thermal coal looms as a hot prospect

Thermal coal looms as a hot prospect

BY: ROBIN BROMBY From: The Australian October 04, 2011 2:56PM

THERMAL coal that'’s when the energy action is.

Foster Stockbroking analyst Craig Brown says in his latest note that the past three weeks have been an exciting time in the coal mergers and acquisitions space with three key transactions totaling just shy of $2 billion.

He says there is now a significant focus on thermal coal assets as opposed to metallurgical coal because of the rush to secure longer term electricity supplies.

India and other parts of Asia are looking to lock in thermal supply, hence India’s GVK buying Hancock Coal, Banpu buying Centennial Coal and then bidding for Hunnu Coal (HUN).

“We continue to remain positive on the long term demand for thermal coal and believe there is enough reason globally to expect thermal prices will continue to outperform,” said Brown.

http://www.theaustralian.com.au/business/opinion/thermal-coal-looms-as-a-hot-prospect/story-e6frg9ex-1226158184446