Monday, 20 Feb 2012
Afghanistan's Ministry of Mines on Saturday rejected allegations of problems in the bidding for one of the country's largest mines, calling it a fair and transparent process.
In a letter to McClatchy, the ministry's director-general for policy and promotion, Mr A Jalil Jumriany said that the selection of bids for four blocks of the Hajigak iron ore mine in central Afghanistan was overseen by a team of Afghan government experts, and that a panel of international advisers found that the process was "conducted according to international standards."
However, Jumriany's letter did not challenge the main points in a McClatchy report published Friday, which raised allegations of flaws in the bidding process and that the winning bidders a state led Indian consortium and a Canadian firm hadn't demonstrated that they could meet production targets.
Among the charges raised by Acatco an Afghan-American firm that was short-listed for the contracts but failed to win mining rights was that the winning firms hadn't shown that they'd secured adequate funding for extracting iron ore from Hajigak, often described as the jewel of Afghanistan's mining sector.
Acatco also charged that its bid was rejected despite offering clearer dates for starting production and higher royalty payments to the Afghan government. A complaints commission of the Afghan parliament has taken up the matter and summoned Afghanistan's minister of mines, Wahidullah Shahrani, who failed to appear at a hearing Saturday because he was traveling, according to a spokesman.
(Sourced from www.adn.com)
Showing posts with label bidder. Show all posts
Showing posts with label bidder. Show all posts
Monday, February 20, 2012
Saturday, December 17, 2011
Aquila in talks with two bidders for Australian coal asset
Saturday, 17 Dec 2011
Bloomberg reported that Aquila Resources Ltd selling assets to help fund a AUD 5.2 billion iron ore project in Australia is in talks with two bidders for the sale of a coal asset.
Mr Martin Alciaturi general manager finance and corporate of the Perth based company said that “We remain in active dialog with two bidders and expect to announce a transaction in the near future.”
Aquila plans to develop the West Pilbara Iron Ore port, rail and mine project with joint venture partner AMCI Inc as demand for steel in China grows. The company is selling three assets, including the Washpool coking coal project in Australia and the Avontuur manganese project in South Africa.
Mr Alciaturi said that “We remain in active dialog with two bidders and expect to announce a transaction in the near future.”
Washpool is valued at AUD 263 million and Avontuur at AUD 120 million.
(Sourced from Bloomberg)
Bloomberg reported that Aquila Resources Ltd selling assets to help fund a AUD 5.2 billion iron ore project in Australia is in talks with two bidders for the sale of a coal asset.
Mr Martin Alciaturi general manager finance and corporate of the Perth based company said that “We remain in active dialog with two bidders and expect to announce a transaction in the near future.”
Aquila plans to develop the West Pilbara Iron Ore port, rail and mine project with joint venture partner AMCI Inc as demand for steel in China grows. The company is selling three assets, including the Washpool coking coal project in Australia and the Avontuur manganese project in South Africa.
Mr Alciaturi said that “We remain in active dialog with two bidders and expect to announce a transaction in the near future.”
Washpool is valued at AUD 263 million and Avontuur at AUD 120 million.
(Sourced from Bloomberg)
Saturday, August 20, 2011
Anglo American may bid for Macarthur Coal - Report
Saturday, 20 Aug 2011
According to a Bloomberg report, Anglo American is contemplating a bid for Australia's Macarthur Coal that would challenge US coal company Peabody Energy's earlier offer for the Australian mining firm.
The Bloomberg report, citing an unnamed person with knowledge of the matter said that Anglo is looking into Macarthur's finances.
In July, Peabody, the largest US coal company, had teamed up with ArcelorMittal, the world's top steelmaker, to offer USD 5 billion for Macarthur Coal in a bid to secure its resources of pulverized coal, a key steelmaking ingredient.
(sourced from Bloomberg)
According to a Bloomberg report, Anglo American is contemplating a bid for Australia's Macarthur Coal that would challenge US coal company Peabody Energy's earlier offer for the Australian mining firm.
The Bloomberg report, citing an unnamed person with knowledge of the matter said that Anglo is looking into Macarthur's finances.
In July, Peabody, the largest US coal company, had teamed up with ArcelorMittal, the world's top steelmaker, to offer USD 5 billion for Macarthur Coal in a bid to secure its resources of pulverized coal, a key steelmaking ingredient.
(sourced from Bloomberg)
Wednesday, August 10, 2011
No EC review for Macarthur Coal takeover
August10, 2011 | AAP
The European Commission does not need to review the planned takeover of Macarthur Coal by US giant Peabody Energy and the world's biggest steel maker, ArcelorMittal, the joint bidders say.
In a statement on Wednesday the bidders said they had been informed by the commission's directorate general for competition that the EU Merger Regulation does not apply to the all-cash $4.7 billion bid for the Queensland-based miner.
The offer was conditional on, among other things, the European Commission confirming that the offer did not fall within its jurisdiction.
