New Wisdom Investment Limited

Coal Prices Soared, The Australian Mining Industry Usher in Business Opportunities

(Oct 14, 2016)

Commodity prices have fallen in the past five years, but the situation has finally come to an end in recent months. Recent soaring coal prices make Australian miners see a hope.

"The price of coking coal has risen more than 150% this year and the price of thermal coal has risen by 60% in the last four months," said Paul Bloxham, chief economist at HSBC.

Meanwhile, Japan Nippon Steel, the world’s second-largest steelmaker, has signed high-value coking coal contracts with Australia. Data show that coal prices from the third quarter of last year, less than 93 Australian dollars to tighten the state, rose to the fourth quarter of 200 Australian dollars.

By coal prices, the New Jersey coal company White Haven share price surge, including Stanmore Coal , such a small coal company also benefited from rising coal prices.

Stanmore Coal bought the Isaac coal mine for 1 AUD from Japan Sumitomo and mining giant Vale. "I am not sure how quickly coal prices will pick up, but I know fundamentals are good," said the company general manager.

Data shows that the company share price soared 527% last year, and it is not the only stock price rise coal company. Australian mining giant Rio Tinto, which acquired Terracom for 1 AUD, has soared 350% this year.

"The reversal of Australia coal business also reflects the tight demand for coal and how it can become a tight supply in a short period of time," Evans said.

"At the current level, the Australian coal industry can increase 2% GDP (domestic production levels). while bring a lot of revenue for the Government of Australia, especially Queensland state government." John Bullough said.