Coal miners confident on recovery

By Dow Jones newswires

The company, which sells coal to countries such as Japan, China and India, reported a second annual loss last week as low prices hurt revenue, but Mr Flynn says he sees the potential for a return to profitability in the year ahead. "We certainly feel better about the prospects for coal," Mr Flynn told The Wall Street Journal. "It's been a very, very difficult environment, but I see signs that the oversupply situation is tightening up now, which is good.

But the world's biggest shipper of thermal coal, Glencore, expects demand for that fuel to start outpacing supply again from 2015, shoring up prices. "They seem to have bottomed, stabilised, [and] improved a little bit in recent periods," Glencore Chief Financial Officer Steven Kalmin said in a presentation to investors in August.

For two years, the world's coal miners have been plagued by a glut of the fuel that has battered prices and led to the closure of mines, straining tiny towns from Australia to South Africa reliant on their operations.

Read more here: Business Spectator


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