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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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Tuesday, 13 December 22
AUSTRALIA TO CAP PRICES OF COAL, GAS TO DRIVE DOWN ENERGY BILLS - REUTERS
Australia will cap coal and gas prices for a year in a bid to shave utility bills for households and businesses hit by soaring costs because of the ...
Tuesday, 13 December 22
YANCOAL AUSTRALIA TO PREPAY $459 MLN DEBT AS RECORD COAL PRICES BOOST CASHFLOWS - REUTERS
Coal miner Yancoal Australia Ltd. said on Friday it intended to prepay $459 million of its debt on or around Dec. 16, as elevated coal prices were ...
Tuesday, 13 December 22
WHY COAL LEADS THE RISE IN COMMODITIES THIS YEAR - MARKETWATCH
This year marked a resurgence for coal, often known — and loathed — by environmentalists as the dirtiest energy source, with prices mor ...
Thursday, 08 December 22
BIMCO TO REVISE WAR RISK CLAUSES
Work to revise the BIMCO War Cancellation Clause 2004, the BIMCO War Risks Clause for Time Chartering 2013 (CONWARTIME 2013) and the BIMCO War Risk ...
Thursday, 08 December 22
COAL ROYALTY PAYMENTS BOOST AUSTRALIAN STATE'S BUDGET FORECAST - REUTERS
Australia’s Queensland state on Wednesday forecast a record surplus for the current financial year, largely driven by higher royalty payments ...
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- Vizag Seaport Private Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Marubeni Corporation - India
- Salva Resources Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Orica Mining Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Kalimantan Lumbung Energi - Indonesia
- Australian Coal Association
- SN Aboitiz Power Inc, Philippines
- Karaikal Port Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Sidhee Cement - India
- Leighton Contractors Pty Ltd - Australia
- Xindia Steels Limited - India
- Electricity Authority, New Zealand
- Port Waratah Coal Services - Australia
- Tata Chemicals Ltd - India
- Heidelberg Cement - Germany
- Meralco Power Generation, Philippines
- Riau Bara Harum - Indonesia
- IHS Mccloskey Coal Group - USA
- Dalmia Cement Bharat India
- Gujarat Electricity Regulatory Commission - India
- Intertek Mineral Services - Indonesia
- Anglo American - United Kingdom
- Mjunction Services Limited - India
- Minerals Council of Australia
- Bulk Trading Sa - Switzerland
- Kartika Selabumi Mining - Indonesia
- Meenaskhi Energy Private Limited - India
- Wilmar Investment Holdings
- Thiess Contractors Indonesia
- Antam Resourcindo - Indonesia
- Mercator Lines Limited - India
- South Luzon Thermal Energy Corporation
- PowerSource Philippines DevCo
- Semirara Mining Corp, Philippines
- MS Steel International - UAE
- IEA Clean Coal Centre - UK
- The Treasury - Australian Government
- Directorate General of MIneral and Coal - Indonesia
- Agrawal Coal Company - India
- Sical Logistics Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petrochimia International Co. Ltd.- Taiwan
- Mercuria Energy - Indonesia
- Star Paper Mills Limited - India
- Krishnapatnam Port Company Ltd. - India
- ICICI Bank Limited - India
- Price Waterhouse Coopers - Russia
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Directorate Of Revenue Intelligence - India
- Indonesian Coal Mining Association
- Altura Mining Limited, Indonesia
- Thai Mozambique Logistica
- Central Electricity Authority - India
- LBH Netherlands Bv - Netherlands
- Sakthi Sugars Limited - India
- Bukit Baiduri Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- Indian Oil Corporation Limited
- Parry Sugars Refinery, India
- Grasim Industreis Ltd - India
- Essar Steel Hazira Ltd - India
- International Coal Ventures Pvt Ltd - India
- Indogreen Group - Indonesia
- Indian Energy Exchange, India
- Ambuja Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Bayan Resources Tbk. - Indonesia
- Ministry of Finance - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Oldendorff Carriers - Singapore
- Parliament of New Zealand
- Singapore Mercantile Exchange
- Makarim & Taira - Indonesia
- TeaM Sual Corporation - Philippines
- Deloitte Consulting - India
- Bukit Makmur.PT - Indonesia
- Planning Commission, India
- Chettinad Cement Corporation Ltd - India
- Iligan Light & Power Inc, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Sinarmas Energy and Mining - Indonesia
- Borneo Indobara - Indonesia
- India Bulls Power Limited - India
- McConnell Dowell - Australia
- Videocon Industries ltd - India
- Ministry of Mines - Canada
- Kumho Petrochemical, South Korea
- PetroVietnam Power Coal Import and Supply Company
- Metalloyd Limited - United Kingdom
- European Bulk Services B.V. - Netherlands
- Independent Power Producers Association of India
- Larsen & Toubro Limited - India
- Malabar Cements Ltd - India
- Maheswari Brothers Coal Limited - India
- VISA Power Limited - India
- Energy Development Corp, Philippines
- Posco Energy - South Korea
- The State Trading Corporation of India Ltd
- Wood Mackenzie - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Indo Tambangraya Megah - Indonesia
- Orica Australia Pty. Ltd.
