COAL MINES AND MINING – NEW SOUTH WALES

Yancoal’s $3 billion raising shunned

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Original article by Paul Garvey
The Australian – Page: 21 : 29-Aug-17

Institutional investors subscribed for only $US59m worth of shares in Yancoal Australia’s $US1.3bn entitlement offer, which is part of its $US2.35bn ($A3bn) capital raising to finance the acquisition of Rio Tinto’s New South Wales assets. The response to the retail component of the share offer was also subdued, with existing shareholders applying to buy just $US4m worth of shares. As a result, parent company Yanzhou Coal and the bookbuild’s underwriters will be required to meet the significant shortfall.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, COAL AND ALLIED INDUSTRIES LIMITED, RIO TINTO LIMITED – ASX RIO, YANZHOU COAL MINING COMPANY LIMITED, CHINA SHANGDONG INVESTMENT COMPANY LIMITED, CINDA ASSET MANAGEMENT CORPORATION, GLENCORE PLC, WHITEHAVEN COAL LIMITED – ASX WHC, NOBLE GROUP LIMITED, CONTANGO ASSET MANAGEMENT LIMITED – ASX CGA, MERRILL LYNCH (AUSTRALIA) PTY LTD

Glencore still on acquisition trail

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Original article by Paul Garvey
The Australian – Page: 22 : 11-Aug-17

Glencore has posted 68 per cent growth in EBITDA for the first half of 2017, to $US6.74bn, while its net debt has fallen by 11 per cent to $US13.9bn. CEO Ivan Glasenberg says the diversified resources and commodity trading group is always looking at potential acquisitions, and it would consider another bid for Rio Tinto’s Hunter Valley coal mines if Yancoal Australia’s $US2.69bn deal to buy the assets is blocked. Yancoal trumped Glencore’s own bid.

CORPORATES
GLEDHILL, BURRIDGE AND CATHRO, YANCOAL AUSTRALIA LIMITED – ASX YAL, RIO TINTO LIMITED – ASX RIO, COAL AND ALLIED INDUSTRIES LIMITED, AUSTRALIA. TAKEOVERS PANEL, SENRIGAN CAPITAL GROUP LIMITED, FIRST QUANTUM MINERALS LIMITED

Noble Group to challenge Yancoal raising

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Original article by James Thomson
The Australian Financial Review – Page: 15 : 3-Aug-17

Glencore will buy $US300m worth of shares in Yancoal Australia via the latter’s $US2.5bn ($A3.1bn) equity raising, which will be used to finance its acquisition of Rio Tinto’s coal assets in the Hunter Valley. However, Noble Group claims that the capital raising will "oppress" minority shareholders such as itself, with their stakes to be diluted as a result of the new capital. Yancoal estimates that acquiring the Rio Tinto assets will generate synergies of $A120m to $A145m.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, GLENCORE PLC, NOBLE GROUP LIMITED, SENRIGAN CAPITAL GROUP LIMITED, COAL AND ALLIED INDUSTRIES LIMITED, YANZHOU COAL MINING COMPANY LIMITED, SHANDONG TAIZHON ENERGY COMPANY, GENERAL NICE DEVELOPMENT LIMITED, CINDA ASSET MANAGEMENT CORPORATION, SHANDONG LUCION INVESTMENT HOLDINGS GROUP COMPANY LIMITED, MITSUBISHI CORPORATION, BHP BILLITON LIMITED – ASX BHP

Glencore nears $1.4bn deal on Rio coalmines

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Original article by Matt Chambers
The Australian – Page: 17 & 20 : 28-Jul-17

Yancoal Australia is set to on-sell some of its newly-acquired New South Wales thermal coal assets to Glencore in a deal worth $US1.139b ($A1.42bn). Glencore will acquire a 49 per cent stake in the Hunter Valley Operations from Yancoal and Mitsubishi following the completion of Yancoal’s acquisition of Rio Tinto’s NSW coal mines for $US2.69bn. Yancoal had trumped Glencore in a bidding war for the Rio Tinto assets.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, GLENCORE PLC, MITOLO GROUP PTY LTD, RIO TINTO LIMITED – ASX RIO, COAL AND ALLIED INDUSTRIES LIMITED, YANZHOU COAL MINING COMPANY LIMITED

South32 mine closure takes toll on shares

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 : 11-Jul-17

The price of coking coal could be boosted by the continued shutdown of South32’s Appin mine in New South Wales. South32 shares closed 3.2 per cent lower at $A2.72 on 10 July, as the company signalled that production at the mine will remain on hold for some time, pending a safety review. Work at the mine was suspended in May after South32 detected high levels of gas. South32 has stressed that the safety of workers is its top priority.

