The changing business landscape within China

Transcription

1 The changing business landscape within 5 th Annual Global Iron Ore & Steel Forecast Conference Perth, March Lilian Luca Managing Director, The Beijing Axis Procurement This document is issued by The Beijing Axis. While all reasonable care has been taken in the preparation of this document, no responsibility or liability is accepted for errors or omissions of fact or for any opinions expressed herein. Opinions, projections and estimates are subject to change without notice. This document is for information purposes only, and solely for private circulation. The information contained here has been compiled from sources believed to be reliable. While every effort has been made to ensure that the information is correct and that the views are accurate, The Beijing Axis cannot be held responsible for any loss, irrespective of how it may arise. In addition, this document does not constitute any offer, recommendation or solicitation to any person to enter into any transaction or to adopt any investment strategy, nor does it constitute any prediction of likely future movements or events in any form. Some investments discussed here may not be suitable for all investors. Past performance is not necessarily indicative of future performance; the value, price or income from investments may fall as well as rise. The Beijing Axis, and/or a connected company may have a position in any of the investments mentioned in this document. All concerned are advised to form their own independent judgement with respect to any matter contained in this document. Beijing Axis Commodities Beijing Axis Capital Beijing Axis Procurement Beijing Axis Strategy Africa Axis Commodities Africa Axis Capital Africa Axis Procurement Africa Axis Strategy Commodity Marketing Commodity Procurement Transaction Origination Corporate Finance Advisory Comprehensive Procurement Solutions Strategy Formulation Strategy Implementation Commodity Marketing Commodity Procurement Transaction Origination Corporate Finance Advisory Comprehensive Procurement Solutions Strategy Formulation Strategy Implementation The Beijing Axis Knowledge & Network Synergies Africa Axis Knowledge & Network Synergies Founded in ; has successfully worked with many international and Chinese/Asian MNCs Operates in four synergistic cross-border /Asia businesses Provides services across various sectors, with a core focus on the MINING, RESOURCES, INDUSTRIAL and ENGINEERING sectors Provides solutions to international firms as they act in unfamiliar territory in /Asia Provides solutions to Chinese/Asian firms as they venture out and go global Founded in ; has successfully worked with many international and African MNCs Operates in four synergistic cross-border African businesses Provides services across various sectors, with a core focus on the MINING, RESOURCES, INDUSTRIAL, ENGINEERING and OTHER SERVICES sectors Provides solutions to international/african firms as they go global Provides solutions to Asian/International firms as they venture into Africa The backdrop s rise labour market and supply shock as a producer engine as a consumer investor New competitive lines and forces, winners/losers the rise of Asia, BRICS, etc A two-speed global economy over the medium and long term A lasting GDP trajectory in Asia, Africa and Latin America governance, growth, stability, infrastructure, confidence, etc. The issues now Europe broken fragile developed markets and knock-on effects? s landing soft or hard? Implications for growth and resource demand? Tapping into the story vs. over-reliance on and need to diversify economic ties Strategic intelligence to make decisions in boardrooms around the world in order to reposition

