Reuters reported that “at least a dozen” Australian coal miners are exploring for metallurgical, or coking, coal outside their country after being pushed out by their larger rivals.
As quoted in the market news:
The firms listed on the Australian Securities Exchange with a combined market capitalisation of about A$800 million ($748.68 million) are opting to explore Siberian tundra, South American jungles, Mongolian deserts and other far-flung locations.
Australia has the world’s biggest reserves of metallurgical, or coking, coal and is well placed to supply China and Japan, the leading importers of the fuel used in steel making. So why are Australian prospectors heading overseas?
‘The coking coal industry in Australia is dominated by the mega companies — the likes of BHP Billiton Glencore Xstrata, Peabody and Rio Tinto ,’ said Alex Molyeneux, managing director of Celsius Coal , which is prospecting in the Kyrgyzstan.’And the majors also sit on most new prospective deposits.’