The opportunity in Asian coal continues to grow brighter. Evidenced by two important pieces of data this week from major consuming nation India.
Coal India—the nation’s largest coal miner—reported that its coal production has once again fallen short of target.
The firm said that production for the nine months from April to December 2013 came in 15 million tonnes below forecast. Totaling just 335 million tonnes.
The company also missed its sales target for the same period. With sales falling 12 million tonnes short of the targeted 354 million tonnes.
The underperformance is expected to continue for the rest of the fiscal year (which runs until March 31, 2014). Total mined coal output will likely come in 17 to 18 million tonnes below targets for the year.
A Continuing Crisis Gets Worse
These missed targets are yet more evidence that India’s domestic coal production is in big trouble.
Since 2010 Coal India’s production has fallen well short of its supply commitments to domestic power users. Hampered by a lack of infrastructure and chronic environmental hang-ups over new projects (the company cited two expansion bans from the national environment ministry as reasons for its latest production shortfall).
Source: Press Bureau of India (December 9, 2013)
At the same time, coal demand from India’s power sector is soaring. Total daily requirements are running at 1.4 million tonnes.