2 s Resource Consumption and Drivers Trends in s Outbound Investments Regional GDP Comparison (USD bn, 5F)* GDP Average Growth Rate (%, E-5F) Asia-Pacific is expected to account for the largest share of world GDP (%) by 5F Bubble Size: Nominal GDP (USD bn, 5F) Asia-Pacific Final Word Rising real incomes and high commodity Other Asia prices will drive growth,86,59 5 Africa,8 South America Shaded bubbles represent E figures Developed economies are expected to continue to lose share in world GDP in the coming years E to 5F 5,87 Forecast world average GDP growth until 5F:.9 5F GDP * Growth GDP Per BRICS (USD bn) Rate (%) Capita (USD) North America,9.6 9.%,8. 9,6,59. 7.%,7.8 Russia,96..%,55.7 Brazil,56.7.9%,86.5,7 Europe South Africa 5.6.% 7,7. E to 5F % of World GDP (5F) *Note: Data based on IMF World Economic Outlook *Note: Other Asia includes Bangladesh, Sri Lanka, Nepal, Pakistan, Bhutan, Burma, North Korea, Kazakhstan, Tajikistan, Turkmenistan and Uzbekistan. Source: IMF ; The Beijing Axis Analysis s and s Forecast Nominal GDP (USD bn, -5F*) Box indicates additional nominal GDP from now to forecast year Asia-Pacific as % of World Total (%, 99,, ) 5,, Moderating Phase Accelerating Growth Year - 5F 6F- 5F 6F- 5F Sustainable Growth Phase Continued Acceleration GDP Per Capita 5F (USD) Drive to Maturity Phase Growth Moderation Phase 5 GDP ROW* APAC* 5 FDI Inflows ROW APAC 5 FDI Outflows ROW APAC GDI % of GDP Rest of GDP Gross Domestic Investment 5 5,, 5,, 5, , , F: s economy doubles 8F: adds US 5F: adds s -6 6F: adds Germany - F: -6-6F: adds adds - F: adds F: s Germany South Africa economy doubles 5F F 5F F 5F Now 8% 6% Exports as % of GDP Rest of GDP Exports 5 % % % % Imports as % of GDP Rest of GDP Imports 5 9% 7% 7% Copper Consumption ROW APAC 5 57% 6 5 8% 7% 9% Steel Consumption ROW APAC 7% % 6 *Note: Forecast GDP growth rate for each period listed in the graph above Source: IMF; The Beijing Axis Analysis -8- *Note: ROW stands for Rest of World and APAC stands for Asia-Pacific Source: CEIC; CRU; UN; World Steel Association; The Beijing Axis Analysis -9- s Quarterly Y-o-Y GDP Growth Rate (9- F) Policy easing to -year (9-) provide room for average: 9.% growth moderation Contribution of Components to s GDP Growth (%, 998-F) 8 6 Net Exports of Goods and Services Gross Capital Formation Final Consumption Expenditure (Household + Government) Effect from stimulus package s Share of Global GDP and Consumption of Selected Commodities (% 99,, ) GDP Primary Aluminium Steel Coal ROW ROW ROW ROW % % % % % 7% 7% % % 8% Government stimulus package (USD 586 bn) F y-o-y GDP: 8. Refined Nickel ROW* Chrome Ore ROW Refined Copper ROW Refined Zinc ROW y-o-y GDP: 9.% Q Q Q QF 9 F Source: CNBS; Deutsche Bank; Morgan Stanley; The Beijing Axis Analysis - - Falling net exports contribution F F % 7% *Note: ROW stands for Rest of World Source: World Bank; CNBS; CEIC; The Beijing Axis Analysis 5 % % 8% 5 8% % --

3 Steel Consumption Driven by the Major Components (mn tons, -E) mn tons Investment Consumption Export Fixed Asset Investment (USD tn, -) USD tn Fixed Asset Investment 5..7 FAI as % of GDP (rhs) FAI rose.8% in -. Primary sector was up, secondary sector was up and the tertiary sector was up.% Steel Demand/Supply Forecast (mn tons, 5-E) Production s government has been talking about controlling supply growth for years, but the actual production growth has still been strong Apparent Consumption s Crude Output Target Growth Rate 8.% Actual Crude Output % th Five-Year Plan th Five-Year Plan th Five-Year Plan (-5) (6-) (-5) Top * Steel Group Share of Total Output (5-5F) Steel industry consolidation is a 6 key initiative of th Five Year Plan E E F Source: SWS; CNBS; The Beijing Axis Analysis Source: CNBS; Various; The Beijing Axis Analysis Steel Intensity Comparison of Top Economies* and Other Selected Asian Economies () Steel Consumption Per Capita Bubble Size: GDP CAGR (USD, ), (-) S. Korea Developing economies Developed Economies Steel consumption consume less steel per, declines after Emerging Economies except capita, but their GDP per capita relatively large Mainland reaches USD 5, populations ensure With less infrastructure 8 years of steady demand construction, developed growth economies have lower demand for finished steel 6 Spain Malaysia Germany Austria Turkey Saudi Arabia Italy Russia Iran Belgium US Thailand Poland Sweden France Netherlands UK Mexico Brazil Vietnam Argentina Philippines Venezuela South Africa Indonesia,,,, 5, 6, The trend line is indicative of the general pattern in steel consumption at different stages of industrialisation GDP Per Capita (USD, ) Economic Growth GDP growth to continue at 7-8% for the next 5 years Industrialisation Rising labour costs, improving industry efficiency and increasing R&D investment Import