Singaporean consortium secures $850m for South32’s Australian coking coal
South32 said in February it had agreed to sell the business in New South Wales state for $1.65 billion.
Australia-based EMR Capital has loaded up its new mining fund with $450 million in commitments to be invested in gold, copper, coking coal and potash sectors.
EMR Capital CEO Jason Chang feels that mining cycle is favourable.
“We think now is a good time to deploy capital into these markets,” Chang told Reuters.
Chang said EMR will stay away from iron ore calling the sector “too much of a niche market.”
Reuters estimates that the overall private equity industry has $2.5 trillion in investments with only $10 billion aimed at mining.
Chang says the fund has attracted endowments, institutions and private investors.
On its website EMR Capital says it is a “specialist resources private equity manager with a proven track record in successful resources project development, operation, and investments and deep linkages to Asian markets.”
