Coal Growth Beyond China

Although CONSOL lost money in the first half, it has handled the downturn better than many of its coal-focused peers. That has much to do with a large and growing natural gas business. Interestingly, this dual focus sets the company up to benefit no matter which fuel source is favored.

Speaking of ports, Westshore Terminals is benefiting from export growth right now. The company’s Canadian-based port is expected to handle up to 30 million tonnes of coal this year, up from 26 million tonnes last year. Upgrades in 2012 added another 3 million tonnes of capacity, with projects in the works that could add a similar amount of capacity over the next five years. Westshore is in prime position to benefit right now from foreign coal demand.

More than China
There’s no question that China is a big player when it comes to coal demand, but it isn’t the only market to watch. Europe and other Asian nations are increasingly important customers. Arch, Peabody, CONSOL, and Cloud Peak all have notable opportunities. Westshore, a “pick and axe” story paid for throughput, is benefiting today for those interested in its solid 4% or so dividend yield.

The article Coal Growth Beyond China originally appeared on Fool.com.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

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