I’ve said previously that India is going to be the biggest story no one’s heard yet in thermal coal.
Last week came some of the first public recognition I’ve seen on the incredible changes taking place in the Indian coal supply-demand dynamic. Giving us a more solid view on the ground-shifts happening in the Asian coal market as a whole.
These changes lead to some very interesting conclusions. Chiefly, coal projects around the Indian Ocean are going to get a lot more valuable.
There’s one country particularly I believe will make big gains because of the looming changes (and it’s not Indonesia, Australia, South Africa, Mozambique or any of the other “big names” in the space). One tiny company seems to be perfectly positioned here, with a sizeable coal project. And trading at half of its cash value.
More on all that in a moment. First, let’s look at the recent news on India’s coming coal import boom.
One big event last week appears to have confirmed my thesis on India’s hunger for coal. James O'Connell, Editor-in-Chief for coal at global data powerhouse Platts, told reporters in Mumbai that India’s thermal coal imports are on the rise. Then came the surprise: O’Connell said he expects the nation to become the world’s largest thermal coal importer during the next three to five years.
That’s a big prediction—from people who watch enough numbers to know…