The bidders currently have a 16.1 per cent stake in the target, representing ArcelorMittal's interest.
Macarthur last week rejected the hostile $15.50 per share bid after the parties were unable to agree on conditions for a sweetened $16 a share offer, with the target accusing ArcelorMittal and Peabody of imposing unreasonable restrictions.
Shares in Macarthur were up 47 cents, or 3.19 per cent, at $15.19 at 1240 AEST.
Saturday, March 19, 2011
3 Indian cos in race to bid for Bandanna Energy's coal assets
Mar18, 2011,03.56AM IST,
By Vinu Lal & MV Ramsurya, ET Bureau
By Vinu Lal & MV Ramsurya, ET Bureau
BANGALORE/MUMBAI: Three top Indian companies have joined the race to bid for the coal assets of one of Australia's largest thermal coal explorers - Bandanna Energy - in a deal that could be valued at $1.5 billion. GVK, state-owned consortium ICVL and Reliance Power have shown early interest in bidding for the assets estimated to have reserves of over 1.3 billion tonnes of thermal coal, said people familiar with the development.
Bandanna Energy has initiated an auction process to sell the assets and has mandated UBS to advise it on the transaction. The last date for submission of bids is March 31, 2011.
An information memorandum circulated among bidders, a copy of which is with ET, indicate that the company has $750 million worth assets. A feasibility study on some of its coal assets completed last month, soon after which the sale process was kicked off.
Thermal coal is used by utility coal-fired power plants. Expanding capacities by companies in various industries have led to a rise in power consumption. While India is also rich in thermal coal deposits, high ash content in local coal and reduced production by Coal India, has prompted most user companies to scout global resource rich nations to tap for coal assets.
A GVK spokesperson did not reply to an email query sent by ET. Senior officials from GVK are currently in Australia. A Reliance Power spokesman denied the company is considering bidding for the coal assets. A senior ICVL executive said that the company was evaluating all options with respect to coal assets in Australia. "We have a board meeting scheduled on March 21 where we will take a call on all bids," he added. ICVL comprises of mining major NMDC, utility NTPC , steelmakers SAIL and Rashtriya Ispat Nigam , and Coal India.
Bandanna chairman Jeremy Barlow did not respond to an email query.
Bandanna would look at selling both minority or majority stake in its ongoing projects as well as explore the possibility of selling the entire entity as a whole. According to a person close to the bidder, current discussions initiated by the banker relate to a possible entity level sale rather than piecemeal project-level sale. "It is typical for a project as large as this to initially explore entity level interests than piecemeal selloffs," said the person.
Bandanna Energy has exploration licences for 16 blocks in the Bowen and Galilee Basins in Queensland. The company also has shale gas assets in the region. Six founder shareholders led by chairman Jeremy Barlow, own close to 70% stake in the listed Bandanna Energy.
Local demand for coal reported a compounded annual growth rate of over 8% during a five-year period till FY2010, to reach almost 600 million tonnes last year. The demand from the power sector, which accounts for over 70% of the country's overall coal demand, has been a major driving force, said a recent report by ICRA.
Bandanna Energy has initiated an auction process to sell the assets and has mandated UBS to advise it on the transaction. The last date for submission of bids is March 31, 2011.
An information memorandum circulated among bidders, a copy of which is with ET, indicate that the company has $750 million worth assets. A feasibility study on some of its coal assets completed last month, soon after which the sale process was kicked off.
Thermal coal is used by utility coal-fired power plants. Expanding capacities by companies in various industries have led to a rise in power consumption. While India is also rich in thermal coal deposits, high ash content in local coal and reduced production by Coal India, has prompted most user companies to scout global resource rich nations to tap for coal assets.
A GVK spokesperson did not reply to an email query sent by ET. Senior officials from GVK are currently in Australia. A Reliance Power spokesman denied the company is considering bidding for the coal assets. A senior ICVL executive said that the company was evaluating all options with respect to coal assets in Australia. "We have a board meeting scheduled on March 21 where we will take a call on all bids," he added. ICVL comprises of mining major NMDC, utility NTPC , steelmakers SAIL and Rashtriya Ispat Nigam , and Coal India.
Bandanna chairman Jeremy Barlow did not respond to an email query.
Bandanna would look at selling both minority or majority stake in its ongoing projects as well as explore the possibility of selling the entire entity as a whole. According to a person close to the bidder, current discussions initiated by the banker relate to a possible entity level sale rather than piecemeal project-level sale. "It is typical for a project as large as this to initially explore entity level interests than piecemeal selloffs," said the person.
Bandanna Energy has exploration licences for 16 blocks in the Bowen and Galilee Basins in Queensland. The company also has shale gas assets in the region. Six founder shareholders led by chairman Jeremy Barlow, own close to 70% stake in the listed Bandanna Energy.
