Two huge energy deals to watch

Two of the world's biggest coal projects could be about to get the green light. Here, Tom Bulford looks at the small-cap mining companies that look set to benefit.

Could it be that two of the world's bigger coal projects are finally going to get the green light? Certainly the way that the share prices of GCM Resources (LSE:GCM) and Strategic Natural Resources (LSE:SNRP) have been climbing of late suggests that good news could be just around the corner.

Let me start with GCM. Its focus is on the Phulbari coal project. Such is its scale and potential importance to the economy of Bangladesh that GCM's share price soared in 2005, hitting a high of 919p. Then trouble struck in the shape of rioting by some of 40,000 rural dwellers who were threatened with forced relocation. The Government of the day backed off but hopes were revived when a new Government, democratically elected in 2008, vowed to make power generation a top priority.

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Tom worked as a fund manager in the City of London and in Hong Kong for over 20 years. As a director with Schroder Investment Management International he was responsible for £2 billion of foreign clients' money, and launched what became Argentina's largest mutual fund. Now working from his home in Oxfordshire, Tom Bulford helps private investors with his premium tipping newsletter, Red Hot Biotech Alert.