B06 Coal Mining

Rio ices coal asset sale in full market

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 18-Apr-16

The large number of coal mines that are for sale globally has prompted Rio Tinto to put further asset sales on hold until the market improves. Rio is seeking buyers for the Mount Thorley Warkworth and Hunter Valley Operations mines in New South Wales, but it has not been able to find a buyer that is willing to pay a premium for the high-quality assets. Meanwhile, Whitehaven Coal MD Paul Flynn expects more mining companies to offer quality coal assets for sale.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WHITEHAVEN COAL LIMITED – ASX WHC, GLENCORE PLC, ANGLO AMERICAN PLC, PEABODY ENERGY CORPORATION, VALE SA, BHP BILLITON LIMITED – ASX BHP, APOLLO GLOBAL MANAGEMENT LLC, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED

Australian operations ‘not included’ in Peabody bankruptcy

roymorgansocial Leave a comment

Original article by James Thomson, Peter Ker
The Australian Financial Review – Page: 17 : 14-Apr-16

The Minerals Council of Australia’s Greg Evans says the local operations of US-based Peabody Energy are unlikely to be affected by its move to seek bankruptcy protection. The debt-laden coal miner has stressed that its Australian business is not subject to the Chapter 11 filing. Peabody boasts debt of about $US6.bn (A$8.2bn), and it has been hard hit by the downturn in coal prices.

CORPORATES
PEABODY ENERGY CORPORATION, PEABODY ENERGY AUSTRALIA COAL PTY LTD, MINERALS COUNCIL OF AUSTRALIA, EXCEL COAL LIMITED, MACARTHUR COAL LIMITED, ARCH COAL INCORPORATED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Carmichael key to easing Indian poverty: Adani

roymorgansocial Leave a comment

Original article by Geoff Chambers
The Australian – Page: 6 : 8-Apr-16

The Australian Greens has urged the federal and Queensland governments to reverse their approvals for Adani’s Carmichael thermal coal project. However, Adani Australia CEO Jeyakumar Janakaraj says the $A16bn project will increase India’s consumption of cleaner coal and help reduce poverty in the nation. Matt Canavan, the Minister for Northern Australia, adds that if the project does not go ahead India will simply source lower-quality coal from elsewhere.

CORPORATES
ADANI ENTERPRISES LIMITED, ADANI AUSTRALIA COMPANY PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIAN GREENS, QUEENSLAND RESOURCES COUNCIL LIMITED, BOWEN BASIN MINING CLUB

Japanese buyers demand cheaper Australian coal

roymorgansocial Leave a comment

Original article by Peter Ker
The Australian Financial Review – Page: 1 & 11 : 5-Apr-16

The downturn in coal prices and a global oversupply is expected to result in Japan’s power companies securing a lower contract price in current negotiations with Australian thermal coal producers. The annual contract price is usually higher than the spot price, but the utilities are believed to be seeking a discount of at least 10 per cent on the previous contract price of about $US67 per tonne. RBC Capital Markets forecasts that the thermal coal price will rebound to around $US65/tonne in 2018.

CORPORATES
RBC CAPITAL MARKETS, IHS GLOBAL INSIGHT INCORPORATED, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, TOHOKU ELECTRIC POWER CORPORATION, ADANI ENTERPRISES LIMITED, ROY HILL HOLDINGS PTY LTD, AUSTRALIA. EXPORT FINANCE AND INSURANCE CORPORATION, ANGLO AMERICAN PLC, TAURUS FUNDS MANAGEMENT PTY LTD, STANMORE COAL LIMITED – ASX SMR, VALE SA, SUMITOMO CORPORATION

Glencore puts coal haulage business on the block for $1b

roymorgansocial Leave a comment

Original article by Matthew Stevens, Amanda Saunders
The Australian Financial Review – Page: 21 & 26 : 17-Mar-16

Global mining company Glencore has confirmed that it will seek a buyer for its GRail coal haulage business in the Hunter Valley. It will shortly commence an auction process for the business, and it hopes to secure a deal by the September 2016 quarter. Glencore has invested around $A350m in the GRail business, which boasts EBITDA of $A100m. Potential buyers could include US-based Genesee & Wyoming, whose Freightliner subsidiary operates GRail on behalf of Glencore.

