It’s a former Portuguese colony and it’s sitting on the Southern Hemisphere’s biggest coal reserves.

With the price of oil soaring and demand from steel producers growing, those reserves are suddenly receiving a lot of attention.

Brazilian steel giant, Vale do Rio Doce, has already got the ball rolling….

It plans to spend $1.4 billion to build a giant coal mine at the heart of these lucrative reserves.

It’s a move that has opened the floodgates of investment money… countries all over the world are gagging to stake their claim!

And you can too. All it takes is a small investment in one strategically positioned stock. You see, this company owns billions of pounds of property around the tiny port that all this coal will need to be shipped through…

I’ll show how to get your hands on the exclusive details of this stock in just a moment. First, just think how profitable this could be…

Imagine investing in Russia or Saudi Arabia before they struck oil?

Practically overnight these countries were showered with investment capital. Oil workers and wealthy contractors poured into these regions sending land and property prices skyrocketing.

Well here’s a chance to buy into a similarly unique opportunity and “piggy-back” on the wealth this coal mine could create.

Where is the location of this valuable coal supply?

This valuable coal reserve is situated in Moatize, a town in Mozambique’s remote Tete province on the east coast of Africa… and the resources it holds is staggering.

The basin contains at least 2.4 billion tonnes of coking and thermal coal… so it serves both the steel and energy industries.

There’s enough in there to keep the mine going for the next 70 years!

No wonder Vale wants to get involved. And they’re not only ones!

Steel giant Arcelor-Mittal plans to purchase 35% of the Rio Minjova company, which owns coal exploration rights in Tete…

India’s Tata Steel, who have teamed-up with Australia’s Riversdale Mining, are currently conducting a feasibility study to produce coal from land which it the holds rights to…

So what’s the big deal?

The last great coal reserve in the world

To put it bluntly… global steel giants need this stuff. Demand is growing all over the world and companies are constantly on the hunt for new capacity.

All that demand has sent the price of coking coal soaring this year.

Japan’s just thrown their hat into the ring for Mozambique’s coal too.

Yesterday, Japanese company Nippon Steel, the world’s second-biggest maker of the metal, said it wants to buy a stake in Vale’s Moatize mine.

The firm’s being hit hard by rising material costs. Profit will fall 41% to a five-year low this year… and they’re desperately trying to keep costs down by investing in mines directly.

So this forgotten corner of the world is suddenly emerging as the new hotspot.

And there’s one simple reason why: Moatize is the last great unexploited coal reserve in the world.

For profit hunters, it only means one thing…

Boom times for Mozambique – and this one brilliantly positioned company!

Mozambique has just had one its best years since it won independence in 1975.

The country approved 186 foreign direct investment projects, worth USD 7.5 billion, last year… and it’s already home to the giant Mozal aluminium smelting plant – the second biggest in Africa.

But what we’re seeing here with its coal reserves is on a totally different scale.

Though getting that coal to market isn’t going to be easy… the coal mines are in the remote western province of Tete far from the port that can ship it out.

So the country is spending a massive amount – $170 million to be exact – on upgrading the historic Beira railway that will connect the coal mine to port.

Not only that they plan to spend another $40 million improving the facilities around the port as well.

Once the coal starts heading this way, this sleepy little corner of the Dark Continent looks set to become Africa’s latest boom town… and one brilliantly positioned company will welcome this investment with open arms.

It’s investors even more so.

How to get your piece of the action…

You’ll understand I’m obliged not to reveal the exact details of this white hot investment opportunity.

But there is a way you can access them straight away…

I’ve spent the best part of a year researching this company’s incredible story – it’s typical of what we at Profit Hunter call “special situation” investing.

If you’re willing to go right where the money is, this is definitely for you.

All the exclusive details are right here.

Regards,

Manraaj Singh
Editor
Profit Hunter

Source: Major New Coal Discovery!

It affects all energy projects, plus all other capital-creation efforts. It’s a long-term theme in my view of things. It means that capital creation will become much more difficult, in an era when it is of utmost importance. Central Planning, anyone? Maybe we all ought to re-read Vladimir Putin’s PhD Thesis — much of which he plagiarized — on the subject of central planning.

The vertically integrated steel companies will survive, and likely prosper. Heck, a good steel millll will become a national asset, like Yellowstone Park or Gracieland. The “tier” metals-players, who bought into the niche theory, will struggle to find suppliers — let alone just-in-time suppliers
(Ha!!!) — and to pass through costs to the customers hemorrhaging from sticker shock.

