Xstrata Offers to Sell 20% of Australian Coal Project (XSRAY, GLNCY)
Mining giant Xstrata plc (OTC: XSRAY) wants to sell 20% of its $6.44 billion Wandoan coal mine project to a strategic partner in exchange for an equal percentage of the coal that would be mined from the project. It is…
Mining giant Xstrata plc (OTC: XSRAY) wants to sell 20% of its $6.44 billion Wandoan coal mine project to a strategic partner in exchange for an equal percentage of the coal that would be mined from the project. It is not clear what effect such a sale would have on the proposed merger between Xstrata and Glencore International (OTC: GLNCY).
There are several new coal projects afoot in Australia, all aimed at selling coal to China. Xstrata currently has two Japanese partners in the Wadoan project, each with a 12.5% stake. The project has not yet been approved by the provincial government, but approval is expected.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.