Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
TSX-listed Prophecy Coal was trading up nearly 5% by early afternoon on Monday, riding the coat tails of fellow Mongolian coal miner SouthGobi.
Ivanhoe Mines, in need of cash to complete its $5 billion copper gold project in Mongolia, earlier sold a controlling stake in its coal subsidiary in the Central Asian country to a Chinese consortium at a 28% premium to the prevailing price.
Prophecy has more than 1.4 billion tonnes of surface minable thermal coal resources at its flagship Chandgana project and is already producing at Ulaan Ovoo in Mongolia.
Last week Prophecy said it is raising $800 million to for a power plant at the mouth of Chandgana and will soon ink a supply agreement with the Mongolian government.
There is renewed interest in Mongolian coal assets and in August last year an Australia-based firm exploring in the fast-growing country was sold for a 800% profit a mere 18 months after its IPO.
Prophecy is a way in for smaller investors who are not be able to participate in Tavan Tolgoi’s $3 billion IPO slated for late this year.
As a bonus for investors Prophecy Coal holds a 45% interest in Prophecy Platinum (TSX-V: NKL) which was spun off earlier in the year and is advancing base metals projects in Canada.
2 Comments
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Peat, considered to be a precursor of coal, has industrial importance as a fuel in some regions, for example, Ireland and Finland. In its dehydrated form, peat is a highly effective absorbent for fuel and oil spills on land and water. It is also used as a conditioner for soil to make it more able to retain and slowly release water.
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