MARKET RUMORS & OPPORTUNITIES

Recently, there has been market speculation that Xstrata is reconsidering its involvement in the WiCEt project because of uncertainty with government approval of its AuD$6 billion Wandoan coal mine, along with rising costs, newly introduced taxes (including the carbon tax) and a recent slump in thermal coal prices. However, The Australian reported on 29 June 2012 that all four miners involved in the WICET second stage expansion (Aquila Resources, Cockatoo Coal, Stanmore Coal and Xstrata) have signed the WICEt capacity commitment deeds. the report further noted that this boosts the chances that the expanded port and the associated AUD$1billion Surat Basin rail project will begin exporting by 2016.

Since the india-based steel producer Jindal Steel & Power (JSP) sold its interest in Rocklands Richfield to China's shandong energy, it has been rumoured in the Australian Financial Review that JSP is interested in acquiring an interest in ASX-listed coal mining company Carabella Resources.

The Australian Financial Review reported on 24 July 2012 that AsX-listed Bandanna Energy is seeking partners for its AuD$700 million Springsure Creek coal project in the Bowen Basin. the report cited Bandanna's chief executive, Michael Gray, as saying that Korean and Chinese energy companies have expressed an interest in this joint venture. the report further noted that Korea's Samtan, who has a 10% interest in Bandanna, is considered a likely joint venture candidate.

It has been rumoured in a number of sources including Newswire and Business Standard that the indian-based staterun coal company International Coal Ventures Ltd (ICVL) is examining acquisition opportunities in Australia, new Zealand and Mozambique. ICVl is a joint venture that was established in 2009 by five indian state-owned companies that aims to acquire coal mines outside of india to meet growing domestic needs. the report further noted that, according to the chairman of ICVl, CS Verma, funding is not an issue for ICVl's inorganic growth plans.

The Economic Times reported on 2 July 2012 that india's GVK Group is planning to close funding for its Alpha Coal project by the first quarter of 2013. the Alpha Coal project is an integrated mine, rail and port coal project estimated at us$10 billion. the Business Standard reported that Gina Rinehart, who currently holds 21% of the Alpha Coal project, is open to buying back shares from GVK. it is further reported that, according to Gina Rinehart, the outstanding environmental approval from the Australian federal government for the project is likely to be granted in the next month.

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