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Tuesday, 13 April 10
PEABODY, COAL INDIA CONFIRM 'EARLY STAGE' TALKS - MINING WEEKLY


Mining Weekly reported that, US coal-miner Peabody Energy is holding discussions with Coal India, the company said on Monday, after an Australian newspaper reported the two companies were negotiating a $1-billion deal that would give Coal India a stake in four Australian coal mines.

“Coal India and Peabody are in a broad range of preliminary discussions to explore long-term coal supplies and other possible cooperative ventures,” Peabody said in a statement.

“These are at very early stages and there have been no final agreements or decisions made regarding timing or structure.”

The company said it “recognises” the growing long-term coal demand in India, which may be the world's fastest growing coal importer.

Peabody is in the middle of a hostile takeover bid for Australia's Macarthur Coal, which rejected the company's initial proposal, as well as a sweetened offer announced last week.

Another coal producer, New Hope Corp has also made an offer for Macarthur, but the company says it plans to go ahead with its own takeover of rival Gloucester Coal instead. Xstrata is also expected to make an offer for Macarthur, although it has not done so yet.

The discussions with Coal India are “unrelated to other potential transactions” that Peabody has been engaged in, the firm said on Monday.

According to the article in the Sydney Morning Herald, the deal being negotiated between Peabody and Coal India could involve assets in the US and Indonesia as well as Australia, and included both metallurgical and thermal coal operations.

The report cited comments by Phalguni Guha, the chief general manager of Coal India's foreign-venture arm.

Shares in Peabody Energy rose 3,95% on Monday, to $48,18 apiece by 11:36 in New York.
Source:
Mining Weekly (By: Liezel Hill)



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