This was supported by the largest coal deal of the year, the $US1 billion sale of a 50.1% stake in the Clermont Mine by Rio Tinto to a joint venture between Glencore and Sumitomo Corp, states the report titled M&A and capital raising in mining & metals – 2014 trends, 2015 outlook.

Rio Tinto was streamlining its portfolio, while Sumitomo and Glencore gained access to a large, low-cost thermal coal asset.

“This deal, however, did not typify average Australian deals, which were mostly domestic, small and executed by explorers and financial investors taking advantage of lower asset prices,” according to the report.

Deal activity in 2015 is likely to accelerate with the large number of high quality, previously inaccessible assets on the market.

Asset valuations have been reset at lower levels, providing investors with capital to deploy. A widening of the price spread for coal quality will likely increase interest from financial traders, according to the report.

“Explorers are both consolidating to gain balance sheet strength and taking advantage of low prices to secure quality assets,” it states.

“Chinese and Indian companies, particularly steelmakers, are also likely to seek to secure supply abroad.”