Local demand for coal reported a compounded annual growth rate of over 8% during a five-year period till FY2010, to reach almost 600 million tonnes last year. The demand from the power sector, which accounts for over 70% of the country's overall coal demand, has been a major driving force, said a recent report by ICRA.
Monday, February 28, 2011
Emami Ltd close to taking control of iron ore mining in Orissa
By Aniek Paul, Mint, New Delhi
Feb23, 2011
Diversified conglomerate Emami Ltd is close to taking control of an unexploited iron ore mine in Orissa for '400-500 crore in staggered cash payments.
A memorandum of understanding has been signed between Emami and the company that owns the lease right to the mine and the deal could be concluded within two weeks, according to people familiar with the deal.
Emami's co-chairman R.S. Goenka said the company was scouting for iron ore reserves in Orissa and collieries in Indonesia. Emami may consider diversifying into steel if it could secure iron ore mines. It has already decided to launch a power plant, for which it is looking to buy collieries producing energy coal in Indonesia, he added.
Emami is following other private miners in "securing iron ore reserves" in states such as Orissa, Jharkhand and Chhattisgarh through "intriguing deals structured to comply" with the restrictions on transfer of mining leases under Indian laws, said a person who has acted as an intermediary in several similar deals in the past couple of years. He did not wish to be identified.
Starting in the 1970s, several people, mostly from the "local landed gentry", were given mining leases in the iron ore-rich states--Orissa, Jharkhand and Chhattisgarh. The assets were leased out to them initially for 20 years, but at the end of the first term, the lease was renewable "automatically" for 20 more years even if the developer hadn't made any effort to extract minerals.
But on completion of 40 years, the state governments are to auction these assets, according to the person cited above. "For those owning the mining leases, the only way to retain them is to develop the mines much before the end of the lease term," he said. "Only if a mine is in operation, the company owning the lease right could request the state government to renew the lease again."
But most of these people do not have the cash to develop the mines on their own, so they approach large companies such as Emami to "capitalize" them, he said. Under Indian laws, companies owning mining leases cannot sell shares or receive funding from others to develop the mines, he said.
Notwithstanding the restrictions aimed at making sure that mining leases couldn't be transferred or mortgaged, lawyers have devised a way to "bring in new beneficiaries without breaking the laws", according to him.
One of the key determinants of valuation is the "number of years left in the (40-year) lease term". Those attracting the best valuations are the ones that have at least 15-20 more years left, he added. "But at least one mine with less than three years left in the lease term is known to have found an investor recently." This is significant because, at times, it takes years to obtain clearance from the ministry of environment and forests to start mining.
Companies such as Emami enter as "long-term buyers" of iron ore, paying an "advance to secure the right" to buy the future production of the mine. In some cases, the company owning the mining lease even stages a contest to determine the highest bidder. On conclusion of the deal, however, the "long-term buyer" effectively gets control of the mine.
Though a substantial amount is normally paid at the time of signing the deal, the payment of the best part of the consideration is "linked to milestones". "This is because, even though the long-term buyer would operate the mine going forward, it is entirely dependent on the company owning the mining lease for securing clearances," he said.
It isn't immediately known--and it may not have been firmed up either--how much Emami is to pay upfront for the mine that it is eyeing. "Talks are at final stages; the details are being discussed now," said another person familiar with Emami's deal, who also did not wish to be named.
There's a considerable amount of risk involved in these deals, said a lawyer familiar with them, speaking on condition of anonymity. "Considering the strict environment laws these days, there's no guarantee that all clearances could be obtained," he said. "All deals need not lead to commercial exploitation of reserves--if the investor has such doubts, it would pay a small amount, say '5 crore, at the time of signing the deal."
Another problem is that of "squatters", he added. During legal due diligence, it's often discovered that the firm owning the mining rights signed a similar agreement with another investor years ago, but has been unable to exploit the mine. "In some cases, the right of that person has to be bought out. But at times, the squatters are so demanding that the deal cannot be closed."
(sourced:livemint)
A memorandum of understanding has been signed between Emami and the company that owns the lease right to the mine and the deal could be concluded within two weeks, according to people familiar with the deal.
Emami's co-chairman R.S. Goenka said the company was scouting for iron ore reserves in Orissa and collieries in Indonesia. Emami may consider diversifying into steel if it could secure iron ore mines. It has already decided to launch a power plant, for which it is looking to buy collieries producing energy coal in Indonesia, he added.
Emami is following other private miners in "securing iron ore reserves" in states such as Orissa, Jharkhand and Chhattisgarh through "intriguing deals structured to comply" with the restrictions on transfer of mining leases under Indian laws, said a person who has acted as an intermediary in several similar deals in the past couple of years. He did not wish to be identified.
Starting in the 1970s, several people, mostly from the "local landed gentry", were given mining leases in the iron ore-rich states--Orissa, Jharkhand and Chhattisgarh. The assets were leased out to them initially for 20 years, but at the end of the first term, the lease was renewable "automatically" for 20 more years even if the developer hadn't made any effort to extract minerals.
