Australian Coal Miners See Stocks Rally on Mine Explosion

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Coal,Coal Miners,Miner

Australian coal mining stocks are rallying after an explosion at an Anglo American coal mine forced the company to shut down operations temporarily.

Australian coal miners are seeing their stocks rally following an explosion at a coal mine operated by Anglo American that shut down operations temporarily. According to Morgan Stanley, the stocks have higher to go, too, Bloomberg reported, noting that the mine is one of the biggest metallurgical coal sites in Australia.

“We see a near-term opportunity in coking or met coal, especially after the recent share price pullback,” the analysts wrote. For Anglo American, however, the incident is a double negative because it hurt not only its production plans but also its more important plans of selling its metallurgical coal business. The sale was part of a business dismantling plan expected to transform the company.

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