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Yancoal Increases Stake in Moolarben coal mine in New South Wales

Coal News - Published on Mon, 30 Mar 2020

Image Source: Yancoal Moolarben Coal Mine
Yancoal Australia has entered into an agreement to increase its stake in the Moolarben coal mine in New South Wales. Under a binding agreement, Yancoal will acquire a 10% stake from joint venture partner Sojitz Corporation for AUD 300 million. The consideration is payable in four instalments. The first AUD 50 million will be paid this week, followed by another AUD 50 million by the end of June. The third instalment of AUD 100 million is due at the end of the year, with the remaining AUD 100 million due in March 2021. Yancoal will fund the acquisition from cash holdings.

Yancoal said "Yancoal views the proposed acquisition as an attractive opportunity to increase its participating interest in the Moolarben JV from 85% to 95%. The immediate benefit will be the increase in attributable revenue, which Yancoal will consolidate into its financial results from this low cost, tier one asset; and with potential for the Moolarben JV to increase its production profile in the future, subject to ongoing work with external stakeholders."

A consortium of Korean companies holds the remaining 5% of the JV.

Moolarben produced 20.5 million tonnes of coal last year.

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Posted By : Yogender Pancholi on Mon, 30 Mar 2020
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