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Wednesday, 13 May 09
ALPHA TO BUY RIVAL, CREATING NEW US COAL HEAVYWEIGHT - MININGWEEKLY.COM
 Alpha Natural Resources, the biggest supplier of metallurgical coal in the US, has agreed to buy Maryland-based rival Foundation Coal for about $1,4-billion in shares, creating what will be the nation's third-biggest coal miner.
The merged company will be better able to weather the short term challenges facing coal producers, as well as to take advantage of an anticipated rebound in demand and prices for coal, said Alpha CEO Michael Quillen.
He has been looking for opportunities to grow by merger or acquisition since bulk-commodities miner Cleveland Cliffs (now Cliffs Natural Resources) broke off plans in November to buy Alpha, because of market uncertainty and opposition from a key Cliffs shareholder.
“This is really the sort of transformational event that Alpha's been talking about for some time now, and we believe that this is also the right time to do it,” Quillen said on Tuesday.
Besides assets in Central and Northern Appalachia, Foundation produces coal from surface mines in the Powder River Basin, in Wyoming, which are not only less expensive to operate, but are also not facing the same regulatory challenges as the Appalachian region, where Alpha has all its assets.
While surface mines in the Eastern US are coming under increased environmental scrutiny and regulatory challenges, operations in Wyoming do not face the same degree of opposition.
The Foundation acquisition “does actually spread out the risk,” Quillen said.
Foundation also produces mainly thermal coal, for power generation, which help diversify Alpha's metallurgical-coal-heavy production mix.
The combined company, which will be 59% owned by current Alpha shareholders and 41% by Foundation, will operate 59 coal mines and 14 preparation plants, and will own more than 2,3-billion tons of coal reserves.
"We're creating a true US leader in the energy sector with balance, size and scale,” Quillen said.
The firms also expect to achieve at least $45-million a year in savings, as a result of synergies, beginning in 2010.
US coal producers, including the two largest – Peabody Energy and Arch Coal – have reduced production levels and sales forecasts for this year, after sales volumes fell sharply because of weak demand for both steel and electricity.
Alpha and Foundation have both also curtailed operations, and Foundation CEO James Roberts indicated last week that the company was expecting some utilities to defer contracted shipments this year.
However, speaking on a conference call on Tuesday, he said that demand for steel and electricity are expected to rebound in 2010 and beyond.
“And when the economy recovers, supply [of coal] will struggle to keep up with demand, so prices will recover,” Roberts said.
Foundation shares leapt 20,74% on Tuesday, to $28,06 apiece by 16:01 in New York. The stock traded as high as $31,54 earlier in the day.
Alpha stock slid 6,24%, to $27,06 a share.
Analysts generally welcomed the deal, with
STRUCTURED TO GROW
Once the Foundation transaction has closed, which is expected to be in the second half of the year, and the businesses are properly integrated, Alpha is keen to take advantage of further acquisition opportunities, Quillen said.
“The way we've structured this balance sheet is to continue to grow, and to take advantage of opportunities – whether they are distressed or whether they are just in different geographic basins,” he said.
“We are still going to be around in the M&A environment going forward.”
After the tie-up, the new company will have about $750 million in cash, cash equivalents and undrawn credit.
Under the terms of a definitive merger agreement, Foundation shareholders will receive 1,084 shares of the new company for each Foundation share held, while Alpha shares will automatically become shares of the combined company.
Alpha Natural will issue about 50-million new shares, and will assume $530-million of Foundation's net debt, for a total transaction value of around $2-billion.
The deal values Foundation stock at $32,73 a share, which was a 37% premium to the company's average closing share price over five days prior to the deal being signed.
The deal requires approval from shareholders representing a majority of the outstanding shares in each company.
Quillen said he was confident of shareholder support for the deal, and did not expect to encounter the sort of difficulties that scuppered the Cliffs transaction.
The new company will retain the Alpha name and will be headquartered in Abingdon, Virginia.
Quillen will be appointed chairperson and Alpha president Kevin Crutchfield will be CEO, while Kurt Kost, Foundation's president and COO, will become president of the combined company.
