We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 13 May 09
ALPHA TO BUY RIVAL, CREATING NEW US COAL HEAVYWEIGHT - MININGWEEKLY.COM
 Alpha Natural Resources, the biggest supplier of metallurgical coal in the US, has agreed to buy Maryland-based rival Foundation Coal for about $1,4-billion in shares, creating what will be the nation's third-biggest coal miner.
The merged company will be better able to weather the short term challenges facing coal producers, as well as to take advantage of an anticipated rebound in demand and prices for coal, said Alpha CEO Michael Quillen.
He has been looking for opportunities to grow by merger or acquisition since bulk-commodities miner Cleveland Cliffs (now Cliffs Natural Resources) broke off plans in November to buy Alpha, because of market uncertainty and opposition from a key Cliffs shareholder.
“This is really the sort of transformational event that Alpha's been talking about for some time now, and we believe that this is also the right time to do it,” Quillen said on Tuesday.
Besides assets in Central and Northern Appalachia, Foundation produces coal from surface mines in the Powder River Basin, in Wyoming, which are not only less expensive to operate, but are also not facing the same regulatory challenges as the Appalachian region, where Alpha has all its assets.
While surface mines in the Eastern US are coming under increased environmental scrutiny and regulatory challenges, operations in Wyoming do not face the same degree of opposition.
The Foundation acquisition “does actually spread out the risk,” Quillen said.
Foundation also produces mainly thermal coal, for power generation, which help diversify Alpha's metallurgical-coal-heavy production mix.
The combined company, which will be 59% owned by current Alpha shareholders and 41% by Foundation, will operate 59 coal mines and 14 preparation plants, and will own more than 2,3-billion tons of coal reserves.
"We're creating a true US leader in the energy sector with balance, size and scale,” Quillen said.
The firms also expect to achieve at least $45-million a year in savings, as a result of synergies, beginning in 2010.
US coal producers, including the two largest – Peabody Energy and Arch Coal – have reduced production levels and sales forecasts for this year, after sales volumes fell sharply because of weak demand for both steel and electricity.
Alpha and Foundation have both also curtailed operations, and Foundation CEO James Roberts indicated last week that the company was expecting some utilities to defer contracted shipments this year.
However, speaking on a conference call on Tuesday, he said that demand for steel and electricity are expected to rebound in 2010 and beyond.
“And when the economy recovers, supply [of coal] will struggle to keep up with demand, so prices will recover,” Roberts said.
Foundation shares leapt 20,74% on Tuesday, to $28,06 apiece by 16:01 in New York. The stock traded as high as $31,54 earlier in the day.
Alpha stock slid 6,24%, to $27,06 a share.
Analysts generally welcomed the deal, with
STRUCTURED TO GROW
Once the Foundation transaction has closed, which is expected to be in the second half of the year, and the businesses are properly integrated, Alpha is keen to take advantage of further acquisition opportunities, Quillen said.
“The way we've structured this balance sheet is to continue to grow, and to take advantage of opportunities – whether they are distressed or whether they are just in different geographic basins,” he said.
“We are still going to be around in the M&A environment going forward.”
After the tie-up, the new company will have about $750 million in cash, cash equivalents and undrawn credit.
Under the terms of a definitive merger agreement, Foundation shareholders will receive 1,084 shares of the new company for each Foundation share held, while Alpha shares will automatically become shares of the combined company.
Alpha Natural will issue about 50-million new shares, and will assume $530-million of Foundation's net debt, for a total transaction value of around $2-billion.
The deal values Foundation stock at $32,73 a share, which was a 37% premium to the company's average closing share price over five days prior to the deal being signed.
The deal requires approval from shareholders representing a majority of the outstanding shares in each company.
Quillen said he was confident of shareholder support for the deal, and did not expect to encounter the sort of difficulties that scuppered the Cliffs transaction.
The new company will retain the Alpha name and will be headquartered in Abingdon, Virginia.
Quillen will be appointed chairperson and Alpha president Kevin Crutchfield will be CEO, while Kurt Kost, Foundation's president and COO, will become president of the combined company.
Source: http://www.miningweekly.com/article/alpha-natural-will-buy-foundation-for-2bn-creating-new-us-coal-giant-2009-05-12
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 20 May 09
COAL & OIL BAGS TWO CONTRACTS TO SUPPLY COAL TO CEMENT & SUGAR INDUSTRY IN INDIA
COALspot.com: According to website of Coal & Oil Company, Aditya Birla Group (Ultratech) have placed orders with Coal and Oil Company for supply ...
