NOW TRENDING OIL !

 Oil is now trending as surprising as this now sounds.   Oil has clawed its way back and it now is less volatile and likely to stay above $...

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Retired but always looking for new challenges.

Friday, May 3, 2013

MAY UPDATES: COAL'S FUTURE ROLE IN SOUTHERN AFRICA

ALERT 16/5/2013
The supply of coal will have a positive effect upon the economies of Southern Africa, during this centuary and well into the next one.
Luckily we are well endowned with reserves in Southern Africa.
The new methods of working with coal gives a cleaner burn and the new lower use of water will keep this as the primary source well into the next centuary as coal burn power stations are more economical to build than nuclear power stations.
Our present  coal power stations are mostly  in the Mpumalanga province and are built on the coal fields.This coal is now likely to run out in about fifteen years time.Luckily we have vast reserves of all grades of COAL  in the LIMPOPO Province in the Waterberg range of moutains that are both in this province and the neighbouring country of BOTSWANA.
Since coal is supplied to Escom at a lower price it will be necessary to export at least one third of the better coal to pay for the costs of developing this coal field.
The government understands the value of this vast project.There for they are backing the building of new rail links to export and supply existing power stations.
This rail link is likely to extend into Botswana and to the nearest export port which is developed for coalexports,namely Richard's Bay.
These coal fields give themselves to mechanical means of extraction and therefore not require vast amounts of labour.Surely  EXX will probably gain the most traction from this venture?


ALERT 8/5/2013

PLATINUM GROUP AND GOLD MINERS have become "leaner and meaner" as time has gone on and have cut off all the wastefull methods they used in the past.The good news is they will survive.The prices of metals is likely to rise during wage negotiations in South Africa ,but later in this year fall back again.How ever the absence of new mines owing to the high costs and the falling of production in both the United States and South Africa will add to the demand side not meeting their targets.The price is then likely to increase  steadily from late next year onwards


NOTES
1. SEE NAOMI'S RESOURCE UPDATE ON 6,8 MAY.SHE THINKS SMALLER PLATINUM MINES ARE SHOWING THE FIRST GLIMMER OF RECOVERY.