Anglo American to Invest $4b in China Coal JV

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Anglo American Coal Unit Plans $4 Billion China Joint Venture [MarketWatch.com]

Summary: Anglo Coal, a unit of Anglo American PLC, is working on a $4b coal mining joint-venture with China's geology bureau. The main project, the Xiwan project joint-venture located in Shaanxi Province, has already received $300m of investment from Anglo. A feasibility study on the project is underway, and investment is expected to begin in 2009, according to Anglo American's chairman. The WSJ reports Anglo has a 60% stake in the JV, but that could change as the project develops. China is the world's leading coal producer, and although Beijing plans to lower dependency on coal-fired power, absolute consumption is seen increasing due to power demand from China's sustained growth.
Related links: Anglo American: Transcript of Chairman's Speech on China and global mining and Presentation on China and global mining. Media coverage: Bloomberg and WSJ. Commentary: Alternative Energy, Oil Stocks Up Across the Board on Dems Win • SeekingAlpha's coverage of the Coal sector.
Potentially impacted stocks and ETFs: Anglo American ADR (AAUK) • Competitors: BHP Billiton (BHP), Peabody Energy (BTU), Yanzhou Coal Mining (YZC)

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