Excessive Coal Dependence

Excessive Coal Dependence

October 2, 2005

CHINA COAL dependence has big impacts on air quality.
70% of CO2 emissions are from coal.
90% of SO2 emissions are from coal.
17% of world CO2 emissions in 2020 will be from China.

China’s southernmost province announced last month it is closing all coal mines, in response to coal mining accidents (more than 120 lives lost so far this year) and air quality issues. This will intensify Chinese demand for other energy sources and increase the relative price of coal.

FYI, I own shares in Peabody (ticker BTU), which has huge coal reserves. This stock has been good to me; up 50% in past 3 months.

Another good way to profit from strong coal demand and growth of China is the Exchange Traded Fund for Asia ex-Japan (ticker EPP). It owns the markets of Australia and New Zealand, as well as Singapore and Hong Kong. This stock is up big this year. I still like it.

JR

John Rutledge

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