“Propaganda from the green lobby and fears of global warming have demonised coal as a source of energy to the extent that the general public, and the investing public are being lead to believe that coal is finished and therefore they should not invest in any coal companies,” he said at the company’s annual general meeting on Friday.
“My experience over many years in the mining industry and investment industry is that when the market has completely given up on something then we are either at the bottom of very close to it.”
Lester said nothing came close to matching the cost-effectiveness of coal as a source of energy.
“So-called renewables are much more expensive and they are unreliable without the development of a system to store power, which has not yet been developed. Nuclear power is very expensive and has been demonised even more than coal by the greenies and other lobby groups.
“Gas will be used to a greater extent in the future, but the world lacks the infrastructure to maximise its use. The USA has not got the plants to liquefy sufficient natural gas to fill demand. Even developed countries like Australia have not got sufficient pipelines to supply all its cities, never mind supply new power stations.”
He said developing nations will not be in the position to pursue gas-fired power for many years – leaving coal-fired power as the most likely option.
“The Indians have announced the building of a huge new coal mine in the Galilee Basin with the Queensland Government financing the building of a new railway to Abbott Point.
“Peabody and Glencore have announced plans to build a new open pit between their existing mines in New South Wales.
“China is buying coal reserves which will be developed over coming years. Both China and India foresee the requirement for a secure supply of thermal coal to last them 25-30 years. This is not a sign of a dying industry.”
Lester stressed this news did not mean sentiment would improve in the near term but was a sign “we are close to the bottom of the cycle”
“From here onwards things should start to improve, sentiment towards the coal industry will soften as people begin to see through the noise and propaganda and come to the realisation that coal not only has a future but that the lifting of hundreds of millions out of poverty will be entirely dependent on coal as a source of the energy required.
Lester was “optimistic” about the future of International Coal.
“In the meantime the board is minimising all expenses while making sure that tenements are being kept in good standing.
“The board is also considering all possibilities for the ongoing commercial life of the company.”
