China boosts holding

 

THE China International Trust and Investment Corporation (CITIC) has raised its stake in Macarthur Coal by 3 per cent as it edges closer to holding almost a quarter of total shares in the Queensland company.
Macarthur Coal chief development officer Shane Stephan says he is not surprised given the current share price levels. 
“There is a long standing relationship between CITIC and Macarthur Coal so it’s not surprising that CITIC has chosen to increase their holdings by 3 per cent, and it’s not particularly surprising at those share price levels,” says Stephan.
“CITIC has been a long-term foundation holder right from when Macarthur Coal started, and they also hold 7 per cent in the Coppabella and Moorvale mines.”
“They are also one co-venturer with Macarthur Coal in a number of exploration tenements in Queensland.” 
The performance of the coal industry will depend heavily on the impacts of stimulus packages globally for the manufacturing industry, which will affect demand for the steel industry – the main customer for Macarthur Coal.
“Share prices for coal tend to be very volatile this time of year when coal prices are being negotiated,” he says.
“The outlook is that it’s going to be a reasonably tough year.”
Commentators have speculated that the Brisbane-based company has negotiated pulverised coal injection coal contracts with Japan’s Nippon Steel at a better price than expected, but this could still be in the range of a 63 per cent cut on last year’s price.  

Get our daily business news

Sign up to our free email news updates.

 
Whitefox Recruitment founder Luke Hemmings making strides as a careers leader
Partner Content
After relocating his Canberra-founded company Whitefox Recruitment to the Gold Coast la...
Whitefox Recruitment
Advertisement

Related Stories

ASIC secures its first court win for greenwashing against US giant Vanguard

ASIC secures its first court win for greenwashing against US giant Vanguard

The Australian corporate watchdog has caught out one of the world&r...

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Australian-founded medicinal cannabis company Althea Group (ASX: AG...

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Listed funds manager 360 Capital Group (ASX: TGP) has offloaded its...

The party’s over: Splendour in the Grass festival cancelled for 2024

The party’s over: Splendour in the Grass festival cancelled for 2024

Splendour in the Grass, Australia’s largest winter music fest...