The Sydney Morning Herald reported that Australian coal prices will benefit from a unclear production future from emerging markets like Mozambique and Mongolia.
As quoted in the market report:
Rio Tinto’s shock $US3 billion write-down of its Mozambique coal assets 10 days ago has dimmed expectations of a fast ramp-up of its mines there. Rio bought the assets from Riversdale Mining in late 2011 and paid $US4.2 billion after a bidding war. Rio has reportedly given assurances to the government of Mozambique that it will not sell out of the country, but its plans are up in the air.