Grande Cache Coal the Latest Takeover Project
Chinese investors have just bought Grande Cache Coal Corp for $1 Billion dollars, and that is at a 70% premium above the company’s current market value. Winsway Coking Coal Holdings and Japan’s Marubeni Corp together intend to pay $10 per share for the coal producer. This bid is just weeks after Grand Caches stock price hit all time lows.
The low price reflects the low price of coal which has become the target of gas emissions regulators. China however has immense needs for coal and steel and is already the world’s largest steel maker. The purchase signals that Asian governments are confident in economic growth in their region. China and Japan are expecting to the world’s largest consumers of coal in the coming decades.
Experts believe China’s demand for key industrial commodities has peaked, yet economic growth has only slowed to an incredible 9.1% from 9.7% 3 months ago.
The purchasing power of the Chinese is still important for Canada’s real estate industry. Chinese buyers are investing in properties across the country, in particular, Vancouver. As Chinese buyers become more aware of Alberta and Ontario, it is inevitable they will create upward pressure on home prices across Canada. It’s wonderful thing given how weak domestic demand is and how housing is so important to economic growth and prosperity in Canada.
Alberta Mining Facts:
- There are 15 major mines and quarries in Alberta: 11 coal and oil sands mines; 4 major quarries.
- Alberta Coal reserves have a current estimate of 37 billion tons remaining to be mined.
- This massive energy resource continues to help meet the energy needs of Albertans, supplying fuel for about 59 per cent of the province’s electricity generation in 2008.
- Alberta is the cement manufacturing hub for the Prairie provinces with 2 major plants, one near Exshaw (west of Calgary) and the other in Edmonton.
- Coal and oil sands mining are expected to continue for many years.
- Alberta’s coal contains more than twice the energy of all of the province’s other non-renewable energy resources, including conventional oil and pentanes, natural gas, natural gas liquids, and bitumen and synthetic crude.
- Oil, natural gas and petroleum products accounted for 71% of Alberta’s exports in 2010.
- Almost 100,000 Albertans work in the oil, gas, coal, and utilities industries.