By Micael Evans –
Brisbane publican and Macarthur Coal boss Kenny Talbot knows the Chinese pretty well. The Chinese Government’s resources-focused investment vehicle, CITIC Australia, owns about 11 per cent of Macarthur which specialises in PCI coal used in steelmaking.
The relationship works well and similar deals could be on the cards if recent talks are any guide. Especially given the Chinese are keen to take equity stakes or invest directly in mines as a means to shore up supply.
Deutsche Bank is said to be advising a Chinese group looking at one of Macarthur’s undeveloped projects. It seems likely to be the group’s Monto project in the Bowen Basin, a 500 million tonnes thermal coal resource that was put on ice a couple of years ago during the slump in coal prices. The project, however, is being reconsidered and the Chinese are said to be interested.
Coal is proving a busy sector. Having released a disappointing quarterly production report last week, Centennial is working out what to do with Glencore which has put the brakes on its bid for full control of Austral Coal.
Source: Sydney Morning Herald