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!

–That’s the percentage increase in the annual iron ore contract price Aussie producers charge major Chinese steel makers. It includes the much sought after “freight premium” which recognizes that its cheaper to ship ore from Australia to China than from Brazil to China.

–So what does it mean? Well, Chinese producer were hoping to NOT have pricing power in the ore industry lie with suppliers. But that hope seems to have faltered. Time for plan B. Plan B is to take equity stakes in a large number of smaller Aussie ore producers (see yesterday’s DR, and don’t discount the possibility of China Inc. taking a large stake in BHP a la Chinalco in Rio Tinto).

–Plan B also includes raising steel prices. Granted, as you can see from the chart below, courtesy of Macquarie Research, steel prices are already up 65% this year alone. But as you can also see, Chinese steel prices trade at about a US$400 discount to U.S. and world export steel prices. Whether this is how the Chinese subsidise domestic steel consumption or not, we can’t really say.

–But we can say that Chinese producers will increase exports this year and raise prices. Prices for domestic steel in China might differ from export prices. Who knows? But either way, you can be sure the Chinese steel producers aren’t simply going to absorb the huge increases in coking coal and iron ore. Chinese steel is going to get more expensive, whomever the buyer is.

–Normally, you’d expect to see higher commodity prices curtail demand. But for both steel and oil (see below) you haven’t seen any evidence yet that higher prices are slowing down demand. In fact, as this second chart from Macquarie shows, Chinese steel production is slated to grow by 10% this year. It even looks like the double bottom in steel production growth rates is in. Is it the beginning of a new steel boom?

–One company that hopes steel prices keep going up is Aquila Resources (ASX: AQA). The company told investors yesterday that it could produce about 25 million tonnes of iron ore per year from its ore bodies in the Pilbara…for the tidy sum of $4.1 billion.

–Welcome to the iron ore boom, Aquila (a company which also has coal and manganese assets). The company’s announcement was a little like a new doctor in a small town hanging out his shingle right across from the old doctor. The company isn’t producing anything yet. But like the other ore hopefuls in the Pilbara, it believes that with a little capital and a little deep water port facility at Cape Preston, its pre-feasibility study indicates it would have a nice little business.

–What is the difference between a shingle and a “for sale” sign?

–Meanwhile, the original third wheel in the Pilbara, Fortescue Metals (ASX:FMG), begins loading its ore for shipment to China this week. It’s been a long time coming. But FMG’s business has opened the door in the Pilbara and the Mid West for a long roster of other, smaller ore producers. The good old days of just BHP and Rio are long gone.

–What about oil? It just keeps going up. It reached nearly US$123 in New York trading over night. The Masters of the World at GoldmanSachs repeated their claim that a ’super spike’ in oil could drive it to US$200, on the back of red-hot demand in the developing world and the “non-recession” in the U.S. Supply bottlenecks won’t help.