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Source: DOW JONES NEWSWIRES

DJ INTERVIEW: Origo Expects To Profit From China’s Need To Diversify Coal Supply

by: By Mario Christodoulou  

By Mario Christodoulou

Of DOW JONES NEWSWIRES
LONDON (Dow Jones)-Origo Partners PLC (OPP.LN), a private equity company, Friday said it expects to profit from China’s need to diversify its coal supply and planned to raise GBP80 million through a convertible share issue to invest in Mongolian coal and clean technology in China.

Chief Executive Chris Rynning said the Australian floods had acted as reminder to China to diversify its coal suppliers.

“It is a reminder that it serves China well to diversify,” he said.

“I don’t think it is necessarily a catalyst for dramatic action.”

Flooding halted work at three quarters of Queensland’s coal fields. Earlier in January Queensland premier Anna Bligh said the impact on coal exports could have a “significant long-term effect” on steel making. China needs slower-burning hard coal for its steel production.

Rynning said Mongolia was well known for its coal resources but said there were questions around how to explore, develop and bring it to market.

“That is where the challenge is for both Mongolia as country and China as a market,” he said.

He said Origo Partners, which is sector neutral, foresees growth in Chinese rice production as well as components used in the manufacture of electric vehicles.

“We see strong deal flow in China in the areas of clean tech and natural resources.”

The company said it will issue convertible preference shares that will have no dividend entitlement but will attract a redemption price, after five years, of $1.28, representing a gross yield of 5%.
-By Mario Christodoulou, Dow Jones Newswires; 44-20-7842-9373; [email protected]

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