Monday, 09 Jan 2012
It is reported that Mr Nat Rothschild has gained the upper hand in his power struggle with the Indonesian Bakrie family after side lining their top adviser at Bumi Resources the GBP 1.5 billion valued coal mining concern that they co own.
Credit Suisse which is particularly close to the Bakries has effectively been replaced as one of Bumi brokers by Bank of America Merrill Lynch. Although Credit Suisse remains a broker for now, it is expected to exit Bumi within two to three months.
The scion of the Rothschild banking dynasty formed Bumi when the Bakrie family Indonesian coal assets were reversed into his much trumpeted cash shell, Vallar last summer.
Mr Rothschild is cochairman with Indra Bakrie. However by November, Mr Rothschild had fired off a letter to Bumi CEO Mr Ari Hudaya complaining about standards of corporate governance at PT Bumi. Mr Rothschild accused PT of needing a radical cleaning up.
The Bakries countered by describing his comments as immature, hasty, irrational and poorly judged.
The loan and the problems it caused made Credit Suisse seem closer to the Bakries than to Mr Rothschild and it, inadvertently, became part of the row. JP Morgan, the company other broker, has largely stayed out of the conflict and has retained its position.
A source close to the situation said "This whole row has put Credit Suisse in an awkward spot and it's been close to the Bakries for a long time. This is a very logical move."
(sourced Independent.co.uk)
Showing posts with label Credit Suisse. Show all posts
Showing posts with label Credit Suisse. Show all posts
Monday, January 9, 2012
Friday, November 4, 2011
Tata Said to Consider Bidding for Australian Coal Miner New Hope
Friday, Nov 4, 2011
Tata Group, India’s largest business entity, may bid for New Hope Corp., the Australian company valued at A$4.9 billion ($5.1 billion), to secure thermal-coal mines, three people familiar with the plan said.
Tata Steel Ltd. (TATA), India’s largest producer of the alloy, and Tata Power Ltd. may jointly make an offer for Ipswich, Queensland-based New Hope, said the people, declining to be identified because discussions are at an early stage. Both Tata Steel and Tata Power require coal to run their plants.
New Hope, which operates the Acland coal mine and an export terminal, is profiting as demand increases from power producers in China and India. JSW Steel Ltd. (JSTL), India’s third-largest producer of the alloy, may make an offer, two people with knowledge of the plan said Oct. 24.
The price of thermal coal, used to produce electricity, is likely to gain in the next two years because of Asian demand, Credit Suisse Group AG said last month.
Tata Steel spokesman Prabhat Sharma declined to comment. Tata Power spokeswoman Shalini Singh didn’t respond to mobile- phone calls and an e-mail seeking comment.
New Hope may attract interest from BHP Billiton Ltd. and Rio Tinto Group, according to Ord Minnett Ltd., as well as energy suppliers in Japan, which is facing a power shortage after the worst nuclear disaster in a quarter century. The miner said on Oct. 5 that selected groups will be invited to submit offers in a process that is likely to take months.
Globally, coal deals gained have reached $35 billion this year, against $21.8 billion in the same period last year, according to data compiled by Bloomberg.
India, the world’s third-largest coal user, had 31 power plants with four days’, or “super critical,” stockpiles on Nov. 1, compared with 10 on Sept. 1, according to the Central Electricity Authority. The normal level should be 15 to 30 days, the state agency said. Overall, the average inventory at India’s 89 coal-based plants was six days. The average at China’s biggest plants was 20 days.
(sourced Bloomberg)
Tata Group, India’s largest business entity, may bid for New Hope Corp., the Australian company valued at A$4.9 billion ($5.1 billion), to secure thermal-coal mines, three people familiar with the plan said.
Tata Steel Ltd. (TATA), India’s largest producer of the alloy, and Tata Power Ltd. may jointly make an offer for Ipswich, Queensland-based New Hope, said the people, declining to be identified because discussions are at an early stage. Both Tata Steel and Tata Power require coal to run their plants.
New Hope, which operates the Acland coal mine and an export terminal, is profiting as demand increases from power producers in China and India. JSW Steel Ltd. (JSTL), India’s third-largest producer of the alloy, may make an offer, two people with knowledge of the plan said Oct. 24.
The price of thermal coal, used to produce electricity, is likely to gain in the next two years because of Asian demand, Credit Suisse Group AG said last month.
Tata Steel spokesman Prabhat Sharma declined to comment. Tata Power spokeswoman Shalini Singh didn’t respond to mobile- phone calls and an e-mail seeking comment.
New Hope may attract interest from BHP Billiton Ltd. and Rio Tinto Group, according to Ord Minnett Ltd., as well as energy suppliers in Japan, which is facing a power shortage after the worst nuclear disaster in a quarter century. The miner said on Oct. 5 that selected groups will be invited to submit offers in a process that is likely to take months.
Globally, coal deals gained have reached $35 billion this year, against $21.8 billion in the same period last year, according to data compiled by Bloomberg.
India, the world’s third-largest coal user, had 31 power plants with four days’, or “super critical,” stockpiles on Nov. 1, compared with 10 on Sept. 1, according to the Central Electricity Authority. The normal level should be 15 to 30 days, the state agency said. Overall, the average inventory at India’s 89 coal-based plants was six days. The average at China’s biggest plants was 20 days.
(sourced Bloomberg)
Monday, October 17, 2011
Russia's Evraz seeks UK listing, share exchange
Mon Oct 17, 2011
* Steel company seeking entry to FTSE 100
* Seeks more liquidity, broader shareholder base
* Shares rise 8 pct in early trading
By Megan Davies
MOSCOW, Oct 17 (Reuters) - Russian steelmaker Evraz , part-owned by billionaire Roman Abramovich, said on Monday it would move its domicile to Britain, where it is seeking a premium listing on the London Stock Exchange and inclusion in the FTSE 100 Index.
The move would give it a broader shareholder base, better long-term access to capital and improved liquidity, Evraz said in a presentation to investors.
The company, with a market capitalization of more than $8 billion, is the third Russian company after miners Polyus Gold and Polymetal to announce plans for a London premium listing and FTSE 100 inclusion in recent weeks. .
Resources and metals stocks already dominate the London blue-chip index, accounting for approaching one third of the FTSE by market cap.
Evraz plans a share exchange offer to complete the move, where London-listed Evraz Plc will buy up to 100 percent of the share capital of Evraz Group S.A.
Evraz is currently a Luxembourg-domiciled company and its shares are traded in London in the form of global depositary receipts.