Wednesday, 20 May 09
CIL MAY URGE NEW GOVERNMENT TO HIKE COAL PRICE - STEELGURU
BL reported that soon after assuming office the new government may be faced with a proposal for an increase in prices of coal by Coal India Limited ...
Wednesday, 20 May 09
S.KOREA COAL IMPORTS IN APRIL DOWN 22 PCT Y/Y - REUTERS
South Korea's imports of heating coal in April fell 22 percent from a year earlier on bearish demand from domestic utilities, industry data showed ...
Wednesday, 20 May 09
THE WORLD'S TOP COAL TRADING COMPANIES - REUTERS
The international physical steam coal market has become increasingly liquid and tradeable during the past five years.
Physical global seaborne co ...
Wednesday, 20 May 09
SHIPPING INDEX RISES TO 7-MONTH HIGH AS CHINESE DEMAND ADVANCES - BLOOMBERG
The Baltic Dry Index, a measure of shipping costs for commodities, rose to a seven-month high in London on accelerating Chinese demand for iron ore. ...
|
|
|
Showing 6746 to 6750 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Intertek Mineral Services - Indonesia
- Eastern Energy - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- IEA Clean Coal Centre - UK
- Barasentosa Lestari - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Malabar Cements Ltd - India
- Karaikal Port Pvt Ltd - India
- CNBM International Corporation - China
- ICICI Bank Limited - India
- Lanco Infratech Ltd - India
- Dalmia Cement Bharat India
- Georgia Ports Authority, United States
- Vijayanagar Sugar Pvt Ltd - India
- Australian Coal Association
- Coal and Oil Company - UAE
- Bhoruka Overseas - Indonesia
- Romanian Commodities Exchange
- Globalindo Alam Lestari - Indonesia
- Straits Asia Resources Limited - Singapore
- VISA Power Limited - India
- Manunggal Multi Energi - Indonesia
- Sojitz Corporation - Japan
- Singapore Mercantile Exchange
- Meenaskhi Energy Private Limited - India
- Bangladesh Power Developement Board
- Baramulti Group, Indonesia
- Bharathi Cement Corporation - India
- Attock Cement Pakistan Limited
- GAC Shipping (India) Pvt Ltd
- Rashtriya Ispat Nigam Limited - India
- Latin American Coal - Colombia
- Borneo Indobara - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Electricity Authority, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- Port Waratah Coal Services - Australia
- Planning Commission, India
- Central Electricity Authority - India
- Bayan Resources Tbk. - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kideco Jaya Agung - Indonesia
- Indonesian Coal Mining Association
- Mercuria Energy - Indonesia
- Siam City Cement PLC, Thailand
- Formosa Plastics Group - Taiwan
- Cement Manufacturers Association - India
- Kaltim Prima Coal - Indonesia
- Heidelberg Cement - Germany
- Rio Tinto Coal - Australia
- Posco Energy - South Korea
- Ceylon Electricity Board - Sri Lanka
- Ambuja Cements Ltd - India
- Price Waterhouse Coopers - Russia
- European Bulk Services B.V. - Netherlands
- Coalindo Energy - Indonesia
- The University of Queensland
- Commonwealth Bank - Australia
- Gujarat Mineral Development Corp Ltd - India
- Aboitiz Power Corporation - Philippines
- Banpu Public Company Limited - Thailand
- Meralco Power Generation, Philippines
- Sinarmas Energy and Mining - Indonesia
- IHS Mccloskey Coal Group - USA
- Minerals Council of Australia
- Karbindo Abesyapradhi - Indoneisa
- Therma Luzon, Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Riau Bara Harum - Indonesia
- Orica Australia Pty. Ltd.
