Rio Tinto’s Unloading of Coal Assets Suggest Weak Coal Prices, Long-Term

Mineweb reported that Rio Tinto’s move to unload some of its assets, including coal assets, suggests that they are uneasy about long term coal prices.

As quoted in the market report:

It would appear that Rio is taking a view that thermal coal isn’t likely to be a strong performer over the longer term, which may be a reflection of the likelihood of slowing demand growth in China as its economic growth matures and pressure mounts for cleaner-burning fuels to combat pollution.

To view the whole Mineweb report, click here.