Gaining steam

摘要

Alpha Natural Resources' planned acquisition of Massey Energy is good for more than just coking coal. The combined company can also diversify its offerings to US thermal markets. Much attention is being paid to the potential synergies from an Alpha-Massey combination and the new company's exposure to high-growth coking coal markets. Out of approximately 130mn short tons/yr (118mn metric tonnes/yr) of expected sales, which would make the combined company the third largest US coal shipper, roughly 25mn st are coking coal, and that number is expected to grow in the future. Metallurgical coal markets are seen staying tight for at least the next three to five years as Asia and other developing countries grow demand, keeping prices high. But the large majority of Alpha and Massey's sales are thermal coal and that will be a source of strength beyond the obvious scale of production after the merger.