But on completion of 40 years, the state governments are to auction these assets, according to the person cited above. "For those owning the mining leases, the only way to retain them is to develop the mines much before the end of the lease term," he said. "Only if a mine is in operation, the company owning the lease right could request the state government to renew the lease again."
But most of these people do not have the cash to develop the mines on their own, so they approach large companies such as Emami to "capitalize" them, he said. Under Indian laws, companies owning mining leases cannot sell shares or receive funding from others to develop the mines, he said.
Notwithstanding the restrictions aimed at making sure that mining leases couldn't be transferred or mortgaged, lawyers have devised a way to "bring in new beneficiaries without breaking the laws", according to him.
One of the key determinants of valuation is the "number of years left in the (40-year) lease term". Those attracting the best valuations are the ones that have at least 15-20 more years left, he added. "But at least one mine with less than three years left in the lease term is known to have found an investor recently." This is significant because, at times, it takes years to obtain clearance from the ministry of environment and forests to start mining.
Companies such as Emami enter as "long-term buyers" of iron ore, paying an "advance to secure the right" to buy the future production of the mine. In some cases, the company owning the mining lease even stages a contest to determine the highest bidder. On conclusion of the deal, however, the "long-term buyer" effectively gets control of the mine.
Though a substantial amount is normally paid at the time of signing the deal, the payment of the best part of the consideration is "linked to milestones". "This is because, even though the long-term buyer would operate the mine going forward, it is entirely dependent on the company owning the mining lease for securing clearances," he said.
It isn't immediately known--and it may not have been firmed up either--how much Emami is to pay upfront for the mine that it is eyeing. "Talks are at final stages; the details are being discussed now," said another person familiar with Emami's deal, who also did not wish to be named.
There's a considerable amount of risk involved in these deals, said a lawyer familiar with them, speaking on condition of anonymity. "Considering the strict environment laws these days, there's no guarantee that all clearances could be obtained," he said. "All deals need not lead to commercial exploitation of reserves--if the investor has such doubts, it would pay a small amount, say '5 crore, at the time of signing the deal."
Another problem is that of "squatters", he added. During legal due diligence, it's often discovered that the firm owning the mining rights signed a similar agreement with another investor years ago, but has been unable to exploit the mine. "In some cases, the right of that person has to be bought out. But at times, the squatters are so demanding that the deal cannot be closed."
(sourced:livemint)
Saturday, February 12, 2011
Kodeco Invites Bidders to Provide Jack UP Drilling Unit
Thursday, 10 February 2011 15:49
Kodeco Energy Co. Ltd, a Producion Sharing Contract (PSC) of BP Migas invites interested and qualified bidders to participate in tender to provide one cantilever type Offshore Jack-up Drilling Unit complete with top drive.
The tender will expire in 16 February 2011.
Besides jack-up drilling, Kodeco also tender to provide Associated Expert Drilling Services to drill, complete, workover and test offshore fourteen (14) to thirty (30) development and exploration wells.
The period of contract is expected for 12 to 24 months commencing second quarter 2011.
The wells will consist of development and exploration wells having vertical to extended reach and horizontal profiles.
(sourced:theindonesiatoday)
Wednesday, February 9, 2011
Deals of the day -- mergers and acquisitions
Wed Feb 9, 2011 10:30am GMT
Feb 9 (Reuters) - The following bids, mergers, acquisitions and disposals involving European, U.S. and Asian companies were reported by 1000 GMT on Wednesday.
(For Reuters columns on deals, click on
** The London Stock Exchange (LSE.L: Quote) is to buy the owner of the Toronto Stock Exchange TMX Group (X.TO: Quote) in an all share deal that will create a mining-dominant exchange at a time of rising commodity prices.
** Millhouse LLC, the investment company of Russian billionaire Roman Abramovich, said on Wednesday it has sold a 25 percent stake in the country's main state-run television channel to the National Media Group. The price of the sale of the stake in Channel One was not disclosed, but business daily Kommersant reported the group paid Millhouse $150 million.
** CSN (CSNA3.SA: Quote), Brazil's largest diversified steelmaking group, has raised its stake in Australian miner Riversdale (RIV.AX: Quote) which is subject to a $3.9 billion takeover bid from global miner Rio Tinto (RIO.AX: Quote) (RIO.L: Quote). To read more, please double click on
** Australia's Centro Properties Group (CNP.AX: Quote) has narrowed down bidders for its $9.5 billion U.S. shopping mall assets to three consortiums, including private equity firm Blackstone Group (BX.N: Quote), a source said.
** Billionaire investor Wilbur Ross is considering joining in an effort to buy oil and gas company Exco Resources Inc (XCO.N: Quote), according to a regulatory filing.
