Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Global demand and prices for coal will continue to expand aggressively over the next five years despite public calls for reducing reliance on the high-carbon fuel as a primary energy source, said the International Energy Agency (IEA) in its first ever report about the commodity.
The Paris-based watchdog said in its “Medium-Term Coal Market Report 2011” that China will remain a major price driver in the medium term as both a huge producer and consumer of coal. This because China’s share of global production is almost four times that of Saudi Arabia’s share of oil output, while the Chinese domestic market is more than three times the size of annual coal trade worldwide, said the IEA.
The report underlines that coal is already the single-largest source of electricity generation globally and that “policy makers must be aware of this when designing strategies to enhance energy security while tackling climate change.”
The IEA report, which asked whether the volatility seen in recent years has made trading coal like a visit to a casino, also concluded that participants need to use risk management techniques.
2 Comments
Fehertom64
That is the Reality my dear Greens, whether You like it or not… (By the way, personally I do not like it either)
Jackson
600,000 tpd x 360 days per year =216 million t/y connot be true,compare this to the total annual consumption ?