ANGLO American has told shareholders it has agreed to sell its Dartbrook Coal Mine near Aberdeen to Australian Pacific Coal Limited for up to AUD$50 million.
Subscribe now for unlimited access.
or signup to continue reading
Nathan Tinkler is the Managing Director and CEO of the Queensland-based Australian Pacific Coal, which has numerous coal exploration tenements in the Bowen Basin.
Anglo American's announcement, that it had agreed to sell its 83.33 per cent interest in Dartbrook, was made to the London Stock Exchange on Christmas Eve morning London time.
Under the terms of the deal, Australian Pacific Coal will acquire Anglo American's interest in Dartbrook for up to AUD$50 million, comprising an upfront cash payment of AUD$25 million.
The deal also involves the grant of a AUD$3-a-tonne royalty for each tonne of coal produced by the operation in the future and a AUD$0.25-a-tonne royalty for each tonne of coal sourced from other sites that will be processed using Dartbrook's infrastructure.
These royalty payments will be capped at AUD$25 million.
The transaction is conditional upon Anglo American's joint venture partner, Marubeni Coal Pty Limited, waiving pre-emption rights.
The statement said the transaction is also conditional upon the government consenting to the transfer of the mining and exploration rights related to the Dartbrook operation.
Anglo American said it expects the transaction to be completed by mid-2016.
Dartbrook Coal Mine has been mothballed since 2006.
Nearly 12 months ago Anglo American announced plans to sell four Australian mines; its Dartbrook operation near Aberdeen and three other mines in Queensland.
In late November, Anglo American was dealt a blow over its revised Drayton South open-cut coal project, about 30km south of Dartbrook, when the NSW Planning Assessment Commission recommended the proposal should not proceed.
Anglo American recently announced it was slashing its global workforce by 85,000 and focusing on what it called 'Priority One' assets.