** Footwear retailer DSW Inc (DSW.N: Quote) said it agreed to merge with its largest shareholder Retail Ventures Inc (RVI.N: Quote) in an all-stock deal, and raised its full-year outlook.(By Aditi Sharma,Bangalore & Tina Kwan, Singapore)
Feb 9 (Reuters) - The following bids, mergers, acquisitions and disposals involving European, U.S. and Asian companies were reported by 1000 GMT on Wednesday.
(For Reuters columns on deals, click on
** The London Stock Exchange (LSE.L: Quote) is to buy the owner of the Toronto Stock Exchange TMX Group (X.TO: Quote) in an all share deal that will create a mining-dominant exchange at a time of rising commodity prices.
** Millhouse LLC, the investment company of Russian billionaire Roman Abramovich, said on Wednesday it has sold a 25 percent stake in the country's main state-run television channel to the National Media Group. The price of the sale of the stake in Channel One was not disclosed, but business daily Kommersant reported the group paid Millhouse $150 million.
** CSN (CSNA3.SA: Quote), Brazil's largest diversified steelmaking group, has raised its stake in Australian miner Riversdale (RIV.AX: Quote) which is subject to a $3.9 billion takeover bid from global miner Rio Tinto (RIO.AX: Quote) (RIO.L: Quote). To read more, please double click on
** Australia's Centro Properties Group (CNP.AX: Quote) has narrowed down bidders for its $9.5 billion U.S. shopping mall assets to three consortiums, including private equity firm Blackstone Group (BX.N: Quote), a source said.
** Billionaire investor Wilbur Ross is considering joining in an effort to buy oil and gas company Exco Resources Inc (XCO.N: Quote), according to a regulatory filing.
** Footwear retailer DSW Inc (DSW.N: Quote) said it agreed to merge with its largest shareholder Retail Ventures Inc (RVI.N: Quote) in an all-stock deal, and raised its full-year outlook.(By Aditi Sharma,Bangalore & Tina Kwan, Singapore)
Tuesday, February 8, 2011
Third auction of Kremikovtzi assets also fails
Monday, 07 February 2011 17:19:48 (GMT+2)
The third auction of the assets owned by bankrupt Bulgarian steel giant Kremikovtzi has failed like the previous two auctions, since the only bidder did not present satisfactory documentation certifying that it had paid the required deposit, Sofia News Agency has reported. The bidder Victory Commerce, owned by Bulgarian businessman Georgi Manchev, has presented the copy of an email according to which Russia-based Rosbank transferred the required €20.28 million deposit for participation in the auction. However, Bulgarian Development Bank, which is carrying out the bankruptcy procedure, has stated in a press release that it has not received any deposit from the company. Mr. Manchev has said Victory Commerce is now withdrawing its bid. Bulgaria regrouped the assets of bankrupt Kremikovtzi to cut their price and tried to auction them for a third time on Monday, February 7, 2011, after failing to attract any bidders in the two previous auctions. For Monday's unsuccessful bid, the starting price was set at BGN 395 million (approx. $274 million), down 31 percent from the initial price at the first auction. As SteelOrbis previously reported, Kremikovtzi was placed in receivership in 2008, after failing to pay investors holding €325 million ($440 million) in bonds. Following the failure of attempts to sell Kremikovtzi to ArcelorMittal and Ukrainian businessman Konstantin Zhevago, owner of Vorskla Steel Bulgaria, Kremikovtzi was declared bankrupt at the end of May last year and cleared for liquidation in June. Tags: Bulgaria , Europe, steelmaking(sourced:steelorbis)
The third auction of the assets owned by bankrupt Bulgarian steel giant Kremikovtzi has failed like the previous two auctions, since the only bidder did not present satisfactory documentation certifying that it had paid the required deposit, Sofia News Agency has reported. The bidder Victory Commerce, owned by Bulgarian businessman Georgi Manchev, has presented the copy of an email according to which Russia-based Rosbank transferred the required €20.28 million deposit for participation in the auction. However, Bulgarian Development Bank, which is carrying out the bankruptcy procedure, has stated in a press release that it has not received any deposit from the company. Mr. Manchev has said Victory Commerce is now withdrawing its bid. Bulgaria regrouped the assets of bankrupt Kremikovtzi to cut their price and tried to auction them for a third time on Monday, February 7, 2011, after failing to attract any bidders in the two previous auctions. For Monday's unsuccessful bid, the starting price was set at BGN 395 million (approx. $274 million), down 31 percent from the initial price at the first auction. As SteelOrbis previously reported, Kremikovtzi was placed in receivership in 2008, after failing to pay investors holding €325 million ($440 million) in bonds. Following the failure of attempts to sell Kremikovtzi to ArcelorMittal and Ukrainian businessman Konstantin Zhevago, owner of Vorskla Steel Bulgaria, Kremikovtzi was declared bankrupt at the end of May last year and cleared for liquidation in June. Tags: Bulgaria , Europe, steelmaking(sourced:steelorbis)
Tuesday, February 1, 2011
Vale, ArcelorMittal among 15 bidding for Mongolia coal mine
By Miyoung Kim and Yuko InoueSEOUL/TOKYO Mon Jan 31, 2011 (Reuters)
Resource-hungry Asian states are locking horns with steelmaker ArcelorMittal and miner Vale to develop the world's largest untapped coking coal deposit in Mongolia, scrambling for raw materials to produce steel.
