We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 22 December 10
PEABODY ENERGY TO SOURCE INDONESIAN COAL FROM PT SUPRA BARA ENERGI (SBE) - COAL GEOLOGY
Coal Geology reported that, Peabody Energy has entered into an agreement to source coal from PT Supra Bara Energi (SBE), which will be sold on the e ...
Wednesday, 22 December 10
INDONESIAN COAL LOAD PORT WEATHER CONDITION AND DELAYS
COALspot.com - The several leading shipping agents in Indonesia, said due to rainy season in Indonesia, loading activities in coal loading ports hav ...
Wednesday, 22 December 10
COAL INDIA CLOSE TO BUYING 15% STAKE IN AUSTRALIAN MINE - ECONOMIC TIMES
Economic Times reported that, Coal India (CIL) is close to buying a stake between 10% to 15% in an Australian mine owned by Peabody, a US company.
...
Wednesday, 22 December 10
CAPESIZE FUTURES MARKET RATES ARE EXPECTED TO CONTINUE THEIR DRIFT DOWN IN 2011 - BRS
Nearly two months of weekly declines in the Baltic Capesize Index were finally halted last week with a small 1% increase Friday-to-Friday. The impro ...
Wednesday, 22 December 10
DRY BULK MARKET LOOKING FOR DIRECTION AMID HOLIDAYS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market isn’t exhibiting a “festive” behavior, thus cheering ship owners and investors alike. Instead, the industry&rs ...
|
|
|
Showing 5476 to 5480 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Romanian Commodities Exchange
- Barasentosa Lestari - Indonesia
- Xindia Steels Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Karaikal Port Pvt Ltd - India
- Videocon Industries ltd - India
- Renaissance Capital - South Africa
- Indian Oil Corporation Limited
- Aboitiz Power Corporation - Philippines
- Ambuja Cements Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Africa Commodities Group - South Africa
- Parry Sugars Refinery, India
- Intertek Mineral Services - Indonesia
- Mercuria Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- ICICI Bank Limited - India
- Antam Resourcindo - Indonesia
- Tamil Nadu electricity Board
- Price Waterhouse Coopers - Russia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Goldman Sachs - Singapore
- Australian Coal Association
- Vijayanagar Sugar Pvt Ltd - India
- Bhatia International Limited - India
- Indo Tambangraya Megah - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Bukit Baiduri Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- White Energy Company Limited
- Directorate Of Revenue Intelligence - India
- Mintek Dendrill Indonesia
- Timah Investasi Mineral - Indoneisa
- Parliament of New Zealand
- Kartika Selabumi Mining - Indonesia
- Indian Energy Exchange, India
- Jaiprakash Power Ventures ltd
- SMG Consultants - Indonesia
- Orica Mining Services - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Star Paper Mills Limited - India
- Australian Commodity Traders Exchange
- Eastern Coal Council - USA
- Thai Mozambique Logistica
- Pendopo Energi Batubara - Indonesia
- Global Green Power PLC Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Siam City Cement PLC, Thailand
- Independent Power Producers Association of India
- GVK Power & Infra Limited - India
- GMR Energy Limited - India
- Alfred C Toepfer International GmbH - Germany
- Petrochimia International Co. Ltd.- Taiwan
- Therma Luzon, Inc, Philippines
- Eastern Energy - Thailand
- Singapore Mercantile Exchange
- The State Trading Corporation of India Ltd
- Ministry of Transport, Egypt
- Makarim & Taira - Indonesia
- Lanco Infratech Ltd - India
- Marubeni Corporation - India
- Neyveli Lignite Corporation Ltd, - India
- Essar Steel Hazira Ltd - India
- Sarangani Energy Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Uttam Galva Steels Limited - India
- Semirara Mining and Power Corporation, Philippines
- Mercator Lines Limited - India
- SMC Global Power, Philippines
- GAC Shipping (India) Pvt Ltd
- Global Coal Blending Company Limited - Australia
- Coastal Gujarat Power Limited - India
- Electricity Authority, New Zealand
- Metalloyd Limited - United Kingdom
- Merrill Lynch Commodities Europe
- ASAPP Information Group - India
- Coal and Oil Company - UAE
- Billiton Holdings Pty Ltd - Australia
- Indogreen Group - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Electricity Regulatory Commission - India
- Bayan Resources Tbk. - Indonesia
- Riau Bara Harum - Indonesia
- Central Electricity Authority - India
- India Bulls Power Limited - India
- Mjunction Services Limited - India
- Samtan Co., Ltd - South Korea
- Indika Energy - Indonesia
- Agrawal Coal Company - India
- Simpson Spence & Young - Indonesia
- Borneo Indobara - Indonesia
- Altura Mining Limited, Indonesia
- Sindya Power Generating Company Private Ltd
- TeaM Sual Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Savvy Resources Ltd - HongKong
- Kaltim Prima Coal - Indonesia
- Economic Council, Georgia
- Iligan Light & Power Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- London Commodity Brokers - England
- Kapuas Tunggal Persada - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Energy Development Corp, Philippines
- The University of Queensland
- Larsen & Toubro Limited - India
- Orica Australia Pty. Ltd.