CORPORATES
SOUTH32 LIMITED – ASX S32, UBS HOLDINGS PTY LTD, MORGANS FINANCIAL LIMITED, STANDARD AND POOR’S ASX 200 INDEX, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT

Rio weighs up $3.5bn mines windfall

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Original article by Matt Chambers, Paul Garvey
The Australian – Page: 22 : 30-Jun-17

Rio Tinto will proceed with the sale of its Hunter Valley coal mines to Yancoal after its Australian shareholders endorsed the $US2.69bn ($3.5bn) deal on 29 June. Shareholders in Rio Tinto’s London-listed entity had approved the sale earlier in the week, and Rio has advised that more than 97 per cent of shareholders overall voted for the deal. Some analysts and investors have suggested that part of the proceeds should be returned to shareholders via a share buyback or an increased dividend, but chairman Jan du Plessis says the miner will consider its options in due course.

CORPORATES
RIO TINTO LIMITED – ASX RIO, YANCOAL AUSTRALIA LIMITED – ASX YAL, GLENCORE PLC, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, COAL AND ALLIED INDUSTRIES LIMITED, YANKUANG CORPORATION GROUP LIMITED

Rio Tinto backs Yancoal bid again

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 27-Jun-17

Rio Tinto has concluded that Yancoal’s bid for its Hunter Valley coal assets is superior to the rival offer from Glencore, despite the latter’s sweetened bid. Glencore has made a cash offer of $US2.675bn for the thermal coal assets, but Rio notes that it could take 12 months for Glencore to gain regulatory approval. In contrast, Yancoal is offering $US2.45bn in cash and royalty payments of $US240m, while it is expected to pass the last regulatory hurdles within months.

CORPORATES
RIO TINTO LIMITED – ASX RIO, YANCOAL AUSTRALIA LIMITED – ASX YAL, GLENCORE PLC, COAL AND ALLIED INDUSTRIES LIMITED, ROYAL BANK OF CANADA, YANKUANG CORPORATION GROUP LIMITED, SENRIGAN CAPITAL GROUP LIMITED, NOBLE GROUP LIMITED, BLOOMBERG LP, CITIGROUP PTY LTD

Yancoal tipped to match Rio bid by Glencore

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 26-Jun-17

Peter O’Connor of Shaw & Partners says Rio Tinto’s sale of its Hunter Valley coal assets will be a good deal for shareholders, as the bidding war between Glencore and Yancoal continues. Glencore has sought to trump Yancoal by increasing its own offer, which is now $US255m higher than Yancoal’s offer of $US2.45bn. Rio Tinto recently named Yancoal as preferred bidder, and its board is likely to respond to Glencore’s revised offer on 26 June. Meanwhile, analysts expect Rio Tinto to use the proceeds of the sale to increase its 2017 dividend.

CORPORATES
RIO TINTO LIMITED – ASX RIO, YANCOAL AUSTRALIA LIMITED – ASX YAL, GLENCORE PLC, COAL AND ALLIED INDUSTRIES LIMITED, SHAW AND PARTNERS LIMITED, ROYAL BANK OF CANADA, BLOOMBERG LP, YANKUANG CORPORATION GROUP LIMITED, CHINA. MINISTRY OF COMMERCE, CITIGROUP PTY LTD

Rio Tinto coal deal raises hopes of bigger payouts

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Original article by James Thomson
The Australian Financial Review – Page: 15 & 30 : 22-Jun-17

Rio Tinto shareholders will vote on Yancoal’s $US2.45bn ($A3.2bn) offer for its Hunter Valley thermal coal assets on 27 June. Rio Tinto CEO Jean-Sebastien Jacques says Yancoal was chosen as preferred bidder due to factors such as its decision to drop a deferred payment plan and the fact that it has already gained some regulatory approvals. Peter O’Connor of Shaw & Partners expects Rio Tinto to use some of the proceeds of the sale to increase its dividend payout, while he adds that another share buyback is also possible.

CORPORATES
RIO TINTO LIMITED – ASX RIO, YANCOAL AUSTRALIA LIMITED – ASX YAL, GLENCORE PLC, COAL AND ALLIED INDUSTRIES LIMITED, SHAW AND PARTNERS LIMITED, ROYAL BANK OF CANADA, CITIGROUP PTY LTD, GREAT BRITAIN. SERIOUS FRAUD OFFICE, BLOOMBERG LP, BARCLAYS BANK PLC

Glencore chief pitches Hunter Valley plan to Rio Tinto bosses

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Original article by Scott Murdoch
The Australian – Page: 17 : 19-Jun-17

Rio Tinto will shortly decide which of two rival bids for its Hunter Valley coal assets it will support. Glencore has offered $US2.55bn ($A3.35bn) for the Coal & Allied assets, compared with a $US2.45bn offer from China-backed Yancoal. A team of Glencore executives led by global CEO Peter Freyberg held talks with Rio Tinto executives on the weekend of 17-18 June regarding the bid. Glencore expects significant synergies by combining the Rio assets with its existing coal mines in the Hunter Valley.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, YANCOAL AUSTRALIA LIMITED – ASX YAL, COAL AND ALLIED INDUSTRIES LIMITED, YANZHOU COAL MINING COMPANY LIMITED, PORT WARATAH COAL SERVICES LIMITED