Source: http://www.miningweekly.com/article/alpha-natural-will-buy-foundation-for-2bn-creating-new-us-coal-giant-2009-05-12
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Wednesday, 20 May 09
COAL & OIL BAGS TWO CONTRACTS TO SUPPLY COAL TO CEMENT & SUGAR INDUSTRY IN INDIA
COALspot.com: According to website of Coal & Oil Company, Aditya Birla Group (Ultratech) have placed orders with Coal and Oil Company for supply ...
Wednesday, 20 May 09
CIL MAY URGE NEW GOVERNMENT TO HIKE COAL PRICE - STEELGURU
BL reported that soon after assuming office the new government may be faced with a proposal for an increase in prices of coal by Coal India Limited ...
Wednesday, 20 May 09
S.KOREA COAL IMPORTS IN APRIL DOWN 22 PCT Y/Y - REUTERS
South Korea's imports of heating coal in April fell 22 percent from a year earlier on bearish demand from domestic utilities, industry data showed ...
Wednesday, 20 May 09
THE WORLD'S TOP COAL TRADING COMPANIES - REUTERS
The international physical steam coal market has become increasingly liquid and tradeable during the past five years.
Physical global seaborne co ...
Wednesday, 20 May 09
SHIPPING INDEX RISES TO 7-MONTH HIGH AS CHINESE DEMAND ADVANCES - BLOOMBERG
The Baltic Dry Index, a measure of shipping costs for commodities, rose to a seven-month high in London on accelerating Chinese demand for iron ore. ...
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- IEA Clean Coal Centre - UK
- Metalloyd Limited - United Kingdom
- McConnell Dowell - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- Therma Luzon, Inc, Philippines
- Power Finance Corporation Ltd., India
- Thai Mozambique Logistica
- Parry Sugars Refinery, India
- Bhushan Steel Limited - India
- Maheswari Brothers Coal Limited - India
- Independent Power Producers Association of India
- Eastern Energy - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ambuja Cements Ltd - India
- Energy Link Ltd, New Zealand
- Minerals Council of Australia
- Siam City Cement - Thailand
- Meenaskhi Energy Private Limited - India
- Edison Trading Spa - Italy
- TNB Fuel Sdn Bhd - Malaysia
- Borneo Indobara - Indonesia
- Agrawal Coal Company - India
- Sree Jayajothi Cements Limited - India
- Anglo American - United Kingdom
- Romanian Commodities Exchange
- Orica Australia Pty. Ltd.
- Grasim Industreis Ltd - India
- Interocean Group of Companies - India
- OPG Power Generation Pvt Ltd - India
- GVK Power & Infra Limited - India
- Planning Commission, India
- Kepco SPC Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Electricity Generating Authority of Thailand
- Ind-Barath Power Infra Limited - India
- Gujarat Sidhee Cement - India
- Billiton Holdings Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Electricity Authority, New Zealand
- Lanco Infratech Ltd - India
- Indian Energy Exchange, India
- Price Waterhouse Coopers - Russia
- Madhucon Powers Ltd - India
- Kobexindo Tractors - Indoneisa
- Oldendorff Carriers - Singapore
- White Energy Company Limited
- Kapuas Tunggal Persada - Indonesia
- The State Trading Corporation of India Ltd
- San Jose City I Power Corp, Philippines
- Ministry of Mines - Canada
- Trasteel International SA, Italy
- Jindal Steel & Power Ltd - India
- Ministry of Finance - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Standard Chartered Bank - UAE
- Goldman Sachs - Singapore
- Global Business Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Essar Steel Hazira Ltd - India
- TeaM Sual Corporation - Philippines
- Thiess Contractors Indonesia
- Mercuria Energy - Indonesia
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
- Coalindo Energy - Indonesia
- Bhoruka Overseas - Indonesia
- MS Steel International - UAE
- Binh Thuan Hamico - Vietnam
- Wood Mackenzie - Singapore
- Savvy Resources Ltd - HongKong
- Sakthi Sugars Limited - India
- Central Java Power - Indonesia
- Xindia Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Barasentosa Lestari - Indonesia
- Uttam Galva Steels Limited - India
- Meralco Power Generation, Philippines
- SMC Global Power, Philippines
- Holcim Trading Pte Ltd - Singapore
- Tamil Nadu electricity Board
- Sical Logistics Limited - India
- Eastern Coal Council - USA
- Sinarmas Energy and Mining - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bayan Resources Tbk. - Indonesia
- Larsen & Toubro Limited - India
- Ceylon Electricity Board - Sri Lanka