The company's shares rose 8.4 percent on the London Stock Exchange on Monday, adding to a rise of 19 percent for the month so far, after it announced a special dividend last week.
Still, shares are trading at about half the level they were at the beginning of the year.
Under the swap, shareholders will receive nine new shares in Evraz for each existing share they now own.
Evraz said it expected to be included in the FTSE 100 Index and would be the only steel stock in the UK share market.
Rival Tata Steel is listed in Mumbai and ArcelorMittal is listed in Luxembourg.
"We now have a free float of about 25 percent, which is enough for a premium listing," Finance Director Giacomo Baizini told reporters. "Under the deal, the company has no plans to place new shares, especially in current market conditions."
Evraz said that, following the move, it would seek to maintain a long-term average dividend payout ratio of at least 25 percent of its consolidated net profit.
Biggest shareholder Lanebrook, which currently owns 72.25 percent of the company, has agreed to accept the offer, the company said.
Evraz said it planned a management roadshow for the next two weeks and that final acceptances of the offer were due by Nov. 4. It expects to start trading on the London Stock Exchange on Nov. 7 and to be included in the FTSE at the index's next reshuffle on Dec. 19.
Morgan Stanley and Credit Suisse are acting as joint sponsors to Evraz, the company said.
Evraz also announced on Monday its crude steel output rose by 4 percent year-on-year in the third quarter of this year.
(sourced Reuters)
* Steel company seeking entry to FTSE 100
* Seeks more liquidity, broader shareholder base
* Shares rise 8 pct in early trading
By Megan Davies
MOSCOW, Oct 17 (Reuters) - Russian steelmaker Evraz , part-owned by billionaire Roman Abramovich, said on Monday it would move its domicile to Britain, where it is seeking a premium listing on the London Stock Exchange and inclusion in the FTSE 100 Index.
The move would give it a broader shareholder base, better long-term access to capital and improved liquidity, Evraz said in a presentation to investors.
The company, with a market capitalization of more than $8 billion, is the third Russian company after miners Polyus Gold and Polymetal to announce plans for a London premium listing and FTSE 100 inclusion in recent weeks. .
Resources and metals stocks already dominate the London blue-chip index, accounting for approaching one third of the FTSE by market cap.
Evraz plans a share exchange offer to complete the move, where London-listed Evraz Plc will buy up to 100 percent of the share capital of Evraz Group S.A.
Evraz is currently a Luxembourg-domiciled company and its shares are traded in London in the form of global depositary receipts.
The company's shares rose 8.4 percent on the London Stock Exchange on Monday, adding to a rise of 19 percent for the month so far, after it announced a special dividend last week.
Still, shares are trading at about half the level they were at the beginning of the year.
Under the swap, shareholders will receive nine new shares in Evraz for each existing share they now own.
Evraz said it expected to be included in the FTSE 100 Index and would be the only steel stock in the UK share market.
Rival Tata Steel is listed in Mumbai and ArcelorMittal is listed in Luxembourg.
"We now have a free float of about 25 percent, which is enough for a premium listing," Finance Director Giacomo Baizini told reporters. "Under the deal, the company has no plans to place new shares, especially in current market conditions."
Evraz said that, following the move, it would seek to maintain a long-term average dividend payout ratio of at least 25 percent of its consolidated net profit.
Biggest shareholder Lanebrook, which currently owns 72.25 percent of the company, has agreed to accept the offer, the company said.
Evraz said it planned a management roadshow for the next two weeks and that final acceptances of the offer were due by Nov. 4. It expects to start trading on the London Stock Exchange on Nov. 7 and to be included in the FTSE at the index's next reshuffle on Dec. 19.
Morgan Stanley and Credit Suisse are acting as joint sponsors to Evraz, the company said.
Evraz also announced on Monday its crude steel output rose by 4 percent year-on-year in the third quarter of this year.
(sourced Reuters)
Tuesday, October 11, 2011
ENRC to gain low-cost coal from Shubarkol buy
Tue Oct 11, 2011
* To pay up to $650 mln to buy stake from ENRC founders
* Acquisition to lift ENRC coal capacity to over 25 mtpa
* Independent shareholders to vote on deal on Nov 7
* CEO mulls future development within platinum sector
By Julie Crust
LONDON, Oct 11 (Reuters) - Miner ENRC plans to buy the outstanding 75 percent of Kazakh coal producer Shubarkol Komir from ENRC's founders for up to $650 million, giving it access to low-cost coal for its existing operations and expansion plans.
Eurasian Natural Resources Corp (ENRC) plans to exercise an option to buy the shareholding from the three founding shareholders, who together own 43.8 percent of the London-listed miner, for $600 million plus assumed debt of $50 million.
As a related transaction, the acquisition will require approval from independent ENRC shareholders at a meeting due to be held on Nov. 7 and, if approved, could be completed by the end of next month, ENRC Chief Executive Felix Vulis told Reuters on Tuesday.
Vulis said he is "pretty confident" that the acquisition will get shareholder approval and that the amount to be paid is a fair price.
"We secured the deal when the price of coal was $45-55 a tonne, today it is twice as much," said Vulis. "We have been through a very thorough appraisal process," he said, noting that both advisors valued the deal in line with ENRC.
Credit Suisse advised ENRC and Lazard & Co. advised the independent non-executive directors.
FTSE 100 miner ENRC acquired a 25 percent stake in Shubarkol for $200 million in cash in February 2009.
The acquisition of Shubarkol, a thermal coal producer that produced about 6.0 million tonnes of coal last year will raise ENRC's coal production capacity in Kazakhstan to more than 25 million tonnes a year.
"This is an important strategic acquisition which secures reliable access to the supply of relatively high quality and low-cost thermal coal," Vulis said.
"We are consuming more than 1 mln tonnes of this coal within our enterprises in Kazakhstan," he said.
Current valuation levels for miners are close to the lows hit during the 2008 crisis, making potential targets cheap, and enabling cash-rich miners such as Glencore to lift minority stakes in existing companies.
ENRC has a 14.35 percent stake in Northam Platinum , a major South African platinum producer, that has seen its shares fall almost a third this year.
"We are pretty much considering our future development within this sector," Vulis said, adding that an announcement would be made in due course.
ENRC said it plans to use about 50 percent of the semi-coke and the majority of the coke produced by Shubarkol within its own operations and will sell the majority of the thermal coal to third-party customers.
Shubarkol has estimated proved and probable coal reserves of about 326.2 million tonnes, as of the start of this year.
