30-36 billion tonne coal target, page-13

another nice piece with a twist of Humor from the Journo.

regards

Chinese to be joined by Indian resource raiders
GARIMPEIRO / BARRY FITZGERALD
August 17, 2009

What is Gujarat up to in currying favour with Rey shareholders?

REY RESOURCES You don't expect success when you invite your neighbour in for some drinks and offer him half price for his house.

That is pretty much what Gujarat NRE Minerals is planning to do this week with shareholders in its takeover target, Rey Resources.

Rey shareholders have been invited along to Sydney's Westin Hotel on Wednesday for a bit of a chat over some Kingfisher beers and pappadams on the outlook for Gujarat, the ASX-listed subsidiary of Indian coke producer Gujarat NRE Coke, and its bid for Rey.

Garimpeiro's humble advice to Gujarat is to not over-cater for the event, given its cash/scrip takeover bid for Rey is so far under water it is not funny.

Gujarat is offering either 9¢ a share cash or one of its shares (trading at 65¢) for every five Rey, an imputed value of 13¢ a share. Trouble is, Rey is trading at 17.5¢ and has told shareholders to reject Gujarat's bid in capital letters.

So why call in Rey shareholders for a chat? Could it be that Gujarat - it has a 16.6 per cent Rey shareholding - has a surprise in store for Rey shareholders ahead of Wednesday's gathering?

The only surprise Rey shareholders want is a more realistic bid.

Rey's attraction to Gujarat and its Indian parent is its Canning Basin steaming coal project in Western Australia's Kimberley region.

Rey has already outlined a 500 million tonne resource at its Duchess Paradise property and additional exploration is likely to result in a resource that is a multiple of that maiden resource estimate.

India is a big coal producer in its own right, but it is getting worried that rising power consumption, a function of rising living standards, is going to leave it with an annual shortage of about 200 million tonnes from 2012.

The Canning Basin resource of Rey could be part of the solution, with the energy-hungry Indian market only four days sailing from the Kimberley coast.

So, while the focus has been on the Chinese raid on the local resources sector, it has to be said that the Indians are coming too.

http://www.theage.com.au/business/chinese-to-be-joined-by-indian-resource-raiders-20090816-emek.html?page=-1