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Tuesday, 21 December 10
CHINA COAL CAP TO BOOST GLOBAL M&A - FINANCIER WORLD WIDE
 Financier World Wide reported that, Chinese state-run media has reported that the Central Government intends to cap domestic coal production for fear of exhausting reserves and failing to meet the needs of the fast expanding economy. At the same time, the National Energy Administration director, Zhang Guobao, has encouraged Chinese mining enterprises to pursue mergers and acquisitions at home and abroad in order to consolidate and modernise the disjointed mining industry and to increase coal imports. The news comes at a time when the global mining sector is witness to record annual M&A transactions. According to Dealogic, over $47.1bn has changed hands in 2010, through 968 deals. China was the target of a record $11.6bn of these deals.
Imports and exports
China’s love affair with coal began amidst the industrialisation of the 1950s, and the country has depended heavily on the fossil fuel ever since. Ninety-seven percent of China’s coal is consumed in power generation, industry, coking, and residential use and heating.
Of these, power supply needs dominate. According to the US Geological Survey (USGS), two-thirds of Chinese electricity generation is from coal-fired plants and power generation accounts for half of China’s coal use.
The pace of Chinese industrial growth saw the country move from being a net exporter of 1.8 million tonnes in 2008, to a net importer of 103 million tonnes in 2009. It is the second largest user of coal next to the US, accounting for 41 percent of the world’s total consumption, and is by far the world’s largest producer of the fuel. Despite this, China’s domestic mining industry is challenged by lack of centralisation, inefficiency and overburdened transport links. Frequent industrial accidents and environmental issues are also major problems.
Domestic and outbound deals
To modernise its mining industry the Chinese government aims to shut down a large proportion of its 11,000 small coal mines while encouraging state owned and private coal mine enterprises to initiate mergers and acquisitions.
Yanzhou Coal Mining Co. recently revealed plans to buy a 51 percent stake in the Inner Mongolia-based Haosheng Coal Mining Ltd. for $980m, and Aluminum Corporation of China will invest $80.5m to establish Shanxi Xiuxin Gugou Coal (Group), merging the assets of five coal companies. The newly established group will have coking coal reserves of 300 million tons which are expected to last up to 75 years.
The government also aims to secure imports through a program of cross-border M&A. In the three years to September 2010, Chinese companies spent $20.96bn on overseas coal industry acquisitions, and activity has continued since the government’s announcement. Australia has been a particularly prized target for Chinese firms of late.
Yanzhou bought Australia’s Felix Resources Ltd. for $2.9bn in August 2009 and has actively been scanning the market for additional acquisitions, particularly coking and thermal coal operations. In November 2010 China Coal Geology Engineering Corp and Wanbei Coal-Electricity Group partnered to explore and develop coal resources in Queensland. They expect to uncover 10 billion tonnes of reserves. November also saw Australia’s Caledon Resources agree to be bought by the Chinese state-owned investment group Guangdong Rising Assets Management Co for £252m.
Global interest
Companies around the world have caught wind of China’s resource fears, and are scrambling to meet the demand. On 16 November, Nat Rothchild’s Vallar paid $3bn for 25 percent of Indonesian coal producer PT Bumi Resources and 75 percent of PT Berau Coal Energy. Just days later, the US coal miner Walter Energy bid $3.2bn for Canada’s Western Coal, with the intention of supplying the Chinese market.
Plenty of others are cashing in too. Caterpillar has spent $8.6bn buying US-based Bucyrus, a manufacturer of excavators used in opencast coal mines. The firm has said the coal industry is one of the principal growth markets that they are now targeting.
Australia has remained a prime target for foreign companies seeking to benefit from growing prices and sales to Asia. 2010 saw $6.7bn of coal acquisitions in the country, compared to $5.9bn for the whole of 2009.
The US is also becoming a major playing field for coal industry M&A deals, due in part to the relatively low price of its thermal coal. Privately held, Alabama-based Drummond and Co. is taking bids for its mines in North Columbia, expecting to fetch up to $8bn. Several other good-sized companies are expected to become involved in M&A including Consol Energy, Alpha Natural Resources and Arch Coal.
China’s lack of oil and gas reserves makes it difficult for the country to move away from coal, though the country has begun to address this over-reliance through imports and acquisitions of other resources. However, with newly installed coal-fired power plants now coming on line, it seems that China will remain heavily dependent on coal production and imports for the foreseeable future, and this will continue to drive overseas acquisitions of mining firms and coal assets.
