PT Adaro Energy, Indonesia’s no. 2 coal miner (behind PT Bumi Resources Tbk, which by contrast will send 8 million tons to China this year), stated recently that it had already contracted much of its increase sales to China of 3.5 million tons in 2009–up from roughly 2 million tons last year–while reiterating that Chinese demand for overseas thermal coal would remain “robust”.  China imported over 11.5 million tons of Indonesian coal last year–more than a quarter of its total.  Australian coal prices on the globalCOAL Newcastle index, a benchmark for Asia, ended Friday at $74.31/ton, while port coal prices at China’s top coal port Qinhuangdao remain around $92 a ton.  “As long as there is a difference between domestic and import prices, China will still be buying coal from overseas,” commented Apimuk Taifayongvichit, chief marketing and logistics planner at PT Indo Tambangraya Megah, the Indonesian unit of

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Newcastle Investment Corporation (NCT) is a mortgage real estate investment trust (REIT) that specializes in real estate securities and other real estate-related assets. The company owns a diversified portfolio of real estate debt investments including securities and loans.NCT reported a loss of ($2.83) per share in 3Q08 primarily due to impairment charges of $160.9 million. Residential mortgage markets have not yet bottomed and the liquidity crisis is getting worse. Commercial real estate could be the next shoe to drop in 2009, in which case future margin calls could force NCT into bankruptcy. On the other hand, delinquencies are still low in the company's loan portfolio and most commercial investments are performing. If the company can weather the current downturn, and commercial real estate values remain somewhat stable, now could be a good buyingopportunity. In either case, expect a large dividend cut, ...

Why is Bengal, one of the largest sources of coal in the world, importing coal from abroad?

Long-time reader and IEB friend, Joydeep Mukherji sent us this article with a comment:

The West Bengal government has decided to import one lakh tonne of coal at higher rates to fuel the thermal power plants which have not been able to meet the power demand recently for wet and substandard coal.

The resulting rise in the cost of power would have to be borne by the consumers, State Power Minister Mrinal Banerjee said when replying to a motion moved by the Leader of the Opposition Partha Chatterjee in the Assembly today. (ET link)

This article highlights the lunacy behind the intersection of economics and politics in India. India has the third largest deposits of coal in the world, and much of that is in Bengal. However, India imports coal since it is

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