Thursday, 26 Jan 2012
US coal giant Peabody Energy has moved to capitalize on red hot demand for producing Australian coal mines, hiring UBS to find a buyer for its Wilkie Creek mine in Queensland state.
The mine, which produces over 2 million tons of thermal coal a year in the Surat Basin, is likely to interest North Asian buyers who already account for nearly all its exports.
Peabody acquired Wilkie Creek a decade ago, but sees it as non-core following its AUD 4.9 billion (USD 5.1 billion) takeover of Macarthur Coal last year. Macarthur’s mines are clustered in the Bowen Basin, so selling Wilkie Creek would allow Peabody to concentrate on its operations there.
The decision to sell Wilkie Creek, which has a resource of over 500,000 tons of thermal coal for use in power stations, was disclosed by Peabody in its full year earnings announcement Tuesday.
(Sourced from Wall Street Journal)
Showing posts with label Peabody Energy. Show all posts
Showing posts with label Peabody Energy. Show all posts
Thursday, January 26, 2012
Saturday, January 14, 2012
Peabody opens office in Balikpapan
Saturday, 14 Jan 2012
Peabody Energy announced the opening of an office in Balikpapan, Indonesia a seaport city in the East Kalimantan province. The move further expands the company’s presence in the world’s largest supplier of seaborne thermal coal.
Peabody Balikpapan office complements ongoing sourcing and business development activities in Indonesia and supports an office in the capital city of Jakarta. Indonesia is the fastest-growing supplier of thermal coal to both China and India and Peabody is positioning itself to assist local suppliers in moving Indonesian coal throughout the Pacific Rim. The company has secured multiple term offtake agreements from resource-rich East Kalimantan.
Mr Yosef Setiyawan Director of Engineering Indonesia will lead the office and has responsibility for supporting business development and structured transactions. Setiyawan brings extensive experience in mining engineering, technical services and business development from his tenure at BHP Billiton in Australia and Indonesia. He reports to Mr Keith Downham Vice President of Resource Development Indonesia.
Peabody Energy announced the opening of an office in Balikpapan, Indonesia a seaport city in the East Kalimantan province. The move further expands the company’s presence in the world’s largest supplier of seaborne thermal coal.
Peabody Balikpapan office complements ongoing sourcing and business development activities in Indonesia and supports an office in the capital city of Jakarta. Indonesia is the fastest-growing supplier of thermal coal to both China and India and Peabody is positioning itself to assist local suppliers in moving Indonesian coal throughout the Pacific Rim. The company has secured multiple term offtake agreements from resource-rich East Kalimantan.
Mr Yosef Setiyawan Director of Engineering Indonesia will lead the office and has responsibility for supporting business development and structured transactions. Setiyawan brings extensive experience in mining engineering, technical services and business development from his tenure at BHP Billiton in Australia and Indonesia. He reports to Mr Keith Downham Vice President of Resource Development Indonesia.
Saturday, December 10, 2011
Peabody buys stake in Chinese coal importer
Saturday, 10 Dec 2011
Peabody Energy Corp the world biggest private-sector coal company bought a 5.1% stake in a Chinese coal importer. China is the world biggest coal market.
Financial terms for the stake of Winsway Coking Coal Holdings Ltd were not disclosed. Winsway is a major importer of coking coal for China steel industry and is a top supplier of Mongolian coal into China.
Peabody said the company currently operates a coal and uranium joint venture with Winsway in Mongolia. The two companies also recently reached a tentative deal to establish a joint venture to market coal in China and the Asia-Pacific region.
Peabody bought its equity stake by purchasing Winsway shares on the Hong Kong Stock Exchange.
(Sourced from www.cbsnews.com)
Peabody Energy Corp the world biggest private-sector coal company bought a 5.1% stake in a Chinese coal importer. China is the world biggest coal market.
Financial terms for the stake of Winsway Coking Coal Holdings Ltd were not disclosed. Winsway is a major importer of coking coal for China steel industry and is a top supplier of Mongolian coal into China.
Peabody said the company currently operates a coal and uranium joint venture with Winsway in Mongolia. The two companies also recently reached a tentative deal to establish a joint venture to market coal in China and the Asia-Pacific region.
Peabody bought its equity stake by purchasing Winsway shares on the Hong Kong Stock Exchange.
(Sourced from www.cbsnews.com)
Thursday, November 17, 2011
Peabody Energy on path to full Macarthur Coal acquisition
Thursday, 17 November 2011
St. Louis, Missouri-based Peabody Energy, the world's largest private-sector coal company, announced Wednesday that its subsidiary PEAMCoal Pty Ltd has acquired over 90 percent of all of the shares of Australian metallurgical coal producer Macarthur Coal. By acquiring 90 percent of the shares, PEAMcoal is compulsorily able to purchase the remaining shares.
Other shareholders such as South Korea's POSCO, which owns a 7.25 percent stake, will be forced to sell its shares to Peabody. The purchase price will also increase to A$16.25 (US$16.39) per share, up from A$16.00 (US$16.14) per share--Peabody had previously agreed to increase its offer price per share if it was able to acquire a 90 percent stake.