Shares in ENRC were down 1 percent at 0959 GMT, in line with a British mining index .
"With an H1 2011 net debt of just $2 million, ENRC is well-placed to fund the acquisition however for us the proof will be in the pudding as ENRC increase product diversification and demonstrate the cost benefits of securing additional raw materials to drive its Kazakh businesses," said Liberum Capital analyst Ash Lazenby.
ENRC ended a long-awaited governance review on Sept. 28, unexpectedly confirming both the chairman and chief executive in their roles as part of a trimmer board that it hopes will revive its underperforming shares.
However, speculation about possible board changes has continued to be reported.
"I don't know where these rumours are coming from. I am very happy with the size of the board and I'm very happy with the review," Vulis said. (sourced Reuters)
* To pay up to $650 mln to buy stake from ENRC founders
* Acquisition to lift ENRC coal capacity to over 25 mtpa
* Independent shareholders to vote on deal on Nov 7
* CEO mulls future development within platinum sector
By Julie Crust
LONDON, Oct 11 (Reuters) - Miner ENRC plans to buy the outstanding 75 percent of Kazakh coal producer Shubarkol Komir from ENRC's founders for up to $650 million, giving it access to low-cost coal for its existing operations and expansion plans.
Eurasian Natural Resources Corp (ENRC) plans to exercise an option to buy the shareholding from the three founding shareholders, who together own 43.8 percent of the London-listed miner, for $600 million plus assumed debt of $50 million.
As a related transaction, the acquisition will require approval from independent ENRC shareholders at a meeting due to be held on Nov. 7 and, if approved, could be completed by the end of next month, ENRC Chief Executive Felix Vulis told Reuters on Tuesday.
Vulis said he is "pretty confident" that the acquisition will get shareholder approval and that the amount to be paid is a fair price.
"We secured the deal when the price of coal was $45-55 a tonne, today it is twice as much," said Vulis. "We have been through a very thorough appraisal process," he said, noting that both advisors valued the deal in line with ENRC.
Credit Suisse advised ENRC and Lazard & Co. advised the independent non-executive directors.
FTSE 100 miner ENRC acquired a 25 percent stake in Shubarkol for $200 million in cash in February 2009.
The acquisition of Shubarkol, a thermal coal producer that produced about 6.0 million tonnes of coal last year will raise ENRC's coal production capacity in Kazakhstan to more than 25 million tonnes a year.
"This is an important strategic acquisition which secures reliable access to the supply of relatively high quality and low-cost thermal coal," Vulis said.
"We are consuming more than 1 mln tonnes of this coal within our enterprises in Kazakhstan," he said.
Current valuation levels for miners are close to the lows hit during the 2008 crisis, making potential targets cheap, and enabling cash-rich miners such as Glencore to lift minority stakes in existing companies.
ENRC has a 14.35 percent stake in Northam Platinum , a major South African platinum producer, that has seen its shares fall almost a third this year.
"We are pretty much considering our future development within this sector," Vulis said, adding that an announcement would be made in due course.
ENRC said it plans to use about 50 percent of the semi-coke and the majority of the coke produced by Shubarkol within its own operations and will sell the majority of the thermal coal to third-party customers.
Shubarkol has estimated proved and probable coal reserves of about 326.2 million tonnes, as of the start of this year.
Shares in ENRC were down 1 percent at 0959 GMT, in line with a British mining index .
"With an H1 2011 net debt of just $2 million, ENRC is well-placed to fund the acquisition however for us the proof will be in the pudding as ENRC increase product diversification and demonstrate the cost benefits of securing additional raw materials to drive its Kazakh businesses," said Liberum Capital analyst Ash Lazenby.
ENRC ended a long-awaited governance review on Sept. 28, unexpectedly confirming both the chairman and chief executive in their roles as part of a trimmer board that it hopes will revive its underperforming shares.
However, speculation about possible board changes has continued to be reported.
"I don't know where these rumours are coming from. I am very happy with the size of the board and I'm very happy with the review," Vulis said. (sourced Reuters)
Friday, October 7, 2011
European benchmark coal for next year gains most in three weeks
Friday, 07 Oct 2011
Bloomberg reported that benchmark European coal advanced, heading for a highest daily gain in three weeks.
Thermal coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year increased 0.8% to USD 120 per tonne as of 10:35 AM in London. That would be the biggest one-day rise since September 15.
Bloomberg tracks data from information supplied by ICAP Plc, GFI Group Inc, Spectron Group Ltd, Credit Suisse Group AG, IHS McCloskey, Tradition Financial Services and Tullett Prebon Plc.
(Sourced from Bloomberg)
Bloomberg reported that benchmark European coal advanced, heading for a highest daily gain in three weeks.
Thermal coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year increased 0.8% to USD 120 per tonne as of 10:35 AM in London. That would be the biggest one-day rise since September 15.
Bloomberg tracks data from information supplied by ICAP Plc, GFI Group Inc, Spectron Group Ltd, Credit Suisse Group AG, IHS McCloskey, Tradition Financial Services and Tullett Prebon Plc.
(Sourced from Bloomberg)
Monday, August 29, 2011
Credit Suisse in first coking coal swap
Mon Aug 29, 2011
MANILA Aug 29 (Reuters) - Credit Suisse said on Monday it had completed the first ever coking coal swap transaction via a new over the counter contract cleared by the CME Group .
The contract was between Credit Suisse and an unnamed coal industry participant involving 60,000 tonnes of the steelmaking raw material and settled against the Platts Australian coking coal index, the investment bank said.
The Platts index stood at $289 per tonne, free on board Australia on Friday, Credit Suisse said.
The transaction comes more than three years after Credit Suisse and Deutsche Bank (DBKGn.DE: Quote) co-launched an over the counter iron ore paper market by offering cash-settled swaps settled against index-based reference prices.
"This is the missing piece of the jigsaw puzzle that enables mills to hedge all of their variable costs," Kristian Thunes, Credit Suisse's global head of freight and iron ore, said in a statement, adding the company expects the swap volumes to increase rapidly.
Officials at CME and Credit Suisse did not disclose the price, saying it was a private transaction.
Prices of hard coking coal are around $300 a tonne from about $200 a tonne a year ago, because of logistical bottlenecks and tighter supply due to flooding which hit top producer Australia earlier this year.
The size of the first swap trade "bodes well for future activity," said CME spokesman Jeremy Hughes.
