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Interview: Gary Cochrane , Managing Director, Resource Management International Pty Ltd

Gary discusses investments in the junior coal mining sector in Australia, M&A activity and the future of coal supply in Australia.


Coaltrans Conferences (CC): Do you see investor interest returning to the junior coal mining sector in Australia?

Gary Cochrane (GC):  Investors have already returned to the junior mining sector in Australia. A very good example is the support to Whitehaven Coal in the last 12 months and also to smaller companies like Baralaba Coal, Terracom Resources and Bathurst Resources that have all experienced strong increases in share price since February 2016.

Interest has also been shown to non listed companies like Pembroke Resources that have been supported by a large USA based fund with private equity.


(CC):  Do you see much M&A activity still to be completed for mine sales etc?

(GC):  Although there has been quite a bit of M&A activity including the deal with Realm Resources to acquire Foxleigh and Fitzroy Resources to acquire Carborough Downs, a number of mines and projects are still on the market.

These include a number of Peabody assets like Metropolitan Coal and Millennium Coal, Vale assets and Aquila Resources assets and also just recently a new issue of greenfield blocks out to tender by the Queensland Government.

(CC): How much more supply do you think will come back on line including mines that may have been on care and maintenance?

(GC):  I expect FY17 will have a modest increase in supply as many mines on care and maintenance are only slowly returning to production after being closed for more than 18 months including Baralaba, Collinsville, Blair Athol and Isaacs Plains.

However, after these mines get back into full production around the middle of this year I expect to see at least another 15 million tonnes of production in FY18 which will mostly be from Queensland as very few mines have been put on care and maintenance in NSW.

(CC): You’re speaking at Coaltrans’ Anthracite and Coking Coal this year, what are you most looking forward to hearing about at the conference?

(GC):  I have attended many Coaltrans conferences over the last 20 years and always look forward to the networking opportunities with demand side players and also hearing the latest trends in supply/demand balances in the SE Asia region.

The most anticipated of these this year for me will be insights into Chinese domestic supply and Indian demand.

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