coal

Wesfarmers (ASX:WES) is selling its Premier Coal to Chinese-owned Yancoal Australia for $296.8 million, subject to approval by the Foreign Investment Review board and the Chinese government.

"The sale is subject to a number of conditions precedent including approvals from the Australian Foreign Investment Review Board and Chinese government authorities, which will be sought over the coming months," said Wesfarmers.

Vale is preventing Aquila Resources (ASX:AQA) from shipping its coal until the two have resolved their dispute. According to Aquila's statement to the Australian Securities Exchange, it was again forced to cancel two coal shipments on top of another shipment earlier this month. The Perth-based company also does not expect to follow through with contracts before the end of the quarter.

Asciano Group (AIO), one of the leading Australia based infrastructure owners that mainly concentrates on transport infrastructure has managed to win a $320 million worth deal to transport coal from the new Middlemount mine of Macarthur Coal to the developing coal port of Abbot Point, which is being considered as a win for the company over Queensland Rail (QR).

Lihir Gold Limited (LGL), an Australia based company with concentration on gold mining, exploration and processing in the Australasian region was the best performer for this week in ASX100 with a gain of 33.7 percent or $1.02 to its stock price closing the week at $4.04.

Energy Resources of Australia (ERA), one of the primary producers of Uranium of the world was the worst performer of the ASX100 list for the 12th week of 2010. The company lost 5.9 percent or $1.20 to its stock price and was closed for the week at $18.90.

Australia based coal mining company New Hope (NHC) is expecting to see an increase in the contract prices of coal as the company boosts its sales on the back of uprising demand. Rob Neale, the Chief Executive of the company stated that price for thermal coal was increasing, something that can be considered as an indication that the contract price may rise. However, he didn’t make any remarks regarding the speculations that the price may move up to $US100 per tonne.

Arrow Energy (AOE), one of the renowned coal seam gas producer and explorer of Australia with a current market capitalisation of over AUS$2 billion with resources in south and central Queensland and northern New South Wales was at the number winning company of the 10th week in ASX100 with a gain of 49.4 percent or $1.72 to its stock price closing the week at $5.20 (market capitalisation $3808.4 million).

The leading exporter of coking coal- BHP Billiton (BHP) have signed a deal with Japanese company JFE Holdings, which is the second largest mill of that country on Friday according to which the Australia based miner will supply it an unknown amount of ingredients for steel production for which JFE Holdings will be paying close to the asking price of BHP Billiton which was $US200 per tonne.