CORPORATES
GLENCORE PLC, GRAIL, GENESEE AND WYOMING INCORPORATED, FREIGHTLINER GROUP LIMITED, ASCIANO LIMITED – ASX AIO, PACIFIC NATIONAL PTY LTD, XSTRATA AG, RBC CAPITAL MARKETS, UGL LIMITED – ASX UGL, BHP BILLITON LIMITED – ASX BHP

BHP coalmine on the brink as profits dive

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 18 : 29-Feb-16

BHP Billiton’s Mount Arthur mine in New South Wales currently produces about 10 per cent of the thermal coal that is exported from Australia each year. However, BHP CEO Andrew Mackenzie recently signalled that production at the mine could potentially be suspended unless there is a rebound in the coal price. The price of thermal coal was trading at almost $US150 per tonne in 2011, but Goldman Sachs recently forecast that it will average just $US48/tonne in 2016.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, SOUTH32 LIMITED – ASX S32

LNG oversupply could spell gory end for coal

roymorgansocial Leave a comment

Original article by Jens Meyer
The Australian Financial Review – Page: 33 : 25-Feb-16

A recent report from the World Bank forecast that the price of Australian thermal coal will rise to $US58 per tonne by 2020. The price of coal exported from Newcastle was trading at $US40 a tonne in late February 2016, having peaked at almost $US130 a tonne in 2011. Macquarie believes that consumption of thermal coal may have peaked, and it warns that a global oversupply of LNG could further reduce demand for coal.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, OIL SEARCH LIMITED – ASX OSH, WORLD BANK

Rio offloads coal mine for $347m

roymorgansocial Leave a comment

Original article by Brian Robins
The Australian Financial Review – Page: 15 & 20 : 28-Jan-16

Indonesia-based Salim Group will pay $US244m ($A347m) for Rio Tinto’s undeveloped Mount Pleasant thermal coal asset in New South Wales. The deal also includes payment of a two per cent royalty if the thermal coal price rises to $US72.50 ($A104) per tonne. Thermal coal is currently trading at around $US50 per tonne, compared with about $US100 just 18 months ago. Rio Tinto previously sold its 40 per cent stake in the Bengalla thermal coal mine.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SALIM GROUP, ANGLO AMERICAN PLC, CITIGROUP PTY LTD, NEW HOPE CORPORATION LIMITED – ASX NHC, PATERSONS SECURITIES LIMITED, ASCIANO LIMITED – ASX AIO, PACIFIC NATIONAL PTY LTD, AURIZON HOLDINGS LIMITED – ASX AZJ, PEABODY ENERGY CORPORATION, INDOFOOD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Tinkler to fight anti-coal activists

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 16 : 6-Jan-16

Australian businessman Nathan Tinkler is confident that residents of the Hunter Valley in New South Wales will support his plan to resume production at the Dartbrook coal mine. Tinkler’s Australian Pacific Coal secured a deal to buy the mine for $A25m in late 2015, and it must finance the deal by the end of January 2016. Tinkler proposes an open-cut operation at Dartbrook, which is likely to face resistance from people who oppose coal mining.

CORPORATES
AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, TREPANG SERVICES PTY LTD, ANGLO AMERICAN PLC, PATINACK FARM PTY LTD, NEWCASTLE KNIGHTS LIMITED, NEWCASTLE UNITED SPORTS CLUB LIMITED

Carbon capture key to coal future: IEA

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 16 : 21-Dec-15

The International ­Energy Agency (IEA) forecasts that India’s growing demand for coal will enable Australia to reclaim its status as the largest coal exporter. Meanwhile, IEA executive director Fatih Birol warns that a sustained upturn in coal prices will require coal producers to ramp up their investment in ­carbon capture and storage technology. He adds that carbon sequestration will be essential in meeting the Paris climate change summit’s targets for limiting growth in global warming.

CORPORATES
INTERNATIONAL ENERGY AGENCY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ADANI ENTERPRISES LIMITED, HANCOCK PROSPECTING PTY LTD