Indonesia’s coal mines are closing and few have the resources to clean up their messes before they leave. In China, two state-owned steel enterprises may be asked to merge.
Indonesian Coal Mines Closing
Thousands of mines are closing in Indonesia’s tropical coal belt as prices languish and seams run dry. But almost none of the companies have paid their share of billions of dollars owed to repair the badly scarred landscape they have left behind.
Abandoned mine pits dot the bare, treeless hillsides in Samarinda, the capital of East Kalimantan province on Indonesia’s part of Borneo island.
China Considers Merging Baosteel, Wuhan Iron & Steel
A proposed tie-up between Baoshan Iron & Steel and Wuhan Iron & Steel — Baosteel and Wisco — will certainly create a force to be reckoned with, writes Bloomberg’s David Fickling. With about 61 million metric tons of output last year combined, it would likely to be the world’s biggest steelmaker after ArcelorMittal.
However, Wisco’s revenue over the past 12 months was about a third of Baosteel’s 157 billion yuan, but its 41 billion yuan in net debt is almost three-quarters of Baosteel’s 56 billion yuan.