Xstrata Says Coal Demand Robust as India and China Increase Demand

Xstrata said the demand outlook for coal is robust due to urbanisation in China and India.

Xstrata chief executive for coal Peter Freyberg said Australia will be a key investment region as the company seeks to boost production in order to tap rising consumption, reports Bloomberg.

The company expects to increase coal production by 50 million tons a year by 2015.

By 2020, China and India will account for 70% of the demand for coking coal, a raw material required in steelmaking.