Source: Financier World Wide
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Monday, 27 December 10
HUNT FOR OVERSEAS COAL ASSETS TO INTENSIFY - FINANCIAL EXPRESS
Financial Express reported that, With the Indian economy back on the track after the slowdown, merger and acquisition (M&A) activities in the re ...
Monday, 27 December 10
RIO TINTO EYES AUSTRALIAN COAL MINER - RTE NEWS
Global resources giant Rio Tinto has made a $3.9 billion bid for Australian coal miner Riversdale.
RTE News reported that, Global resources giant ...
Sunday, 26 December 10
ANGLO SELLS AUSTRALIAN COAL ASSETS - BARCELONA NEWS
Barcelona News reported that, Anglo American has sold off undeveloped Australia coal assets for $577 million.
The global resources giant ha ...
Saturday, 25 December 10
FREIGHT MARKET - LOWEST FIXTURES REPORTED SINCE MID 2009 - CAPT. REDDY
COALspot.com - We wish you a Merry Christmas and a Happy New Year 2011.
The holiday season seems to have severely affected the fr ...
Friday, 24 December 10
CIL SHORTLISTS 21 FIRMS TO IMPORT 250 MT COAL - THE HINDU
The Hindu reported that, Coal India plans to import about 250 million tonnes (mt) over the next 10 years to meet the country's growing requirement. ...
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- CIMB Investment Bank - Malaysia
- Riau Bara Harum - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Indogreen Group - Indonesia
- Grasim Industreis Ltd - India
- Petron Corporation, Philippines
- ASAPP Information Group - India
- Posco Energy - South Korea
- Africa Commodities Group - South Africa
- Savvy Resources Ltd - HongKong
- LBH Netherlands Bv - Netherlands
- South Luzon Thermal Energy Corporation
- Energy Development Corp, Philippines
- Parry Sugars Refinery, India
- Kumho Petrochemical, South Korea
- SN Aboitiz Power Inc, Philippines
- Attock Cement Pakistan Limited
- Indian Oil Corporation Limited
- Lanco Infratech Ltd - India
- Pendopo Energi Batubara - Indonesia
- Singapore Mercantile Exchange
- Georgia Ports Authority, United States
- Australian Coal Association
- Marubeni Corporation - India
- Goldman Sachs - Singapore
- Sical Logistics Limited - India
- GVK Power & Infra Limited - India
- Bulk Trading Sa - Switzerland
- Sarangani Energy Corporation, Philippines
- VISA Power Limited - India
- IEA Clean Coal Centre - UK
- Oldendorff Carriers - Singapore
- Siam City Cement - Thailand
- Indika Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Simpson Spence & Young - Indonesia
- Star Paper Mills Limited - India
- London Commodity Brokers - England
- Karaikal Port Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Borneo Indobara - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Gujarat Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- Price Waterhouse Coopers - Russia
- Directorate Of Revenue Intelligence - India
- Independent Power Producers Association of India
- OPG Power Generation Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- PTC India Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Electricity Generating Authority of Thailand
- Malabar Cements Ltd - India
- European Bulk Services B.V. - Netherlands
- Mintek Dendrill Indonesia
- Cigading International Bulk Terminal - Indonesia
- Edison Trading Spa - Italy
- Minerals Council of Australia
- Banpu Public Company Limited - Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Iligan Light & Power Inc, Philippines
- Baramulti Group, Indonesia
- Salva Resources Pvt Ltd - India
- Carbofer General Trading SA - India
- Directorate General of MIneral and Coal - Indonesia
- Rio Tinto Coal - Australia
- Aboitiz Power Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Parliament of New Zealand
- Australian Commodity Traders Exchange
- Kartika Selabumi Mining - Indonesia
- Ministry of Transport, Egypt
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kepco SPC Power Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- ICICI Bank Limited - India
- Energy Link Ltd, New Zealand
- Tamil Nadu electricity Board
- Mercuria Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Central Electricity Authority - India
- Eastern Energy - Thailand
- Coal and Oil Company - UAE
- Ind-Barath Power Infra Limited - India
- The State Trading Corporation of India Ltd
- Aditya Birla Group - India
- Cement Manufacturers Association - India
- Bukit Asam (Persero) Tbk - Indonesia
- Chettinad Cement Corporation Ltd - India
- Formosa Plastics Group - Taiwan
- Bhoruka Overseas - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Deloitte Consulting - India
- Tata Chemicals Ltd - India
- Alfred C Toepfer International GmbH - Germany
- CNBM International Corporation - China
- Bahari Cakrawala Sebuku - Indonesia
- Jaiprakash Power Ventures ltd
- SMG Consultants - Indonesia
- Sree Jayajothi Cements Limited - India
- Madhucon Powers Ltd - India
- Therma Luzon, Inc, Philippines
- Orica Mining Services - Indonesia
- SMC Global Power, Philippines
- Bukit Baiduri Energy - Indonesia
- Coalindo Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- The University of Queensland
- Chamber of Mines of South Africa
- Vijayanagar Sugar Pvt Ltd - India
- Meralco Power Generation, Philippines
- Sindya Power Generating Company Private Ltd
- Standard Chartered Bank - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- PowerSource Philippines DevCo
- Offshore Bulk Terminal Pte Ltd, Singapore
- Intertek Mineral Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Siam City Cement PLC, Thailand
- Rashtriya Ispat Nigam Limited - India
- Eastern Coal Council - USA
- Orica Australia Pty. Ltd.