China, Japan and South Korea are scouring the world from Africa, India, Australia and South America and snapping up iron ore and coking coal assets to diversify from heavyweight suppliers such as BHP Billiton and Rio Tinto.
Asian private and state-linked firms are among the 15 bidders vying for Tavan Tolgoi coking coal project, along with the world's top steelmaker ArcelorMittal SA and the top iron ore miner Vale of Brazil, according to a source with direct knowledge of the matter.
Mongolia, while poor and undeveloped, sits on vast quantities of untapped mineral wealth and analysts say it could be one of the fastest growing economies of the next decade.
The country's fledgling democratic government plans to keep ownership of the mine, estimated to house a total 5 billion tonnes of coal reserves, and give strategic investors a chance to develop its western block on a contract basis.
Over 20 investment banks will this month submit written proposals for the privatisation of Tavan Tolgoi, which could value it at up to $8 billion, The Independent on Sunday reported this week.
"It is the biggest undeveloped coking coal mine in the world, it is strategically important and that's why you see so many interested parties," said Carol Cao, an analyst with Macquarie in Hong Kong.
South Korea bidders in the race also included Xstrata, U.S. coal miner Peabody and consortia led by South Korea, China, Japan and India.
State-run Korea Resources Corp said its consortium is formed of nine Korean firms, two Russian firms and four Japanese companies to develop the Tsankhi block, which is estimated to have 1.2 billion tonnes of coal reserves.
"Mongolia has rich untapped reserves and the block in the auction is very attractive, as it is one of the few large-sized coal mines in the world left undeveloped," Korea Resources Corp said in a statement.
UNCERTAINTY
Steelmakers across Asia have been scrambling to secure new supply channels after devastating floods hit Queensland -- the heart of Australia's coal mining sector -- in December and January.
The Mongolian government is likely to decide preferred bidders in mid-February, after the Lunar New Year holiday starting this week, Korea Resources said.
But auction, which closed on Monday after two weeks of delay, faces uncertainty, as Mongolia has struggled to develop a consistent strategy when it comes to overseas companies buying into national assets.
It has long frustrated the global resources industry for dragging its feet on investment decisions. The government, hobbled by indecision and bureaucratic infighting, took years to conclude the agreement to develop the Oyu Tolgoi copper and gold project.
An initial 2009 bidding auction for the Tavan Tolgoi coal project attracted consortia from South Korea, Japan and Russia as well as mining giants such as BHP, Vale, India's Jindal, and China Shenhua Energy.
But the government abruptly announced the auction would be cancelled early last year and said the state would maintain control and foreign firms could bid for licenses to develop and run the mine.
A top executive at a Japanese trading firm said BHP, which previously expressed interest in the project, had pulled out.
BIDDERS
Members of South Korean bidding group include steelmaker POSCO, utility firm KEPCO, trading firms LG Corp and Daewoo International Corp, Russian Railways and Japanese trading houses Itochu Corp, Sumitomo Corp, Marubeni Corp and Sojitz Corp.
Sources told Reuters on Monday competing Mitsui is leading a Japanese consortium, which has partnered with China's state-run Shenhua Group.
Some investors said winning the deal could add lustre to the winner's stock price over the long-term. (Reporting by Rebekah Kebede in PERTH, Ju-min Park in SEOUL, sourced: reuters)
Thursday, January 27, 2011
Former Baffinland CEO fighting for minority shareholders
Thursday, 27 Jan 2011
The Canadian Press reported that the former CEO of Baffinland Iron Mines will continue to fight for the minority shareholders of his former company after a joint venture led by ArcelorMittal announced it has won control of the firm.
Mr Gord McCreary had been working on rival offer for Baffinland involving an unidentified Chinese bidder before ArcelorMittal and its private equity partner announced that they now control about 60% of the company's shares.
Mr McCreary said “It's all about maximizing value for minority shareholders, so I've got several irons in the fire and keep charging ahead.”
However, Mr McCreary declined to be specific about what possibilities he might be pursuing.
He said "I'm still fully engaged working 20 hour days on this.”
(Sourced from The Canadian Press)
Sesa Goa secures stay order against Bellary sell off
Thursday, 27 Jan 2011
Press Trust of India reported that Vedanta Group firm Sesa Goa has secured a stay order from the Delhi High Court against the decision taken by Industrial Financial Corporation of India on Bellary Steel sell off in which JSW Steel was declared the highest bidder.
