I am now on a business trip back to China. What I can see is this country is still developing at a amazing speed. There are plenty of areas which are consuming lots of coals on daily basis.
I am lucky enough to have some conversations with couple of high level personnels from various national corps in the city where I stay. 2 of them told me they are looking for opportunities to work with / buy in coys in Aus which has large coal reserves especially the ones which are extremely unloved. I asked them 2 questions as below:
1. Why do they want to find coal resources from overseas.
I was told that the coal reserve in China has been mined too quickly due to lack of good internal control in the past. The nation is now aware of this issue & starts to regulate this area. Therefore it's very difficult to get mining licence now. Also, the gov also encourages corps to find resources from overseas.
2. Have you started looking / short listing potential candidates in Aus market.
The answer is yes from both of them but they refuse to tell me names. However one of them told me the know MTE (surprisingly they even know the merge between MTE & CBX and they hold a positive view of this merge for having a more diversified portfolio and matured infrastructure)
I didn't ask any further questions about this as I know they won't tell me any sensitive info anyway :)
My trip hasn't finished yet. But I know it's not the time to sell MTE.
Good luck holders. I hope luck could strike us in the end :) Chat soon when I come back.
MTE Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
