New York-based buyout titan Apollo has committed $300m to a strategic partnership with mining investor NRI Management which will see the pair invest in mining properties in established regions around the world, with a primary focus on coal.
NRI is based in Richmond, Virginia and is led by industry veteran and chief executive officer Gary Rogliano, who previously served as CEO of INR Energy and CFO of Pittston Coal and has a history of leading teams to acquire, develop and operate mining properties globally.
NRI’s executive management team also has extensive experience in building successful private equity-backed mining companies, including INR.
NRI will focus primarily on coal mining and related assets, as the demand for metallurgical coal continues to rapidly increase throughout the world.
Demand for thermal coal is also expanding as the worldwide need for electricity, particularly in developing economies, is expected to increase by 70 per cent by 2035, according to the IEA.
NRI is targeting the acquisition and development of mining assets in the Americas and throughout the world, with a focus on those assets that offer strong export opportunities and participate in international seaborne trade.
Rogliano said the firm believes that the combination of NRI’s management team and Apollo’s natural resources capabilities and global investment platform create an attractive partnership that is well-positioned for long-term success.
“Given the state of the global commodity markets, we see a unique opportunity to continue to pursue our ongoing strategy of opportunistically acquiring and developing mining assets to create value for our shareholders,” he added.
Jordan Zaken, a senior partner at Apollo, added, “We believe the long-term prospects for the global coal industry are highly compelling, and we are excited to partner with such experienced mining executives as Gary and the NRI team.
“We expect that our flexible capital base and contrarian focus, along with our management’s mining expertise, will provide our partnership with a differentiating advantage across the market.”
Copyright © 2013 AltAssets