According to the Delhi High Court website, next hearing has been scheduled on February 22 on the matter.
Mr PK Mukherjee MD of Sesa Goa told PTI “Our dispute is against the process followed by IFCI in the bidding. We have already taken up the matter with the Delhi High Court, which stayed the sale (order) last week.”
He told “Our dispute is with the process. We were the only qualified bidder initially and declared successful bidder verbally. Our people were told to come after lunch to collect the allotment letter. When we came back after lunch, we were told that there is another bidder and that bid is only marginally higher than our price.”
He added that “The stay order came after we filed a petition and next hearing will be in mid February.”
Mr Mukherjee while clarifying that Sesa Goa does not have any issues against JSW Steel said “We have no problems with JSW at all... Our dispute is with the process, which IFCI followed.”
Last month, a consortium of lenders led by IFCI had declared JSW Steel as the highest bidder for acquiring the assets of Bellary Steel and Alloys, where Sesa Goa was the only other qualified contender. While Sesa Goa's bid was at INR 206 crore, slightly more than the reserve price of INR 205.63 crore, JSW quoted INR 210 crore.
(Sourced from PTI)
Press Trust of India reported that Vedanta Group firm Sesa Goa has secured a stay order from the Delhi High Court against the decision taken by Industrial Financial Corporation of India on Bellary Steel sell off in which JSW Steel was declared the highest bidder.
According to the Delhi High Court website, next hearing has been scheduled on February 22 on the matter.
Mr PK Mukherjee MD of Sesa Goa told PTI “Our dispute is against the process followed by IFCI in the bidding. We have already taken up the matter with the Delhi High Court, which stayed the sale (order) last week.”
He told “Our dispute is with the process. We were the only qualified bidder initially and declared successful bidder verbally. Our people were told to come after lunch to collect the allotment letter. When we came back after lunch, we were told that there is another bidder and that bid is only marginally higher than our price.”
He added that “The stay order came after we filed a petition and next hearing will be in mid February.”
Mr Mukherjee while clarifying that Sesa Goa does not have any issues against JSW Steel said “We have no problems with JSW at all... Our dispute is with the process, which IFCI followed.”
Last month, a consortium of lenders led by IFCI had declared JSW Steel as the highest bidder for acquiring the assets of Bellary Steel and Alloys, where Sesa Goa was the only other qualified contender. While Sesa Goa's bid was at INR 206 crore, slightly more than the reserve price of INR 205.63 crore, JSW quoted INR 210 crore.
(Sourced from PTI)
Sunday, January 23, 2011
Coal India Limited BCCL to open 20 million tonnes UG coal mine in Jharkhand
Sunday, 23 Jan 2011
Coal India Ltd will make operational a new underground mine having a reserve of 20 million tonnes in Jharkhand.
A source in Coal India requesting anonymity told PTI that "We are going to open a new underground mine at Muraidih near Dhanbad in Jharkhand which is likely to begin production within three years.”
The source added that "The tender was finalized a month back.”
The source added that "Out of the five parties that had applied for the tender, three were qualified.”
He added that "A Chinese firm CME and an Indian firm emerged as L1 bidder.”
The tender for the development and subsequent production from the underground mine was floated by Bharat Coking Coal Ltd a wholly owned subsidiary of Coal India Limited.
The mine is estimated to have an annual production capacity of 2million tonnes.
Coal India is also planning to extract coal from its abandoned mines and will float tenders for 18 such mines.
The 18 abandoned underground mines are owned by three of its subsidiaries in partnership with private players.
Underground mining would be revived in six abandoned mines of Eastern Coalfields, eight of BCCL, and four belonging to Central Coalfields.
(Sourced from ET)
Thursday, January 20, 2011
Sichuan Hongda bags coal and iron ore mines in Tanzania
Wednesday, 19 Jan 2011
Reuters reported that China's Sichuan Hongda Co Ltd will invest USD 3 billion in a coal fired power plant and two iron ore mines in Tanzania.
Mr Chrisant Mzindakaya chairman of state run National Development Corporation told Reuters that “The Chinese firm was picked from a long list of bidders as the preferred investor after winning an international bidding process. We are now negotiating final details before a contract can be signed.”
Mr Gideon Nassari MD of NDC told reporters “Our aim is to have the contract signed next month in order to pave the way for the actual implementation of the projects.”
The investment involves construction of the Mchuchuma integrated coal mine and thermal power station and an iron ore mine in Liganga.
NDC said the projects would be implemented in a joint venture with the Chinese investors under a public-private partnership.
Financial details of the investment projects were yet to be confirmed.
Mchuchuma, located 800 kilometres west of Dar es Salaam, has identified reserves of 536 million tonnes of coal. The investment in the coal mine would also involve construction of a 600 MW coal-fired power plant.
