C @Limited enters agreement to acquire eight Mongolian coal licenses

Friday, 28 Oct 2011

Perth based C@ Limited will acquire eight highly prospective Mongolian coal licenses for USD 7.8 million after it signed a conditional Share Sale Agreement with Peabody Winsway Resources to acquire all of the issued capital in its subsidiary BDBL.

Importantly, the eight coal licenses cover 625 square kilometres in a major emerging coal province. The region is characterized by a number of recent major black coal discoveries on the doorstep of the expanding Chinese steel and energy markets.

A number of the licenses are close to existing producing assets and infrastructure with close proximity to major energy markets like China and Russia, which make the economics of this project very favorable.

Four of the licenses are located in the Ongi River Basin in the Ovorhangay province and four are located in the South Gobi Basin in the South Gobi province. As part of its technical due diligence on these licenses, C @ undertook an exploration drilling program which intersected three coal seams on the Ovorhangay licenses. Initial raw coal quality tests at both Mongolian and Australian laboratories have confirmed high quality coking properties both near surface and at moderate depth likely to be enhanced by washing.

All of the licenses have had limited exploration but offer considerable potential. C @ will now undertake a capital raising of up to AUD 28 million including a USD 3 million priority issue to eligible shareholders.

Upon completion of the acquisition, C @ will immediately undertakes Phase II of its exploration program which will include geophysics and a substantial drilling program. Priority will be given to the Teeg licence located in Ovorhangay which intersected two significant coal seams during the company Phase I exploration program.

C @ will undertake a geophysical survey to identify the potential black coal extensions concealed on the licence to support key targets of the drilling program.

(sourced from ProactiveInvestors)

Anglo American is Seeking to Purchase Iron-Ore Assets as Prices Increase

Mar23, 2011 4:17 PM GMT+0530

By Rebecca Keenan & Jason Scott

Anglo American Plc (AAL), a diversified mining company, is seeking to acquire iron ore assets as the price of the steelmaking raw material rises.

“We like iron ore and are determined to grow our iron ore business,” James Harman, head of business development for Anglo’s iron ore and coal unit, said today at a conference in Perth, Australia. “We remain on the lookout for quality iron ore opportunities globally, including Australia.”

The London-based company joins Rio Tinto Group in studying acquisitions to boost commodity production. Anglo, which is spending about $17 billion to expand capacity, is seeking to increase its annual iron ore output to 80 million metric tons by 2014 and 150 million tons by 2020, Harman said.

“We’re in a strong financial position, which will drive this growth,” he said.

Annual profit more than doubled last year to $6.5 billion after commodity prices rallied. Anglo is extending its Kumba Iron Ore unit’s operations in South Africa and building the Minas Rio iron ore mine in Brazil as demand from Asian steel mills climbs. Anglo owns 65.3 percent of Kumba, the world’s fourth-largest supplier of seaborne iron ore. (sourced bloomberg)

Tags : South African iron ore, Minas Rio, Asian steel mills, seaborne iron ore
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Xstrata declares force majeure at Australia's Ulan coal mine

Tuesday 15 February 2011

PERTH, Feb 15 (Reuters) - Global (news) miner Xstrata (XTAF.EX - news) has declared force majeure at its Ulan thermal coal mine in Australia's New South Wales state due to heavy rains, the company said on Tuesday.

"We have declared FM on certain customer vessels for the Ulan operation, following the interruption to production as a result of significant water underground following recent heavy rains," spokesman James Rickards said in an email.

The company is currently pumping the water out from the underground area, but said it is currently does not have an estimate to speculate at this time as to when production will resume.

(Reporting by Rebekah Kebede; editing by Balazs Koranyi,sourced:Reuters)

Tags:Perth, Xstrata, declared, force majeure, Ulan thermal coal mine, Australia, South Wales state, heavy rains, coal vessel,

Xstrata resumes some operations at Australia coal mines

PERTH, Wed Feb 2, 2011 10:11pm EST

PERTH Feb 3 (Reuters) - Xstrata said on Thursday that it has resumed operations at its Newlands coal mine, which was shut Wednesday night due to Cyclone Yasi, and is preparing to resume operations at its Collinsville coal mine where the cyclone knocked out power.
Collinsville mine will resume operations as soon as power is restored, an Xstrata spokesman said.
Abbot Point Coal Terminal, which is operated by Xstrata, was also affected by the power outage. (Reporting by Rebekah Kebede; Editing by Ed Davies,sourced:reuters)