Whitehaven In Discussions With Aston Resources On Merger

Australian coal miners Whitehaven Coal Ltd. (WHC.AU) and Aston Resources Ltd. (AZT.AU) are in discussions over a potential merger, Whitehaven said Monday.

The merger would lift the two miners to the first rank of Australian coal producers. Whitehaven plans to be mining 15 million metric tons a year by 2015 while Aston hopes to build up to 12 million tons a year by the same date, giving the two miners combined output comparable to that of Peabody Energy Corp.'s (BTU) Australian operations, which accounted for 27 million metric tons in 2010.

In a statement, Whitehaven Managing Director Tony Haggarty said the discussions are at an early stage and there is no guarantee of success.

"It is unclear at this stage as to whether the terms of any such potential transaction would be suitable to put to Whitehaven shareholders," he said.

-By David Fickling, Dow Jones Newswires; [phone]; [e-mail]