The volume of iron ore swaps cleared globally rose to an all-time high of more than 4 million tonnes in July, valued at more than $700 million. The bulk of that, or 3.92 million tonnes, was cleared by the Singapore Exchange.
Spot iron ore prices climbed to record highs above $190 a tonne in mid-February, aided by booming demand from top steel producer China.
MANILA Aug 29 (Reuters) - Credit Suisse said on Monday it had completed the first ever coking coal swap transaction via a new over the counter contract cleared by the CME Group .
The contract was between Credit Suisse and an unnamed coal industry participant involving 60,000 tonnes of the steelmaking raw material and settled against the Platts Australian coking coal index, the investment bank said.
The Platts index stood at $289 per tonne, free on board Australia on Friday, Credit Suisse said.
The transaction comes more than three years after Credit Suisse and Deutsche Bank (DBKGn.DE: Quote) co-launched an over the counter iron ore paper market by offering cash-settled swaps settled against index-based reference prices.
"This is the missing piece of the jigsaw puzzle that enables mills to hedge all of their variable costs," Kristian Thunes, Credit Suisse's global head of freight and iron ore, said in a statement, adding the company expects the swap volumes to increase rapidly.
Officials at CME and Credit Suisse did not disclose the price, saying it was a private transaction.
Prices of hard coking coal are around $300 a tonne from about $200 a tonne a year ago, because of logistical bottlenecks and tighter supply due to flooding which hit top producer Australia earlier this year.
The size of the first swap trade "bodes well for future activity," said CME spokesman Jeremy Hughes.
The volume of iron ore swaps cleared globally rose to an all-time high of more than 4 million tonnes in July, valued at more than $700 million. The bulk of that, or 3.92 million tonnes, was cleared by the Singapore Exchange.
Spot iron ore prices climbed to record highs above $190 a tonne in mid-February, aided by booming demand from top steel producer China.
Thursday, August 25, 2011
GFI Group launches iron ore swaps trading on EnergyMatch platform
Thursday, 25 Aug 2011
Dow Jones reported that GFI Group Inc has launched iron ore swaps trading on its EnergyMatch platform in Europe amid a broad move to expand its product offerings on the platform.
According the company, it has now successfully traded a number of iron ore swap products on EnergyMatch Europe, GFI's online energy trading platform.
The move follows the July 2011 introduction of fuel oil trading on EnergyMatch Europe amid an increasing push by regulatory authorities to move trade onto electronic screens.
Mr Dorian Benson head of GFI Dry Freight Group said that "Iron Ore Swaps is another example of our focus on adding new products to EnergyMatch. We look forward to making further announcements as we continue expand our offerings."
An iron ore swap involves buying or selling at a fixed price against a floating price, like an index and is a relatively new feature of the iron ore industry. Liquidity is still an issue for the iron ore swaps market, which Credit Suisse and Deutsche Bank AG pioneered a couple of years ago.
(Sourced from Dow Jones Newswires)
Dow Jones reported that GFI Group Inc has launched iron ore swaps trading on its EnergyMatch platform in Europe amid a broad move to expand its product offerings on the platform.
According the company, it has now successfully traded a number of iron ore swap products on EnergyMatch Europe, GFI's online energy trading platform.
The move follows the July 2011 introduction of fuel oil trading on EnergyMatch Europe amid an increasing push by regulatory authorities to move trade onto electronic screens.
Mr Dorian Benson head of GFI Dry Freight Group said that "Iron Ore Swaps is another example of our focus on adding new products to EnergyMatch. We look forward to making further announcements as we continue expand our offerings."
An iron ore swap involves buying or selling at a fixed price against a floating price, like an index and is a relatively new feature of the iron ore industry. Liquidity is still an issue for the iron ore swaps market, which Credit Suisse and Deutsche Bank AG pioneered a couple of years ago.
(Sourced from Dow Jones Newswires)
Saturday, August 20, 2011
Africa may turn major iron ore exporter after 2020 - Analysts
Saturday, 20 Aug 2011
Reuters reported that Africa, regarded as the next iron ore frontier, is only likely to boost global supply from 2020 and only if countries overcome infrastructure and political hurdles.
Mr Phillip Killicoat iron ore manager at Credit Suisse commodities said that the market for iron ore, used in stainless steel production, is the second biggest commodity trading market in the world, valued at some USD 150 billion.
He said that of that, Africa accounts for only about 2%, although it holds some 20% of the world's resources. He added that "Africa has enormous potential, never mind the fact that the iron industry itself is growing at a rate even faster than global GDP, driven primarily by East Asia."
Steel demand, spurred by China's economic growth, has recovered more than anticipated in 2010, with future growth expected to be powered by emerging markets to 2015 and beyond. Africa, the world's poorest continent where many countries still rely on their minerals as a key foreign currency earner, hopes to cash in on this forecast amid good prices for iron ore.
Mr Yaoyun Xin MD at independent metals consultancy SMM Information and Technology told Reuters that "China is expected to increasingly turn to Africa to satisfy its iron ore needs as more Chinese companies look to invest or partner in mines."
Top global iron miners, including Rio Tinto, Vale and ArcelorMittal, have projects either in production or at an exploration stage in Africa, with three major iron ore bearing regions identified in the west, central and southern parts of the continent.
At the moment, Australia and Brazil are the two top global producers of the material, with South Africa being the only African country recognized as a major exporter, accounting for about 80% of the continent's total output.
Mr Ian Cope, global exploration manager for iron and coal at ArcelorMittal, said that "African projects are only expected to contribute less than 5 percent of the projected 47% growth in global iron ore demand by 2020. The potential is there but there are challenges and it's not a given that this ore will get out of Africa."
Mr Cope said that most of the iron ore in Africa was of a lower grade, although top grade hematite deposits were found in South Africa, the Democratic Republic of Congo and Guinea, where the promising Simandou deposit was in the process of being mined.
Mr Ernst Venter, a manager at Exxaro, said that "By 2025 we see it is possible that Africa can supply 200 million tonnes per annum of additional iron ore into the iron ore market."
He said the forecast excludes current expansion plans for the Sishen mine owned by Kumba Iron Ore, the world's 10th largest producer and the biggest in Africa.
(Sourced from www.reuters.com)
Reuters reported that Africa, regarded as the next iron ore frontier, is only likely to boost global supply from 2020 and only if countries overcome infrastructure and political hurdles.
Mr Phillip Killicoat iron ore manager at Credit Suisse commodities said that the market for iron ore, used in stainless steel production, is the second biggest commodity trading market in the world, valued at some USD 150 billion.