- Indian Oil Corporation Limited
- Pendopo Energi Batubara - Indonesia
- Videocon Industries ltd - India
- The University of Queensland
- LBH Netherlands Bv - Netherlands
- Semirara Mining Corp, Philippines
- Australian Commodity Traders Exchange
- Georgia Ports Authority, United States
- Siam City Cement PLC, Thailand
- The Treasury - Australian Government
- London Commodity Brokers - England
- Kohat Cement Company Ltd. - Pakistan
- Aditya Birla Group - India
- Directorate Of Revenue Intelligence - India
- Indo Tambangraya Megah - Indonesia
- Marubeni Corporation - India
- Petron Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Kideco Jaya Agung - Indonesia
- Banpu Public Company Limited - Thailand
- CIMB Investment Bank - Malaysia
- European Bulk Services B.V. - Netherlands
- Deloitte Consulting - India
- Africa Commodities Group - South Africa
- Bukit Makmur.PT - Indonesia
- Mjunction Services Limited - India
- Kartika Selabumi Mining - Indonesia
- ICICI Bank Limited - India
- Toyota Tsusho Corporation, Japan
- Formosa Plastics Group - Taiwan
- Carbofer General Trading SA - India
- India Bulls Power Limited - India
- Commonwealth Bank - Australia
- Intertek Mineral Services - Indonesia
- Mercator Lines Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Attock Cement Pakistan Limited
- SMG Consultants - Indonesia
- Straits Asia Resources Limited - Singapore
- Riau Bara Harum - Indonesia
- Bulk Trading Sa - Switzerland
- Heidelberg Cement - Germany
- PetroVietnam Power Coal Import and Supply Company
- Altura Mining Limited, Indonesia
- PowerSource Philippines DevCo
- Coastal Gujarat Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Indogreen Group - Indonesia
- Latin American Coal - Colombia
- Vizag Seaport Private Limited - India
- Dalmia Cement Bharat India
- Posco Energy - South Korea
- PTC India Limited - India
- Indika Energy - Indonesia
- Malabar Cements Ltd - India
- Manunggal Multi Energi - Indonesia
- Cement Manufacturers Association - India
- SN Aboitiz Power Inc, Philippines
- Tata Chemicals Ltd - India
- Mintek Dendrill Indonesia
- ASAPP Information Group - India
- Aboitiz Power Corporation - Philippines
- Merrill Lynch Commodities Europe
- Chettinad Cement Corporation Ltd - India
- Energy Development Corp, Philippines
- Vedanta Resources Plc - India
- Bangladesh Power Developement Board
- Sindya Power Generating Company Private Ltd
- Maharashtra Electricity Regulatory Commission - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- International Coal Ventures Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Central Electricity Authority - India
- Simpson Spence & Young - Indonesia
- Makarim & Taira - Indonesia
- IHS Mccloskey Coal Group - USA
- Karaikal Port Pvt Ltd - India
- Rio Tinto Coal - Australia
- Parliament of New Zealand
- Renaissance Capital - South Africa
- Sarangani Energy Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Port Waratah Coal Services - Australia
- Orica Mining Services - Indonesia
- Timah Investasi Mineral - Indoneisa
- Jaiprakash Power Ventures ltd
- Global Coal Blending Company Limited - Australia
- Coal and Oil Company - UAE
- Krishnapatnam Port Company Ltd. - India
- Sojitz Corporation - Japan
- Chamber of Mines of South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bhatia International Limited - India
- Bukit Baiduri Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Economic Council, Georgia
- Rashtriya Ispat Nigam Limited - India
- Iligan Light & Power Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Star Paper Mills Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Salva Resources Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Medco Energi Mining Internasional
- Kalimantan Lumbung Energi - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indonesian Coal Mining Association
- GMR Energy Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Singapore Mercantile Exchange
- PNOC Exploration Corporation - Philippines
- Australian Coal Association
- Antam Resourcindo - Indonesia
- Wilmar Investment Holdings
- Bank of Tokyo Mitsubishi UFJ Ltd
- Leighton Contractors Pty Ltd - Australia
- Jorong Barutama Greston.PT - Indonesia
- Samtan Co., Ltd - South Korea
- New Zealand Coal & Carbon
- CNBM International Corporation - China
- Baramulti Group, Indonesia
- VISA Power Limited - India
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