Dependency s demand outstrips domestic supply of mineral resources Social Development Growing middle-class with an increasing purchasing power Modernisation Investments in improving strategic new industries - telecommunications, transportation, energy, etc. 5 Year Plan Consolidation, moving inland, steady GDP growth, and sound policy, high tech and value added production Urbanisation Current rate is low compared to developed countries Structural Change Shift to a domestic driven economy Global External Factors Arising concerns over debt problems in Western economies Sustained Resource Demand *Note: Switzerland, Norway and Sweden are not included for comparison purposes Source: IMF; World Steel Association; The Beijing Axis Analysis Asia occupies a far more crucial role in the global economy the world has changed and is changing still, with many far-reaching implications s demand drivers remain intact, but there are clearly more risks in the supply/demand picture Continuous and robust domestic consumption will drive growth moving forward will have a key influence in resource demand if at lower growth s Resource Consumption and Drivers Trends in s Outbound Investments Final Word will face the toughest policy challenges ever in the next 5- years Heightened market volatility and redistribution of global influence require a more informed and strategic decision-making process Resources sector will become more competitive players must out-market, not just out-produce peers strategic marketing will be a differentiator

4 s Implied Demand and Domestic Production of Commodities () 6, 5,9 Demand Production,,, 9,8 8, 7,6 7,6 x 6,,,5,8,65,,775,5, Cobalt Ore Aluminium Nickel (' Iron Ore Platinum Chrome Ore Copper Ore Zinc Ore Manganese (' tons) (mn tons) tons) (mn tons) (' oz) (' tons) (' tons) (' tons) Ore (' tons) Source: USGS; BP; WGC; USDA; Various; The Beijing Axis Analysis Mineral Product Imports and Exports (USD mn, 99-), 5,, 5,, 5, Exports Imports World s Top Outward FDI Originators, Flows OFDI Stock and Flows (USD bn, -5F) (USD bn, ) Flows Stock US 56. Germany France 5 Hong Kong ranked 5 th in In alone, invested Switzerland in,9 overseas projects in ranked 6 th in countries 8. Russia 9 7. Belgium Netherlands 5.8 Sweden ranked th Spain in 8 and 7 8. Italy Br. Virgin Is S. Korea ranked 8 th in 57. Luxembourg Ireland F *Note: OFDI flows for do not include financial investments from September-December Source: WIR ; The Beijing Axis Analysis -9- Breakdown of Overseas Investments by Sector (USD bn, -) 8 6 Leasing & Commercial Service Banking and Insurance Wholesale & Retail Trade Transport, Storage and Postal Service Manufacturing Mining Commercial services include investments in holding companies, regional headquarters or SPVs that are often established in offshore centres to invest in other countries and sectors Mining Investment: USD 5.7 bn Source: MOFCOM; The Beijing Axis Analysis Value of s Mining and Metals Investments by Commodity () 7% % % % % % 8% Iron Ore Copper Aluminium Platinum Exploration Steel Coal Gold Rare Earths Other Base Metals s investments in chrome, nickel, and manganese are still very small compared to other commodities CHN/HK Outward Deals for Top Countries and Target Sectors (-) Government Insurance Agribusnessinsurance Forestry & Paper 58 Asia Publishing UK Mongolia 7 7 Holding Companies Metal & Steel Leisure & Recreation Auto/Truck Chemicals Healthcare Construction/Building Textile Machinery Philippines North America Food & Beverage 8 Retail 59 Utility & Energy Dining & Lodging 8 Transportation 9 Indonesia Consumer Products South America Real Estate/Property 6 Number of Deals Telecom Professional Services Finance Oil & Gas 5 Electronics Mining 5 5 Mining *Note: The Dealogic M&A database was used here, it groups and Hong Kong outward investments. Source: Deutsche Bank; Dealogic; The Beijing Axis Analysis Share of Imported Iron Ore Owned by (Mn tonnes, -E) 7 Imported Iron Ore Owned by E Going forward, Iron Steel Association announced that would seek to derive of ore imports from Chinese-invested sources by 5 and 5 percent by driven by: - Over-reliance on high priced imports of the mineral - Shrinking profit margins for Chinese steel companies - Reduce its reliance on the big global miners It is