The growing demand for Coal - domestically and overseas:
Growing demand for Coal Overseas:
Steve Leer, Arch’s chief executive, told The Wall Street Journal in February.
Given China’s rapid growth, analysts predict its appetite for fossil fuels will continue its steep upward curve: The International Energy Agency predicts China will account for half of global coal demand growth over the next two decades; the World Coal Association, a London-based industry lobby, estimates that Chinese demand for coking coal – high-grade coal used to produce iron – will rise 50 percent as China continues to build new cities, roads and bridges.
The demand has spurred a surge in mining. Last year an Australian company signed a $60 billion contract – the country’s largest export contract ever – to supply coal to Chinese power plants. In the United States, Interior Secretary Ken Salazar announced in March that the federal government would sell four Wyoming land leases expected to open 758 million tons of coal to mining.
Arch Coal, the second-largest coal producer in the United State, expects exports will account for 20 percent of company sales in 2030, up from 5 percent today. “I actually think the next decade is going to be one of the best decades we’ve ever had,”
Currently (to our knowledge) AWSR's largest contract is with China
Growing demand for (low sulfur) Domestic Coal:
While the US may may not see additional Coal fired plants in North America, increased demand for a low sulfur content coal will be seen from the greater majority of existing Coal Fired plants struggling to meet new standards where the combination of using a low sulfur content coal and retrofitting is cheaper than the building of new plants.
This post is my personal opinion. I do not provide investment advice.
