South32 Peabody Metropolitan coal mine goals first M & A action

South32 shares fell 1.84 percent on Monday to $ 2.67

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In addition to the cash reserves of the mines the decision was made more than a month ago by the International Competition Control Agency, and OK, to prevent pending review of the planned $ 200 million ($ 262 million) acquisition of Metropolitan Colliers, which would expand Coal Coke Mine In Elwara, south of Sydney, as well as doubling its interest in coal-bearing at the port of Kimballa

“South 32 will become the only supplier of Elawara to large quantities of coke in the medium term after the expected shutdown of the Tahmore mine in Glencore,” the agency said.

In addition, the recovery in the world price of manganese, which is mostly used to manufacture specialty steel, has earlier undermined optimism that South 32 will be able to fully control the manganese operations in which South African mining worker Anglo American has a large minority stake, Who also left an Australian mining worker with extra cash at hand.

South 32 has a 60% controlling stake in Samancourt with Anglo holding the balance. The company operates mines in Australia and South Africa. Angelo developed its operations of coal, manganese and iron ore on the block a year ago but the subsequent recovery in prices led to such fading speculation.

At the end of December, its books were netted at $ 329 million, with $ 200 million allocated for the purchase of Colletti Metropolitan Collier and $ 192 million in interim profits.

South32 $ US200 million of chief financial officer Brendan Harris miner Peabody Energy agreed to buy Metropolitan draft of the “spectacular” growth opportunities in coking coal will continue to be an opportunistic approach.

Perth-based miner underground coking coal mine in New South Wales and the United States filed for bankruptcy in April, Peabody Energy, Port Kembla Coal Terminal on the 16.67 per cent interest in the miner said Thursday that snap.

South 32 will monitor other opportunities in this sector, but Mr. Harris stressed that the miner would continue to prioritize improving his current assets and that any further growth would be “opportunistic” and highly dictated by value.

“So I think one should think of a completely unique metropolitan on that front, and we will continue to consider the M & A in this framework,” he said.

Mr. Harris said that negotiations with Peabody had begun “before” the rapid rise in coke prices that require South to “be smart.”

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