By Ben Levine for Kapitall.
The Australian government
repealed a law
on Thursday that heavily taxed large companies for their
Critics of the reversal are saying that this makes Australia the
first nation to backtrack on
, which is bad news for the environment considering Australia
has long been one of the world's top emitters of atmospheric carbon
dioxide per capita.
Surprisingly, this comes at a time when the United States
has started to put greater pressure on coal producers to
pollute less. The EPA
proposed a new plan in June
that would limit carbon emissions from power plants by 30%.
In order to comply, power plants would likely have to trim usage
of their dirtiest fossil fuel: coal. As
we argued in June
, big American coal companies like
Peabody Energy Corporation
Arch Coal Inc
Alpha Natural Resources
Cloud Peak Energy
could all take a hit.
In both countries burning coal is responsible for
a very high proportion of carbon emissions. With both nations
changing relevant carbon legislation at the same time, you could
see a pretty big disruption take place around their respective coal
industries-and positive momentum around Australian coal
With reduced carbon restrictions, Australian companies have
fewer incentives to shy away from burning coal, and the opposite is
now true in the US. This means that in coming months, Australian
coal companies could have a strong competitive advantage.
With that in mind, we took a look at the top Australian coal
mining and processing companies trading on US exchanges and
screened to see which
were rallying above their 20-day, 50-day, and 200-day
simple moving averages (
This indicates strong upward momentum for the stock. Do you
think the good days will continue for Australian miners? Use the
list below to begin your analysis.
Click on the interactive chart to view data over
1. BHP Billiton Ltd.
): Operates as a diversified natural resources company
worldwide. Market cap at $187.88B, most recent closing price
SMA 20: 2.88%
SMA 50: 3.96%
SMA 200: 6.52%
2. Rio Tinto plc
): Engages in finding, mining, and processing mineral resources.
Market cap at $105.85B, most recent closing price at
SMA 20: 2.21%
SMA 50: 3.89%
SMA 200: 5.77%
(List compiled by Ben Levine. Monthly returns sourced from
Zacks Investment Research, all other data sourced from
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