Thu Nov 3, 2011
* Group expects to appoint adviser for bidding soon-sources
* New Hope has market value of $5.2 bln
* Birla group needs thermal coal for aluminium, cement units
By Sumeet Chatterjee
MUMBAI (Reuters) - India's diversified Aditya Birla Group is considering bidding for Australia's New Hope Corp , a $5 billion coal miner that put itself up for auction last month, sources with direct knowledge said on Wednesday.
The group, a telecoms-to-cement conglomerate, requires thermal coal for group companies Hindalco Industries , India's top aluminium producer, and UltraTech Cement , the country's largest cement producer.
The group is expected to appoint an adviser for the bidding process soon, two sources with direct knowledge of the situation told Reuters. They declined to be named as the information is not public yet.
Tuhin Mukherjee, managing director of Aditya Birla Natural Resources, declined to comment.
New Hope is considering a break-up and asset sales amid interest from global resource companies, sources said last month.
Among those interested in the Queensland-based thermal coal producer are India's No.3 steelmaker, JSW Steel , China's Yanzhou Coal Mining Co Ltd and London-listed Xstrata , the sources had said.
Aditya Birla Group, a $35 billion conglomerate that gets 60 percent of its revenue from its overseas operations, is unlikely to face a problem in financing a possible deal, the sources said .
New Hope is among the last few major coal companies left in resource-rich Australia after a flurry of recent takeovers consolidated the industry.
The Australian miner's New Acland mine, west of Brisbane, produces thermal coal used in power plants. New Hope sells about 65 percent of its coal overseas and the remaining to the domestic market.
New Hope's wholly owned port facility makes it attractive to potential suitors, but the sale process is complicated by its ownership structure and the high price tag, bankers and analysts had said last month.
India holds 10 percent of the world's coal reserves but local supplies are falling short of demand as the country builds more power plants, and as domestic coal projects run into environmental and land acquisition delays.
Indian energy firms have been scouting for coal assets overseas to feed power plants at home, and have been raising funds for potential overseas acquisitions and expanding facilities.
The energy-hungry nation aims to halve a near-14 percent peak-hour power deficit within two years .
India's GVK Power & Infrastructure said in September it would pay $1.26 billion for a majority stake in three Australian coal mines and a port and rail project owned by heiress Gina Rinehart's Hancock Group.
In August, GMR Infrastructure , with interests in airports, energy and highways, said its unit has entered into a pact to acquire a 30 percent stake in Indonesia's Golden Energy Mines for $450 million to $550 million in cash.
(sourced Reuters)
Showing posts with label Indian investment in Autralian coal reserve. Show all posts
Showing posts with label Indian investment in Autralian coal reserve. Show all posts
Thursday, November 3, 2011
Tuesday, October 25, 2011
JSW Steel bidding for Australian coal miner New Hope - Report
Tuesday, 25 Oct 2011
Bloomberg quoted two people familiar with the plans as saying that JSW Steel Ltd is considering a bid for New Hope Corp the Australian coal producer valued at AUD 5 billion.
According to the people with knowledge of the plan who asked not to be identified because the discussions are at an early stage the company is studying the assets and may make an offer.
One of the people said without giving details JSW will look at ways to raise money to fund the acquisition either on its own or through a venture.
Buying New Hope, based in Ipswich, Queensland state, would give JSW thermal coal mines and an export terminal. New Hope which operates the Acland coal mine in Queensland said on October 5 that selected groups will be invited to submit offers in a process that is likely to take months.
Mr Abhisar Jain an analyst at Centrum Broking Pvt in Mumbai said “The New Hope asset is very big and will help the energy unit of JSW to secure raw material. It will be a huge task for someone like JSW to raise money for such an asset.”
(Sourced from Bloomberg)
Bloomberg quoted two people familiar with the plans as saying that JSW Steel Ltd is considering a bid for New Hope Corp the Australian coal producer valued at AUD 5 billion.
According to the people with knowledge of the plan who asked not to be identified because the discussions are at an early stage the company is studying the assets and may make an offer.
One of the people said without giving details JSW will look at ways to raise money to fund the acquisition either on its own or through a venture.
Buying New Hope, based in Ipswich, Queensland state, would give JSW thermal coal mines and an export terminal. New Hope which operates the Acland coal mine in Queensland said on October 5 that selected groups will be invited to submit offers in a process that is likely to take months.
Mr Abhisar Jain an analyst at Centrum Broking Pvt in Mumbai said “The New Hope asset is very big and will help the energy unit of JSW to secure raw material. It will be a huge task for someone like JSW to raise money for such an asset.”
