Xstrata, Peabody eye Aston Resources as takeover target
Junior coal miner Aston Resources Ltd has been reportedly identified by mining giants Xstrata and Peabody Energy Corporation for a possible buyout deal as sources privy to the company's moves revealed that an initial public offering would be announced next week to raise an estimated $400 million.
The sources also said that the Noble Group of Singapore and Itochu of Japan have already gave their commitments as possible cornerstone investors for the acquisition with both pledging to collectively take up a total of $100 million worth of total shares under the proposal.
Analysts said that Aston's obvious come on to its suitors is the Maules Creek coal project in New South Wales, which the company acquired from Rio Tinto Ltd for $500 in 2009 when the giant firm was divesting some assets to fund its debt reduction program.
The site is regarded as holding Australia's seventh largest coal deposit with reserves of both semi-soft coking coal and thermal coal which Rio Tinto failed to exploit during its stint of exploring the project.
Aston has since upgraded the site's resource to 356 million tonne reserve in the proved and probable categories of Australia's mineral reporting code JORC though the company is reportedly firm in maintaining its independence and plans to push Maules Creek into total capacity by 2015/16 following the onset of initial coal output in 2012.
Reports said that company managing director Nathan Tinkler would be retaining his 39 percent stake in Aston in the event the offer would materialise and eventually finalised.
At 34, Mr Tinkler is the youngest person included on this year's BRW Rich List as he amassed fortune in 2007 by selling the Middlemount coal mine in Queensland to Macarthur Coal Ltd, which was followed by the subsequent offloading of the same Macarthur shares to ArcellorMittal and getting a hefty premium from the world's largest steel maker.