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)

Bandanna Energy cancels sale process after bids fall short - Report

Saturday, 08 Oct 2011

Dow Jones quoted a person familiar with the matter said Bandanna Energy Ltd has failed to ride the wave of consolidation taking place in Australia coal sector closing its books to potential suitors after a sales process didn't generate adequate bids.

It comes just six weeks after Bandanna told investors it was in discussions with several parties over possible transactions including asset sales, and had received new interest from companies with big mining operations in Australia and overseas. Bandanna which holds several exploration permits in the Bowen and Galilee basins of coal-rich Queensland State appointed UBS AG earlier this year to advise on the sales process.

The person told Dow Jones Newswires that "There's no longer a formal process going on"

Bandanna failed sales process underscores how buyers are prioritizing deals for companies with producing mines and the ability to export coal to high-growth markets in North Asia in the near term.

(Sourced from Dow Jones)

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.

India's GVK reaches $2.2 bln Hancock mines deal-report

Fri Aug 26, 2011

* Board expected to meet within 10 days to approve deal
* GVK to pay $1.3 bln for mines, $900mln for infrastructure

MUMBAI/SYDNEY Aug 26 (Reuters) - India's GVK Power & Infra is close to finalising a deal to buy two Australian coal mines owned by Hancock Prospecting, said two sources with knowledge of the deal, which a newspaper report said has been agreed for $2.2 billion.

The GVK board, which constructs power plants and airports, will meet within 10 days to approve the deal, the Economic Times reported on Friday, citing lenders and company officials who are part of the negotiations.

GVK Power Chief Financial Officer Issac George declined to comment on the report, when reached by Reuters. Hancock was not immediately available for comment.

Hancock and GVK Power last month extended the deadline for exclusive talks until end August, sources had told Reuters. The two companies, which have been in talks since February this year, had extended the deadline twice before.

Standard Chartered , India's second-largest lender ICICI Bank and Axis Bank will fund the GVK transaction, the report said, adding Ernst & Young was advising the Indian company.

Shares in GVK were trading up 0.6 percent at 16.60 rupees at 0446 GMT in a Mumbai market that was up 0.3 percent. The GVK stock is down more than half this year compared with a 21 percent fall in the main market.

Some analysts and bankers have expressed doubts whether GVK, which the market values at about $567 million, would be able to pull off such a large acquisition.

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.

ArcelorMittal, Peabody open bid for Macarthur Coal

Thu Aug 18, 2011

AMSTERDAM Aug 18 (Reuters) - Peabody Energy and ArcelorMittal said on Thursday their $5 billion takeover offer for Australian group Macarthur Coal had opened for acceptance.

"Peabody and ArcelorMittal urge all Macarthur shareholders to accept the compelling offer to receive a substantial premium for their investment," the companies said in a joint statement.

The statement came after Macarthur Coal said on Wednesday shareholders should take no action on the offer until it sent out its formal response in the next two weeks.

Macarthur said its response would focus on the opportunistic timing of the offer, its strong growth profile, significant resource base, access to infrastructure, and its status as the top supplier of pulverised coal.

(sourced Reuters)

India's NTPC mulling 25-yr coal import deal-chairman

Fri Aug 5, 2011

* Plans to secure more coal mines in India
* Aims to add 25,000-30,000 MW generation capcity in Apr 2012-March 2017
* To invite price bids for 4 mln T coal imports in next few days

NEW DELHI, Aug 5 (Reuters) - India's NTPC Ltd is looking for 25-year coal import deals to secure supplies and hedge against sharp fluctuations in prices, its chairman said on Friday, days after it abandoned a bid for Australian coal miner Bandanna Energy's assets.

"Our first priority is not to acquire coal mines and make money, our first priority is to secure fuel," Arup Roy Choudhury told a news conference.

NTPC last week did not submit a bid for Bandanna as the price was too high.

Choudhury said tax changes caused uncertainty in international prices and were a deterrent to his firm's overseas coal mine acquisition plans. Australia last month announced it would levy a carbon emission tax that is seen denting miners.

NTPC, which is India's biggest power producer, consumes 164 million tonnes of coal a year to fire over two-thirds of its about 35,000 megawatts (MW) installed capacity. In the five years to March 2017 it aims to add 25,000-30,000 MW capacity.

It plans to import four million tonnes on its own for the first time in the current fiscal year, besides buying 12 million tonnes through state-run trading agencies.

Choudhury said in the next few days, NTPC would invite price bids from six to seven companies that have been qualified to supply imported coal.

It is also in talks for 25-year coal import deals.

"Return on capital and investment, appreciation in coal mine is very difficult to know in advance. We don't know how it will behave. It is very speculative. Long-term deals provide you an assured amount of coal at a predetermined prices," he said.

The company aims to secure more coal mines in India, he said. NTPC aims to meet about 20 percent of its coal needs through captive mines by 2017, according to the company website.

The federal government has allotted seven mines to NTPC, including two blocks to be developed through joint ventures.

Aditya Birla group may bid for Whitehaven - report

Mon Mar 14, 2011 3:28am GMT

MUMBAI, 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)

Tags :Chinese investment in coal, Shenhua group, Yanzhou Coal Mining Co., Hindalco, Ultratech Cement, raw material,