B06 Coal Mining

Mining decision puts horse studs on shaky ground

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Original article by Kylar Loussikian
The Australian – Page: 3 : 16-Aug-16

The New South Wales Planning Assessment Commission will shortly rule on Anglo American’s proposed Drayton South open-cut coal mine in the Hunter Valley. The commission has already rejected the project three times, and local thoroughbred studs are concerned about the impact of the mine on their operations. Coolmore Stud’s Tom ­Magnier has urged the State Government to either cancel or buy back the mining licence. Anglo American has been seeking approval for the mine since 2012.

CORPORATES
ANGLO AMERICAN PLC, NEW SOUTH WALES. PLANNING ASSESSMENT COMMISSION, COOLMORE AUSTRALIA, DARLEY AUSTRALIA PTY LTD, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT, BHP BILLITON LIMITED – ASX BHP

Peabody to trim Australian coal output

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Original article by Peter Ker
The Australian Financial Review – Page: 18 : 12-Aug-16

Peabody Energy Corporation has flagged the potential sale of non-core coal assets in Australia, the US and Canada as part of its turnaround strategy. The group, which filed for bankruptcy protection in April 2016, has also advised that its annual coking coal output in Australia is likely to fall to seven million tonnes in 2021, compared with expectations of 15 million tonnes in 2016. However, thermal coal production is expected to be maintained at around current levels for the next five years.

CORPORATES
PEABODY ENERGY CORPORATION, PEABODY ENERGY AUSTRALIA COAL PTY LTD, RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD

Market backs BHP’s bid to buy Anglo coal

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 25-Jul-16

BHP Billiton has declined to comment on speculation that it is poised to acquire Anglo American’s coal assets in Queensland, with the auction process nearing its end. BHP is said to be the only remaining bidder for the assets, which initially attracted interest from companies such as Glencore and Yancoal. The Anglo American assets include the Moranbah North and Grosvenor metallurgical coal mines, and some market analysts say the deal should generate significant synergies for BHP.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ANGLO AMERICAN PLC, GLENCORE PLC, YANCOAL AUSTRALIA LIMITED – ASX YAL, AMERICAN METALS AND COAL INTERNATIONAL INCORPORATED, XCOAL ENERGY AND RESOURCES LLC, BM ALLIANCE COAL OPERATIONS PTY LTD, MITSUBISHI CORPORATION, SHAW AND PARTNERS LIMITED, TRIBECA GLOBAL NATURAL RESOURCES FUND, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, UBS HOLDINGS PTY LTD

Rio Tinto sells shuttered coal mine for $1

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 5-Jul-16

Australian-listed TerraCom will pay just $A1 for Rio Tinto’s Blair Athol thermal coal mine in Queensland. The deal was Rio Tinto’s third attempt to divest the mine, which was mothballed in 2012. However, Rio Tinto will contribute to the cost of rehabilitating some 50 hectares of land that has already been mined at the site. TerraCom aims to resume production at the mine by the end of 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TERRACOM LIMITED – ASX TER, LINC ENERGY LIMITED, BLAIR ATHOL COAL, J-POWER AUSTRALIA PTY LTD, JAPAN COAL DEVELOPMENT COMPANY, STANMORE COAL LIMITED – ASX SMR, VALE SA

Coal upstart tips more deals

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 19-May-16

Stanmore Coal MD Nick Jorss says the listed group is considering further acquisitions in the coal sector, as a number of large players look to divest assets. Stanmore bought the Isaac Plains coking coal mine in Queensland from Vale and Sumitomo in mid-2015. Stanmore has resumed production at the mine and will target annual output of 1.1 million tonnes a year, compared with 2.8 million annually when the mine was mothballed in 2014.

CORPORATES
STANMORE COAL LIMITED – ASX SMR, VALE SA, SUMITOMO CORPORATION, RIO TINTO LIMITED – ASX RIO, ANGLO AMERICAN PLC, PEABODY ENERGY CORPORATION, ARROW ENERGY LIMITED

Pembroke buys $104m Peabody coal projects

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Original article by Matt Chambers
The Australian – Page: 22 : 11-May-16

Pembroke Resources has secured a deal to acquire the Olive Downs South, Olive Downs North and Willunga coking coal deposits in Queensland from Peabody Energy Australia in a $A104m deal. The tenements were previously owned by Macarthur Coal, which Peabody acquired in 2011. Pembroke, which is owned by US private equity firm Denham Capital, intends to pursue further acquisitions.

CORPORATES
PEMBROKE RESOURCES PTY LTD, PEABODY ENERGY AUSTRALIA COAL PTY LTD, PEABODY ENERGY CORPORATION, MACARTHUR COAL LIMITED, DENHAM CAPITAL MANAGEMENT LP, CITIC RESOURCES HOLDINGS LIMITED

Coal sector failing to overturn China’s import testing

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 9-May-16

Greg Evans of the Minerals Council of Australia says China should either abandon its policy of testing the quality of imported coal or allow shipments to be tested before they depart for China. He adds that the quality control tests contributed to a decline in Australia’s coal exports to China to just 71.2 million tonnes in 2015, compared with 93.4 million tonnes in 2014. The Australian Government has also lobbied China to drop the policy, which was introduced in early 2015.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Warning over Peabody’s local mines

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 3-May-16

The auditor’s report in the latest financial accounts of Peabody Energy Australia Coal warns of doubts as to whether it can continue as a going concern. Its US-based parent, Peabody Energy Corporation, recently filed for bankruptcy protection with debts of $US6.3bn. The Australian business is not subject to the bankruptcy filing, but its financial accounts note that a $US250m inter-company loan facility may not be sufficient for all of Peabody Energy Australia’s cash outflows.

CORPORATES
PEABODY ENERGY AUSTRALIA COAL PTY LTD, PEABODY ENERGY CORPORATION, ERNST AND YOUNG, EXCEL COAL LIMITED, MACARTHUR COAL LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Price struck for thermal coal export a ‘huge coup’

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 27 : 27-Apr-16

Australian thermal coal producers have secured an annual contract price of $US61.60 per tonne from Japanese buyers for the financial year that began on 1 April 2016. While this is 9.1 per cent lower than the $US67.80 for the previous Japanese financial year, Macquarie Wealth Management notes that it is about $US10.80 per tonne higher than the spot price. Australian shipments of thermal coal to Japan totalled 84.7 million tonnes in 2015.

CORPORATES
MACQUARIE WEALTH MANAGEMENT, GLENCORE PLC, TOHOKU ELECTRIC POWER CORPORATION, WHITEHAVEN COAL LIMITED – ASX WHC, IHS GLOBAL INSIGHT INCORPORATED

Pragmatic BHP not chasing coal bargains despite fire sale

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Original article by James Thomson
The Australian Financial Review – Page: 11 : 26-Apr-16

BHP Billiton executive Mike Henry says acquiring coal assets is not high on the resources giant’s list of priorities. He adds that BHP would consider any coal assets that were put on the market at very low prices, but notes that any bargains are unlikely to include quality assets. A number of mining companies are seeking to divest coal mines, and Henry expects this trend to continue. BHP CEO Andrew Mackenzie has previously indicated that the group is particularly interested in buying copper and conventional oil assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, GLENCORE PLC, PEABODY ENERGY CORPORATION, ANGLO AMERICAN PLC, APOLLO GLOBAL MANAGEMENT LLC, MITSUBISHI CORPORATION