Tags: Met Coke , Korea S. , USA , Australia , Korea , Macarthur Coal , POSCO , raw mat , East Asia and Pacific , Oceania , Far East , North America , mining , M&A
Sourced:SteelOrbis
St. Louis, Missouri-based Peabody Energy, the world's largest private-sector coal company, announced Wednesday that its subsidiary PEAMCoal Pty Ltd has acquired over 90 percent of all of the shares of Australian metallurgical coal producer Macarthur Coal. By acquiring 90 percent of the shares, PEAMcoal is compulsorily able to purchase the remaining shares.
Other shareholders such as South Korea's POSCO, which owns a 7.25 percent stake, will be forced to sell its shares to Peabody. The purchase price will also increase to A$16.25 (US$16.39) per share, up from A$16.00 (US$16.14) per share--Peabody had previously agreed to increase its offer price per share if it was able to acquire a 90 percent stake.
Tags: Met Coke , Korea S. , USA , Australia , Korea , Macarthur Coal , POSCO , raw mat , East Asia and Pacific , Oceania , Far East , North America , mining , M&A
Sourced:SteelOrbis
Tuesday, November 15, 2011
Peabody Energy nearing full control of Macarthur Coal
Tuesday, 15 Nov 2011
Peabody Energy's USD 4.9 billion bid for Australian coking coal miner Macarthur Coal is inches away from completion after the world's largest private sector coal miner said it had acquired 87.8% of the shares in Macarthur.
The move gets Peabody within reach of the 90% level at which it can forcibly buy out remaining minority shareholders in Macarthur and the offer price rises automatically to USD 16.25 a share from USD 16 per share.
The bid for Macarthur has not been without complication late last month, European steelmaker ArcelorMittal pulled out of a joint deal with Peabody to take over Macarthur.
ArcelorMittal said at the time that the deal required it to invest too much capital in a business it wouldn't fully control.
The bid continued, however, with ArcelorMittal to sell its interest to Peabody.
Days before ArcelorMittal's announcement, the pair's bid vehicle, PeamCoal, took a majority stake in Macarthur, after having launched the USD 4.9 billion bid.
ArcelorMittal said in a statement at the time that "Given the unanticipated level of acceptances into the offer, ArcelorMittal believes that it is more appropriate to focus its capital elsewhere in its business.”
(Sourced from AAP)
Peabody Energy's USD 4.9 billion bid for Australian coking coal miner Macarthur Coal is inches away from completion after the world's largest private sector coal miner said it had acquired 87.8% of the shares in Macarthur.
The move gets Peabody within reach of the 90% level at which it can forcibly buy out remaining minority shareholders in Macarthur and the offer price rises automatically to USD 16.25 a share from USD 16 per share.
The bid for Macarthur has not been without complication late last month, European steelmaker ArcelorMittal pulled out of a joint deal with Peabody to take over Macarthur.
ArcelorMittal said at the time that the deal required it to invest too much capital in a business it wouldn't fully control.
The bid continued, however, with ArcelorMittal to sell its interest to Peabody.
Days before ArcelorMittal's announcement, the pair's bid vehicle, PeamCoal, took a majority stake in Macarthur, after having launched the USD 4.9 billion bid.
ArcelorMittal said in a statement at the time that "Given the unanticipated level of acceptances into the offer, ArcelorMittal believes that it is more appropriate to focus its capital elsewhere in its business.”
(Sourced from AAP)
Friday, November 11, 2011
Macarthur offer further extended
Friday, 11 November 2011
PEAMCoal Pty Ltd (PEAMCoal), owned by the US coal giant Peabody Energy Corp., has announced that it has extended the offer period under its takeover bid for all the ordinary shares of Australia-based low-volatile metallurgical coal producer Macarthur Coal Limited by two weeks. The offer will now close on November 25, 2011, unless further extended.
As SteelOrbis previously reported, PEAMCoal will increase the offer price for all shareholders from A$16.00 to A$16.25 per share if it acquires relevant interests in at least 90 percent of Macarthur shares by November 25, 2011. Reaching the 90 percent relevant interest threshold will allow PEAMCoal to compulsorily acquire all outstanding Macarthur shares.
Tags: Met Coke , Australia , USA , Macarthur Coal , raw mat , North America , Oceania , mining , M&A
(sourced steelorbis)
PEAMCoal Pty Ltd (PEAMCoal), owned by the US coal giant Peabody Energy Corp., has announced that it has extended the offer period under its takeover bid for all the ordinary shares of Australia-based low-volatile metallurgical coal producer Macarthur Coal Limited by two weeks. The offer will now close on November 25, 2011, unless further extended.
As SteelOrbis previously reported, PEAMCoal will increase the offer price for all shareholders from A$16.00 to A$16.25 per share if it acquires relevant interests in at least 90 percent of Macarthur shares by November 25, 2011. Reaching the 90 percent relevant interest threshold will allow PEAMCoal to compulsorily acquire all outstanding Macarthur shares.
Tags: Met Coke , Australia , USA , Macarthur Coal , raw mat , North America , Oceania , mining , M&A
(sourced steelorbis)
Monday, October 31, 2011
Australia's QR National expands Peabody coal haulage contract
Monday,31,2011
SYDNEY Oct 31 (Reuters) - Australia's QR National said on Monday it has expanded its coal haulage contract with Peabody Energy in the Hunter Valley in New South Wales state.
QR National, Australia's largest coal freight company, said in a statement that under the revised agreement QR National it will haul up to 14 million tonnes of coal per annum (mtpa), up from 12 mtpa, raising the value of the 10-year contract to A$500 million.