- GMR Energy Limited - India
- The State Trading Corporation of India Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sakthi Sugars Limited - India
- Independent Power Producers Association of India
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Development Corp, Philippines
- Wood Mackenzie - Singapore
- The Treasury - Australian Government
- Semirara Mining and Power Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Indogreen Group - Indonesia
- Pendopo Energi Batubara - Indonesia
- Directorate Of Revenue Intelligence - India
- Uttam Galva Steels Limited - India
- Ministry of Transport, Egypt
- TeaM Sual Corporation - Philippines
- Standard Chartered Bank - UAE
- GN Power Mariveles Coal Plant, Philippines
- Leighton Contractors Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Carbofer General Trading SA - India
- Tata Chemicals Ltd - India
- Mercator Lines Limited - India
- Anglo American - United Kingdom
- SN Aboitiz Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Neyveli Lignite Corporation Ltd, - India
- Jindal Steel & Power Ltd - India
- Renaissance Capital - South Africa
- Timah Investasi Mineral - Indoneisa
- Thiess Contractors Indonesia
- Australian Commodity Traders Exchange
- Bukit Makmur.PT - Indonesia
- Central Java Power - Indonesia
- PNOC Exploration Corporation - Philippines
- White Energy Company Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Metalloyd Limited - United Kingdom
- Chamber of Mines of South Africa
- Cigading International Bulk Terminal - Indonesia
- PowerSource Philippines DevCo
- Binh Thuan Hamico - Vietnam
- Kepco SPC Power Corporation, Philippines
- Wilmar Investment Holdings
- Kartika Selabumi Mining - Indonesia
- Interocean Group of Companies - India
- Larsen & Toubro Limited - India
- Videocon Industries ltd - India
- Maheswari Brothers Coal Limited - India
- Coastal Gujarat Power Limited - India
- CIMB Investment Bank - Malaysia
- Edison Trading Spa - Italy
- Directorate General of MIneral and Coal - Indonesia
- ASAPP Information Group - India
- Ministry of Finance - Indonesia
- Sarangani Energy Corporation, Philippines
- Aditya Birla Group - India
- San Jose City I Power Corp, Philippines
- Parliament of New Zealand
- Mjunction Services Limited - India
- Altura Mining Limited, Indonesia
- GVK Power & Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- Petron Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Gujarat Electricity Regulatory Commission - India
- Antam Resourcindo - Indonesia
- Vizag Seaport Private Limited - India
- Orica Mining Services - Indonesia
- Merrill Lynch Commodities Europe
- Goldman Sachs - Singapore
- SMG Consultants - Indonesia
- Sree Jayajothi Cements Limited - India
- Essar Steel Hazira Ltd - India
- South Luzon Thermal Energy Corporation
- Siam City Cement - Thailand
- Sindya Power Generating Company Private Ltd
- Medco Energi Mining Internasional
- Indian Energy Exchange, India
- London Commodity Brokers - England
- MS Steel International - UAE
- Asmin Koalindo Tuhup - Indonesia
- Trasteel International SA, Italy
- PetroVietnam Power Coal Import and Supply Company
- Bhushan Steel Limited - India
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Thai Mozambique Logistica
- Ind-Barath Power Infra Limited - India
- Deloitte Consulting - India
- Chettinad Cement Corporation Ltd - India
- Alfred C Toepfer International GmbH - Germany
- McConnell Dowell - Australia
- Electricity Generating Authority of Thailand
- New Zealand Coal & Carbon
- Sical Logistics Limited - India
- Eastern Coal Council - USA
- India Bulls Power Limited - India
- Global Coal Blending Company Limited - Australia
- Gujarat Sidhee Cement - India
- Jorong Barutama Greston.PT - Indonesia
- Agrawal Coal Company - India
- Simpson Spence & Young - Indonesia
- Bukit Baiduri Energy - Indonesia
- Parry Sugars Refinery, India
- Indian Oil Corporation Limited
- SMC Global Power, Philippines
- Miang Besar Coal Terminal - Indonesia
- Toyota Tsusho Corporation, Japan
- Indika Energy - Indonesia
- PTC India Limited - India
- LBH Netherlands Bv - Netherlands
- Global Green Power PLC Corporation, Philippines
- Tamil Nadu electricity Board
- Ministry of Mines - Canada
- Semirara Mining Corp, Philippines
- Madhucon Powers Ltd - India
- Grasim Industreis Ltd - India
- Star Paper Mills Limited - India
- Global Business Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Oldendorff Carriers - Singapore
- Power Finance Corporation Ltd., India
- Bhatia International Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kumho Petrochemical, South Korea
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- Kobexindo Tractors - Indoneisa
- Africa Commodities Group - South Africa
- Kapuas Tunggal Persada - Indonesia
- Mintek Dendrill Indonesia
- Jaiprakash Power Ventures ltd
- Vedanta Resources Plc - India
- Makarim & Taira - Indonesia
- Marubeni Corporation - India
- Bulk Trading Sa - Switzerland
|
| |
| |
|
