Anglo Pacific, the mining royalty company, has bought a royalty interest in Narrabri coal project, a major thermal coal and PCI coal mine in New South Wales, Australia, operated by Whitehaven Coal Ltd, for US$65 million. The royalty entitles the holder to royalty payments equal to 1% of gross revenue on all coal produced from the Narrabri royalty area.
Production at the Narrabri mine is expected to have been about 5.5 million t in 2014, including 850 000 t of PCI coal, according to the Whitehaven Coal website. It has scope to materially increase production over the short and medium term, with an estimated 22 years of mine life remaining at Narrabri North and the potential to extend production in future through development of Narrabri South.
“The Narrabri royalty will immediately enhance our portfolio of producing royalties and diversify our royalty income,” said Julian Treger, CEO of Anglo Pacific. “The acquisition is also consistent with Anglo Pacific’s strategy to acquire royalties on mining assets that are competitively positioned on the cost curve, cash or near-term cash producing and located in established mining jurisdictions and, in Whitehaven, the royalty has an operator with an established track record of operational expertise.”
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/05022015/anglo-pacific-buys-royalty-interest-in-narrabri-coal-mine-1851/