|Alert - 23rd April 2008||Home My Portfolio My TrailCap Search Email us|
“The re-emergence of China and India as major economic powers is changing the structure of the world economy. These are the two most populous countries - accounting for almost 40 per cent of the globe's population - and when they start growing strongly and treading the well-trodden path of economic development, they make a big difference.
Among many other resources, China is consuming well over a third of the world's annual production of coal and iron ore. But China has a relatively low endowment of natural resources per person.
This is where we come in, of course. Australia accounts for about half the world's annual production of coking coal (for making steel) and about a fifth of the world's production of steaming or thermal coal (for generating electricity) and iron ore.”
Click here to read the full article in today’s Sydney Morning Herald by Ross Gittins.
InvestSMART clients have a limited opportunity to invest in a coal company about to list on the ASX. We have a firm allocation of $500,000 worth of stock and applications will be accepted on a first-in-first-served basis.
Applications and cheques must be sent to our office by Friday 1st May in order to receive an allocation. Post to:
APAC Coal was incorporated and registered in Western Australia and will become part of Magnus Energy, a Singapore listed group, with a market capitalisation in excess of $90 million as at 31 March 2008. Magnus Energy is a leading company in the energy sector with strategic holdings in oil, gas and coal. It was the first company listed on the Singapore stock exchange to own producing oil concessions in China, and owns a subsidiary that is a major operator in equipment supply to the oil and gas sector. Furthermore, Magnus Energy is part of a joint venture that holds a petroleum exploration licence in South Australia. A new gas field was discovered in 2005 through exploration under the licence.
Magnus Energy will be the major shareholder in APAC subsequent to this capital-raising via the sale of its two subsidiaries, PT Deefu and PT Batubara, to APAC. The Company will then have access to considerable resources of Indonesian coal, which is favoured internationally for its superior environmental and production properties. Magnus Energy will be retaining its Shares for at least two years and will be providing considerable expertise to the Company in the form of staff and other resources.
Through its two subsidiaries, APAC will hold the exploration rights and the rights to mine 68,360 ha of land in the province of East Kalimantan, which is home to the bulk of Indonesia’s minable coal reserves. The intention is to produce thermal coal from the new mine which is currently in pre-production phase. Coal will be sold principally in the domestic energy market with the intent to enter the international export market very quickly. The mine keeps good company with other successful coal mines as neighbours.