• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 57 mins EU has already lost the Trump vs. EU Trade War
  • 7 hours Judge Orders Trump To Release Tax Returns
  • 9 hours Does .001 of Atmosphere Control Earth's Climate?!
  • 4 hours ''Err ... but Trump ...?'' #thedonkeystays
  • 8 hours China's Renewables Boom Hits the Wall
  • 8 hours Offshore SE Asia: Offshore OFS Could Get Major Boost in SE Asia
  • 2 hours Shale Gas News – November 9, 2019
  • 8 hours Saudi Aramco IPO Will Not Save Kingdom
  • 10 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 6 hours The lies and follies of the "cry wolf" enviros: No more fire in the kitchen: Cities are banning natural gas in homes to save the planet
  • 5 hours CHK Trading @ 90 Cents
Alt Text

Investors Are Turning Their Back On Coal

Investors are increasingly looking away…

Alt Text

Coal To Liquid Fuel Could Become Much Cheaper

With coal expected to remain…

Alt Text

Coal’s Long Goodbye

U.S. coal producers continue to…

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