Mon, Aug15, 2011
-Newmont says several parties interested in Australia coal assets -ANZ advising on sale of two Queensland coal tenements -Assets contain over 1.2 billion tons thermal coal By David Winning
SYDNEY (MarketWatch) -- Newmont Mining Corp. said Monday it is in talks with several companies over the possible sale of Australian assets containing over 1.2 billion metric tons of thermal coal, signaling that an uncertain global economic outlook isn't dampening interest in resources deals.
Rapid industrialization in China and India is driving heavy investment in coal-fired power generation, supporting thermal coal prices in the Asia-Pacific region and boosting valuations of mines in countries like Australia and Indonesia, which account for much of the world's seaborne coal trade.
Newmont appointed Australia & New Zealand Banking Group Ltd. (ANZ.AU) earlier this year to gauge interest in two tenements in the Clarence-Moreton Basin in Queensland state, which lie close to a rail line and contain thermal coal that could be developed for export.
Denver, Col.-based Newmont is the world's second-largest gold miner by output after Barrick Gold Corp. (ABX), and considers its regional coal assets in Australia to be non-core.
"Newmont is continuing discussions with a number of interested parties regarding the possible sale of its Queensland coal assets. No deadline has been set to secure a sale," a Newmont spokeswoman told Dow Jones Newswires.
A reliance on coal imports has led Indian and Chinese companies to scour the Asia-Pacific region for coal deposits that can be developed for export, although competition is intensifying with Western miners also looking to buy resources that can be sold at a higher margin than in traditional markets like North America.
China's net coal imports have remained strong, totaling 61.7 million tons in the January-June period compared with 70.95 million tons a year earlier, even as Beijing acted to rein in loans for infrastructure projects and cool its economy.
Australia is the world's largest coal exporter by volume, with vast reserves of thermal coal burnt to generate electricity and coking coal used to make steel. These reserves have made Australia a favored destination for foreign investment, despite sovereign risk concerns as the federal government seeks to tax profits from coal mining more heavily and put a price on carbon.
More than US$6 billion of deals for Australian coal assets are pending or have been completed so far this year, including Peabody Energy Corp. (BTU) and ArcelorMittal's (MT) A$4.7 billion offer for coking coal miner Macarthur Coal Ltd. (MCC.AU), data from Dealogic show.
Several more Australian coal assets are being offered for sale. UBS AG is handling Anglo American PLC's (AAL.LN) proposed divestment of its Callide coal mine in Queensland, and also advising A$506 million-valued Bandanna Energy Ltd. (BND.AU) on transactions that include a takeover of the Queensland-focused coal developer.
Dow Jones Newswires reported Aug. 10 that Sydney-based Cockatoo Coal Ltd. (COK.AU) has appointed RFC Corporate Finance Ltd. to manage the sale of its Taabinga project in Queensland, which has an estimated 252 million tons of undeveloped coal resources.
Newmont's coal tenements in Queensland--Felton East/West in permit area MDL 304 and Lochbar/Bringalily South in MDL 299--are located less than 10 kilometers from a rail line.
Thermal coal could be exported through the ports of Brisbane or Gladstone if capacity becomes available.
(sourced Market Watch)
-Newmont says several parties interested in Australia coal assets -ANZ advising on sale of two Queensland coal tenements -Assets contain over 1.2 billion tons thermal coal By David Winning
SYDNEY (MarketWatch) -- Newmont Mining Corp. said Monday it is in talks with several companies over the possible sale of Australian assets containing over 1.2 billion metric tons of thermal coal, signaling that an uncertain global economic outlook isn't dampening interest in resources deals.
Rapid industrialization in China and India is driving heavy investment in coal-fired power generation, supporting thermal coal prices in the Asia-Pacific region and boosting valuations of mines in countries like Australia and Indonesia, which account for much of the world's seaborne coal trade.
Newmont appointed Australia & New Zealand Banking Group Ltd. (ANZ.AU) earlier this year to gauge interest in two tenements in the Clarence-Moreton Basin in Queensland state, which lie close to a rail line and contain thermal coal that could be developed for export.
Denver, Col.-based Newmont is the world's second-largest gold miner by output after Barrick Gold Corp. (ABX), and considers its regional coal assets in Australia to be non-core.
"Newmont is continuing discussions with a number of interested parties regarding the possible sale of its Queensland coal assets. No deadline has been set to secure a sale," a Newmont spokeswoman told Dow Jones Newswires.
A reliance on coal imports has led Indian and Chinese companies to scour the Asia-Pacific region for coal deposits that can be developed for export, although competition is intensifying with Western miners also looking to buy resources that can be sold at a higher margin than in traditional markets like North America.
China's net coal imports have remained strong, totaling 61.7 million tons in the January-June period compared with 70.95 million tons a year earlier, even as Beijing acted to rein in loans for infrastructure projects and cool its economy.
Australia is the world's largest coal exporter by volume, with vast reserves of thermal coal burnt to generate electricity and coking coal used to make steel. These reserves have made Australia a favored destination for foreign investment, despite sovereign risk concerns as the federal government seeks to tax profits from coal mining more heavily and put a price on carbon.
More than US$6 billion of deals for Australian coal assets are pending or have been completed so far this year, including Peabody Energy Corp. (BTU) and ArcelorMittal's (MT) A$4.7 billion offer for coking coal miner Macarthur Coal Ltd. (MCC.AU), data from Dealogic show.
Several more Australian coal assets are being offered for sale. UBS AG is handling Anglo American PLC's (AAL.LN) proposed divestment of its Callide coal mine in Queensland, and also advising A$506 million-valued Bandanna Energy Ltd. (BND.AU) on transactions that include a takeover of the Queensland-focused coal developer.
Dow Jones Newswires reported Aug. 10 that Sydney-based Cockatoo Coal Ltd. (COK.AU) has appointed RFC Corporate Finance Ltd. to manage the sale of its Taabinga project in Queensland, which has an estimated 252 million tons of undeveloped coal resources.
Newmont's coal tenements in Queensland--Felton East/West in permit area MDL 304 and Lochbar/Bringalily South in MDL 299--are located less than 10 kilometers from a rail line.
Thermal coal could be exported through the ports of Brisbane or Gladstone if capacity becomes available.
(sourced Market Watch)
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