estimated that Chinese-invested overseas sources will bring in million tonnes to million tonnes of iron ore annually in the coming three to five years and West Africa will remain as the key focused markets for such investments Cumulative capital stock must align Global challengers look different Wider industry acquisitions Overseas Direct Investment Key Drivers Annual investment flow must adjust Internationalised corporate balance sheets Strengthening RMB & Foreign Reserves Government policies set the tone Pursuit of advanced technologies Go global policy to continue Geopolitical ambitions necessitate reach Resource pipelines are being built Wider market interest Source: Various; Steel Association; The Beijing Axis Analysis -- --

5 Export Structure () Export Structure () Total: USD 6.8 bn 6% 8% USD 5 bn % 6% % % % 9% Hong Kong Taiwan South Korea Ores Mineral fuels, oils, Meat Aluminium products Indonesia Ukraine New Zealand US 7% % % Total: USD 6.7 bn 9% 9% % % USD 5 bn Thailand Ukraine US 7% South Korea Ores New Zealand Taiwan Mineral fuels, oils n Resource Exports (USD bn) 8 6 S. Korea UK Taiwan Thailand 5 Sources of s Imports of Resources Rank 5 Oman Saudi Arabia South Korea Saudi Arabia Angola Russia Angola Iran Angola Brazil 5 Saudi Arabia Iran Iran 6 Russia 7 Indonesia Brazil 8 Oman Indonesia 9 Russia South Korea Oman Vietnam Yemen South Korea Source: UN Comtrade; The Beijing Axis Analysis Source: UN Comtrade; The Beijing Axis Analysis n Natural Resources M&A Inflow by Buyer s Nation (% share of total, -) US UK Switzerland Netherlands s Mineral Deposits Major Chinese Investments in (7 present) Focus: Iron Ore 9 MCC Waratah Coal USD 7. bn () 8 lco Rio Tinto USD.85 bn (9.) Focus: Coal and Oil 6 5 CNPC Arrow En. USD. bn () Source: FIRB; The Beijing Axis Analysis Mineral deposits: gold, silver, iron, coal, copper, nickel, lead, zinc, tin, tungsten, etc. *Note: Zinc, nickel, lead and copper, Minmetals OZ Minerals deal Note: Top six deals by value are highlighted on the right hand side chart Source: Geoscience ; The Beijing Axis Analysis 6 CITIC Pacific- Sino Iron Project USD 5.7 bn Coal Aluminum Oil Diversified Iron Ore/Ferrous Non-ferrous* Copper Gold & Uranium 9 Yanzhou Coal Mining - Felix Resources USD. bn () Yanzhou Coal Mining - Whitehaven Coal USD.7 bn s outbound capital will continue to hit the headlines - has not yet seen the full impact of this OFDI participation by private enterprises has just started Expect this to pick up at a rapid pace Overseas investment is moving beyond trade facilitation and natural resources, driven by an increasing need to reach high-growth markets - Link and align these trends to the existing strategy Steel makers will continue overseas iron ore investments in order to reduce the over reliance on high priced imports and increase profit margins for Chinese steel companies diversification and security of supply will continue riding its resource boom buoyed by increasing trade with, a largely mineral-based trade that has increased multi-fold in the last decade With a booming economy at home with a high demand for steel and energy, s demand for n minerals will remain focused on iron ore and coal With many Chinese mining firms rich in cash, acquisitions of mineral producers in will continue although most deals will most likely remain at mid-market levels n mining industry s expertise in exploration and developing new mines around the world (e.g. Africa) can be a successful asset for potential JVs with Chinese mining companies Chinese investors proceeding more cautiously and are becoming more selective about asset quality. Valuation, cost escalation, operations in unfamiliar jurisdictions, and operational risks are the major concerns

