Coal paradox – stay away from specialists

Financial journalist and commentator on 3AW and Sky Business
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Coal is Australia’s second-largest export earner (behind iron ore); and Australia is the second-largest exporter of coal in the world, behind Indonesia. (The International Energy Agency [IEA] says that Indonesia only usurped Australia’s number one position when the 2011 Queensland floods curtailed production – and that Australia will reclaim top-dog status over the next three to four years.) Australia is also the world's largest supplier of coking (steel-making) coal.

But the coal business is barely an investable prospect on the ASX.

This is even more the case for yield-oriented investors such as self-managed super funds (SMSFs).

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