Target $18.72, page-2313

Coal price up, exchange rate down, politicians brain storming in public about possible measures regarding coal and gas price limits, who knows what else could happen today. What started out as the Federal Government trying to ensure domestic gas supply at reasonable prices changed into a discussion about limiting the price of coal as well.

The discussions have now quickly evolved to how it's wrong that gas and coal companies are able to make large profits due to the increase in prices and this is the most dangerous part for all of these companies share holders. Quote from Anthony Albanese "I'm not quite sure what a mining tax is besides a slogan,". Well it looks like he has learnt fast and there is now a high risk of increased taxes, levies, royalties etc. Everything is on the table now except for governments working towards increasing supply and fast tracking approval of new coal mines.

How the coal companies might react is the great unknown, I hope they don't just accept whatever the governments decide to do. I do wonder if the recent increase in coalprices over the past few weeks is partially driven by international customers looking to secure extra supply due to being nervous that coal producers will lose a lot of incentive to produce more and may in fact want to show the government that they have some power as well by reducing supply. When Mr Albanese is getting calls from the leaders of Japan and Korea asking where their coal supply is it will put a lot more pressure on him. Is it really worth Australia being seen as a sovereign risk if new taxes are introduced targeting particular industries. You know when PNG start hinting they are more reliable than Australia that there is a problem.