War in Ukraine has inverted the normal coal price hierarchy, making it a good time for a thermal coal miner to forge a $9.2b merger with a coking coal miner
US miner Peabody has kicked plenty of tyres in the Australian coal sector in the past couple of years, but might have found the perfect moment to rope Coronado Global Resources into a $9.2 billion, pan-Pacific merger.
The Curragh mine in Queensland could become part of Peabody Energy if a combination with Coronado were agreed.The geographic alignment of Peabody and Coronado’s portfolios belie a difference in product mix, which has made 2022 the perfect time for a mostly thermal coal miner like Peabody to bid for a predominantly coking coal miner like Coronado.
But war in Ukraine and the subsequent blacklisting of Russian fossil fuels has distorted the traditional hierarchy of coal prices making those digging thermal coal for power generation the new kings.over the past year that he believed the domestically-focused US thermal coal industry was in “secular decline” and he wanted to buy more coal mines that sell “seaborne” coal, a comment that was code for Australian mines that sell to Asia.
Coking coal miners have done well, but not quite as well. Hard coking coal from Queensland was fetching $US283.50 per tonne on October 11 according to SThat inversion of the traditional coal price hierarchy has created an opportune moment for a business like Peabody, which made close to 80 per cent of its revenue from thermal coal in each of the past two years.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Russia-Ukraine war: Joe Biden doubts Vladimir Putin would use nuclear weaponsJoe Biden said Vladimir Putin is still a rational actor, but “one who has miscalculated significantly”; NSW Dominic Perrottet confident stamp duty reform will pass; John Barilaro to fight assault allegations. Follow updates here.
Read more »
What happens if Belarus joins Russia's war on Ukraine?Analysts say if Belarus' small and inexperienced military gets involved, they likely wouldn't significantly boost Russian President Vladimir Putin's capabilities on the battlefield. 9News
Read more »
What happens if Belarus joins Russia's war on Ukraine?Analysts say if Belarus' small and inexperienced military gets involved, they likely wouldn't significantly boost Russian President Vladimir Putin's capabilities on the battlefield. 9News
Read more »
Australia's sovereign wealth fund still holding $200 million in Russian investments despite war in UkraineEarlier this year the Future Fund announced it would divest its holdings in companies listed on the Russian Stock Exchange but on the same day, the Central Bank of Russia banned brokers from executing sales on behalf of non-Russian residents.
Read more »
Victory Putin's only off-ramp as he throws everything at Ukraine warKarl Marx may well have been right on this point: history does repeat itself, first as tragedy then as farce, as he argued in a famous essay “18 Brumaire” and as was underlined in a letter from his close friend and confidante, Friedrich Engels.
Read more »
Australia must step up its effort to help end war in UkraineThe Herald's View: The Albanese government’s response to Ukraine’s pleas for help has been too tepid and too slow. A more generous and urgent response is needed
Read more »