(Sourced from Bloomberg)
Saturday, October 1, 2011
Legacy Iron Ore expounds on rationale for NMDC proposed investment
Saturday, 01 Oct 2011
Proactive Investors reported that Legacy Iron Ore said that India’s National Mineral Development Corporation, which has proposed an equity investment in Legacy, was committed to using Legacy for further acquisitions in bulk commodities.
Several projects have already been reviewed by NMDC and Legacy, including an established JORC compliant coal project. The strategy behind the proposed cornerstone 50% investment by NMDC in Legacy was outlined today.
NMDC also had the capacity to deliver large scale financing through lines of credit and off-take financing, provides Legacy with unrivalled long-term development security and access to additional opportunities.
Mr Rana Som NMDC Chairman said recently "With our expertise in iron ore mining and steel-making and their exploration expertise, we will make a perfect synergy for both the companies. Simultaneously, it will provide us a ready-made foothold in Australia."
Mr Sharon Heng Chief executive of Legacy said there were considerable benefits to shareholders. He said that “Legacy Iron Ore has taken a first mover advantage in securing a highly desirable cornerstone investor who can contribute significantly to the company ability to grow value and develop ongoing assets and acquisitions regardless of financial market conditions.”
The proposed equity participation by cornerstone investor NMDC is a critical enabler and first step in executing on this strategy.
The investment by NMDC is an Australian first providing Legacy with first mover advantage to drive shareholder value.
Since this investment and strategic alliance, Jupiter Mines' market capitalization has increased from approximately USD 42 million to USD 528 million at present.
Specifically, the benefits for Legacy shareholders from the NMDC strategic plan were seen as:
1. Unlocking hidden shareholder value, through the spin-off of core and non-core assets
2. The acquisition of new projects. Potential projects are currently being assessed
3. Project financing in general, but in particular, the potential to take the Mt Bevan Iron Project from exploration to production, once Legacy has secured its 60% Joint Venture interest from Hawthorn Resources Limited, after spending USD 3.5 million. Significant work is underway to underpin this outcome, which will be the subject of a later release
4. Ability to develop the necessary infrastructure in the Central Yilgarn area
5. Development funding for a range of existing and potential projects
6. Underwriting of future capital raisings to ensure funding is available to move projects forward, irrespective of global financial market cycles
7. Practical experience in large scale iron ore resource development and production
8. Mineral research and development capabilities
9. Off-take access to proven and ready purchasers in Japan, South Korea and China
Mt Bevan is a joint venture between Legacy and Hawthorn Resources hereby Legacy will earn a 60% interest in the project by expending a minimum of USD 3.5 million to develop the project to a pre-feasibility status.
(sourced from ProActiveInvestors)
Proactive Investors reported that Legacy Iron Ore said that India’s National Mineral Development Corporation, which has proposed an equity investment in Legacy, was committed to using Legacy for further acquisitions in bulk commodities.
Several projects have already been reviewed by NMDC and Legacy, including an established JORC compliant coal project. The strategy behind the proposed cornerstone 50% investment by NMDC in Legacy was outlined today.
NMDC also had the capacity to deliver large scale financing through lines of credit and off-take financing, provides Legacy with unrivalled long-term development security and access to additional opportunities.
Mr Rana Som NMDC Chairman said recently "With our expertise in iron ore mining and steel-making and their exploration expertise, we will make a perfect synergy for both the companies. Simultaneously, it will provide us a ready-made foothold in Australia."
Mr Sharon Heng Chief executive of Legacy said there were considerable benefits to shareholders. He said that “Legacy Iron Ore has taken a first mover advantage in securing a highly desirable cornerstone investor who can contribute significantly to the company ability to grow value and develop ongoing assets and acquisitions regardless of financial market conditions.”
The proposed equity participation by cornerstone investor NMDC is a critical enabler and first step in executing on this strategy.
The investment by NMDC is an Australian first providing Legacy with first mover advantage to drive shareholder value.
Since this investment and strategic alliance, Jupiter Mines' market capitalization has increased from approximately USD 42 million to USD 528 million at present.
Specifically, the benefits for Legacy shareholders from the NMDC strategic plan were seen as:
1. Unlocking hidden shareholder value, through the spin-off of core and non-core assets
2. The acquisition of new projects. Potential projects are currently being assessed
3. Project financing in general, but in particular, the potential to take the Mt Bevan Iron Project from exploration to production, once Legacy has secured its 60% Joint Venture interest from Hawthorn Resources Limited, after spending USD 3.5 million. Significant work is underway to underpin this outcome, which will be the subject of a later release
4. Ability to develop the necessary infrastructure in the Central Yilgarn area
5. Development funding for a range of existing and potential projects
6. Underwriting of future capital raisings to ensure funding is available to move projects forward, irrespective of global financial market cycles
7. Practical experience in large scale iron ore resource development and production
8. Mineral research and development capabilities
9. Off-take access to proven and ready purchasers in Japan, South Korea and China
Mt Bevan is a joint venture between Legacy and Hawthorn Resources hereby Legacy will earn a 60% interest in the project by expending a minimum of USD 3.5 million to develop the project to a pre-feasibility status.