He said that of that, Africa accounts for only about 2%, although it holds some 20% of the world's resources. He added that "Africa has enormous potential, never mind the fact that the iron industry itself is growing at a rate even faster than global GDP, driven primarily by East Asia."
Steel demand, spurred by China's economic growth, has recovered more than anticipated in 2010, with future growth expected to be powered by emerging markets to 2015 and beyond. Africa, the world's poorest continent where many countries still rely on their minerals as a key foreign currency earner, hopes to cash in on this forecast amid good prices for iron ore.
Mr Yaoyun Xin MD at independent metals consultancy SMM Information and Technology told Reuters that "China is expected to increasingly turn to Africa to satisfy its iron ore needs as more Chinese companies look to invest or partner in mines."
Top global iron miners, including Rio Tinto, Vale and ArcelorMittal, have projects either in production or at an exploration stage in Africa, with three major iron ore bearing regions identified in the west, central and southern parts of the continent.
At the moment, Australia and Brazil are the two top global producers of the material, with South Africa being the only African country recognized as a major exporter, accounting for about 80% of the continent's total output.
Mr Ian Cope, global exploration manager for iron and coal at ArcelorMittal, said that "African projects are only expected to contribute less than 5 percent of the projected 47% growth in global iron ore demand by 2020. The potential is there but there are challenges and it's not a given that this ore will get out of Africa."
Mr Cope said that most of the iron ore in Africa was of a lower grade, although top grade hematite deposits were found in South Africa, the Democratic Republic of Congo and Guinea, where the promising Simandou deposit was in the process of being mined.
Mr Ernst Venter, a manager at Exxaro, said that "By 2025 we see it is possible that Africa can supply 200 million tonnes per annum of additional iron ore into the iron ore market."
He said the forecast excludes current expansion plans for the Sishen mine owned by Kumba Iron Ore, the world's 10th largest producer and the biggest in Africa.
(Sourced from www.reuters.com)
Tuesday, August 16, 2011
Palladon Ventures to produce 2 million tonne of iron ore from Iron Mountain project
Tuesday, 16 Aug 2011
Palladon Ventures owns a 19.3% stake in the largest iron mine in the Western United States. The mine, which is referred to as the Iron Mountain project, is scheduled to produce close to 2 million tonnes of iron ore in 2012 and potentially 4 million tonnes in 2013.
Up until a few weeks ago there was still some uncertainty regarding the project, but this uncertainty has almost entirely been removed.
The Iron Mountain project is based in Cedar City, Utah and is operated by CML Metals. The project has several iron ore deposits that have been historically drilled and proved by previous operators. At the moment, only one of these deposits is in NI 43-101 compliance, but CML is committed to drilling and proving these other deposits.
The key to the Iron Mountain project is a concentrate facility that is in the process of being built, and is scheduled for completion in late January of 2012. The concentrate facility will effectively take low grade ore of about 40%Fe and produce a significantly more valuable high grade ore called concentrate that will be around 67%Fe.
Up until a few weeks ago there was a small concern that CML may not be able to generate enough capital to complete the construction of the concentrate facility. The company had entered into a agreement with Credit Suisse to secure a two tranche USD 65 million dollar loan which would be used to build the facility. The first tranche of USD 20 million dollars was received this past January, and the second tranche of USD 25 million was to be given to CML only if it met certain requirements stipulated by the terms of the loan.
(sourced Seeking Alpha)
Palladon Ventures owns a 19.3% stake in the largest iron mine in the Western United States. The mine, which is referred to as the Iron Mountain project, is scheduled to produce close to 2 million tonnes of iron ore in 2012 and potentially 4 million tonnes in 2013.
Up until a few weeks ago there was still some uncertainty regarding the project, but this uncertainty has almost entirely been removed.
The Iron Mountain project is based in Cedar City, Utah and is operated by CML Metals. The project has several iron ore deposits that have been historically drilled and proved by previous operators. At the moment, only one of these deposits is in NI 43-101 compliance, but CML is committed to drilling and proving these other deposits.
The key to the Iron Mountain project is a concentrate facility that is in the process of being built, and is scheduled for completion in late January of 2012. The concentrate facility will effectively take low grade ore of about 40%Fe and produce a significantly more valuable high grade ore called concentrate that will be around 67%Fe.
Up until a few weeks ago there was a small concern that CML may not be able to generate enough capital to complete the construction of the concentrate facility. The company had entered into a agreement with Credit Suisse to secure a two tranche USD 65 million dollar loan which would be used to build the facility. The first tranche of USD 20 million dollars was received this past January, and the second tranche of USD 25 million was to be given to CML only if it met certain requirements stipulated by the terms of the loan.
(sourced Seeking Alpha)
Monday, July 18, 2011
Ratings agencies rattle cages in U.S., Europe
By Walter Brandimarte
NEW YORK (Reuters) - The credit ratings agencies are again angering governments, but this time they are taking on the big fish of the world economy.
From Washington to Brussels, Moody's, Standard & Poor's and Fitch have added to the intense pressure on governments trying to deal with crushing sovereign debt.
Their warnings about the precarious finances of the world's top economies have also roiled investors more accustomed to seeing emerging market countries take the brunt of criticism.
Tension hit new highs on both sides of the Atlantic last week as Moody's and Standard & Poor's threatened to downgrade the United States' prized "triple-A" rating.
A few days earlier, Moody's slashed ratings in Ireland and Portugal to "junk" status, triggering an outcry from European officials.
"These opinions, they continue to give them in such a way that it worsens the crisis," Ewald Nowotny, a member of the European Central governing council, said on Tuesday, referring to the agencies. He said markets could live without them.
Now that the agencies are focusing their fire on the rich world, U.S. and European officials -- long proponents of seeing indebted nations "take their medicine" -- are crying foul.
Their complaints carry a strong sense of deja-vu.
In 1998, when Moody's pushed Brazil deeper into "junk" rating territory, the country's finance ministry called the decision a "mistake" that showed the agency needed to invest more in sovereign risk analysis.
In a sign of the turnaround of the fortunes of many emerging economies, 11 years later in its New York headquarters Moody's received a much friendlier Brazilian finance minister, Guido Mantega, to hand him Brazil's much-awaited "investment-grade" status.
The question now is whether the agencies will be able to withstand much stronger political pressures while the debt crisis rages in developed countries.
