As reported on the news wires this morning China's largest coal miner has paid A$299.9 million ($187.4 million) for a coal exploration licence in NSW. Shenhua Watermark Coal Pty Ltd, will pay an additional A$200 million to the New South Wales state government if the firm were to be subsequently granted a mining lease.
As continually suggested on this blog China will come out of this downturn (which is a Western markets disaster) as the prime economic force in the world. They are grabbing every opportunity. This is a very well constructed strategy....deals, one by one, all over the globe are giving China control over the resource supply chain.
The implications are clear...control the supply line and you control prices. The long march continues..hang on to your Oz miners.