India and china have been scouring the Australian shores for good deals on acquisitions this past year for our gold in black , coking coal and thermal coal resources. Australia is one of the world’s largest miner and exporter of coal. Prices for coking coal, used to make steel, may rise 50 percent next year to $291 a metric ton.
Rising demand in China and India for their energy needs has pushed mergers and acquisitions globally to a record $34.5 billion this year, with 192 companies acquired .
The possible combination of Whitehaven Coal Ltd. and Aston Resources Ltd. could create a giant of a company valued at A$5.1 billion ($5.1 billion).
International coal consumption is projected to climb by an annual 2.8 percent in the six years to 2016 due to rising demand to feed power generation stations and steel mills in China and India.
Deals and acquisitions In coal sector
Yanzhou was China’s biggest takeover of an Australian company with the A$3.1 billion acquisition of Felix Resources Ltd. in 2009.
Yanzhou Coal Mining Co., China’s fourth-biggest producer, plans to buy Gloucester Coal Ltd. for at least $2 billion.
International Coal Ventures Ltd., a group of Indian state- backed companies formed to buy overseas coal assets, is one of the bidders for Aquila Resources Ltd.’s Washpool coal mine in Australia
Peabody Energy Corp.’s impending $4 billion takeover of Macarthur Coal Ltd.
New Hope Corp., with a market value of A$4.7 billion, said last month is said to be in talks with several bidders.
Tata, India’s largest business group or JSW Steel Ltd. another large Indian steel company could possibly bid for the miner to secure thermal- coal mines.
Cockatoo Coal Ltd., with a market value of A$376 million, is another possible target.
Carabella, which has a market value of A$155 million, said in October that it had received “several unsolicited expressions of interest” in its Grosvenor West project in Queensland
Rising Prices of coking coal & thermal coal
Global imports of thermal coal may increase 5.2 percent next year to 581 million tons led by gains in India, Australia’s bureau said and analysts are predicting gains in price for coking and thermal coal and also and increase in imports from the major growing economies.
The value of Australian mining companies has fallen to the lowest since July 2010, dropping 35 precent from a high this year creating a very attractive price factor for takeovers and mergers in this sector.