Post by
Grebmoolb on Apr 03, 2009 6:44am
Felix Resources
Yanzhou Coal appear to be no longer interest in the purchase of Felix Resources as that companies shares, in Australia, have come up from a market capitalization of just US$670 million to US$1.4 billion in the last few months.
Felix Resources do have a mine in Queensland called Yarrabe that they own a 100% interest in. This mine is now capable of producing 2.8 million tonnes per annum of PCI coal but is having difficulty with sales in the present markets.
Included is a 100% stake in an area north of Yarrabe called Wilpeena that if developed could double production from this area using the Yarrabee infrastructure.
Yanzhou are looking for stakes in Australian politically safe coal mines for the future. A bid for 49% of Yarrabee by a European consortium fell through in 2007 and Felix Resources are looking for a partner in this venture to ensure supplies.
The European bid originally equates to US$44 million for a 49% stake. Since this time Felix have built new coal wash facilities to ensure 100% PCI coal production and are drilling the Wilpeena area.
A partner who could ensure taking substantial coal supplies well into the future, at market prices, could snapup an interest in present weak markets.
Parties are still in longterm talks with Felix Resources concerning taking an interest in the company.