Posco, Kepco Bid Jointly For Anglo American Coal Assets- Sources

1st Jul 2010 05:52

By David Winning Of DOW JONES NEWSWIRES SYDNEY (Dow Jones)--A South Korean consortium of Posco (005490.SE) and Korea Electric Power Corp. (015760.SE), or Kepco, is bidding for two Australian coal assets being sold by Anglo American PLC (AAL.LN), people familiar with the matter said. Posco, the world's fourth-largest steelmaker by output, and state-run Kepco are bidding for the Bylong and Sutton Forest exploration assets in the Sydney Basin of New South Wales state, the people, who declined to be named, said. The move shows how North Asian steelmakers and power generators are continuing to bid aggressively for overseas coal assets that are close to infrastructure such as ports, and where mined volumes can be shipped home to meet booming demand. It also highlights that a 40% tax on mining profits proposed by Australia's governing Labor Party, and a sharp increase in the valuations of local coal assets over the past year, aren't deterring interest from buyers. "A consortium of Kepco and Posco is bidding for the coal assets," but the outcome of the auction isn't known yet, said a Seoul-based Kepco official, declining to be named. "We are looking at several opportunities for a stable supply of raw materials and this is one of them," Posco spokesman Choi Doo-jin said. A spokesman for Anglo American declined to comment. -By David Winning, Dow Jones Newswires; +61-2-82724688; [email protected] (Kyong-Ae Choi in Seoul contributed to this article) (END) Dow Jones Newswires July 01, 2010 00:52 ET (04:52 GMT)