Article in Financial Review today Business page 12 "A billion Indians hungry for coal source". Just a paragraph from this rather comprehensive article - "Michale O'Keeffe knows better than most the eaterness of India to secure coking coal, a hunger that has grown since the cost of the commodity tripled earlier this year. His company, Riversdale Mining, last year singed up India's Tata Steel as a major partner over Riversdal'e Bengla licence in Mozambique. Bengla is still years away from becoming a mine but almost 2 billion tonnes of coking and thermal coal have been identified at the project to date. Tata paid Riversdale $100 million for a 35 per cent stake in Bengla and the right to buy at full market rates - 40 percent of mine output.
O'Keeffe argues the boom in coking coal could easily overshadow that in iron ore, where alternative sources ofr supply are commonplace. We're finding a huge number of Indians coming along and trying to be part of what's happening in Mozsambique he says.
The world is expecting Australia - a country that supplies 60 per cent of the worlds supply of seaborne coking coal - to go from around 130 million tonnes per year to 200 million tonnes by 2012 to keep up with the growth in steel demand. There is no way in the world that is going to happen.
Riversdale is but one of a widening band of companies to have gained from the growing appetite of Indian steel mills for foreign sources of supply."
This is not the complete article but of interest I thought!
Good luck to all those who hold this stock.
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