Miners are printing money from businesses that many are trying to withdraw. It is to dig up thermal coal.
The price of the type of steaming coal burned for power generation reached its highest level in 10 years. Because supply is struggling to keep up with demand From China and elsewhere during the recovery of the world economy. Analysts expect prices to remain high due to fuel concerns. Contribution to climate change It is becoming increasingly difficult for miners to obtain permits and funds to dig more steaming coal from the ground.
The rally fills the pockets of miners such as Glencore PLC, Peabody Energy Corp. and Whitehaven Coal Ltd of Australia. Despite pressure from environmentalists and Wall Street to abandon fuel, the two companies stuck to steaming coal. The recent soaring price is BHP Group Ltd. Offering a farewell gift to the clutches of miners such as. Leave the energy coal sector behind..
Glencore, the largest producer of steaming coal for marine exports, recorded record revenues of $ 8.7 billion in the first half of 2021 on Thursday, up 79% year-on-year.The decline in coal production offset the impact of price increases that began to skyrocket in the second half of the first half, but Glencore said the coal market. Will make a lot of money The rest of the year.
Sean Muncie, portfolio manager for South African investor Allan Gray, a major shareholder of Glencore, said:
Coal is a gold mine for producers after the blistering rally
Source link Coal is a gold mine for producers after the blistering rally