Yancoal Australia will increase its stake in the Moolarben thermal coal joint venture to 98.75 per cent after agreeing to acquire an additional 3.75 per cent interest for $110.5 million.
The stake is being purchased from three joint venture participants who had agreed to sell to a third party, triggering Yancoal’s pre-emptive rights to match the offer.
According to the ASX-listed miner, the acquisition is an “attractive opportunity” to lift its economic interest in the JV from its original 95 per cent.
The purchase price includes a $25 million upfront cash payment. The remaining $85.5 million will be paid over five years in quarterly installments.
These payments will be linked to the coal price, and Yancoal will fund the deal through existing cash and future operating cash flows.
The effective economic interest date will be January 1, 2025, once the deal is completed. Yancoal has already received authorisation from the Foreign Investment Review Board (FIRB).
However, the transaction is still subject to other conditions. These include government approvals and consents and waivers from third parties.
The Moolarben mine is a major thermal coal operation located approximately 40 kilometres north of Mudgee in Western Coalfields of New South Wales –
It consists of both open-cut and underground mining areas, as well as other mining-related infrastructure, such as a coal processing and transport facilities.
Yancoal already holds a majority stake and operates the mine, the acquisition will give the company near full ownership of the joint venture.
