teck Resources (NYSE:TCK) has stated it wants to increase its coal production by 50 percent within five years as demand for coking coal skyrockets.
This is probably a realistic goal if it's predicated upon China's hunger for coking coal, as they can't get enough of it to feed their needs, even after they increased coal imports by 500 percent last year.
In 2010 expectations are China will import over 30 million tons of coal this year, as their domestic supply can't keep up with their demand from steel mills.
Steel production is projected to continue to increase in China for some time, and that will guarantee demand for coking coal will increase with it.
Teck Resources will increase revenue and profits with it if they can meet their coal production goals.
Monday, March 8, 2010
Coals Future Looks Great
The future of coal
Even though it has become politically correct to malign coal, and media loves to cover its so-called "clean" energy alternatives, which are anything but real alternatives, coal will continue to be a major force in generating electricity for decades to come.
The thing to understand with coal, is even if it's not as important in western countries, in general it's going to be a ongoing force around the world for emerging and developing nations for a long time, as they hunger for sources of energy that are affordable and minimally meet their needs.
So don't believe the majority of what you read in the media about the demise of coal. It's not even close to going away or becoming irrelevant, and it is well worth the time to check out the numerous companies still having a major presence with coal, as demand will only increase and not decrease, no matter what the mainstream media tries to convince you of.
The future of coal
Even though it has become politically correct to malign coal, and media loves to cover its so-called "clean" energy alternatives, which are anything but real alternatives, coal will continue to be a major force in generating electricity for decades to come.
The thing to understand with coal, is even if it's not as important in western countries, in general it's going to be a ongoing force around the world for emerging and developing nations for a long time, as they hunger for sources of energy that are affordable and minimally meet their needs.
So don't believe the majority of what you read in the media about the demise of coal. It's not even close to going away or becoming irrelevant, and it is well worth the time to check out the numerous companies still having a major presence with coal, as demand will only increase and not decrease, no matter what the mainstream media tries to convince you of.
The future of coal
Tuesday, March 2, 2010
Petmin Growing Strong for Six Years
Petmin Growth
Petmin has experienced phenomenal growth over the last six years, growing at almost a 100 percent compounded during that period of time.
Based in South Africa, leadership of the company now wants to expand beyond the borders of the country to increase its regional footprint, and from there go global.
The primary focus of Petmin is coal, iron ore, anthracite and silica at this time. They are thinking about adding copper to their existing products, although that's not a surety at this time.
Petmin Growth
Petmin has experienced phenomenal growth over the last six years, growing at almost a 100 percent compounded during that period of time.
Based in South Africa, leadership of the company now wants to expand beyond the borders of the country to increase its regional footprint, and from there go global.
The primary focus of Petmin is coal, iron ore, anthracite and silica at this time. They are thinking about adding copper to their existing products, although that's not a surety at this time.
Petmin Growth
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