• 3 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 5 minutes CoV-19: China, WHO, myth vs fact
  • 8 minutes Question: Why are oil futures so low through 2020?
  • 11 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 8 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 30 mins Question - What if there are no buyers for Chevron's Appalachia Assets?
  • 30 mins Blowout videos
  • 9 hours Energy from thin air?
  • 14 hours OIL trades as if the virus is a 1 quarter event. As if it's Containable, Reversible and Temporary. Is it ?
  • 1 day Hey NYC - Mayor De Blasio declares you must say goodbye to fossil fuels. Get ready to freeze your Virtue Signaling butts off.
  • 3 hours Can LNG Kill Oil?
  • 1 day Fast-charging, long-running, bendy energy storage breakthrough
  • 1 day Foxconn cancelled the reopening of their mfg plants scheduled for tomorrow. Rescheduled to March 3rd. . . . if they're lucky.
  • 2 days "For the Public's Interest"
  • 16 hours Coronovairus, Phase One Agreement, Lower for Longer
  • 2 days Cheap natural gas is making it very hard to go green
The Coronavirus Impact On Oil Demand

The Coronavirus Impact On Oil Demand

According to Rystad Energy, global…

Why Cramer Is Wrong About Oil Stocks

Why Cramer Is Wrong About Oil Stocks

Mad Money host Jim Cramer…

Rio Tinto CEO Fired After Horrendous Blunder in Mozambique Deal

Rio Tinto CEO Fired After Horrendous Blunder in Mozambique Deal

Back at the beginning of 2011 coal was in very high demand, especially from steelmakers who were struggling to find supplies on the market as heavy flooding at Australian mines had slowed exports from the country. The drop in supplies on the global market, as well as the strong demand from China meant that many companies were buying coal at double the previous year’s price. New discoveries in Mozambique led the UN to announce the African nation as having some of the world’s richest deposits; demand was hot.

The coal explorer Riversdale Mining found a sizeable coal deposit in the Zambezi region, and managed to draw the attention of several large mining and energy companies, including Rio Tinto.

Riversdale chairman, Michael O’Keefe, watched in delight as the high demand for his company’s coal saw its stock rise from just A$1 a share in 2004, to A$16.50 a share in 2011.

Related Article: Sell US Coal to China and Watch Carbon Emissions Fall

Rio Tinto, led by its CEO Tom Albanese, declared their interest in Riversdale and made a $4 billion offer for the mining company which was readily accepted.

Less than two years later Albanese had been fired and Rio Tinto was facing $3 billion in unforeseen impairments for its purchase of Riversdale.

Rio Tinto’s problem was thinking that it’s tried and tested model for developing coal mines in Australia would work in Mozambique, but Mozambique is one of the world’s poorest countries and lacks the infrastructure to set up major mining projects. It was also not helped by the fact that in two years the price of coal used by steelmakers had fallen by 50%.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage


Leave a comment

Leave a comment

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