(sourced Reuters)
SYDNEY Oct 31 (Reuters) - Australia's QR National said on Monday it has expanded its coal haulage contract with Peabody Energy in the Hunter Valley in New South Wales state.
QR National, Australia's largest coal freight company, said in a statement that under the revised agreement QR National it will haul up to 14 million tonnes of coal per annum (mtpa), up from 12 mtpa, raising the value of the 10-year contract to A$500 million.
(sourced Reuters)
Saturday, October 29, 2011
Coal miners allowed collective negotiations for Dudgeon Point
Saturday, 29 Oct 2011
Australian Competition and Consumer Commission has granted interim authorisation for coal miners to collectively negotiate with Dudgeon Point terminal management.
Carabella Resources, Macarthur Coal, Middlemount Coal, New Hope, and Peabody are all seeking port capacity to export from the terminal. This authorisation allows the miners to begin negotiations with the port while the ACCC assesses their applications. However it does not allow them to enter into any contracts or agreements.
The ACCC added that the granting of interim authorization in no way binds the ACCC in its consideration of the substantive application for authorization.
It provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorization when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Dudgeon Point will be built near the existing Hay Point and Dalrymple Bay coal ports. The Greens have recently raised fears over the development of the coal terminals in the area, senator Ms Larissa Waters stating that the community is saying their homes are being blanketed with coal dust and they need to keep their windows shut through the whole of summer.
She said "The noise of the trains, conveyor belts and helicopters is quite unbearable, I am told, and they're already doing an awful lot of dredging."
A draft decision on the miners' applications will be released in December.
sourced from Miningaustralia
If you believe an article violates your rights or the rights of others, please contact us.
Australian Competition and Consumer Commission has granted interim authorisation for coal miners to collectively negotiate with Dudgeon Point terminal management.
Carabella Resources, Macarthur Coal, Middlemount Coal, New Hope, and Peabody are all seeking port capacity to export from the terminal. This authorisation allows the miners to begin negotiations with the port while the ACCC assesses their applications. However it does not allow them to enter into any contracts or agreements.
The ACCC added that the granting of interim authorization in no way binds the ACCC in its consideration of the substantive application for authorization.
It provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorization when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Dudgeon Point will be built near the existing Hay Point and Dalrymple Bay coal ports. The Greens have recently raised fears over the development of the coal terminals in the area, senator Ms Larissa Waters stating that the community is saying their homes are being blanketed with coal dust and they need to keep their windows shut through the whole of summer.
She said "The noise of the trains, conveyor belts and helicopters is quite unbearable, I am told, and they're already doing an awful lot of dredging."
A draft decision on the miners' applications will be released in December.
sourced from Miningaustralia
If you believe an article violates your rights or the rights of others, please contact us.
Thursday, October 27, 2011
Mongolia needs coal deal in 3 months to ensure IPO goes ahead
Thursday, 27 Oct 2011
Reuters reported that a contentious investment agreement on Mongolia huge Tavan Tolgoi coal deposit needs to be completed within three months to ensure that a much-heralded initial public offering for the project goes ahead on time.
Mr Terbishdagva Dendev a member of Mongolia Grand Khural parliament said on the sidelines of a conference in Hong Kong that discussions on an investment agreement for the western block of the coveted 7.5 billion tonne deposit were expected to get underway in November.
Mongolia plans to open the western block of the vast deposit up to foreign investors while the eastern block will be listed on international stock markets next year. An initial plan to grant 40% of the project to China Shenhua Group, 36% to a Russian-Mongolian consortium and 24% to Peabody Energy Corp of the United States was rejected by the Mongolian Security Council and branded as unfair by bidders from Japan and South Korea.
Mr Graeme Hancock chief operations officer with Erdenes Tavan Tolgoi the state owned entity in charge of the project told the conference that the scale of the IPO for the eastern block would depend on the investment agreement.
He said that "Once the terms of engagement on the west block are clear, that will have an impact on the IPO valuation. I am hoping there will be resolution on this in the very near future so this can be built into our future cash flow."
Mr Terbishdagva said that if an agreement was not signed within three months, the international IPO would have to wait until after Mongolia's parliamentary elections in June.
Analysts have expressed concern that political jockeying ahead of next year's elections was disrupting Mongolia's economy and harming its investment climate.
(sourced from Reuters)
Reuters reported that a contentious investment agreement on Mongolia huge Tavan Tolgoi coal deposit needs to be completed within three months to ensure that a much-heralded initial public offering for the project goes ahead on time.
Mr Terbishdagva Dendev a member of Mongolia Grand Khural parliament said on the sidelines of a conference in Hong Kong that discussions on an investment agreement for the western block of the coveted 7.5 billion tonne deposit were expected to get underway in November.
Mongolia plans to open the western block of the vast deposit up to foreign investors while the eastern block will be listed on international stock markets next year. An initial plan to grant 40% of the project to China Shenhua Group, 36% to a Russian-Mongolian consortium and 24% to Peabody Energy Corp of the United States was rejected by the Mongolian Security Council and branded as unfair by bidders from Japan and South Korea.
Mr Graeme Hancock chief operations officer with Erdenes Tavan Tolgoi the state owned entity in charge of the project told the conference that the scale of the IPO for the eastern block would depend on the investment agreement.
He said that "Once the terms of engagement on the west block are clear, that will have an impact on the IPO valuation. I am hoping there will be resolution on this in the very near future so this can be built into our future cash flow."
