It was mentioned at the Diesel Dash that the indians, i think chinese and japenese were after coal.
http://www.bloomberg.com/news/2011-03-08/linc-energy-in-talks-with-3-to-4-groups-for-teresa-coal-sale.html "Negotiations are on for the Teresa mine in Queensland?s Galilee basin, Bond said today on the sidelines of a media presentation in Sydney. He didn?t specify a timeframe for the transaction. ?We?re firming up the asset to make it look attractive for a buyer,? Bond said. The buyers are ?the usual suspects from Australia, China and the Americas and also a couple of second tier ones,? he said. Similarly to the Adani deal, Teresa is now building momentum,? Bond said."
Well according to the link above they do have us$187.92 in cash, per share. Their share price is US$347 Their market cap is us31.15b So they have nearly us17b in cash.
Mitsui & Co have an alliance with BHP in the Bowen basin.
"The BHP Billiton Mitsubishi Alliance (BMA) was created in June 2001 as a strategic partnership between BHP Billiton and Mitsubishi Development Pty Ltd under which the two companies share equal ownership and management of seven Bowen Basin coal mines and the Hay Point coal export terminal near Mackay. In addition, BMA manages South Walker Creek and Poitrel mines on behalf of BHP Mitsui Coal Pty Ltd. Participants are BHP Billiton (80%) and Mitsui and Co (20%)."
On a side note: Adani are looking at developing the Hay point terminal for their Galilee Carmichael mine.
Maybe the talk was about BMA investment (below link), or could emerald be a part of their expansion strategy (link further below)
"Bowen Basin BHP also announced a US$5bn (BHP?s share $2.5bn) investment to expand three metallurgical projects in the Bowen Basin region of central Queensland.
The investment includes US$2.5bn (BHP?s share US$1.25bn) for the Stage Three expansion of the BHP Billiton Mitsubishi Alliance?s wholly owned Hay Point Coal Terminal which will increase capacity from 44mtpa to 55mtpa. First shipments from the expanded terminal are expected in 2014."
http://www.mitsui.com.au/Coal.html
"Expanding Australia`s vital coal exports through local investment and new overseas markets --------------------------------------------------------------------------------
Mitsui leads all other Japanese trading houses in coal export tonnage to Japan, representing some 15% of total coal exports from Australia.
Our business activities include coal investments in several Queensland and NSW mines.
Mitsui exports about 14 million tonnes of coking and steaming coal per year, comprising approximately 9 million tonnes from Queensland and 5 million tonnes from NSW.
Mitsui?s investment activities in Australian coal mines commenced in the 1960s. Today Mitsui has investments in six mines in Queensland and two mines in NSW. Investment opportunities are continually sought to further expand Mitsui?s role in the Australian coal industry.
With the steady expansion of coal demand in Asia and their increasing reliance on Australian coal, we are active in locating and creating overseas markets for coal producers here, also providing valuable market information to existing and potential overseas customers on developments in Australia and around the world."
http://www.mitsui.com.au/BusinessDivisions.html
"We have expanded our investment in Australia over the years - coal in the 1960?s, iron ore in the 1970?s, gas in the 1980?s and plantations in the 1990?s - all those investments are expected to continue expanding in the coming years. "
Is Mitsui & Co involved? who knows, maybe, but hopefully there are mutliple serious parties bidding.
http://www.lincenergy.com/investor_linc.php?articleId=52 "The Teresa coal sale is ongoing and we are in the middle of a number of sale options and negotiations. I will say that in my 30 years of involvement in the coal industry I?ve never seen a better coal market"
LNC Price at posting:
$2.92 Sentiment: None Disclosure: Held
