Worldwide supply problems cause coal prices to soar

[joeiannuzzi]

Canada`s biggest producer of coal for the steelmaking industry appears poised for a massive increase in profits, thanks to a "massive squeeze" in global supply. The price for a tonne of hard coking coal - vital to the production of steel - is expected to double in the contract year that begins April 1, from last year`s settled price of about $94, to $185 or higher for the coming year.

That means a potential windfall for Elk Valley Coal Partnership, the operators of a series of coal mines in southeast B.C. which comprise the world`s second-largest source of coal for the intercontinental steelmaking market.

http://www.canada.com/vancouversun/news/bu...0675&k=2755

 

[EdRenkema]

Sparwood BC is one of the towns where many employees of Elk Valley Coal live, many on a parttime basis since they commute from as far as 4hrs drive and the shifts offer 4 consecutive days off. I don`t know about diversification of the local economy but townhouses and condos can be had in the mid 100`s. Access to backcountry pursuits abound, so its also a lifestyle town. Two years ago when living in BC I looked into investing there. Anyone else have thoughts on Sparwood area??