Investment Updates News
- Peabody considers coal investment
Date: 18-Apr-2007 Sources: (Shenzhen Daily)
PEABODY Energy Corp., the world's largest privately owned coal producer, said yesterday it was considering coal mine investments in China.
Tayeb Tahir, senior vice president of international development of Peabody, told reporters in Beijing that China would become a net coal importer either this year or next year and that the company would become more involved in the country.
'Australia has been a very big focus of the last few years,'Tahir told reporters on the sidelines of a conference organized by Coaltrans. 'Now we are focusing our efforts on China.'
He would not provide details on possible investment levels or partners but said: 'We are currently in active discussions and exploring a number of opportunities.'
Peobody is opening its Beijing office this week as part of plans to supply the fuel to China.
Tahir said he expected the company's coal output in Australia to rise to 30 million tons next year from 25 million this year following its acquisition of Excel Coal Ltd. last October and that part of the production was likely to come to China.
Asked when he expected China to become a net importer, the executive said: 'I think it will be the case until larger mines get developed ... It could become a net importer ... I think sometime this year or next year.'
Outside of China, Tahir said the company was looking at opportunities in Mongolia, China's neighbor that has large coal reserves.
'I think it's a little bit further away in terms of development due to a lack of transport and other infrastructure,'he said. 'The potential is very big. It's huge.'
The company is continuing to look for investment opportunities in Australia as well, he said.
'There are wonderful coal mines. It's a good place to do business,'he said.
In another development, China National Coal Association said yesterday that it expects China's coal exports in 2007 to stay at 2006's level of 64 million tons or come in slightly lower.
'Coal demand in China will rise by 100 million tons to 2.5 billion tons this year,'vice president Jiang Zhimin said.
The country's coal output will increase in line with demand, he added but give no other details.
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