. Earth Science News .

Gloucester, Yanzhou in giant $8bn coal play: report
by Staff Writers
Sydney (AFP) Dec 20, 2011

Trading in Australian miner Gloucester Coal was halted Tuesday following reports it was in talks with China's Yanzhou Coal Mining to create an Aus$8 billion (US$7.9 billion) coal giant.

In a statement to the Australian Securities Exchange (ASX), Gloucester said it had requested trading of its shares be temporarily stopped "pending the release of an announcement by the company".

"The trading halt is necessary as Gloucester expects to make an announcement in connection with a possible change of control transaction, but is not yet in a position to make the announcement," it said.

"Gloucester would like the trading halt to remain in place until the commencement of trading on 22 December 2011, unless, before that time, Gloucester makes a further announcement."

In Hong Kong Yanzhou shares were also placed in trading halt Tuesday on the Hong Kong Stock Exchange pending what the company said was "the release of an announcement which is price sensitive in nature".

The developments come after The Australian Financial Review reported that China was attempting to create Australia's largest independent coal producer through a proposed merger between Gloucester and Yancoal Australia, a unit of Yanzhou.

State-owned Yanzhou had approached Gloucester in recent weeks and negotiations were at a preliminary stage, the financial tabloid said without citing sources.

Gloucester, a coal producer with exploration and mining operations in New South Wales and Queensland states, has a market capitalisation of about Aus$1.44 billion.

Any such deal, which comes amid consolidation in Australia's mid-tier coal sector, would require approval by the country's Foreign Investment Review Board (FIRB).

Two years ago Yanzhou took over coal miner Felix Resources in a deal worth US$3.2 billion -- at the time the biggest by a Chinese firm in Australia.

Yanzhou had also reportedly been interested in Whitehaven Coal before that company announced a merger with fellow Australian miner, Aston Resources, to form an independent coal company worth Aus$5.10 billion.

Australia's coal industry is dominated by major global players BHP Billiton, Rio Tinto and Xstrata, but smaller firms are being targeted as competition for resources is stoked by rapid industrialisation in China and India.

US-based Peabody Energy, the world's largest private coal miner, snapped up Australia's Macarthur Coal in November in a deal worth almost Aus$5 billion.

Related Links
Surviving the Pits

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries


. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Five rescued from collapsed Chinese mine
Beijing (AFP) Nov 19, 2011
Five miners were rescued on Saturday after languishing for at least 24 hours in a collapsed mine in northern China, where seven colleagues remain trapped, state media said. Two of the rescued were pulled out after 24 hours underground while the fifth to be saved surfaced about 30 hours after the mine collapsed, the state-run Xinhua news agency said. All five rescued were sent to hospital ... read more

Microfinancing lifts tsunami-hit Japan firms

Flood-hit Philippines prepares for mass burials

Key steps to Fukushima plant 'cold shutdown'

Japan nuclear efforts only 'first aid': press

Research could improve laser-manufacturing technique

German company finds rare earths resources in Magadascar

Apple scores hit on HTC in US patent case

Can science predict a hit song

EU's Atlantic neighbours told 'last chance' in mackerel war

Improved rainwater harvesting system promising

Brazil judge says work can resume at Amazon dam

Sewage treatment plants may contribute to antibiotic resistance problem

Scientists try to gauge permafrost gases

South Pole conquest hailed 100 years on with eye on climate

Antarctic expedition checks CryoSat down-under

GPS Reveals 2010 Spike In Greenland Ice Loss Lifted Bedrock

How exposure to irregular light affects plant circadian rhythms

Scientists forecast crops that adapt to changing weather

Strip-till improves nutrient uptake and yield

Asparagus benefits from X-ray treatment

Philippine storm toll passes 900 as cities prepare burials

Nearly 600 dead and missing in Philippines storm

Mass burial readied as Philippine flood rescuers struggle

Japan's tsunami and nuclear disaster: a timeline

Casamance rebel faction condemns attack on Senegal troops

Kenya vows air strikes on far-flung Shebab towns

Pentagon chief Panetta visits Libya

Poverty blights S.Africa's liberation army veterans

Starving orangutans might help to better understand obesity and eating disorders in humans

Follow your nose

Up to 200 feared drowned in asylum tragedy

The Disappearance of the Elephant Caused the Rise of Modern Man


The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement