• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 3 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 14 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 3 hours Saudi Arabia turns to solar
  • 1 hour Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 1 hour Why is permian oil "locked in" when refineries abound?
  • 7 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 20 hours Gazprom Exports to EU Hit Record
  • 3 hours Teapots Cut U.S. Oil Shipments
  • 20 hours OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 2 hours Oil prices going down
  • 3 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 16 hours U.S. Withdraws From U.N. Human Rights Council
  • 13 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 4 hours Putin Says 'Fierce' U.S. Politics Hindering Summit With Trump
  • 19 hours Could oil demand collapse rapidly? Yup, sure could.
  • 19 hours Sell out now or hold on?
Alt Text

A Crucial Development For Gold Investors Globally

The Indian government has finally…

Alt Text

They're Giving Away Cash To Help Copper Miners Here

Chile’s government has announced that…

Dave Forest

Dave Forest

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

More Info

Trending Discussions

The Final Piece of The India Coal Boom

It's amazing when you watch things set up perfectly.

For months, I've been writing about India's surging coal demand. Which should see the nation's imports of thermal coal rise by about 50% this fiscal year.

Amid this rapid expansion, there's been one factor keeping a lid on global coal prices: Indonesia.

Indonesian production of thermal coal has grown almost in step with Indian import demand. Making this the go-to source for Indian coal importers. But news this week suggests that's about to change. Potentially setting us up for the final act in the Indian coal boom.

The Indonesian government announced last week it will limit coal production for 2014. Setting an output target of 397 million tonnes.

This is extremely significant. Because that number is actually about 6% less than the 421 million tonnes of coal Indonesia mined in 2013.

Sources on the ground have suggested that this should lead to slowed growth in Indonesia's exports. Factoring in existing coal stockpiles, imports might rise slightly in 2014--but only by about 10 million tonnes above 2013 levels.

That's probably not going to cut it when it comes to satisfying burgeoning coal demand in India. Indian imports are on pace to grow by 50 million tonnes during the current year.

A loss of supply from Indonesia would thus leave Indian buyers in the lurch. Forcing them to scramble for supply elsewhere.

Coal projects in South Africa may benefit immensely. That nation is one of the only major coal producers positioned for export to India. During January, South Africa's Richards Bay Coal

Terminal sent 28% of its export shipments to the "South Asia" region that includes India.

Significantly, India's largest coal miner--Coal India--announced late last week that it has signed a new deal targeting South African coal. The firm inked an agreement with the South African Department of Trade and Industry to explore "mutual prospects" in the coal sector. With one of the stated goals being "acquiring mining concessions".

Judging from the numbers, we could see some big deals here as Indian buyers attempt to lock down much-needed supply. Also look for India to be very active anywhere else they can find coal around the Indian Ocean sphere.

Here's to the final act,

By Dave Forest




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News