Close to home, in the 1990s all the investment bankers told US Steel to sell off those “non-performing assets” like the coal reserves and iron ore facilities. Former CEO Tom Usher took unholy hell from the alleged “financial” community for his stubborn refusal to dismember the firm that Andrew Carnegie built. After all, we all know how smart those Wall Street guys are, right?? Now in hindsight, Usher is a genius of the proportions of Albert Einstein, or at least of Leslie Groves who weaponized Einstein’s bright idea. (And I knew Tom Usher when he used to eat a humble club sandwich on Pullman Bread for lunch at the Duquesne Club.) Coal? Iron ore?
Dolomite? “Non-performing assets” my ass. It all depends on your time frame. Usher was thinking of the future, and avoided selling good natural resources for bad US dollars. US Steel will be around for another century unless some idiot comes along to screw it all up.

The article mentioned below makes good reference to the Dept of Energy’s Hirsch Report (2005). As a nation, we are just plain blowing our time window for advance mitigation. There are endless tasks just to begin, let alone to accomplish. One of the big efforts in the advance period has to be to educate the people about the severity of the crap-train that is coming down the tracks. On that, the US media gets an “F-” grade.

Instead, we have the sordid scene of GW Bush flying the Big Blue Jet to Saudi, hat-in-hand like Oliver Twist, asking for “more please.” And the Saudis don’t even offer sympathy. The first answer is “No.” The second answer is, “Oh by the way, we increased output by 300,000 barrels back on May 10, in response to requests from our customers.” So take that, Mr. President of the US of A. And so much for the 75-year special relationship. (Indeed. Beware such insult, King Abdullah. Heavy is the head that wears the crown.)

Still, how unseemly this is. Not only is the US losing time, we are losing face. I don’t know what is worse.

By comparison, it takes a 7.9 magnitude earthquake, with 50,000+ dead before China even begins to think of allowing “foreigners” into the country with body-sniffing dogs just as a token of humanitarian aid. And the US sends its president to beg from those Arabian devils when gasoline costs $3.75 per gallon. Boo-hoo. This is a nation of whiners.

Meanwhile, we in the US won’t drill offshore. We won’t drill in Alaska. Forget about drilling ANWR. And the Dept of Interior just issued a “10 year moratorium” on new leasing adjacent to the National Petroleum Reserve near the North Slope. And it declared polar bears to be an “endangered species.” (In China, they eat bears.) Thanks, guys. We sure dodged the bullet on
that one, eh? For some weird reason (CO2, they say) we won’t do coal-to-oil — not even a pilot plant to see if the technology works. We have nothing resembling a national passenger rail system, while the airline system flies towards its own version of Silent Spring. (Hey, if the jets
leave the skies, how will all the cocaine get from South America to the streets of West Hollywood and Greenwich Village?)

Back on the home front we have the Great Senator Gasbag from Oz, Chuckie Shumer, threatening to block arms sales to Saudi if they don’t sell us more oil (which we in the US cannot refine with the limited refining capacity we have.) As if the Russians or Western Euros would not leap at the chance to sell guns to the Wahhabis? Really, kids.

And waiting in the wings we have………. Sen. Fall-Guy from Arizona. His job is to go out in the ring and make it look like a good fight, but take the dive in the 9th round. (And if he doesn’t take the dive, the referees will look the other way when he gets the rabbit-punch.) The media and
deep-backgrounders have already identified the next POTUS, a true Man-of-the-People (with his prep school preparation, Columbia undergrad and Harvard Law School pedigree), the next-great-thing, the guy offering Hope who is a mind-bending mix of paper-thin resume and blind ambition in a hurry. Oh, and don’t worry about all his radical friends and that Euro-Marxist crap that he utters in his unguarded moments. If he does not understand the concept of capital gains, well, it’s a small price to pay for such a Great Leap Forward.

Bill Bonner has it right. Buy a ranch. Go up into the Andes. Get so far away that even Google Earth can’t find you. Grow cows Then eat them. Wait it out for a couple of generations. Can it get any worse? Well, probably yes.

** Here is the article that I’m referring to…

Best, BWK

Note: Byron King is a frequent contributor to the free e-letter Whiskey & Gunpowder. To receive daily insights into energy, oil, commodities and other natural resources sign up here!

Source: High Steel Prices and ‘Peak Everything’