(sourced from ProActiveInvestors)
Thursday, September 8, 2011
India's GVK bid for Australia's Hancock delayed over valuation-sources
Thu Sep 8, 2011
SYDNEY/MUMBAI, Sept 8 (Reuters) - Efforts to finalise a $2 billion-plus bid by India's GVK Power & Infrastructure for two Australian coal mines owned by Hancock Prospecting have been delayed due to differences over valuation, sources familiar with the situation said on Thursday.
GVK had been due to announce the long-awaited deal this week but Hancock's owner, Gina Rinehart, had sought last-minute changes to the agreement, one of the sources told Reuters.
GVK's negotiations to buy the Alpha Coal and Kevin's Corner mines began in February. Deadlines for exclusive talks between the two sides have been extended repeatedly throughout the year, according to other sources.
Finalising the deal had been delayed mainly due to "some valuation issues", one of the sources told Reuters.
A second source said there was no indication how long it would take to resolve the latest differences or whether they might lead to the deal's collapse.
Hancock and GVK did not immediately respond to calls for comment.
India's Economic Times said last month GVK planned to pay $2.2 billion for the mines. As part of the deal the company would pay $900 million to develop transport infrastructure to carry the coal to the port, the newspaper said.
A $1.2 billion loan would be provided by banks to back the bid, banking sources told Thomson Reuters' Basis Point.
The banks include ICICI Bank , Axis Bank , Bank of Baroda and Bank of India. Standard Chartered had dropped out of financing of the deal, sources said.
India holds 10 percent of the world's coal reserves, but local supplies are falling short of demand as the country builds more power plants, and as domestic coal projects run into environmental and land acquisition delays.
Indian energy firms have been scouting for coal assets overseas to feed power plants at home, and have been raising funds for potential overseas acquisitions and expanding facilities.
SYDNEY/MUMBAI, Sept 8 (Reuters) - Efforts to finalise a $2 billion-plus bid by India's GVK Power & Infrastructure for two Australian coal mines owned by Hancock Prospecting have been delayed due to differences over valuation, sources familiar with the situation said on Thursday.
GVK had been due to announce the long-awaited deal this week but Hancock's owner, Gina Rinehart, had sought last-minute changes to the agreement, one of the sources told Reuters.
GVK's negotiations to buy the Alpha Coal and Kevin's Corner mines began in February. Deadlines for exclusive talks between the two sides have been extended repeatedly throughout the year, according to other sources.
Finalising the deal had been delayed mainly due to "some valuation issues", one of the sources told Reuters.
A second source said there was no indication how long it would take to resolve the latest differences or whether they might lead to the deal's collapse.
Hancock and GVK did not immediately respond to calls for comment.
India's Economic Times said last month GVK planned to pay $2.2 billion for the mines. As part of the deal the company would pay $900 million to develop transport infrastructure to carry the coal to the port, the newspaper said.
A $1.2 billion loan would be provided by banks to back the bid, banking sources told Thomson Reuters' Basis Point.
The banks include ICICI Bank , Axis Bank , Bank of Baroda and Bank of India. Standard Chartered had dropped out of financing of the deal, sources said.
India holds 10 percent of the world's coal reserves, but local supplies are falling short of demand as the country builds more power plants, and as domestic coal projects run into environmental and land acquisition delays.
Indian energy firms have been scouting for coal assets overseas to feed power plants at home, and have been raising funds for potential overseas acquisitions and expanding facilities.
Monday, August 15, 2011
Newmont in talks over Australia coal assets sale
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)
Sunday, August 14, 2011
Coal India Ltd wants government to relax investment rules for 2 overseas mines
14 Aug, 2011
KOLKATA: The world's largest coal miner Coal India Ltd has zeroed in on two overseas coal assets, one in Australia and the other in Indonesia, for acquisition and expects to begin serious dialogue with the owners soon.
"At this moment, we have shortlisted two unlisted coal companies, one in Australia and one in Indonesia. We are awaiting some relaxations from the government to go ahead with serious negotiations," a top CIL official, who declined to be named, said.
"Names cannot be divulged for obvious reasons, but both have close to five million tonnes of coal. The Indonesian company has several blocks, while the Australian company has one large block," he said.
The official said there was no major contender for these blocks.
The PSU has put together a war-chest of Rs 6,000 crore for acquisition of the mines.
"The level of stake is yet to be decided, depending on various factors like valuation," the official said.
