A roundup of international coal news from June 5 to June 12.
China: In its latest mine safety plan, China unveiled measures to expedite the closure of small-scale coal mines and to minimize fatalities over the next three years, Reuters reported June 12. Citing data jointly issued by the State Administration of Work Safety and the State Administration of Coal Mine Safety, the report said Beijing will speed up closure of coal mines with an annual production of 90,000 tonnes or less. The plan also includes reducing coal mine deaths by more than 15%, the report said.
Glencore Plc on June 9 announced the tabling of a rival bid to acquire Rio Tinto's entire stake in Coal & Allied Industries Ltd. for US$2.55 billion cash plus a coal price-linked royalty. The Swiss commodities trader will pay US$2.05 billion cash upon completion and US$500 million in deferred cash payments, payable in annual US$100 million installments over five years following completion. The Glencore proposal is superior by US$100 million as compared to Yancoal Australia Ltd.'s proposal of up to US$2.45 billion for the Coal & Allied subsidiary, which the Yanzhou Coal Mining Co. Ltd. unit agreed to acquire in January.
About 1,400 of Glencore Plc's miners voted to stage two 48-hour strikes across the company's coal operations in New South Wales' Hunter Valley region, The Newcastle Herald reported June 8. "There are a series of enterprise agreements being negotiated here that expired back as far as 2012 and 2014, meaning members have had no increases since then," Jordan said, noting that Glencore's "belligerent attitude to bargaining" led the workers to favor the strikes.
Japan's Mitsui & Co. Ltd. has reportedly hired Nomura's head of natural resources Rob Bailey to sell about half of its 49% joint venture stake in the Dawson coal complex in Queensland, Australia, The Australian Financial Review's Street Talk revealed June 8. This comes after joint venture partner Anglo American Plc decided against selling the asset when bids failed to reflect the value expectations of the company. According to the publication, Bailey is expected to go back to the same buyers who earlier expressed interest in the asset.
The board of Adani Enterprises Ltd. has given the go-ahead to commence the development of its US$16.5 billion Carmichael coal mine in Queensland, Australia, The Australian Financial Review reported June 6, citing a statement by Chairman Gautum Adani. "I am proud to announce the project has final investment approval which marks the official start of one of the largest single infrastructure — and job-creating — developments in Australia's recent history," Adani said.
South Africa: Coal of Africa Ltd.'s said June 9 that its acquisition of Pan African Resources Coal Holdings Pty. Ltd Ltd. and its 91% stake in the Uitkomst thermal coal operation was unconditionally approved by the South African Competition Commission. The acquisition is part of the company's move to restructure its balance sheet and acquire a cash-generating asset that can provide cash flow to support developing its flagship Makhado coal project in South Africa.
This feature was updated as of 12:36 p.m. ET on June 12. Some external links may require a subscription.