Mr Terbishdagva said that if an agreement was not signed within three months, the international IPO would have to wait until after Mongolia's parliamentary elections in June.
Analysts have expressed concern that political jockeying ahead of next year's elections was disrupting Mongolia's economy and harming its investment climate.
(sourced from Reuters)
Tuesday, October 25, 2011
ArcelorMittal to leave Peabody with $5 bn Macarthur bid
BRUSSELS: ArcelorMittal , the world's largest steelmaker, has unexpectedly pulled out of its joint $5 billion bid with Peabody Energy for Australian miner Macarthur Coal , just a day after the buyers said they had secured a majority of shares.
In a joint statement sent to Australian regulators by Peabody's legal advisors, ArcelorMittal and Peabody said the steel giant had "elected to sell its interest" in their bid vehicle, PEAMCoal, instead of proceeding with a joint venture.
ArcelorMittal did not say why it was selling out and was not available for comment.
Peabody and ArcelorMittal bid A$16 per share for the coal miner offer and said on Monday they already had a relevant interest in about 59.85 percent of the shares`.
China's Citic, which owns a quarter of Macarthur, said on Friday it had accepted the offer despite speculation it had been holding out for a higher price or could launch a rival offer of its own.
The last remaining major shareholder in Macarthur yet to accept the offer is South Korean steel maker POSCO , which owns a 7.25 percent stake.
If POSCO accepts the offer, that could help push acceptances above 90 percent, which would lead to Peabody raising the offer to A$16.25 a share.
Peabody said in Tuesday's statement that it would now own 100 percent in PEAMCoal and become owner of all the Macarthur shares that are tendered in the bid.
Shares in ArcelorMittal were 1.9 percent higher at 14.71 euros by 1123 GMT, when the STOXX Europe 600 Basic Resources sector index was up 0.8 percent.
Under the terms of its agreement with Peabody, ArcelorMittal must continue funding PEAMCoal for a further 90 days, the statement said.
ArcelorMittal and Peabody put in a bid for Macarthur in July, which the pair eventually took hostile in August after the Macarthur board said the bid undervalued the company.
A previous bid by Peabody to acquire Macarthur last year collapsed after Peabody cut its offer, blaming a new government mining tax.
sourced ET
Macarthur Coal directors to appoint Peabody-Arcelor nominees
Tue, Oct25, 2011
THE directors of Australian coal miner Macarthur Coal will stand down tomorrow and appoint nominees of the joint venture between Peabody Energy and ArcelorMittal, which took control of the miner yesterday, the company said.
Macarthur chairman Keith DeLacy said the takeover, which values Macarthur at $4.9 billion, was a "testament to Macarthur's extraordinary growth over the last decade".
The takeover joint venture, PEAMCoal, announced late yesterday that it had acquired 59.86 per cent of Macarthur shares, with a further 2.51 per cent in an acceptance facility, giving the company 62.37 per cent of shares.
US giant Peabody Energy yesterday completed its 19-month battle for the Queensland company.
The takeover was finalised as reports emerged last night of a possible bid for another Queensland coal producer, New Hope, Sarah-Jane Tasker reported yesterday.
The Peabody-ArcelorMittal $16-a-share bid was launched on July 11.
The US giant, which already operates eight projects in Queensland and NSW, had made four unsuccessful offers early last year.
It offered $13 a share in March 2010, before raising the bid to $14 a week later and $16 on April 15.
On May 10, the company reduced its offer to $15 a share following the controversy over Kevin Rudd's failed resource super-profits tax.
But Peabody did not give up and in July this year it gained the support of Macarthur's major shareholder ArcelorMittal, which had a 16 per cent stake, to resurrect its move on the miner, the day after the Gillard government announced the carbon tax.
The two parties had originally offered $15.50 a share, but the target's board secured the $16 price to win its support.
PeamCoal, the 60-40 joint venture formed by Peabody and Arcelor to bid for Macarthur, then announced on Friday that it would increase the offer price to $16.25 a share if it acquired at least 90 per cent of the miner by November 11.
(sourced The Autralian)
THE directors of Australian coal miner Macarthur Coal will stand down tomorrow and appoint nominees of the joint venture between Peabody Energy and ArcelorMittal, which took control of the miner yesterday, the company said.
Macarthur chairman Keith DeLacy said the takeover, which values Macarthur at $4.9 billion, was a "testament to Macarthur's extraordinary growth over the last decade".
The takeover joint venture, PEAMCoal, announced late yesterday that it had acquired 59.86 per cent of Macarthur shares, with a further 2.51 per cent in an acceptance facility, giving the company 62.37 per cent of shares.
US giant Peabody Energy yesterday completed its 19-month battle for the Queensland company.
The takeover was finalised as reports emerged last night of a possible bid for another Queensland coal producer, New Hope, Sarah-Jane Tasker reported yesterday.
The Peabody-ArcelorMittal $16-a-share bid was launched on July 11.
The US giant, which already operates eight projects in Queensland and NSW, had made four unsuccessful offers early last year.
It offered $13 a share in March 2010, before raising the bid to $14 a week later and $16 on April 15.
On May 10, the company reduced its offer to $15 a share following the controversy over Kevin Rudd's failed resource super-profits tax.
But Peabody did not give up and in July this year it gained the support of Macarthur's major shareholder ArcelorMittal, which had a 16 per cent stake, to resurrect its move on the miner, the day after the Gillard government announced the carbon tax.
The two parties had originally offered $15.50 a share, but the target's board secured the $16 price to win its support.
PeamCoal, the 60-40 joint venture formed by Peabody and Arcelor to bid for Macarthur, then announced on Friday that it would increase the offer price to $16.25 a share if it acquired at least 90 per cent of the miner by November 11.
(sourced The Autralian)
Thursday, October 20, 2011
Peabody and ArcelorMittal extend offer for Macarthur Coal to November 11
Thursday, 20 Oct 2011
Peabody Energy and ArcelorMittal have extended their AUD 4.9 billion takeover offer for Australia's Macarthur Coal until November 11th 2011.
The bid had been due to expire on Oct 28.
Macarthur has accepted a sweetened AUD 16 per share bid from Peabody and Arcelor after failing to find a rival bidder.
(Sourced from Reuters)
Peabody Energy and ArcelorMittal have extended their AUD 4.9 billion takeover offer for Australia's Macarthur Coal until November 11th 2011.
The bid had been due to expire on Oct 28.
Macarthur has accepted a sweetened AUD 16 per share bid from Peabody and Arcelor after failing to find a rival bidder.
(Sourced from Reuters)
Tuesday, October 18, 2011
India Gives Conditional Approval to Coal India for Investment Overseas
Tue, OCT18,2011
NEW DELHI - India's federal government has given conditional approval to Coal India Ltd.'s long-awaited proposal to buy unlisted units of listed mining companies overseas, a senior coal ministry official and a senior company official said Tuesday.
The permission is subject to Coal India investing in overseas projects that offer a rate of return of at least 12%, the officials, who declined to be named, said. The state-run company has also been asked to "carefully" evaluate the target companies, the officials said.
Delays in getting approvals have hurt the world's biggest coal producer, as it wasn't able to proceed with its stake purchase talks with U.S.-based Massey Energy Co., Australia's Peabody Energy Corp. or Indonesia's Sinar Mas Group's PT Golden Energy Mines. Coal India sought the approvals in May.
The officials said if the projected rate of return of a target company is less than 12%, the government will consider such proposals on a "case-to-case" basis.
"Normally, projects with both financial internal rate of return and economic internal rate of return of 12% may be taken up for investment abroad," the coal ministry official said.
"However, in exceptional cases where the administrative ministry is of the opinion that such investments are of strategic interests for energy security of the country, the proposal may be referred to the Department of Expenditure for special dispensation on a case-to-case basis."
The Coal India official also said the company recently lost out to India's GMR Group in acquiring a 30% stake in Indonesia's PT Golden Energy Mines due to delays in getting government approvals.
"The mines of the company [PT Golden Energy] had a rate of return of more than 12%," the official said. "Peabody's proposal had a rate of return of less than 8%, so it is out of question and in Massey's case, the new management is yet to come back to us. So, we have practically nothing in hand now," the official said.
Coal India had shortlisted Peabody's Wilkie Creek mine and Massey's Sidney Underground Mines to buy stakes. Massey reached a $7.1 billion cash-and-stock acquisition deal in January with Alpha Natural Resources Inc.
The Coal India official said the company may now seek fresh proposals for investment in overseas companies, a move that's likely to further delay its plans to buy more coal mines overseas and bridge a domestic coal shortage. The company's only overseas reserves so far are two coal blocks in Mozambique.
(sourced Dow Jones Newswires)
NEW DELHI - India's federal government has given conditional approval to Coal India Ltd.'s long-awaited proposal to buy unlisted units of listed mining companies overseas, a senior coal ministry official and a senior company official said Tuesday.
The permission is subject to Coal India investing in overseas projects that offer a rate of return of at least 12%, the officials, who declined to be named, said. The state-run company has also been asked to "carefully" evaluate the target companies, the officials said.
Delays in getting approvals have hurt the world's biggest coal producer, as it wasn't able to proceed with its stake purchase talks with U.S.-based Massey Energy Co., Australia's Peabody Energy Corp. or Indonesia's Sinar Mas Group's PT Golden Energy Mines. Coal India sought the approvals in May.
The officials said if the projected rate of return of a target company is less than 12%, the government will consider such proposals on a "case-to-case" basis.
"Normally, projects with both financial internal rate of return and economic internal rate of return of 12% may be taken up for investment abroad," the coal ministry official said.
"However, in exceptional cases where the administrative ministry is of the opinion that such investments are of strategic interests for energy security of the country, the proposal may be referred to the Department of Expenditure for special dispensation on a case-to-case basis."
The Coal India official also said the company recently lost out to India's GMR Group in acquiring a 30% stake in Indonesia's PT Golden Energy Mines due to delays in getting government approvals.
"The mines of the company [PT Golden Energy] had a rate of return of more than 12%," the official said. "Peabody's proposal had a rate of return of less than 8%, so it is out of question and in Massey's case, the new management is yet to come back to us. So, we have practically nothing in hand now," the official said.
Coal India had shortlisted Peabody's Wilkie Creek mine and Massey's Sidney Underground Mines to buy stakes. Massey reached a $7.1 billion cash-and-stock acquisition deal in January with Alpha Natural Resources Inc.
The Coal India official said the company may now seek fresh proposals for investment in overseas companies, a move that's likely to further delay its plans to buy more coal mines overseas and bridge a domestic coal shortage. The company's only overseas reserves so far are two coal blocks in Mozambique.