In Europe and the United States, policymakers have already promised tougher regulations for the agencies after they failed to spot the housing bubble in the middle of the last decade and stand accused of contributing to it by giving generous ratings to subprime mortgage bonds.
Rating agencies came under fire from holders of subprime-related securities because raters are paid by the firms issuing the securities. Investors argued that kind of "economic incentive" blurred the analysis.
Sovereign nations, by contrast, do not shell out any money for their ratings.
That has not lessened the political anger. On Wednesday, U.S. Congressman Dennis Kucinich said: "No nation, agency or organization has the authority to dictate terms to the United States government. Moody's and its compatriot S&P were a direct cause of the near collapse of the economy of the United States."
EUROPEAN RATING AGENCY
In Europe, where the agencies poured cold water on a plan for Greece to extend debt maturities and avoid a default, sentiment is even worse. European Commission President Jose Manuel Barroso accused them of having an anti-European bias.
Barroso and other policymakers want the creation of an European rating agency which, they argue, would be better equipped to analyse euro zone issues. That argument overlooks the fact that Fitch is majority-owned by a French company.
The intensity of Europe's reaction to the latest sovereign downgrades is proportional to the power that ratings agencies retain over financial markets -- a clout that even the ratings agencies suggest is exaggerated.
In a recent special report about proposed regulation changes, Moody's said the agencies should not be seen as "gatekeepers in the financial markets" and their ratings should not be used as substitutes for disclosure by issuers.
WRONG TIMING
Some say policy makers may have a point when they criticize the timing of the downgrades by ratings agencies.
Their failure to anticipate the severe deterioration of sovereign credit was an issue in emerging market debt crises in the past, said Claudio Loser, a former Western hemisphere director for the International Monetary Fund.
"My experience with the rating agencies in Latin America during the debt crisis of the 1980s and 1990s is that they were a destabilizing factor," said Loser, now president of the Centennial Latin America consulting firm.
"They did not warn the markets when they should have and they did actually create more noise when it was not the appropriate thing to do."
Loser believes policymakers will force the agencies to "adjust significantly," and that they will emerge stronger from this crisis.
Tuesday, February 15, 2011
Miners push European shares to 29-mth closing high
17:50, Monday 14 February 2011
* FTSEurofirst 300 (E3X.FGI - news) up 0.3 pct
* Commodity (COMIN.NX - news) stocks gain on China import data
* Banks (SBK.NX - news) lower ahead of sector results
LONDON, Feb 14 (Reuters) - European shares hit a 29-month closing high on Monday, with miners up after Chinese trade data highlighted strong demand for raw material and as talk of easing inflation in the country capped fears of further tightening.
The pan-European FTSEurofirst 300 index of top shares closed 0.3 percent higher at 1,177.86 points, its highest close since early September 2008.
The index, up 3 percent this month, has rebounded almost 83 percent since hitting a record low in March 2009.
Miners in the STOXX Europe 600 basic resources index rose 1.6 percent as copper prices neared record highs after data showed a fall in China's trade surplus to a nine-month low, following surprisingly strong imports, notably of copper.
"The import data reaffirms the growth story in China and helps to give confidence in mining companies that interest rate rises are not going to suppress metal demand in the medium term," said Joshua Raymond, market strategist at City Index.
Traders also said there was talk China's consumer price index (CPI (Berlin: CEJ.BE - news) ) may have risen 4.9 percent in the year to January, well below the forecast of 5.3 percent, adding that might be because of weighting changes in the CPI.
"Inflation has been the major worry and there has been a fear of monetary overkill, but until the (inflation) data is released (on Tuesday) we could see a bit of volatility," said Heino Ruland, strategist at Ruland Research in Frankfurt.
Share (LSE: SHRE.L - news) price gains were kept in check by falls in heavyweight banking stocks ahead of sector earnings results due this week. Societe Generale (Paris: FR0000130809 - news) and BNP Paribas (BNPQF.PK - news) , which report this week, both shed around 1.2 percent while Lloyds Banking Group fell 1.7 percent.
Bucking the trend, Credit Suisse (CSMA - news) gained 1.9 percent after the Swiss bank said it will issue 6 billion Swiss francs ($6.2 billion) of contingent convertible capital bonds, or CoCos, to satisfy stricter capital rules. [ID:nLDE71D039]
ARM Holdings (LSE: ARM.L - news) rose 6.6 percent as traders cited bullish notes from Goldman Sachs (NYSE: GS - news) and Morgan Stanley (DWDF.EX - news) on its outlook. Nearly all the world's mobile phones and tablets use the company's low-power technology.
France's Thales (Hamburg: CSF.HM - news) rebounded from earlier losses to rise 4.6 percent, as investors brushed aside a profit warning from the defence company. [ID:nLDE71D0BM]
Cementing expectations of a pick-up in merger and acquisition activity, British energy services provider John Wood Group surged 13.9 percent after U.S. conglomerate General Electric bought a unit of the company for $2.8 billion.
(Reporting by Joanne Frearson;Editing by David Hulmes,sourced:resuters)
Tags:FTSEurofirst, Commodities, European market, shares, Chinease trade data, strong demand, raw materials, STOXX Europe, traders, Credit Suisse, ARM Holdings, Goldman Sachs Group Inc.,Thales, John Wood group, General Electric.
* FTSEurofirst 300 (E3X.FGI - news) up 0.3 pct
* Commodity (COMIN.NX - news) stocks gain on China import data
* Banks (SBK.NX - news) lower ahead of sector results
LONDON, Feb 14 (Reuters) - European shares hit a 29-month closing high on Monday, with miners up after Chinese trade data highlighted strong demand for raw material and as talk of easing inflation in the country capped fears of further tightening.
The pan-European FTSEurofirst 300 index of top shares closed 0.3 percent higher at 1,177.86 points, its highest close since early September 2008.
The index, up 3 percent this month, has rebounded almost 83 percent since hitting a record low in March 2009.
Miners in the STOXX Europe 600 basic resources index rose 1.6 percent as copper prices neared record highs after data showed a fall in China's trade surplus to a nine-month low, following surprisingly strong imports, notably of copper.
"The import data reaffirms the growth story in China and helps to give confidence in mining companies that interest rate rises are not going to suppress metal demand in the medium term," said Joshua Raymond, market strategist at City Index.
Traders also said there was talk China's consumer price index (CPI (Berlin: CEJ.BE - news) ) may have risen 4.9 percent in the year to January, well below the forecast of 5.3 percent, adding that might be because of weighting changes in the CPI.
