Coal Demand in India is surging as the power companies set up thermal power plants at an astounding rate to triple the power capacity over the next decade.Soaring Coal Prices have already made the Global Electricity Prices shoot up and its probably going to increase more in the coming decade.China is the world’s largest producer and consumer of coal accounting almost for the 50% of the world’s output at 3 Billion Tons.India is far behind at 400 million tons but will fast catch up given the prodigious rate of power plant building that is happening.The Environment is probably going for a toss as India has allowed “No-Go” Forested Areas to be mined.This plus China and India are importing more and more coal from Australia,South Africa and the USA.The recent looking in Australia saw coal prices shoot up alarmingly.Coal India the world’s largest coal producing company recently increased the coal price from its shockingly low price leading cement makers and utilities to raise prices more than 5-10%.While its strange for a green blog to recommend coal stocks,the opportunity does exist over the next 10 years till renewable energy comes to grid parity and policymakers don’t come to their senses.Here is a list of coal stocks/companies in India .Note there are not many major private coal companies as in the early 1970s, all privately owned coal producing companies were nationalized under the Coal Mines (Nationalisation) Act.
1) Coal India Limited (CIL)- The State Owned Giant Coal Producer dwarfs the other companies through its sheer size,scale,cost and reach.The company has fared poorly in the current year after its IPO as its production growth has almost come to Zero.However its sells coal at such a low cost,that it could easily raise prices of coal in select categories to meet its financial goals.One of the safest investments in the stock market.It posseses high level of cash,low valuation compared to global peers and has a huge room to raise coal prices in the future.
2) Neyveli Lignite Corporation is a PSU like NTPC and is also involved in lignite mining company in India. The company is mainly based out of the southern state of Tamil Nadu and mines some 24 million ton of lignite per year with an installed capacity of 2490 MW
3) Singareni Collieries Company Limited (SCCL) is a PSU jointly owned by Andhra Pradesh and the Federal Governm .The company is involved in mining coal in the Godavari Valley region, with reserves of around 8 Billion Tons with production of around 50 million tons a year.Note listed currently still one of the major coal companies in India.
Coal Equipment,Refining Stocks
Besides Coal Mining,there are coal mining,refining and handling equipment stocks that can be invested as a related play to Coal in India
1) Techpro Systems -The company has a good management,good growth ,is decently priced and involved in building coal handling equipment at the thermal power plants.Came out with an IPO which did reasonably ok last year
2) Gujarat NRE Coke (GNCL)- This private company is the largest independent producer of met coke in India with an capacity of 1.38 milliong tons.The company has recently expanded in Australia as well.Has interests in steel making and power.The management of the company has been involved in insider trading and the stock should be avoided.
Austral Coke is another major met coke company but like Gujarat Coke has been involved big time in insider trading so an avoidable stock
Note a number of Steel and Power Companies in India that own captive coal blocks giving them a massive advantage over other companies.There is not a grant degree of rationality in giving away cheap coal to private companies for profits as they are a national resource but thats the way how the system works giving rise to corruption.SAIL,Tata Steel,JSW Steel are some of the big Indian steel companies owning coal blocks.Power companies like Tata Power,Reliance Power have also got some coal blocks cheaply.
Summary
Except for Coal India Limited,there are not many options to play the Indian Coal Story.This is due to a lack of private companies in the mining sector due to the old laws.Some of the companies are blatantly corrupt and some are a small portion of the main business of power or steel.However CIL remains despite its inefficiencies a great buy.
-
List of Top Power/Electricity Companies/Utilities in India – Growing Exponentially
-
India’s Environment Ministry bows to King Coal – Allows Mining in “No-Go” Forested Areas
-
Soaring Coal Prices Increasing Global Electricity Rates making Green Energy more Lucrative
-
Coal India IPO – Comprehensive News,Facts,Overview,Opinions,Price,Size and Analysis
-
Coal India Limited (CIL) IPO – In Depth Analysis of India’s Largest IPO shows it to be a Safe Investment at Cheap Valuation
-
Is Carbon Capture and Storage (CCS) Technology putting Lipstick on the Coal Pig
-
TecPro Systems IPO Analysis – Construction Play on India’s Power Sector Growth at Reasonable Price
I am an owner of a small business enterprise in Nigeria and now want to diversify to the area of Imports and Exports. Due to my involvement in the area of helping my community and family the elders of the family just gave me a gift of making me the main exporter and miner of COAL from our area in Iseyin, Oyo State Nigeria. My problem now is a formidable buyer. I mean a company that would buy coal from me. I am in America and able to deliver any amount of tons needed.
Dear Solomon,
What is the grading of the coal you are mining and how far is the location of your mine from the nearest port etc, etc. Requesting you to send me all the relevant details as I may be interested.
Regards
Rajeev
Various coal inludind steam coal, nearest port is Durban and Richardsbay, send me specification of coal you want as well as how many ton required per month
Aobo British products limited company is located in the” China quartz center” in Jiangsu Province —- Donghai County. The company covers an area of 10000 square meters, with 10Million RMB mainly engaged in photovoltaic research and development and production of large scale integrated circuit with supporting materials, high-quality quartz glass products and the production of electric light source, sterilization, chemical pipeline, heating equipment, communications and other industries use the glass tubing.
The company’s main products are: 4mm–400mm diameter and 13 conventional metal impurity amount less than 15ppm ultra pure, large-calibre transparent fused quartz glass tube; the semiconductor industry using the diffusion furnace core tube, quartz, quartz bracket, cleaning tank, transparent quartz crucible, quartz flange; no ozone quartz tube; filter UV quartz tube; double quartz tube quartz bulb shell; 13 conventional impurity amount is not more than 20ppm ultra high purity quartz sand; the diameter of 10mm – 80mm quartz rod; diameter 10mm – 200mm other types of quartz tubes. In addition to the company’s products sold over 20 domestic provinces, city, autonomous regions, and also sold to many overseas countries and regions.
In recent years, my company attaches great importance to the work of innovation of science and technology, every year more than 2 Million RMB independent inputs, for R & D of new products, in order to enhance the market competition ability of the enterprise.
Donghai County Aobo British products limited company is located the Yu Meili Crystal City – theDonghai County in Jiangsu Province Economic Development Zone, general manager of the company with all the staff uphold hole Fanchang” honest and trustworthy, customer first” purpose, with a crystal pure heart welcome new friends old friends visit the company guidance, inquiry!
Mr TukerZhuang
International Trade Department Manager
Donghai Country Aobo Quartz Products CO.,LTD
M:+86-13775411254TEL:+86-518–87283582/82989338 FAX:+86-518–87290689Web:abquartz.en.alibaba.com
Request. I am announcing to you mine inventory analysis. Following analysis as you requested.
Moisture: 2% – 12%
6500 -6700 calories
Grain size 0-80 mm
Meanwhile, “you can change the size of your order to be done.
I own a company in Turkey, I will invoice you before. But you will be coal from Bandar Abbas to address.
My price will be delivered in the Persian Gulf.
You must select a carrier ship.
JS confirmed by MS analysis will give you
Bandar customs before shipment. Customs Nir their analysis does
What amount of cash you must pay both the amount of fuel with the opening of letter of credit bank L/C.
suvift no in Turkish banks will send to you.
Would you like to see our depo to mine. Contract close.
However the final decision is yours
I am ready to contract with you.
Yours truly
mr ahmad piran
hajiahmad79@gmail.com