6 s Resource Consumption and Drivers Tap into / Asia opportunity Hedge against global (developed country) risks Aware Trends in s Outbound Investments Final Word Supply raw materials, manufactures/services Understand variability, volatility & exceptions Strategic marketing Own end-user relationships Attract strategic capital Equity, debt, off-take, infrastructure Equity level / disposals Project level Procurement and supply chain a MUST Products & services CAPEX / projects MRO Action Develop strategic intelligence Be completely comfortable in the new world: /Asia/New Winners informed, strategic, systematic There are new markets that matter a new competitive landscape is unfolding.,, rest of Asia to be central in this reconfiguration Location, location, location - and rest of Asia are key economic regions for the future growth, resource demand, outbound investment, wider (non-resource) consumption, etc, all make them relevant for n policy, economy, companies Inc s overall -position is solid, and will only expand. More investment inevitable focus on win-win, shape and quality Is there a need for deliberate diversification to tap into the rise of, Africa, South America? THANK YOU! Lilian Luca Managing Director, The Beijing Axis Procurement luca@thebeijingaxis.com Beijing, Cheryl Tang, GM, cheryl@thebeijingaxis.com Shanghai, Julia Wang Procurement Specialist juliawang@thebeijingaxis.com ext. 69 Hong Kong TBA Secretary Corporate Office 86 Central Plaza, 8 Harbour Rd, Wanchai, HK Complexity and change means that resources industry becoming increasingly competitive asset ownership and production growth not enough; exemplary use of information, strategic intelligence and strategic end-user marketing to play a crucial role in shaping competitive advantage and mitigating risk Kobus van der Wath, Founder Penthouse & LV, Suntec Tower, 8 Temasek Blvd, Perth, Kobus van der Wath, Founder kobus@thebeijingaxis.com Johannesburg, South Africa Dirk Kotze Director; GM, Africa dirk@thebeijingaxis.com +7 () 5 Iron ore buyers becoming more sophisticated. As Chinese steel makers push for cost reduction and product innovation, miners technical support and value added will be crucial in maintaining and growing the relationship London, UK/Europe Matt Pieterse MD, Beijing Axis Capital matt@thebeijingaxis.com Russia Desk Lilian Luca (Beijing) MD, Beijing Axis Procurement luca@thebeijingaxis.com Latin America Desk Javier Cuñat (Beijing) GM, Beijing Axis Strategy javiercunat@thebeijingaxis.com Stronger Emerging Market Companies 8 9 Rising Risks Aging of the Global Population (DM and EM) 7 Emerging Market GDP Growth Megatrends New Global Technologies Rising Global Integration Rising Energy and Commodity Consumption 6 -- Source: Deutsche Bank; The Beijing Axis Analysis -5- in EM Industrialisation and Urbanisation Rising Emerging Market Consumption 5

7 s Demand for Iron Ore (mn tn, -) s Demand for Nickel ( tn, -) Government has set s target GDP growth rate at 7. for with emphasis on gradually rebalancing of the economy Economic Growth Urbanisation By -5, will potentially have an urbanisation rate of 6 and the number of households with an annual disposable income above USD, will reach million,, 8 South Korea Other Asia Rest of World Seaborne Iron Ore,6, BRIC- Other Asia Rest of the World Semi-Refined Nickel Development in strategic new industries and the evolution of high-tech R&D due to a dramatic increase of domestic consumption Industrialisation Modernisation Substantial investments to upgrade s telecommunications, transportation, energy sectors, etc. 6 % World % World Source: CEIC; WBR; The Beijing Axis Analysis -7- GDP and Mining Industry as a % of GDP of Top Mining Countries (USD bn, %, ) USD bn,57 5,878, GDP (lhs) Mining as a % of GDP (rhs) has the world s Mining Industry Value (USD bn) largest mining sector, with an overall mining industry value of USD 8 bn () Mineral sector contributes to Chile's GDP,, Top Economies GDP, excl. US (USD bn, 99-5F) Rank ? Rank ?,, 8, 6,,, Rank Germany France 5 UK 6 Brazil 7 9 Russia Indonesia 8 South Africa 9 5F : 996: Brazil : Italy 5: Surpassed France 6: UK 7: Germany 7: Korea Q : USA Brazil Source: Research and Markets; IMF; The Beijing Axis Analysis Russia Indonesia S. Africa Thailand Chile Philippines Peru Kazakhstan Vietnam F F F F 5F Note: Forecast GDP growth based on IMF Economic Outlook Source: IMF; The Beijing Axis Analysis Type of Overseas Assets Acquired by (-) % 7% Ownership Stake: Publicly Listed Operating Assets: Resources Operating Assets: Plant, Property, Equipment Operating Assets: Intangible Ownership Stake: Private Source: Economist Intelligence Unit; Various; The Beijing Axis Analysis Percent Stake Obtained through Acquisition (-) % 6% Top Mining Companies by Revenue (USD bn, -) BHP Billiton Rio Tinto Anglo American BHP