Thermal Coal
Thanks for all your informative information. Currently in NHC and WHC and I'd like to know if there are any thermal coal mines set to close in the next 12 months worldwide. Tried to research but without any luck. Many thanks Rob
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Answer
Hi Rob,
Coal is facing a three pronged bullish backdrop moving forward over the medium term:
- Future developments will be very tough to fund as lending institutions shy away from fossil fuels, a position that will ultimately weigh on supply in the future.
- Russia contributed 17.6% of coal exports in 2023, again a source of supply that is in question as the Russia-Ukraine war enters its 30th month.
- Mines will slowly become less productive/profitable over time, the side of the equation you were considering.
We are not aware of any major thermal coal mines shutting over the next 12-months but by 2035 more than 80% of Australia’s coal plants are likely to close as states and companies aim to meet decarbonization targets, however, we can see this being pushed back as the path to zero emissions proves an increasingly difficult journey.