(sourced Dow Jones Newswires)
Thursday, October 13, 2011
Peabody and ArcelorMittal receives clearance from China for Macarthur offer
Thursday, 13 October 2011
US-based giant coal company Peabody Energy and the world's biggest steelmaker ArcelorMittal have announced that they have received clearance from the Ministry of Commerce of the People's Republic of China (MOFCOM) for the $A16.00 per share cash offer to acquire all the outstanding shares of Australia-based low-volatile metallurgical coal producer Macarthur Coal Limited.
With the approval of MOFCOM, the companies have received all the necessary regulatory approvals for the acquisition.
The offer of PEAMCoal, the 60-40 joint venture formed by Peabody and Arcelor to bid for Macarthur, is still the only offer for Macarthur shares and it is scheduled to close on October 28, 2011 unless extended. PEAMCoal currently has approximately 22.78 percent relevant interest in Macarthur.
Tags: coking coal , raw mat , USA , Australia , Oceania , North America , mining , Macarthur Coal
(sourced steelorbis)
US-based giant coal company Peabody Energy and the world's biggest steelmaker ArcelorMittal have announced that they have received clearance from the Ministry of Commerce of the People's Republic of China (MOFCOM) for the $A16.00 per share cash offer to acquire all the outstanding shares of Australia-based low-volatile metallurgical coal producer Macarthur Coal Limited.
With the approval of MOFCOM, the companies have received all the necessary regulatory approvals for the acquisition.
The offer of PEAMCoal, the 60-40 joint venture formed by Peabody and Arcelor to bid for Macarthur, is still the only offer for Macarthur shares and it is scheduled to close on October 28, 2011 unless extended. PEAMCoal currently has approximately 22.78 percent relevant interest in Macarthur.
Tags: coking coal , raw mat , USA , Australia , Oceania , North America , mining , Macarthur Coal
(sourced steelorbis)
Thursday, October 6, 2011
Deadline extended on Mac Coal offer
October 07, 2011 12:00AM
By Tony Grant-Taylor, Herald Sun
GLOBAL steel giant ArcelorMittal again has extended the deadline for Macarthur Coal shareholders to accept the $4.8 billion takeover offer tabled by the European group.
ArcelorMittal, the world's biggest steelmaker, and US coal miner Peabody are offering $16 a share for a stake of at least 50.01 per cent in Macarthur.
The companies last month said they had secured shares equivalent to 21 per cent of the Queensland-based group.
The bidding vehicle, PEAMCoal, yesterday extended to 8pm on October 28 the deadline for shareholders to accept the offer.
PEAMCoal originally had set a deadline of September 27, before pushing that to October 14. The takeover offer is backed by Macarthur's board.
The extension came as shares in another coal miner, New Hope, edged up only 1c yesterday, or 0.2 per cent, to $6.11 after rallying on Wednesday after its call for expressions of interest from potential bidders.
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Analysts say New Hope may be hard pressed to drum up offers at $7.60 or more - the starting price nominated by stockbroker RBS Morgans as the level necessary to win over New Hope's majority shareholder, Washington H Soul Pattinson.
Most bidders for coal assets over the past year have seen their share prices slump - including US groups Alpha Natural Resources and Peabody.
Alpha in January agreed to buy fellow US group Massey Energy, only to see its shares slump more than 60 per cent as investors worried about a fall in demand due to European and US economic woes.
Broker Bell Potter director Angus Aitken says New Hope could be worth $5.8 billion - about $7 a share.
But Rick de los Reyes, a manager at T Rowe Price Group's Global Metals and Mining Fund, said: "This deal is more attractive than the other coal deals that we've seen this year".
"The fact Australia is close to China, China went from net exporter to a net importer of thermal coal and New Hope has (its own) port capacity, that's huge."
New Hope said this week it would invite selected groups to submit formal offers.
By Tony Grant-Taylor, Herald Sun
GLOBAL steel giant ArcelorMittal again has extended the deadline for Macarthur Coal shareholders to accept the $4.8 billion takeover offer tabled by the European group.
ArcelorMittal, the world's biggest steelmaker, and US coal miner Peabody are offering $16 a share for a stake of at least 50.01 per cent in Macarthur.
The companies last month said they had secured shares equivalent to 21 per cent of the Queensland-based group.
The bidding vehicle, PEAMCoal, yesterday extended to 8pm on October 28 the deadline for shareholders to accept the offer.
PEAMCoal originally had set a deadline of September 27, before pushing that to October 14. The takeover offer is backed by Macarthur's board.
The extension came as shares in another coal miner, New Hope, edged up only 1c yesterday, or 0.2 per cent, to $6.11 after rallying on Wednesday after its call for expressions of interest from potential bidders.
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Analysts say New Hope may be hard pressed to drum up offers at $7.60 or more - the starting price nominated by stockbroker RBS Morgans as the level necessary to win over New Hope's majority shareholder, Washington H Soul Pattinson.
Most bidders for coal assets over the past year have seen their share prices slump - including US groups Alpha Natural Resources and Peabody.
Alpha in January agreed to buy fellow US group Massey Energy, only to see its shares slump more than 60 per cent as investors worried about a fall in demand due to European and US economic woes.
Broker Bell Potter director Angus Aitken says New Hope could be worth $5.8 billion - about $7 a share.
But Rick de los Reyes, a manager at T Rowe Price Group's Global Metals and Mining Fund, said: "This deal is more attractive than the other coal deals that we've seen this year".
