Noble Group Ltd., the Hong Kong-based supplier of energy, food and mining commodities, sees Mongolia as its next opportunity to expand in coal and build on its record 2010 profits. “We have staff looking at several opportunities” in Mongolia, especially in exploration companies, Chief Executive Officer Ricardo Leiman has said. “Mongolia will be an area specifically for quarter two. We look at developing a similar model there to what we have in Indonesia and Australia.” Noble won exclusive overseas marketing rights for PT Berau Coal, Indonesia’s No. 5 producer, in November, adding to its Australian assets. The company posted record annual net income of USD606 million from USD57 billion in sales.
Aspire Mining Ltd., which explores for coal in Mongolia, said on January 17 that Noble bought 4.1 percent of its shares and is in preliminary talks on how the two can cooperate. Xanadu Mines Ltd., which plans to develop coal and iron ore fields in Mongolia, said on February 3 it has struck an alliance with Noble. The company has an office in Mongolia and ships coal from the region, Mr. Leiman said. Noble has completed 28 deals worth USD3.37 billion since January 2000, as it transforms its business from trading to buying and running some energy and food producing assets. Noble is “well positioned to leverage its supply chain to expand our business further,” Mr. Leiman said. However, the earnings and price gains hadn’t filtered through into the stock. In the past 12 months, Noble has fallen 0.7 percent, compared with a 10 percent gain in Olam, and double-digit growth of Japanese trading houses including Marubeni Corp., Itochu Corp., and Sumitomo Corp. Returns on Noble’s acquisitions will become apparent in 18 months, Mr. Leiman said.