China’s reversed some of the restrictions it imposed back in March on local coal miners. It’s in response to a dramatic increase in price for the nation’s top energy source on the back of reduced output. They’re now allowing companies to operate 330 days a year – rather than the 276 day maximum which was previously imposed
Mining Capital’s Alastair Ford tells Proactive: ”[The decision] will have implications for some of the London-listed companies like Anglo Pacific Group PLC (LON:APF) which has been a real trailblazer in the coal sector for the last couple of years. When coal was completely out of fashion Anglo doubled-down on its coal investments and was proven broadly correct — no one thought coal would go up like it did.”
”However Julian Treger at Anglo has also said that this recent run of high coal prices that we’ve had was unlikely to last. He’s highlighted that himself in his own commentary so I think that a company like Anglo Pacific which is a clear player on coal, although it does have some other investments, will be able to ride this out reasonably well’.
Discussing some of the main mining headlines from the past week Ford said he quite liked the news out from Kincora Copper Ltd. (CVE:KCC). ”That company’s appointed some useful looking geologists and technical people to get on with work on the ground in Mongolia.”
”Kincora have got a massive land package in Mongolia, one of the biggest I believe, and they’re on the ground there ‘elephant hunting’ … looking for very big, rich copper mines, multi-billion dollar mines. The reason they’re doing that is because not far away is the Oyu Tolgoi mine … recently sold to Rio Tinto for a huge sum, and is the kind of geological structure which rarely ever occurs in isolation”.
Kincora Copper’s has announced that copper-gold porphyry mineralisation has been confirmed within a large scale complex at its project in Bayan Tal in Mongolia – and supports priority drilling.
Story by ProactiveInvestors