- CIMB Investment Bank - Malaysia
- Global Coal Blending Company Limited - Australia
- Coal and Oil Company - UAE
- Standard Chartered Bank - UAE
- Miang Besar Coal Terminal - Indonesia
- Madhucon Powers Ltd - India
- Banpu Public Company Limited - Thailand
- Timah Investasi Mineral - Indoneisa
- Baramulti Group, Indonesia
- Attock Cement Pakistan Limited
- Toyota Tsusho Corporation, Japan
- Central Java Power - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Rio Tinto Coal - Australia
- Manunggal Multi Energi - Indonesia
- Vedanta Resources Plc - India
- New Zealand Coal & Carbon
- Jindal Steel & Power Ltd - India
- Electricity Generating Authority of Thailand
- Trasteel International SA, Italy
- Global Business Power Corporation, Philippines
- Aditya Birla Group - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- London Commodity Brokers - England
- Globalindo Alam Lestari - Indonesia
- Kaltim Prima Coal - Indonesia
- Africa Commodities Group - South Africa
- Sree Jayajothi Cements Limited - India
- Kepco SPC Power Corporation, Philippines
- Chamber of Mines of South Africa
- Bahari Cakrawala Sebuku - Indonesia
- Binh Thuan Hamico - Vietnam
- Ceylon Electricity Board - Sri Lanka
- Commonwealth Bank - Australia
- Kobexindo Tractors - Indoneisa
- Mintek Dendrill Indonesia
- Bhoruka Overseas - Indonesia
- Romanian Commodities Exchange
- Semirara Mining and Power Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Energy Link Ltd, New Zealand
- Merrill Lynch Commodities Europe
- White Energy Company Limited
- The University of Queensland
- Eastern Energy - Thailand
- Georgia Ports Authority, United States
- Lanco Infratech Ltd - India
- Therma Luzon, Inc, Philippines
- CNBM International Corporation - China
- Sindya Power Generating Company Private Ltd
- GN Power Mariveles Coal Plant, Philippines
- GMR Energy Limited - India
- Indika Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- Simpson Spence & Young - Indonesia
- Straits Asia Resources Limited - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Renaissance Capital - South Africa
- SMC Global Power, Philippines
- Pendopo Energi Batubara - Indonesia
- Cement Manufacturers Association - India
- Petron Corporation, Philippines
- GVK Power & Infra Limited - India
- PNOC Exploration Corporation - Philippines
- Power Finance Corporation Ltd., India
- Sojitz Corporation - Japan
- Bhushan Steel Limited - India
- Sarangani Energy Corporation, Philippines
- SMG Consultants - Indonesia
- Kapuas Tunggal Persada - Indonesia
- San Jose City I Power Corp, Philippines
- Ind-Barath Power Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Bharathi Cement Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Uttam Galva Steels Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Savvy Resources Ltd - HongKong
- Bhatia International Limited - India
- Global Green Power PLC Corporation, Philippines
- Latin American Coal - Colombia
- Eastern Coal Council - USA
- Gujarat Mineral Development Corp Ltd - India
- Siam City Cement PLC, Thailand
- Siam City Cement - Thailand
- Billiton Holdings Pty Ltd - Australia
- Australian Commodity Traders Exchange
- Formosa Plastics Group - Taiwan
- Interocean Group of Companies - India
- Edison Trading Spa - Italy
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Medco Energi Mining Internasional
- Rashtriya Ispat Nigam Limited - India
- ASAPP Information Group - India
- Coalindo Energy - Indonesia
- Ministry of Transport, Egypt
- Cigading International Bulk Terminal - Indonesia
- Tamil Nadu electricity Board
- Vijayanagar Sugar Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Economic Council, Georgia
- Carbofer General Trading SA - India
- Samtan Co., Ltd - South Korea
- GAC Shipping (India) Pvt Ltd
- PTC India Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Bangladesh Power Developement Board
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