Guildford Coal Mulls ASX Listing Of Mongolia Coal Unit
SYDNEY -(Dow Jones)- Guildford Coal Ltd. (GUF.AU) said Wednesday it is looking at listing its Mongolian coal assets separately on the Australian Securities Exchange, the latest in a string of miners vying to take advantage of rising investor interest in the landlocked North Asian country's resources.
The company said it has retained UBS AG (UBS) to advise on a possible listing of Terra Energy, which is expected to produce its first coal from the South Gobi project in Mongolia in the first half of next year. It didn't say how much it intends to raise via the proposed initial public offering, or IPO, of Terra Energy, which it controls with a 70% stake.
Guildford, which also owns coal assets in Australia's Queensland state, said a mine with an annual production capacity 2 million-3 million metric tons of coal could be built at the South Gobi development site.
Its resource is located around 30 miles east of two operating mines, including one owned by Hong Kong-listed SouthGobi Resources Ltd. (1878.HK), producing a combined 5 million tons of coal annually that is sold to customers in northern China's Gansu and Shanxi provinces and Inner Mongolia region.
In a statement, Guildford said the South Gobi project contains both high-quality coking coal used in steelmaking and thermal coal used in power generation. It expects to firm up resources in the October-December period.
"The Guildford board believes that the potential Terra Energy IPO on the Australian Securities Exchange will provide investors with an excellent opportunity to invest in a portfolio of quality Mongolian projects with near-term production potential," Craig Ransley, Guildford's chairman said.
Interest in Mongolia's resources is rising among western mining companies, which have found themselves increasingly locked out of many of the biggest deposits in China and neighboring Russia by a regulatory environment that favors local firms.
In July, the Mongolian government selected a consortium including U.S. coal company Peabody Energy Corp. (BTU) to develop the Tavan Tolgoi deposit, one of the world's largest untapped reserves of coking coal.
Rio Tinto PLC (RIO) and Ivanhoe Mines Ltd. (IVN) are also investing billions of U.S. dollars in Mongolia to develop the Oyu Tolgoi copper deposit.
Copyright © 2011 Dow Jones Newswires
The company said it has retained UBS AG (UBS) to advise on a possible listing of Terra Energy, which is expected to produce its first coal from the South Gobi project in Mongolia in the first half of next year. It didn't say how much it intends to raise via the proposed initial public offering, or IPO, of Terra Energy, which it controls with a 70% stake.
Guildford, which also owns coal assets in Australia's Queensland state, said a mine with an annual production capacity 2 million-3 million metric tons of coal could be built at the South Gobi development site.
Its resource is located around 30 miles east of two operating mines, including one owned by Hong Kong-listed SouthGobi Resources Ltd. (1878.HK), producing a combined 5 million tons of coal annually that is sold to customers in northern China's Gansu and Shanxi provinces and Inner Mongolia region.
In a statement, Guildford said the South Gobi project contains both high-quality coking coal used in steelmaking and thermal coal used in power generation. It expects to firm up resources in the October-December period.
"The Guildford board believes that the potential Terra Energy IPO on the Australian Securities Exchange will provide investors with an excellent opportunity to invest in a portfolio of quality Mongolian projects with near-term production potential," Craig Ransley, Guildford's chairman said.
Interest in Mongolia's resources is rising among western mining companies, which have found themselves increasingly locked out of many of the biggest deposits in China and neighboring Russia by a regulatory environment that favors local firms.
In July, the Mongolian government selected a consortium including U.S. coal company Peabody Energy Corp. (BTU) to develop the Tavan Tolgoi deposit, one of the world's largest untapped reserves of coking coal.
Rio Tinto PLC (RIO) and Ivanhoe Mines Ltd. (IVN) are also investing billions of U.S. dollars in Mongolia to develop the Oyu Tolgoi copper deposit.
Copyright © 2011 Dow Jones Newswires
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