NDC said early studies indicated that the Liganga area was rich in iron, vanadium and titanium minerals. Reserves are estimated to be between 200 and 1,200 million tonnes, with 45 million already proven through drilling.
Tanzania, Africa's fourth largest gold producer with reserves of uranium, nickel and coal, passed a new mining law last year requiring the government to own stakes in future mining projects and mining companies to list on the Dar es Salaam Stock Exchange.
Other bidders included Nava Bharat (Singapore) Pte Ltd, STX Corporation of South Korea, US power company AES Corporation and India's Sarda Energy & Minerals Ltd.
Sourced from Reuters
Tuesday, January 18, 2011
China firm wins Tanzania coal, iron-ore mine bid
By: Reuters, 18th January 2011
DAR ES SALAAM – China's Sichuan Hongda will invest $3-billion in a coal-fired power plant and two iron-ore mines in Tanzania, the state-run National Development Corporation (NDC) said on Tuesday.
Sichuan Hongda is in advanced talks with senior Tanzanian government officials to sign a contract for the projects after it beat bids from more than 20 international companies including Rio Tinto and BHP Billiton.
"The Chinese firm was picked from a long list of bidders as the preferred investor after winning an international bidding process. We are now negotiating final details before a contract can be signed," NDC's board chairman, Chrisant Mzindakaya, told Reuters.
China has invested billions of dollars in Africa in the production of minerals and oil, hoping to secure the resources it needs to fuel its booming economy.
Tanzania -- Africa's fourth-largest gold producer with reserves of uranium, nickel and coal -- passed a new mining law last year requiring the government to own stakes in future mining projects and mining companies to list on the Dar es Salaam Stock Exchange.
The investment involves construction of the Mchuchuma integrated coal mine and thermal power station and an iron ore mine in Liganga.
NDC said the projects would be implemented in a joint venture with the Chinese investors under a public-private partnership.
Financial details of the investment projects were yet to be confirmed. Senior officials from Sichuan Hongda are in Dar es Salaam for negotiations with their Tanzanian counterparts to finalise the deal.
"Our aim is to have the contract signed next month in order to pave the way for the actual implementation of the projects," Gideon Nassari, NDC managing director, told reporters.
Mchuchuma, located 800 kilometres west of Dar es Salaam, has identified reserves of 536 million tonnes of coal. The investment in the coal mine would also involve construction of a 600 megawatt coal-fired power plant.
NDC said early studies indicated that the Liganga area was rich in iron, vanadium and titanium minerals. Reserves are estimated to be between 200 and 1 200-million metric tons, with 45-million already proven through drilling.
Other bidders included Nava Bharat (Singapore), a unit of Nava Bharat Ventures Ltd, STX Corporation of South Korea, U.S. power company AES Corporation and India's Sarda Energy & Minerals Ltd.
Edited by: Reuters
DAR ES SALAAM – China's Sichuan Hongda will invest $3-billion in a coal-fired power plant and two iron-ore mines in Tanzania, the state-run National Development Corporation (NDC) said on Tuesday.
Sichuan Hongda is in advanced talks with senior Tanzanian government officials to sign a contract for the projects after it beat bids from more than 20 international companies including Rio Tinto and BHP Billiton.
"The Chinese firm was picked from a long list of bidders as the preferred investor after winning an international bidding process. We are now negotiating final details before a contract can be signed," NDC's board chairman, Chrisant Mzindakaya, told Reuters.
China has invested billions of dollars in Africa in the production of minerals and oil, hoping to secure the resources it needs to fuel its booming economy.
Tanzania -- Africa's fourth-largest gold producer with reserves of uranium, nickel and coal -- passed a new mining law last year requiring the government to own stakes in future mining projects and mining companies to list on the Dar es Salaam Stock Exchange.
The investment involves construction of the Mchuchuma integrated coal mine and thermal power station and an iron ore mine in Liganga.
NDC said the projects would be implemented in a joint venture with the Chinese investors under a public-private partnership.
Financial details of the investment projects were yet to be confirmed. Senior officials from Sichuan Hongda are in Dar es Salaam for negotiations with their Tanzanian counterparts to finalise the deal.
"Our aim is to have the contract signed next month in order to pave the way for the actual implementation of the projects," Gideon Nassari, NDC managing director, told reporters.
Mchuchuma, located 800 kilometres west of Dar es Salaam, has identified reserves of 536 million tonnes of coal. The investment in the coal mine would also involve construction of a 600 megawatt coal-fired power plant.
NDC said early studies indicated that the Liganga area was rich in iron, vanadium and titanium minerals. Reserves are estimated to be between 200 and 1 200-million metric tons, with 45-million already proven through drilling.
Other bidders included Nava Bharat (Singapore), a unit of Nava Bharat Ventures Ltd, STX Corporation of South Korea, U.S. power company AES Corporation and India's Sarda Energy & Minerals Ltd.
Edited by: Reuters
Subscribe to:
Posts (Atom)
Posts