Billiton Alcan Vale SA Rio Tinto Xstrata Pechiney Anglo American Noranda Inc Shenhua Energy Norilsk Nickel BRICS-based Jizhong Energy Phelps Dodge Company BRICS-based Freeport-McMoRan Company Vale SA Codelco Codelco Norilsk Nickel Coal Coal Energy IMC Global Coal MIM Holdings Jiangxi Copper Inco Ltd. Barrick Gold Peabody Energy Newmont Mining Potash Corporation Potash Corp. Freeport McMoRan Grupo Mexico S.A. Grupo Mexico S.A. The Mosaic Company Falconbridge Ltd. No. of Mining Total Revenue Peabody Energy No. of Mining Total Revenue BRICS BRICS Cameco Corp. Companies (USD bn) ENRC Companies (USD bn) Newmont Mining Yanzhou Coal Mining AngloGold Ltd. AngloGold Ashanti Placer Dome Inc..55 Consol Energy. Barrick Gold Corp. Russia.5 Industrias Penoles Russia 5. Cominco Ltd. Brazil.6 Gold Fields Ltd. Brazil() 5.9 Teck Corp Antofagasta South Africa.57 Gold Fields Ltd Ivanhoe Mines South Africa.5 CAEMI* Total Kazakhmys Total 6. Xstrata Fortescue Metals Ashanti Goldfields Kinross Gold *Note: () CAEMI was acquired by Vale in 6 Companies marked in red are BRICS-based companies Source: Fortune 5; Various; The Beijing Axis Analysis --

8 Industrial Value Added, Yearly (USD bn, -) Annual Retail Sales Y-o-Y Growth (%, 98-) Income tax cut Industrial value enacted in September, 5 added output has increased by supported.9% in consumption growth,5, Chinese Overseas Investors by Type () 6 8 Limited Liability Company State Owned Enterprise Private Enterprise s Non-financial Overseas Investment Stock by Value () As % of Total 57.%.% 8.%.,5, 5 s WTO accession in December Joint-stock company Joint-equity Foreign Invested Enterprise Hong Kong, Macao and Taiwanese Enterprises Collective Enterprise 7..6%.%..% 6.6% Private Enterprise. Private enterprises have only recently started looking beyond SOE 66.% Source: CNBS; The Beijing Axis Analysis Source: MOFCOM; The Beijing Axis Analysis List of Selected Recent Acquisition of Iron Ore Assets by (7-) Period Chinese Investor Project / Company Mine Location Proven Resources (bn tons) Investment (USD mn) Acquisition Share. Cape Lambert Project Iron Ore, USD 7 mn Dec Sichuan Hanlong SDL, Cameroon.8, Nov Sichuan Taifeng FWL s Yogi. 5 67% Nov Nanjing Iron & Steel Bumi Makmur Indonesia n/a n/a 5. Waratah Coal, USD 55 mn Aug Shandong Iron & Steel Tonkolili Sierra Leone.8,5 Apr Nanjing Iron & Steel 6 Iron ore Projects Malaysia n/a 5 Feb Wuhan Iron & Steel Iron ore Projects Quebec, 57. BHP s Ravensthorpe Mine Nickel, bid withdrawn Feb Wuhan Iron & Steel Lac Otelnuk Quebec, 6 6 Sep Chongqing Iron & Steel Extension Hill.8 6 Jul Chalco Simandou Guinea.5,5 7% 5. Galiliee Coal, equity, debt financing for USD 7. bn project May Wuhan Iron & Steel Soalala Madagascar.8 n/a Apr Wuhan Iron & Steel Bong Iron ore Liberia Resource House Coal, USD mn Jan Sichuan Taifeng Cairn Hill n/a 5 Aug 9 Baoshan Iron & Steel Aquila Resource n/a 86 Dec 7 Citic Pacific Sino Iron n/a 6 n/a 5 Sep 7 Anshan Iron & Steel Karara., Source: Platts; Various; The Beijing Axis Analysis Deals Location of Mines or Companies Felix Resources Ltd. 9 USD.5 billion Acquired Syntech Resources Pty. Ltd. Aug USD.5 million Acquired Wesfarmers Premier Coal & Wesfarmers Char Sep USD 96 million Acquired Whitehaven Coal Ltd. USD.7 billion Pending Yanzhou Ltd. Dec USD. billion Ongoing In 9 Yangzhou Coal Yangzhou Coal Mining acquired Yangzhou Coal Mining In a Mining acquired of s Syntech Resource for separate transaction, Yanzhou Felix Resources for a total of about USD mn in Aug. signed agreements to fully USD.5 bn making it the first Syntech Resource owns the Carnaby acquire Wesfarmers Premier Chinese state-owned Downs thermal coal project in Coal and Wesfarmers Char for company to fully acquire a Queensland s Surat Basin USD 96 mn in September public n firm Source: Various; The Beijing Axis Analysis Yangzhou Coal Mining offred Yangzhou Coal Mining initiated more than USD.7 bn to a bid to merge its n acquire Whitehaven Coal, an unit, Yancoal Ltd., with n coal miner. The Sydney-based Gloucester Coal Chinese company is attempting Ltd. This transaction will leave to secure overseas resources to Yanzhou with a 77% meet the increase domestic stake in the new company, demand for steel coal while Noble-backed Gloucester will have a.8% stake in the merged group -6-