The hunt for coal assets has never been so intense. India has 256 billion tonnes of coal reserves, of which around 455 mt per annum is mined. The country imports around 40 mt of coal. Demand is expected to reach around two billion tonnes a year by 2031-32, around five times the current rate of extraction. US has also put clean coal projects to the test with $27.6 million.
Chinese coal trader China Qinfa Group is planning an US$ 81 million (HK$630 million) Hong Kong IPO, for investment in new production facilities. The company is set to sell 250 million shares at a range of HK$2 to HK$2.52 per share, representing a 2008 price-to-earnings multiple of 7.5 to 9.5. Also, Alpha Natural Resources Inc (ANR.N) is to acquire Foundation Coal Holdings Inc (FCL.N) for $1.5 billion in an all-stock deal to create the third-largest U.S. coal producer, signaling an expected wave of consolidation in the fragmented industry.
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