Coal: The Next Great Commodity Story

Source: MoneyWeek, Tom Bulford (6/16/10)

"Indonesia and Mozambique. . .regions to watch."

I want to focus on a 'dirty' little commodity that never gets as much attention as oil, but could be the source of many a fortune-building investment in the years ahead. I'm talking about coal.

Following are four interesting things you need to know about coal:

Coal generates 41% of the world's electricity.
Coal is also essential for the production of iron and steel.
Imports of thermal coal—used primarily for power stations—will rise by 47% in the next decade, according to consultants at McCloskey
Meanwhile, McCloskey says world demand for coking coal—used in foundries—will increase by some 53%.

Where's all this increased demand for coal coming from? The usual suspects: China, India and Brazil. For sure, China has coal reserves of its own. It also has the large Mongolian coalfields on its doorstep. But crucially, India and Brazil do not. These two economic powerhouses are going to need huge supplies of imported coal to fuel their rapid growth.

At present, the main supplier is Australia, notably from the Bowen Basin coal field in Queensland. But two other countries have plenty of coal reserves—Indonesia and Mozambique.

Coming up next month is the Mozambique Coal and Energy Conference in Maputo. "Mozambique's coalfields are the hot topic right now within the international coal community," reads the advance publicity, "with a number of leading experts suggesting that Mozambique will become the new Bowen Basin."

Billions of dollars are said to be available to back projects in this area. This may sound like hype, but it's probably true. This is a region to watch.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."