Big Vote of Confidence by Standard Life Investments in Atlantic Coal (ATC:AIM) & Anthracite

For those of you who follow me, you might know that I have been taking an interest in the coal market of late. Particularly as a result of what has been happening in the Ukraine. If you check my blog, I wrote a piece on the coal sector in Ukraine and some observations on the Ukraine coal market. For those of you that did not read it, I took the trouble to point out that Ukraine's coal production is contained primarily in eastern Ukraine, in exactly the area where patrician is underway by the Russian's. Like it or like it not, Ukraine's coal production area is now under threat from Russian influence.

Most of Ukraine’s coal is produced from the Donbas basin, in Eastern Ukraine and when exported by sea often goes through the Berdyansk commercial seaport and or the Mariupol commercial seaport, both located on the Sea of Azov.

So far Russia has focused its attention on securing the Crimea peninsula and is currently in control of the Port of Sevastopol, home of its Black Sea military naval fleet and the straits of Kerch where much of Ukraine's coal is exported through by ship.


On Thursday this week, Standard Life took a 3% stake in London listed Atlantic Coal, one of a limited number of public quoted companies investors can actually invest in, if they want exposure to the anthracite market (Anthracite accounts for about 30% of Ukraine’s coal production)

Clearly Standard Life have seen something in Atlantic Coal, that I actually saw (Did they read my blog..........looks like they might have done) 

Although Atlantic Coal is a US based anthracite miner, how the pricing, supply and demand of anthracite is likely to unfold because of the Ukraine crisis, know one yet knows. What is certain is that production disruption from Ukraine can only add to supply shortages, serving to increase prices and may even see customers look as far afield as the US for their anthracite. Is this what Standard Life are seeing????????????????????
Watch this space

www.atlanticcoal.com