BHP Billiton expects global demand for coal to remain strong for the next two decades but believes coal prices may remain weak due to oversupply
BHP Billiton Limited, the world’s biggest miner, is bullish on coal demand, expecting it to remain strong for the next 20 years
In recent news, BHP’s global coal business president, Dean Dalla Valle, said he thinks the demand for energy and metallurgical coal will grow in the coming years, with excess supply exerting downward pressure on coal prices....
According to BidnessEtc, BHP emphasized the importance of cheap coal and how, compared to other sources of energy, coal has helped bring people out of poverty
BHP’s coal chief said the global coal industry as well as relevant countries should put in more effort to marginalize the negative impact of coal as a source of energy by finding ways to decrease carbon emission....!
Metallurgical coal prices have declined 65% since 2009 to $105 per ton and the thermal coal prices, have slumped more than 42% since 2011 to $75 per ton affecting the revenues of BHP
The drop in coal prices has reduced profitability for mining companies like BHP, leading to capacity cuts, shutdowns, and layoffs
FYI, Coal producers in Indonesia, the largest exporter of thermal coal in the world, have been increasing production over the years to cope with falling prices
I agree with the fact that demand will increase but I don't see how he can possibly think they'll be an oversupply. We all know that coal supplies are dwindling around the world and that there'll be little to no coal left relatively soon.
