Coal Miners and Producers Could See Increased Demand From Asia

The Globe and Mail reported today that despite low coal prices and a global surplus, the industry is expecting increased demand from Asian countries in the long term. However, environmental concerns are still proving to be a significant hurdle for coal producers, according to the Globe.

According to the publication:

Some industry observers have warned that there will be many more dark months ahead for the coal industry. But the long-term forecast calls for robust Asian demand, which should give producers hope, as long as they are able to ride out the tough times.

Shoichi Itoh, senior analyst at the Tokyo-based Institute of Energy Economics, told the Globe:

Despite increasing environmental opposition to the use of coal, coal still plays a crucial role in the global energy mix and will continue to do so for the foreseeable future. The importance of coal use will be all the more important in Asia.

Click here to read the full Globe and Mail article.