"The fact Australia is close to China, China went from net exporter to a net importer of thermal coal and New Hope has (its own) port capacity, that's huge."
New Hope said this week it would invite selected groups to submit formal offers.
Peabody ArcelorMittal extends offer for Macarthur Coal to Oct 28
Thursday, 06 Oct 2011
Peabody Energy and ArcelorMittal have extended their AUD 4.9 billion takeover bid for Australia's Macarthur Coal until October 28th 2011.
Macarthur has accepted a sweetened AUD 16 per share bid from Peabody and ArcelorMittal after failing to find a rival bidder.
The bid had been due to expire on October 14th 2011
(sourced from Reuters)
Peabody Energy and ArcelorMittal have extended their AUD 4.9 billion takeover bid for Australia's Macarthur Coal until October 28th 2011.
Macarthur has accepted a sweetened AUD 16 per share bid from Peabody and ArcelorMittal after failing to find a rival bidder.
The bid had been due to expire on October 14th 2011
(sourced from Reuters)
Friday, September 30, 2011
Peabody Energy opens coal trading office in Germany
Sept30, 2011
Peabody Energy announced it has opened an office in Essen, Germany, expanding the company coal trading platform into a growing market for coal.
Mr Richard Navarre Peabody Energy president and chief commercial officer said the decision provides Europe with new alternatives of power.
He said that “Our presence in Essen broadens our sourcing and shipping capabilities to deliver coal from Peabody US operations to European customers who increasingly are turning to coal to displace nuclear generation and high cost natural gas.”
Peabody Essen office will be headed by Mr Juergen Treschan who has been named the director of trading and logistics for Northern Europe. He will be in charge of operations dealing with international trading activities in Germany and neighbouring countries.
Peabody Energy announced it has opened an office in Essen, Germany, expanding the company coal trading platform into a growing market for coal.
Mr Richard Navarre Peabody Energy president and chief commercial officer said the decision provides Europe with new alternatives of power.
He said that “Our presence in Essen broadens our sourcing and shipping capabilities to deliver coal from Peabody US operations to European customers who increasingly are turning to coal to displace nuclear generation and high cost natural gas.”
Peabody Essen office will be headed by Mr Juergen Treschan who has been named the director of trading and logistics for Northern Europe. He will be in charge of operations dealing with international trading activities in Germany and neighbouring countries.
Monday, September 19, 2011
Peabody extends offer for Australia's Macarthur to Oct. 14
Sep19, 2011
SYDNEY, Sept 19 (Reuters) - Peabody Energy and ArcelorMittal have extended their $5.2 billion takeover bid for Australia's Macarthur Coal until Oct. 14, the companies said on Monday.
Macarthur last month accepted a sweetened A$16 per share bid from Peabody and Arcelor after failing to find a rival bidder.
The bid had been due to expire on Sept. 27.
SYDNEY, Sept 19 (Reuters) - Peabody Energy and ArcelorMittal have extended their $5.2 billion takeover bid for Australia's Macarthur Coal until Oct. 14, the companies said on Monday.
Macarthur last month accepted a sweetened A$16 per share bid from Peabody and Arcelor after failing to find a rival bidder.
The bid had been due to expire on Sept. 27.
Wednesday, September 7, 2011
Macarthur Coal still hoping for rival to Peabody Energy ArcelorMittal bid - Report
Wednesday, 07 Sep 2011
The Australian reported that Macarthur Coal's board is still hoping for a higher takeover bid, despite reaffirming its recommendation of the sweetened offer of Peabody Energy and ArcelorMittal.
Mr Keith De Lacy chairman of Macarthur Coal said that "As previously advised, Macarthur had pursued discussions with third parties, which had expressed interest in putting forward a superior proposal for Macarthur's shares. The directors advise that as at today, no superior proposal has been received. Although it remains possible that a superior proposal might be made, there can be no assurances that any will emerge."
Macarthur also noted that Mr Zeng had made no recommendation or statement about the intentions of Citic Group on the takeover bid. The deal with PEAM Coal, a 60:40 JV between Peabody and ArcelorMittal, has a no shop, no talk condition, but the target's recommendation assumes the absence of a higher bid.
Macarthur also used the target statement to warn shareholders of ongoing uncertainty about the regulatory environment it operated in. It said the mining and carbon tax and land access issues could reduce profitability.
Mr De Lacy said that "By accepting the PEAM offer, Macarthur shareholders are able to crystallize cash value for their shares and remove any ongoing exposure to market, regulatory and other risks that Macarthur Coal may face in the future, assuming that the PEAM offer becomes unconditional."
Many believed a rival offer for Macarthur was likely, with 25% shareholder Citic Group the key to any alternative bid. But with no firm deal apparent, the target's board accepted Peabody and ArcelorMittal's increased price.
The USD 4.9 billion, USD 16 a share bid had been raised from the USD 15.50 offer launched on August 1st 2011.
(sourced from TheAustralian)
The Australian reported that Macarthur Coal's board is still hoping for a higher takeover bid, despite reaffirming its recommendation of the sweetened offer of Peabody Energy and ArcelorMittal.
Mr Keith De Lacy chairman of Macarthur Coal said that "As previously advised, Macarthur had pursued discussions with third parties, which had expressed interest in putting forward a superior proposal for Macarthur's shares. The directors advise that as at today, no superior proposal has been received. Although it remains possible that a superior proposal might be made, there can be no assurances that any will emerge."
