Seeking Alpha

ACEMAN's  Instablog

ACEMAN
Send Message
ACEMAN, from UC Berkeley and the University of Paris/Sorbonne, by way of Ole Miss, splits time bouncing from Paris to Northern California and home to NOLA to rest his bones, eat some of the finest food in the world and watch the world go by at the Cafe du Monde with Walker Percy, and good ole'... More
  • Nat Rothschild Outwits and Outsmarts the major Thermal Coal Players--there's a new sherrif in town. 0 comments
    Nov 21, 2010 12:56 PM
    Nat Rothschild, continuing in a long line of family investors in mining going back to the late 18th century in London and Paris, formed his company VALLAR nearly a year ago to effect a deal regarding thermal coal for Chinese industrial uses.

    As of November 19, 2010, the terms of a deal which has been agreed to by various parties has been signed.

    VALLAR, a cash shell looking for the right investment and with its $3 Bn will buy into and exchange stock for controlling stock in two major thermal coal companies in Indonesia, owned jointly by PT Bumi Resources and PT Berau Coal.

    Why this deal? Stripped down it comes to this: China needs thermal coal in the worst way to build the 10 to 20 new cities that it has planned and thus needs thermal coal to electrify these cities and make steel for buildings and infrastructure. All said and done, the capex calculations both on depreciation and amortization and capex to sales and the cost of mining and delivering the coal is significantly less costly than say coal from Australia, South Africa and Canada.

    Also, India has just begun a similar plan to build in effect each year for the next twenty years what would be equivalent to one-third of the UK's electricity demands per year and thus needs mountains of thermal coal. Indonesian coal is easily accessible. Just look at your world atlas and you'll see.

    How to get involved in this deal? You might pony up $150 million. If that doesn't work, VALLAR and the new entity will be listed on the LSE FTSE 100 as an Indonesian company, a first time for Indonesia and a real coup for the LSE.

    ACEMAN a Paris


    Disclosure: no positions
Back To ACEMAN's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • We are buying the hibernating bears of INTC, AMD, QCOM and RIMM. The structural bear has teeth for Q1,2, 3 as well as strong dividends.
    Dec 4, 2012
  • We are buying BHP, lots of cash and under valued at $71.50. Also, we continue to by CHC and its warrants ans STP.
    Oct 30, 2012
  • We are buying bio-tech and bio-med: for example, MDT, Chinese company just bought by Medtronics and PBMD, an Aussie-US firm and Gene.
    Oct 2, 2012
More »

Latest Comments


Most Commented
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.