"Inflation has been the major worry and there has been a fear of monetary overkill, but until the (inflation) data is released (on Tuesday) we could see a bit of volatility," said Heino Ruland, strategist at Ruland Research in Frankfurt.
Share (LSE: SHRE.L - news) price gains were kept in check by falls in heavyweight banking stocks ahead of sector earnings results due this week. Societe Generale (Paris: FR0000130809 - news) and BNP Paribas (BNPQF.PK - news) , which report this week, both shed around 1.2 percent while Lloyds Banking Group fell 1.7 percent.
Bucking the trend, Credit Suisse (CSMA - news) gained 1.9 percent after the Swiss bank said it will issue 6 billion Swiss francs ($6.2 billion) of contingent convertible capital bonds, or CoCos, to satisfy stricter capital rules. [ID:nLDE71D039]
ARM Holdings (LSE: ARM.L - news) rose 6.6 percent as traders cited bullish notes from Goldman Sachs (NYSE: GS - news) and Morgan Stanley (DWDF.EX - news) on its outlook. Nearly all the world's mobile phones and tablets use the company's low-power technology.
France's Thales (Hamburg: CSF.HM - news) rebounded from earlier losses to rise 4.6 percent, as investors brushed aside a profit warning from the defence company. [ID:nLDE71D0BM]
Cementing expectations of a pick-up in merger and acquisition activity, British energy services provider John Wood Group surged 13.9 percent after U.S. conglomerate General Electric bought a unit of the company for $2.8 billion.
(Reporting by Joanne Frearson;Editing by David Hulmes,sourced:resuters)
Tags:FTSEurofirst, Commodities, European market, shares, Chinease trade data, strong demand, raw materials, STOXX Europe, traders, Credit Suisse, ARM Holdings, Goldman Sachs Group Inc.,Thales, John Wood group, General Electric.
Tuesday, February 8, 2011
Ukraine's Metinvest sells $750 mln Eurobond
Tue Feb 8, 2011 8:52am GMT
KIEV Feb 8 (Reuters) - Ukrainian steelmaker Metinvest has placed a $750 million seven-year Eurobond with a yield of 9.0 percent, Thomson Reuters service IFR said on Tuesday.
The bond, arranged by Credit Suisse, Deutsche Bank, ING, RBS and VTB Capital, pays a coupon of 8.75 percent and came at a reoffer price of 98.722 percent of face value, equivalent to 598.8 bp over Treasuries, IFR said. (Writing by Olzhas Auyezov; Editing by Richard Balmforth,sourced:Reuters)
KIEV Feb 8 (Reuters) - Ukrainian steelmaker Metinvest has placed a $750 million seven-year Eurobond with a yield of 9.0 percent, Thomson Reuters service IFR said on Tuesday.
The bond, arranged by Credit Suisse, Deutsche Bank, ING, RBS and VTB Capital, pays a coupon of 8.75 percent and came at a reoffer price of 98.722 percent of face value, equivalent to 598.8 bp over Treasuries, IFR said. (Writing by Olzhas Auyezov; Editing by Richard Balmforth,sourced:Reuters)
Friday, February 4, 2011
Japanese Steel Takeover Driven by `Radical' Shift as Costs Rise
Feb 4, 2011 2:12 PM GMT+0530
By Masumi Suga and Rebecca Keenan
Nippon Steel Corp. and Sumitomo Metal Industries Ltd.’s plan to create the world’s second-largest steelmaker is aimed at gaining leverage over raw-material purchases and metal pricing as costs soar. Shares in both companies surged the most in more than two years today.
Based on Sumitomo’s market value and net debt, the deal would be worth more than 2 trillion yen ($24.5 billion), according to data compiled by Bloomberg. Yesterday’s announcement of the accord, which may be Japan’s biggest non- bank takeover, said it would be completed by October 2012.
Steelmakers in Japan, the world’s second-biggest producer of the alloy, are seeing profits squeezed while market-leader China encourages consolidation to create globally competitive companies. Rising costs for iron ore and coking coal used to make steel forced Nippon Steel to cut its full-year earnings forecast last week. Sumitomo Metal did the same today.
“The purpose of this merger is to fend off competition from rivals in China, South Korea and India,” said Takashi Murata, an analyst at Daiwa Securities Capital Markets Co. in Tokyo. A bigger company has more clout to negotiate raw-material costs and set steel prices for buyers including automakers, he said.
Share Reaction
Sumitomo Metal Industries rose 16 percent to 224 yen at the close of trading in Tokyo for the biggest advance since Oct. 30, 2008. Nippon Steel ended at 313 yen, up 9.1 percent, after rising as much as 14.3 percent, the most since Oct. 28, 2008.
Before today, Nippon Steel shares had fallen 16 percent in the past year, compared with a 3.2 percent decline for Luxembourg-based ArcelorMittal and a 17 percent drop for South Korea’s Posco, the world’s third-biggest producer. Sumitomo Metal had fallen 26 percent in the year before today.
The proposed merger between Sumitomo Metal Industries and Nippon Steel will create synergies for both companies as well as benefit “the wider steel industry by helping to increase pricing and margins,” Goldman Sachs Group Inc. analysts Rajeev Das and Nana Hasegawa said in a report today.
The merger is positive for Nippon Steel because of benefits arising from the combined size of the two companies, Standard & Poor’s said today in a statement.
‘Radical Change’
A combination of the two producers, which haven’t outlined terms of the transaction, would form the world’s second-largest steelmaker, based on output of 47.8 million metric tons in 2010, Sumitomo Metal Industries President Hiroshi Tomono said at a press briefing yesterday. ArcelorMittal is the biggest producer.
“We see a radical change in the business environment surrounding the Japanese steel industry,” Muneoka told reporters at the briefing.
Nippon Steel, formerly the world’s second-largest steelmaker by production, lost that rank in 2009 after being overtaken by five Chinese mills, according to the American Institute for International Steel.
Meantime, rivals are expanding, with South Korea’s Posco on Jan. 31 winning approval for a $12 billion steel plant in India, the biggest single foreign investment in the country.
“It’s very important Japanese steelmakers be globally competitive,” said Japanese Economy Minister Kaoru Yosano today. The planned merger of Nippon Steel and Sumitomo Metal Industries is “welcomed” he said.
Steel Demand
Steel consumption may rise 5.3 percent this year to a record, according to World Steel Association forecasts. Iron ore prices rose last year after Rio Tinto Group, BHP Billiton Ltd. and Vale SA, the biggest suppliers, shifted away from annual pricing to quarterly agreements.
