• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 1 hour Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 48 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 2 days US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 13 hours Let’s take a Historical walk around the Rig
  • 8 hours Beijing Must Face Reality That Taiwan is Independent
  • 23 hours Trump has changed into a World Leader
  • 23 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 56 mins Governments that wasted massive windfalls
  • 23 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 2 days Might be Time for NG Producers to Find New Career
  • 3 days Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 3 days Indonesia Stands Up to China. Will Japan Help?
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Is A Game Changing Deal About To Emerge For Coal?

The investment picture keeps getting bleaker for the world’s most hated commodity.

Coal.

This week saw another slew of investors officially back away from coal funding. Led by South Africa’s FutureGrowth — the country’s largest specialist fixed-income money manager.

FutureGrowth said Tuesday that based on its investing principles it could no longer fund “dirty” coal projects. A sentiment that was echoed this week by Boston University, which said it will divest all holdings in coal and oil sands.

But the rush to dump coal investments does have a silver lining for those groups remaining in this space.

Namely: there’s a lot less competition for good assets.

Such an opening appears to be luring some big players into potential coal deals. With reports emerging in India this week that the country’s biggest coal player may be about to take a major leap into foreign assets.

That firm is Coal India, the nation’s largest producer. With local press quoting the company’s chairman as saying the firm is close to acquiring coal assets in Indonesia.

Chairman Suthirtha Bhattacharya said, “We are in touch with government companies there to see whether we can get access to coal licence.”

This follows on previously announced plans by Coal India to look at assets in major producing nations like Indonesia, South Africa and Australia. With this week’s announcement being the first sign of concrete deals brewing as part of this strategic plan.

If a deal does emerge on Indonesian assets, it would be a big shot in the arm for coal. Showing that even while many buyers are fleeing the market, long-term players are still intent on paying up for good projects.

Such a situation could be a win-win — with Coal India likely to get favorable deal terms amid the current slump in the Indonesian coal sector. Watch for announcements from the firm or from players in the Indonesia coal sector on specific acquisitions over the coming months.

Here’s to being the last man standing.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment
  • Ironhide on September 22 2016 said:
    Coal India is not only the India's largest producer, it is also the largest coal producing company in the whole World.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play