Coal

Coal is one of our core areas of industry expertise. AWR Lloyd has been one of the leading M&A and corporate strategy advisors to the Asia-Pacific coal sector over the past ten years. 

The firm has been instrumental in the development and expansion of two smaller players into multi-billion dollar coal suppliers over the past decade – one in Australia, recently acquired by a Chinese group for $3 billion – and one in Asia, a $6 billion dollar company with coal and power interests in six countries: Indonesia, Australia, China, Mongolia, Thailand and Laos. The work for these companies has included a mix of corporate finance strategy, transactions and investor relations work over many years.

In Indonesia, AWR Lloyd and its principals have been active in the coal sector for two decades. For example one principal was strategic advisor to PT Bukit Asam and a number of smaller players in Kalimantan in the 1990s. AWR Lloyd has advised a Thai-based group on various aspects of its strategy in Indonesia since 2000. We advised on the $2 billion IPO of an Indonesian coalmining company on the Indonesian Stock Exchange in 2007. More recently we have advised a power group on a $200 million investment in a coalmine in Sumatra. We have also conducted a number of other studies for other clients, including the Indonesian Coal Mining Association.

In China, AWR Lloyd was the advisor to a $0.5 billion acquisition of a coal mine and coal project in Shanxi Province. We also advised a Korean group in relation to investment in a coalmine and related power project in Shanxi Province. We have advised a private equity fund on investment in coalmining companies projects in China and Mongolia.

In Australia we advised a coalmining company on five M&A transactions over the past decade, two of which were successfully completed. We also advised the same company on aspects of its strategy and investor relations. We have recently advised a Southeast Asian power group on coal investments and acquisitions in the country. We have also advised an ultra-clean coal technology company based in Australia.

In Thailand we have advised a large mining-power group on aspects of its strategy and valuation relating to its coalmines in the north of the country, a large contract-mining operation and a coal-fired power operation. We also advised a Japanese group on potential market entry to the coal import trade to Thailand. In Vietnam we are advising a new venture on potential investment in new coal terminal projects.

Coal sector client comments about AWR Lloyd and its principals

"AWR Lloyd has worked closely with Banpu... The firm has helped us to think about our strategy in terms of shareholder value and has worked with us to improve our investor relations program… Since 2000, Banpu has been able to achieve strong and sustainable share price growth."

Chanin Vongkusolkit, CEO, Banpu PLC (2008)

One of Asia’s leading thermal coal producers with equity coal output of 42Mt forecast for 2011 from open pit and underground mines Indonesia, Australia and China. Also has equity power capacity of 2.3GW in Thailand, China and Laos including 0.7GW under construction. Market capitalization: $6bn.

"An AWR Lloyd initiative culminated in the listing of Felix Resources in 2003. Since then, AWR Lloyd has advised Felix on major M&A and strategy assignments which have seen the company grow from a market capitalisation of A$50 million in 2003 to A$800 million today"

Ian McCauley , Chairman, Felix Resources (2007)

Felix Resources was established in 2003 based on the merger of the Yarrabee mine into an ASX listed entity. The company has a number of coal projects in Australia and was projecting output of over 15Mtpa by 2014. The company was acquired by Yanzhou (China) for A$3.5 bn in 2009

"PTBA continues to work diligently towards its IPO.... I want to thank you for all your efforts in helping PTBA over the last three years as your insightful comments were very useful to us at PTBA in improving various aspects of our business"

R.A.Sunardi, President Director, PT Bukit Asam (2000)

PTBA is 65% owned by the Indonesian Government. It has coal resources in Sumatra of 7 billion tonnes and output projected for 2010 of c.14Mt. The company has logistics and power projects which could lead to a major increase in output and sales. Market capitalization: $5 bn.

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