The price of iron ore will be 21 percent higher on average this year, Credit Suisse Group AG said in a Jan. 7 report. The spot price of ore delivered to China including freight will average $178 a ton, the report forecast. That compares with $147 in 2010, according to The Steel Index.
Floods in Australia’s Queensland state closed mines and further pushed up coking-coal prices. Free-on-board prices may surge to $400 a ton for the three-month contract starting April 1, from $225 this quarter, Bank of America Merrill Lynch said last month.
“It’s all about lowering costs and enhancing margins,” Gavin Wendt, a senior resources analyst at Mine Life Pty in Sydney, said by phone. “While demand for steel is quite strong, one of the problems for steelmakers around the world is rising costs. It may give them more leverage when it comes to dealing with the miners.”
(sourced: bloomberg.com)
By Masumi Suga and Rebecca Keenan
Nippon Steel Corp. and Sumitomo Metal Industries Ltd.’s plan to create the world’s second-largest steelmaker is aimed at gaining leverage over raw-material purchases and metal pricing as costs soar. Shares in both companies surged the most in more than two years today.
Based on Sumitomo’s market value and net debt, the deal would be worth more than 2 trillion yen ($24.5 billion), according to data compiled by Bloomberg. Yesterday’s announcement of the accord, which may be Japan’s biggest non- bank takeover, said it would be completed by October 2012.
Steelmakers in Japan, the world’s second-biggest producer of the alloy, are seeing profits squeezed while market-leader China encourages consolidation to create globally competitive companies. Rising costs for iron ore and coking coal used to make steel forced Nippon Steel to cut its full-year earnings forecast last week. Sumitomo Metal did the same today.
“The purpose of this merger is to fend off competition from rivals in China, South Korea and India,” said Takashi Murata, an analyst at Daiwa Securities Capital Markets Co. in Tokyo. A bigger company has more clout to negotiate raw-material costs and set steel prices for buyers including automakers, he said.
Share Reaction
Sumitomo Metal Industries rose 16 percent to 224 yen at the close of trading in Tokyo for the biggest advance since Oct. 30, 2008. Nippon Steel ended at 313 yen, up 9.1 percent, after rising as much as 14.3 percent, the most since Oct. 28, 2008.
Before today, Nippon Steel shares had fallen 16 percent in the past year, compared with a 3.2 percent decline for Luxembourg-based ArcelorMittal and a 17 percent drop for South Korea’s Posco, the world’s third-biggest producer. Sumitomo Metal had fallen 26 percent in the year before today.
The proposed merger between Sumitomo Metal Industries and Nippon Steel will create synergies for both companies as well as benefit “the wider steel industry by helping to increase pricing and margins,” Goldman Sachs Group Inc. analysts Rajeev Das and Nana Hasegawa said in a report today.
The merger is positive for Nippon Steel because of benefits arising from the combined size of the two companies, Standard & Poor’s said today in a statement.
‘Radical Change’
A combination of the two producers, which haven’t outlined terms of the transaction, would form the world’s second-largest steelmaker, based on output of 47.8 million metric tons in 2010, Sumitomo Metal Industries President Hiroshi Tomono said at a press briefing yesterday. ArcelorMittal is the biggest producer.
“We see a radical change in the business environment surrounding the Japanese steel industry,” Muneoka told reporters at the briefing.
Nippon Steel, formerly the world’s second-largest steelmaker by production, lost that rank in 2009 after being overtaken by five Chinese mills, according to the American Institute for International Steel.
Meantime, rivals are expanding, with South Korea’s Posco on Jan. 31 winning approval for a $12 billion steel plant in India, the biggest single foreign investment in the country.
“It’s very important Japanese steelmakers be globally competitive,” said Japanese Economy Minister Kaoru Yosano today. The planned merger of Nippon Steel and Sumitomo Metal Industries is “welcomed” he said.
Steel Demand
Steel consumption may rise 5.3 percent this year to a record, according to World Steel Association forecasts. Iron ore prices rose last year after Rio Tinto Group, BHP Billiton Ltd. and Vale SA, the biggest suppliers, shifted away from annual pricing to quarterly agreements.
The price of iron ore will be 21 percent higher on average this year, Credit Suisse Group AG said in a Jan. 7 report. The spot price of ore delivered to China including freight will average $178 a ton, the report forecast. That compares with $147 in 2010, according to The Steel Index.
Floods in Australia’s Queensland state closed mines and further pushed up coking-coal prices. Free-on-board prices may surge to $400 a ton for the three-month contract starting April 1, from $225 this quarter, Bank of America Merrill Lynch said last month.
“It’s all about lowering costs and enhancing margins,” Gavin Wendt, a senior resources analyst at Mine Life Pty in Sydney, said by phone. “While demand for steel is quite strong, one of the problems for steelmakers around the world is rising costs. It may give them more leverage when it comes to dealing with the miners.”
(sourced: bloomberg.com)
Tuesday, February 1, 2011
Over 20 investment banks HSBC, Deutsche, Credit Suisse, Citi and more banks to pitch for Mongolian mine privatization
Tuesday, Feb1, 2011
Over 20 investment banks will next month submit written proposals for the privatisation of Mongolia's Tavan Tolgoi coal mines that could value it at up to $8 billion, The Independent on Jan 30 reported.
The newspaper said bankers from HSBC, Deutsche, Credit Suisse, Citi and Macquarie are among those who will present proposals to list the coal group in either Hong Kong, London or give it a dual listing.
It said presentations will be held between Feb 10 and 15 in the Mongolian capital Ulan Bator, with six banks expected to win roles in the flotation, expected by the first half of next year.
Tavan Tolgoi, which could become one of the world's largest coal mines, is owned by Mongolian government entity Erdenes MGL. (sourced:reuters)
Over 20 investment banks will next month submit written proposals for the privatisation of Mongolia's Tavan Tolgoi coal mines that could value it at up to $8 billion, The Independent on Jan 30 reported.
The newspaper said bankers from HSBC, Deutsche, Credit Suisse, Citi and Macquarie are among those who will present proposals to list the coal group in either Hong Kong, London or give it a dual listing.
It said presentations will be held between Feb 10 and 15 in the Mongolian capital Ulan Bator, with six banks expected to win roles in the flotation, expected by the first half of next year.
Tavan Tolgoi, which could become one of the world's largest coal mines, is owned by Mongolian government entity Erdenes MGL. (sourced:reuters)
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