- Krishnapatnam Port Company Ltd. - India
- Medco Energi Mining Internasional
- Wood Mackenzie - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jindal Steel & Power Ltd - India
- IHS Mccloskey Coal Group - USA
- Power Finance Corporation Ltd., India
- Banpu Public Company Limited - Thailand
- OPG Power Generation Pvt Ltd - India
- New Zealand Coal & Carbon
- Formosa Plastics Group - Taiwan
- Vizag Seaport Private Limited - India
- Energy Link Ltd, New Zealand
- Globalindo Alam Lestari - Indonesia
- Electricity Generating Authority of Thailand
- Commonwealth Bank - Australia
- Cement Manufacturers Association - India
- Latin American Coal - Colombia
- Deloitte Consulting - India
- Tata Chemicals Ltd - India
- Anglo American - United Kingdom
- Bharathi Cement Corporation - India
- Aditya Birla Group - India
- Kalimantan Lumbung Energi - Indonesia
- Bhushan Steel Limited - India
- Attock Cement Pakistan Limited
- Ind-Barath Power Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Miang Besar Coal Terminal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Standard Chartered Bank - UAE
- Ministry of Mines - Canada
- Siam City Cement - Thailand
- CIMB Investment Bank - Malaysia
- Sojitz Corporation - Japan
- Manunggal Multi Energi - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Meenaskhi Energy Private Limited - India
- Ministry of Finance - Indonesia
- Salva Resources Pvt Ltd - India
- Dalmia Cement Bharat India
- Rashtriya Ispat Nigam Limited - India
- Sical Logistics Limited - India
- Bulk Trading Sa - Switzerland
- Sakthi Sugars Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Central Java Power - Indonesia
- PowerSource Philippines DevCo
- Kumho Petrochemical, South Korea
- LBH Netherlands Bv - Netherlands
- Cigading International Bulk Terminal - Indonesia
- Edison Trading Spa - Italy
- Bangladesh Power Developement Board
- Madhucon Powers Ltd - India
- Global Business Power Corporation, Philippines
- VISA Power Limited - India
- Indonesian Coal Mining Association
- The Treasury - Australian Government
- Holcim Trading Pte Ltd - Singapore
- Petron Corporation, Philippines
- Oldendorff Carriers - Singapore
- IEA Clean Coal Centre - UK
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Posco Energy - South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- GN Power Mariveles Coal Plant, Philippines
- CNBM International Corporation - China
- Jorong Barutama Greston.PT - Indonesia
- MS Steel International - UAE
- PNOC Exploration Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Georgia Ports Authority, United States
- Bhoruka Overseas - Indonesia
- Meralco Power Generation, Philippines
- Vedanta Resources Plc - India
- Grasim Industreis Ltd - India
- Malabar Cements Ltd - India
- Minerals Council of Australia
- Trasteel International SA, Italy
- Semirara Mining Corp, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- PTC India Limited - India
- Maheswari Brothers Coal Limited - India
- Kepco SPC Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- Port Waratah Coal Services - Australia
- Coalindo Energy - Indonesia
- Binh Thuan Hamico - Vietnam
- Baramulti Group, Indonesia
- Kobexindo Tractors - Indoneisa
- Rio Tinto Coal - Australia
- Leighton Contractors Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Chettinad Cement Corporation Ltd - India
- Heidelberg Cement - Germany
- Chamber of Mines of South Africa
- Kideco Jaya Agung - Indonesia
- Planning Commission, India
- SN Aboitiz Power Inc, Philippines
- McConnell Dowell - Australia
- Wilmar Investment Holdings
- Gujarat Sidhee Cement - India
- Carbofer General Trading SA - India
- Bukit Asam (Persero) Tbk - Indonesia
- Thiess Contractors Indonesia
|
| |
| |
|
