Coal demand on the increase

Tight supply and rising demand will result in a rise in world coal prices over the next two years, according to trade sources at an international coal conference held recently in Indonesia.

Roger Wicks, a representative of South Africa’s Anglo-American Coal, said he expects prices will rise again next year as a result of tightness in the current market. Over the longer term, however, prices are expected to remain stable, owing to additional capacities which are expected to come on stream.