Coal Companies Rally – Patriot Coal (PCX) and Consol Energy (CNX)
February 12, 2010 2:24 pm
A couple of weeks ago, there was some good news for coal companies. Now it is being followed up by some additional news that India is on the search for acquisitions. With a chest full of dollars and a need to spend it, we are positioned well with both Patriot (PCX) and Consol (CNX). Even if they are not the direct targets, it shows that there is an appetite for acquisitions in this industry.
WASHINGTON – The Environmental Protection Agency came out in support of a permit for one West Virginia mountaintop coal-mining operation and suggested it might endorse another permit for the largest such operation in Appalachia.
The EPA announcements Tuesday continue the Obama administration’s up-and-down stance on mountaintop coal mining, which involves blasting off mountaintops to get at the coal underneath. Environmentalists oppose the practice, because they say it permanently damages the land and pollutes streams.
Today we are seeing additional interest from India as we had seen from China a few weeks ago.
From the WSJ:
Coal India Ltd., the world’s largest coal producer, may invest about $2 billion over the next four years to buy stakes in overseas coal assets, as it wants to boost local availability of the fuel to meet rapidly rising demand, its chairman said Thursday.
Coal India, which floated a tender in July seeking joint business initiatives in coal mining in Australia, the U.S., South Africa and Indonesia, has received about 17 proposals to buy stakes in coal producing areas or to form joint ventures for greenfield projects, Partha S. Bhattacharyya told Dow Jones Newswires in an interview.
Disclosure: Horowitz & Company clients may hold positions of securities mentioned as of the date published.