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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Doc Bones who wrote (28749)	1/5/2004 1:54:24 AM
From: XoFruitCake	Respond to of 206176

Thanks for all the response on the issue of coal investment idea. This section of the China electricity consumption that Doc posted seem to be very interesting as an investment idea. The implication seems to be that power generation and coal mining in China become a growth industry. So may be the idea is to invest in Coal and power companies in China??? Any thoughts on this? China's relentless industrial development has outstripped its supply of power. The government forecasts shortages of 10 to 15 percent in key manufacturing areas, estimating that China needs about $108 billion worth of new generating capacity to close the gap. Factories are now cutting production, while hotels and restaurants dim lights and switch off heat. Some worry that the scarcity could shackle enterprises that have become critical employers at a time when millions of government-supported jobs are being eliminated by the country's transition from Communism to the free market. "These power shortages are extremely serious," said Scott Roberts, an analyst at Cambridge Energy Research Associates in Beijing. "In some areas they have been crippling for economic growth." .... .... More than 80 percent of China's electricity is produced in coal-burning plants. Many mines have been shut in recent years amid a series of horrific accidents as well as concerns about worsening urban air quality. But as coal shortages have emerged, the government has reinvigorated mining. Joe Zhang, an energy analyst at UBS in Hong Kong, predicts that China -- long a major exporter of coal -- will become a significant importer within four years.