Indian investors target Australian coal mines

Sydney, Apr 10: Indian investors are believed to be in the initial stages of buying stakes in three new coal mines planned by the leading Australian miner Macarthur Coal.

Efforts by the Indians, to secure Australian coal mines are being seen as a part of the ongoing tussle with their Chinese counterparts for dwindling global energy sources.

The competition for Australian coal between the two emerging economic superpowers is strong, with steelmakers from Brazil also close on their heels.

The demand for coking coal and other resources from these three so-called tiger economies is also driving up the Australian economy to new heights.

''(We) recognise the growing areas of the world are going to be China, India and Brazil. We will give a weighting to having partners in those countries,'' Macarthur Chief Executive and Controlling Shareholder Ken Talbot told reporters at the Melbourne Mining Club recently.

Various investors from the above-named countries are trying to secure stakes in the leading independent coking coal producer Macarthur's three new coal projects - Olive Downs, Vermont East and Moorvale West.

The three new mines would help Macarthur to expand its annual production of 4.5 million tonnes to 20-30 million tonnes.

Australian Stock Exchange (ASX) listed and tightly held Macarthur Coal already has Chinese state-owned investment company CITIC as a partner in Macarthur's existing Queensland operations for some time now.

The Macarthur Chief has given a clear indication that the Australian coal producer would look beyond Japan and China to sell as much as 20 per cent of three coking coal projects in the northern state of Queensland.

Mr Talbot asserted that steel-making countries, such as India and Brazil, were desperate for coking coal and it is inevitable that they are looking for opportunities to invest in Australian mines.

''If they can't secure raw materials effectively, it will affect their growth,'' he told the reporters in Melbourne.

UNI