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Macarthur Coal Ltd., the world’s largest producer of pulverized coal used by steelmakers, raised its full-year profit forecast as sales increased, bolstering speculation the company may be a takeover target.

Profit, excluding accounting adjustments, may be between A$115 million ($96 million) and A$125 million for the 12 months ended June 30, compared with its earlier forecast of A$103 million to A$113 million, Macarthur said today in a statement.

The Brisbane-based company rose 5.2 percent yesterday after Thailand’s Banpu Pcl agreed to buy the rest of Centennial Coal Co. for...

Centennial Coal has accepted a cash offer with a 40 per cent premium from Thailand’s Banpu, valuing the NSW coal miner at $2.4 billion.

As revealed by The Australian on its website earlier today, Centennial confirmed Banpu — Thailand’s biggest coal producer — has offered $6.20 a share for the 80 per cent of the Hunter Valley thermal coal producer it doesn’t already own.

Banpu said it would finance the deal through cash reserves and new and existing credit facilities. JPMorgan is advising Banpu, with UBS advising Centennial.

Coal demand continues to increase, particularly of steel companies in China and India. Both these countries are the largest coal importer. Trend of increasing coal pushed some coal mining companies increase their coal production to meet demand for coal. Climatic conditions and the growth of steel industry in China is a factor affecting the increased demand for coal in China.

Jameson Resources is preparing to wrap up the company’s feasibility on expanded mine case at the Basin Thermal Coal Mine in British Columbia, Canada next month, according to its latest quarterly report.

The Company together has identified opportunities for revised operating cost assumptions in an expanded mine case scenario with a relatively minor impact on start up capital.

Xstrata Coal Queensland complained that the unit operating costs increased from year to year, thus affecting the company’s earnings to continue the purchase of coal from several coal suppliers. To overcome the problems faced by Xstrata Coal Queensland sent a letter to suppliers of coal, Xstrata Coal Queensland that will cut the purchase price of coal by 20 percent or coal supplier companies will lose the contract coal purchases.

China’s strong demand of coal has pushed up prices offered by South African suppliers.

As the biggest consumer of coal, China had imported 13mln tons of coal in November 2009, 2.2mln tons more than the same period previous year.

Vietnam National Coal-Mineral Industries Group (Vinacomin) submitted proposals to the government to raise the price of coal, because the production cost of coal used to produce an increase, especially fuel prices, labor costs and tax increment mining experience.

State-owned Vietnam National Coal-Mineral Industries Group has sent a letter to the government reaffirming its proposal to raise coal prices after facing criticism from experts.

According to the coal monopoly, also known as Vinacomin, a price hike is necessary as production costs would surge this year due to deeper mining. Salaries and environment taxes would also increase, it said.