d&d .says buy ccc up to ......... , page-50

Some news on CIC energy coal takeover by Indian steel giant CCC Botswana neighbours. So if it takeover from steel gaint then CIC coal is coking coal the spot price for coking coal $US220 a tonne however jindal also have interest in power plants so it could be thermal coal.
Also the takeover is only for 51% for 480 million Canadian dollars not 100% mention in some australia media(CCC Botswana Coal could be coking coal too)

This is from one the news paper in india:
JSW group ahead in race for 51% in CIC Energy
Jindal-controlled JSW group has emerged as the front-runner in the talks to buy a controlling stake in Canadian resources company CIC Energy which, ifcompleted, could value the acquisition at $450-500 million (about Rs2,025crore).

Toronto-listed CIC,which owns coal mines in Botswana, is also talking to two other Indian companies that have a presence in power generation, said people involved in the negotiations. They said that while the talks to acquire a large stake in CIC are continuing, they may not result in an agreement soon.

In a communication postedon its website on Friday, CIC said an Indian conglomerate with interests inmining and power generation, had offered a non-binding price of Canadian $7.75per share, to buy at least 51% in CIC.

CIC Energy shares, whichhave more than doubled since September, rose 4% at C$6.42 on Friday on theToronto Stock Exchange. CIC is developing the Mmamabula coal fields in Botswanawhich have reserves of around 2.6 billion tonnes. The company has appointedDeutsche Bank Securities as its financial advisor for thetransaction.

The $5-billion JSWgroup has been scouting for coal assets globally to feed its growing steel andpower businesses. In May, the group paid about $250 million to buy mines withcoking coal ? used in steelmaking ? in the US. Again in April last,JSW Energy, a group company, bought a thermal coal mine in South Africa forabout $50 million. Thermal coal is used for powergeneration.

The JSW group hasnot appointed an advisor and uses an in-house dedicated management team forclosing transactions related to raw material assets. The group did not respondto queries sent byET.

?Coal is integral toboth steel and power plants and accounts for 40-50% of the total cost. Sincelocal coal is high in ash content and hard to get, private power generatingcompanies depend on imported coal,? said a senior executive with autility.

According to SinghiAdvisors, investment bankers and corporate advisory, while India has about 13%of the global coal reserves with recoverable reserves of 106 billion tonnes,?the production languishes at 8%, due to lack of infrastructure.?This prompts most coal users to import coal from Australia, Indonesia and SouthAfrica. Recently, companies have entered other countries in Africa, includingMozambique, for coalassets.

Tata Power and R-Powerare some of the other companies actively scouting for coal assets overseas. TataSteel, another group company, is scouting for coking coal and iron ore minesabroad, including in Brazil and Australia, to gain raw material security for itsEuropean operations.

ations ofcoal mines are also soaring due to high demand from China and India. Chinesecoal producers have been dealing with issues of demand growth and limitedsupply, as the country has the world?s fastest-growing economy whichrelies on coal for 80% of its energy needs.