Mining.

Mining: Booming energy and steel markets are fueling demand for coal. Prices for thermal coal, which is used in power stations, have doubled since 2002, while less plentiful coking coal, which is used to make steel, currently commands $125 per ton. Coal companies include the large, sea-born

coal exporters, such as BHP Billiton and Anglo America, domestic producers, including China's Shenhua, and smaller companies just entering the market, attracted by the high prices and low barriers to entry. Among the new entrants are Indonesian firms, led by Bumi Resources, the country's largest exporter. In 2004, Indonesia replaced Australia as the world's leading exporter of thermal coal. However, new mines could be more difficult to access, forcing companies to explore new locations such as British Columbia and Siberia. In Europe, companies are developing cleaner power stations in response to higher gas prices. The market activity is also expected to include more mergers and acquisitions.

Source: Financial Times