We are in uncharted waters - I have never seen Steaming coal prices higher than coking coal - Steaming was always the poor cousin - the big coking coal mines of the Bowen Basin always had the best equipment, biggest long walls, and draglines. - this is changing
The Hunter Valley, Mudgee and Narrabri are now the place to be.
The need for energy and not steel has certainly changed the dynamics and this is all new - it obviously has never happened before and Russia has speeded up the change
The market thinks it is only temporary and is very nervous that anything will force a major correction
For the world to change to renewables it needs to transition slowly - gas was the transition fuel but everyone underestimated its cost - so the alternative is Steaming Coal
When will this change is not certain - Europe is looking at Nuclear Power but the biggest uranium enrichment plants are in Russia - to start new uranium mines and enrichment plants takes time
So the energy dilemma will be with us for a while yet / which means Steaming Coal will remain King Coal
NHC Price at posting:
$5.74 Sentiment: Buy Disclosure: Held
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