- Merrill Lynch Commodities Europe
- Manunggal Multi Energi - Indonesia
- Bhushan Steel Limited - India
- Ceylon Electricity Board - Sri Lanka
- McConnell Dowell - Australia
- Power Finance Corporation Ltd., India
- Globalindo Alam Lestari - Indonesia
- Indian Energy Exchange, India
- Neyveli Lignite Corporation Ltd, - India
- Vedanta Resources Plc - India
- Jindal Steel & Power Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- The Treasury - Australian Government
- Romanian Commodities Exchange
- Kideco Jaya Agung - Indonesia
- Dalmia Cement Bharat India
- Petrochimia International Co. Ltd.- Taiwan
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Uttam Galva Steels Limited - India
- Electricity Authority, New Zealand
- GAC Shipping (India) Pvt Ltd
- IHS Mccloskey Coal Group - USA
- Coastal Gujarat Power Limited - India
- Gujarat Sidhee Cement - India
- Indo Tambangraya Megah - Indonesia
- TeaM Sual Corporation - Philippines
- Trasteel International SA, Italy
- Krishnapatnam Port Company Ltd. - India
- Mjunction Services Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jorong Barutama Greston.PT - Indonesia
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- Central Java Power - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Economic Council, Georgia
- Mercator Lines Limited - India
- Kobexindo Tractors - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Sojitz Corporation - Japan
- Vizag Seaport Private Limited - India
- Kaltim Prima Coal - Indonesia
- Makarim & Taira - Indonesia
- Wilmar Investment Holdings
- Bayan Resources Tbk. - Indonesia
- Interocean Group of Companies - India
- PNOC Exploration Corporation - Philippines
- Ministry of Finance - Indonesia
- Ambuja Cements Ltd - India
- Medco Energi Mining Internasional
- Thiess Contractors Indonesia
- Kohat Cement Company Ltd. - Pakistan
- San Jose City I Power Corp, Philippines
- MS Steel International - UAE
- Anglo American - United Kingdom
- Maharashtra Electricity Regulatory Commission - India
- India Bulls Power Limited - India
- Bhatia International Limited - India
- Thai Mozambique Logistica
- Latin American Coal - Colombia
- GMR Energy Limited - India
- Metalloyd Limited - United Kingdom
- Altura Mining Limited, Indonesia
- Larsen & Toubro Limited - India
- Planning Commission, India
- Maheswari Brothers Coal Limited - India
- Timah Investasi Mineral - Indoneisa
- White Energy Company Limited
- Antam Resourcindo - Indonesia
- New Zealand Coal & Carbon
- Xindia Steels Limited - India
- Samtan Co., Ltd - South Korea
- Renaissance Capital - South Africa
- Barasentosa Lestari - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Port Waratah Coal Services - Australia
- Bharathi Cement Corporation - India
- Essar Steel Hazira Ltd - India
- Semirara Mining Corp, Philippines
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- Wood Mackenzie - Singapore
- International Coal Ventures Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Karbindo Abesyapradhi - Indoneisa
- Agrawal Coal Company - India
- Bangladesh Power Developement Board
- Videocon Industries ltd - India
- Commonwealth Bank - Australia
- Indonesian Coal Mining Association
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