Mining giants eyeing coal firm Aston

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Jul 2010

US-based Peabody Energy Corporation and Swiss mining giant Xstrata are understood to be eyeing emerging Australian coal miner Aston Resources Ltd for a takeover.

According to sources close to the company, Aston is expected mid-next week to unveil an initial public offer seeking to raise $400 million, which has already attracted Singapore's Noble Group and Japan's Itochu as cornerstone investors.
Noble and Itochu are said to have agreed to collectively take up $100 million worth of Aston shares under the offer.
Aston's appeal to suitors is its Maules Creek coal project in NSW, which it bought in 2009 - the bottom of the market - for about $500 million from mining giant Rio Tinto Ltd, which was offloading assets to reduce its debt.
The project is understood to be Australia's seventh largest coal deposit containing both semi-soft coking coal and thermal coal.
Rio Tinto had only proved up a modest amount of coal resources, but Aston has since elevated the resource to a 356 million tonne reserve in the proved and probable categories of Australia's mineral reporting code JORC.
It is understood Aston wants to remain independent and bring Maules Creek into full production by 2015/16 after first coal output in 2012.
Aston managing director Nathan Tinkler will hold a 39 per cent interest in Aston after the offer.
Mr Tinkler, 34, was the youngest person on this year's BRW Rich List.
He made a fortune in 2007 when he sold the Middlemount coal mine in Queensland to Macarthur Coal Ltd, which Peabody failed to take over earlier this year, saying it would focus on other potential acquisitions.
Mr Tinkler in 2008 offloaded his Macarthur shares at a handsome premium to the world's largest steel maker, ArcelorMittal.

Source: AAP