onwards and upwards

There appears to be a renewed sense of optimism around the Coal sector, mainly due to the fundamental fact that demand for thermal coal is increasing every year and will continue to increase for decades to come. The Greens know this and can't stop it, despite negative media reports to beat down the industry.

I just arrived back in Sydney from stop over in China, was reading interesting article about how Bejing is closing down a couple of old Coal power stations to reduce pollution near the city. It also mentioned that despite the closure of the older plants around the city, they are building several new Coal powered stations further away. Essentially, their dependance on thermal coal is going to increase for years to come 10 fold. Some media reports like to to play the story that coal is no longer required, but that is all BS.

China and India are not reverting to wind and solar, and nuclear is not the preferred option due to costs. China and India are building coutless new coal powered stations to meet their energy needs.

Reports indicate that India is now getting very short on supply and china is looking to secure demand for it's continual increasing needs which could see a turn around in prices.

Whilst in Germany, I spoke to a friend who lives a couple miles away from one of the last operating nuclear power stations. It will be turned off in around 12 months time, Germany hopes to be nuclear free soon. Germany would like to use solar, but since their weather is so crap it's not viable replacement. Wind is also a poor alternative. The Germans are starting to use a clean coal power stations, similar to what Japan is now doing.

Anyways, lets hope a resurgence in coal will favor us minnows who are in a key position to fill the demand. We are sitting on a 30 year mine life with favorable costs and logistics which will be far more attractive than any Aussie coal supplier.

It's been a rough ride for most of us, I know most holders are sitting on a serious paper loss but once TCM goes into production it will be a serious game changer. Who knows, we might be in a position to finally celebrate.