CIL was likely to take a stake between 30-40 per cent in these coal assets.
In this regard, CIL has approached the Finance Ministry and government for relaxation of PSU guidelines stipulating a minimum 12 per cent internal rate of return on investments. It has also sought to sidestep the rule that only the mines of listed companies should be acquired.
"CIL is expecting to receive the relaxations by August," Coal Secretary Alok Perti said.
Coal India is trying seriously for some coal equity on its own, besides partnering with Coal Videsh, a JV company formed between Indian PSUs, to buy assets overseas.
Besides buying a stake in coal companies, CIL was also at an advanced stage of finalising a long-term coal supply agreement with foreign sources.
India currently faces a coal demand-supply shortfall of 142 million tonnes.
KOLKATA: The world's largest coal miner Coal India Ltd has zeroed in on two overseas coal assets, one in Australia and the other in Indonesia, for acquisition and expects to begin serious dialogue with the owners soon.
"At this moment, we have shortlisted two unlisted coal companies, one in Australia and one in Indonesia. We are awaiting some relaxations from the government to go ahead with serious negotiations," a top CIL official, who declined to be named, said.
"Names cannot be divulged for obvious reasons, but both have close to five million tonnes of coal. The Indonesian company has several blocks, while the Australian company has one large block," he said.
The official said there was no major contender for these blocks.
The PSU has put together a war-chest of Rs 6,000 crore for acquisition of the mines.
"The level of stake is yet to be decided, depending on various factors like valuation," the official said.
CIL was likely to take a stake between 30-40 per cent in these coal assets.
In this regard, CIL has approached the Finance Ministry and government for relaxation of PSU guidelines stipulating a minimum 12 per cent internal rate of return on investments. It has also sought to sidestep the rule that only the mines of listed companies should be acquired.
"CIL is expecting to receive the relaxations by August," Coal Secretary Alok Perti said.
Coal India is trying seriously for some coal equity on its own, besides partnering with Coal Videsh, a JV company formed between Indian PSUs, to buy assets overseas.
Besides buying a stake in coal companies, CIL was also at an advanced stage of finalising a long-term coal supply agreement with foreign sources.
India currently faces a coal demand-supply shortfall of 142 million tonnes.
Monday, March 14, 2011
Aditya Birla group may bid for Whitehaven - report
Mon Mar 14, 2011 3:28am GMTMUMBAI, March 14 (Reuters) - India's diversified Aditya Birla group is likely to bid for Australian coal miner Whitehaven Coal (WHC.AX: Quote), the Business Standard newspaper reported on Monday, citing three unnamed sources with knowledge of the matter.
The group has been selected in the first round, and will now be able to make a due diligence of Whitehaven, the paper said.
"The group is formalising the plan. It is too early to say who will bid and how money will be arranged," a source told the paper.
Sydney-based Whitehaven, which launched a formal process to find a buyer in October, said last month it had received a number of non-binding bids and short listed suitors would now conduct due diligence.
Chinese firms Shenhua Group, Yanzhou Coal Mining Co (1171.HK: Quote) and China Coal, and India's Reliance Power (RPOL.BO: Quote) have earlier been reported to be interested in Whitehaven.
The Aditya Birla group, a telecoms-to-cement conglomerate, has thermal coal requirements for group companies Hindalco (HALC.BO: Quote), India's top aluminium producer, and UltraTech Cement (ULTC.BO: Quote), the country's largest cement producer.
Officials at the group were not immediately available for comment. (Reporting by Prashant Mehra; Editing by Ranjit Gangadharan,sourced:Reuters)
The group has been selected in the first round, and will now be able to make a due diligence of Whitehaven, the paper said.
"The group is formalising the plan. It is too early to say who will bid and how money will be arranged," a source told the paper.
Sydney-based Whitehaven, which launched a formal process to find a buyer in October, said last month it had received a number of non-binding bids and short listed suitors would now conduct due diligence.
Chinese firms Shenhua Group, Yanzhou Coal Mining Co (1171.HK: Quote) and China Coal, and India's Reliance Power (RPOL.BO: Quote) have earlier been reported to be interested in Whitehaven.
The Aditya Birla group, a telecoms-to-cement conglomerate, has thermal coal requirements for group companies Hindalco (HALC.BO: Quote), India's top aluminium producer, and UltraTech Cement (ULTC.BO: Quote), the country's largest cement producer.
Officials at the group were not immediately available for comment. (Reporting by Prashant Mehra; Editing by Ranjit Gangadharan,sourced:Reuters)
Tags :Chinese investment in coal, Shenhua group, Yanzhou Coal Mining Co., Hindalco, Ultratech Cement, raw material,
Subscribe to:
Posts (Atom)
Posts
