Former mining tycoon Tinkler sees global players shedding coal assets

By Melanie Burton

SINGAPORE, Nov 27 (Reuters) - Nathan Tinkler, the former mining magnate who lost his fortune because of a slump in coal prices, expects global mining companies such as BHP Billiton (NYSE: BBL - news) and Rio Tinto (Xetra: 855018 - news) to put their coal assets up for sale.

The former electrician who became Australia's youngest billionaire by betting on unloved coal assets in pre-boom 2006 only to see his empire crumble in the 2012 downturn, predicted that coal markets will remain depressed for a few more years.

"I am a big believer that a lot of the majors will start to divest assets (in coal)," Tinkler said during a speech in a rare public appearance at the Singapore Mining Club Christmas dinner on Friday.

Tinkler, who worked as an apprentice at BHP Billiton early in his career, also said that the iron ore sector faces major restructuring.

"It's very possible over the next two to three years that we'll see a lot of rationalisation in the iron ore industry ... it's going to be a tough slog for the iron ore sector."

Prices of coal and iron ore have tumbled to multi-year lows this year, with oversupply smothering more moderate demand growth. The fall in prices of these raw materials has placed large miners such as Rio, BHP and Anglo American (LSE: AAL.L - news) under pressure and pushed some smaller companies out of business.

(Writing by Silvia Antonioli; Additional reporting by Nina Chestney and Sonali Paul; Editing by David Goodman)