Macarthur also noted that Mr Zeng had made no recommendation or statement about the intentions of Citic Group on the takeover bid. The deal with PEAM Coal, a 60:40 JV between Peabody and ArcelorMittal, has a no shop, no talk condition, but the target's recommendation assumes the absence of a higher bid.
Macarthur also used the target statement to warn shareholders of ongoing uncertainty about the regulatory environment it operated in. It said the mining and carbon tax and land access issues could reduce profitability.
Mr De Lacy said that "By accepting the PEAM offer, Macarthur shareholders are able to crystallize cash value for their shares and remove any ongoing exposure to market, regulatory and other risks that Macarthur Coal may face in the future, assuming that the PEAM offer becomes unconditional."
Many believed a rival offer for Macarthur was likely, with 25% shareholder Citic Group the key to any alternative bid. But with no firm deal apparent, the target's board accepted Peabody and ArcelorMittal's increased price.
The USD 4.9 billion, USD 16 a share bid had been raised from the USD 15.50 offer launched on August 1st 2011.
(sourced from TheAustralian)
Thursday, September 1, 2011
Anglo American could lose out on Macarthur Coal
Thursday, 01 Sep 2011
The Telegraph reported that Anglo American is poised to lose out in the AUD 4.9 billion takeover tussle for Macarthur Coal after the Australian company recommended a sweetened offer from a consortium of US based Peabody Energy and European steelmaker ArcelorMittal.
Anglo American had gained access to the Australian group's data room and had been weighing up whether to make a formal offer for Macarthur, which mines low cost coal.
However, Macarthur has recommend an increased AUD 16 a share offer from the Peabody ArcelorMittal combine after the pair lifted the offer price from AUD 15.50. Macarthur shareholders are also entitled to a recently declared dividend, making the total offer AUD 16.16 a share. Macarthur shares rose 0.06 cents to AUD 15.86.
ArcelorMittal already owns 16.1% of Macarthur's shares and the offer from the PEAMCoal bid vehicle is conditional on securing 50.01% acceptances from the coal mining company's shareholders. The acceptances threshold was put in place to get around China's Citic Resources, which has a 24.5% stake in Macarthur and could move to block a full scale takeover.
In 2010, the Chinese group made it clear it would not endorse a change of control when Peabody, which was then acting alone, made a failed an AUD 15 a share bid for Macarthur. Some analysts reckon the protracted takeover battle for Macarthur is over. This is because it has already agreed an AUD 48.3 million break fee, and also no shop and no talk provisions that restrict any future negotiations with rival bidders.
PEAMCoal also has the right to provide a matching offer in the event of any competing proposal that Macarthur's board considers superior.
Mr Jamie Spiteri, head dealer at Shaw Stockbroking in Sydney, told Bloomberg that "There's probably not a lot more that can be extracted for Macarthur shareholders unless there's a challenge from another party."
Mr Andrew Harrington, an analyst with Patersons Securities, said that "It's a fair value price. Any counter bid is becoming increasingly difficult."
In its statement to the Australian stock exchange, Macarthur said a number of parties have conducted due diligence.
The Macarthur deal comes amid a revival of takeovers of mining companies following a sell off of natural resource company share prices. They include last week's AUD 268 million bid by Glencore International for Minara Resources.
sourced Telegraph
The Telegraph reported that Anglo American is poised to lose out in the AUD 4.9 billion takeover tussle for Macarthur Coal after the Australian company recommended a sweetened offer from a consortium of US based Peabody Energy and European steelmaker ArcelorMittal.
Anglo American had gained access to the Australian group's data room and had been weighing up whether to make a formal offer for Macarthur, which mines low cost coal.
However, Macarthur has recommend an increased AUD 16 a share offer from the Peabody ArcelorMittal combine after the pair lifted the offer price from AUD 15.50. Macarthur shareholders are also entitled to a recently declared dividend, making the total offer AUD 16.16 a share. Macarthur shares rose 0.06 cents to AUD 15.86.
ArcelorMittal already owns 16.1% of Macarthur's shares and the offer from the PEAMCoal bid vehicle is conditional on securing 50.01% acceptances from the coal mining company's shareholders. The acceptances threshold was put in place to get around China's Citic Resources, which has a 24.5% stake in Macarthur and could move to block a full scale takeover.
In 2010, the Chinese group made it clear it would not endorse a change of control when Peabody, which was then acting alone, made a failed an AUD 15 a share bid for Macarthur. Some analysts reckon the protracted takeover battle for Macarthur is over. This is because it has already agreed an AUD 48.3 million break fee, and also no shop and no talk provisions that restrict any future negotiations with rival bidders.
PEAMCoal also has the right to provide a matching offer in the event of any competing proposal that Macarthur's board considers superior.
Mr Jamie Spiteri, head dealer at Shaw Stockbroking in Sydney, told Bloomberg that "There's probably not a lot more that can be extracted for Macarthur shareholders unless there's a challenge from another party."
Mr Andrew Harrington, an analyst with Patersons Securities, said that "It's a fair value price. Any counter bid is becoming increasingly difficult."
In its statement to the Australian stock exchange, Macarthur said a number of parties have conducted due diligence.
The Macarthur deal comes amid a revival of takeovers of mining companies following a sell off of natural resource company share prices. They include last week's AUD 268 million bid by Glencore International for Minara Resources.
sourced Telegraph
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