Anglo American has entered into a Sale and Purchase Agreement (SPA) (and agreed to enter into a related Royalty Deed) with Australian Pacific Coal Ltd (AQC) as guarantor and a subsidiary of AQC as purchaser to sell its 83.33% interest in the Dartbrook coal mine in the Hunter Valley, New South Wales, Australia.
Dartbrook is an underground thermal coal mine and has an associated processing infrastructure that has been on care and maintenance since 2006.
Under the terms of the SPA and Royalty Deed, AQC will acquire Anglo American's interest in Dartbrook for up to AUS$50 million (approximately US$36 million).
There will be an upfront cash payment of AUS$25 million and the grant of a royalty equal to AUS$3.0 for each tonne of coal produced by the operation in the future and AUS$0.25 for each tonne of coal sourced from other sites and processed using Dartbrook's processing infrastructure.
It is reported that royalty payments will be subject to escalation with reference to the Brisbane All Groups Consumer Price Index and capped at AUS$25 million (in real terms).
The transaction will be a result of a sale of shares in the subsidiary companies holding Anglo American's interest in Dartbrook and is expected to be completed by mid-2016.
The transaction is subject to certain conditions, such as the waiver of pre-emption rights by Anglo American's joint venture partner, Marubeni Coal Pty Ltd and the receipt of local and federal government consents for the transfer of the mining and exploration rights related to the operation.
The agreed sale is consistent with Anglo American's portfolio restructuring to focus it around its core of ‘Priority 1’ assets.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/mining/04012016/australian-pacific-coal-to-acquire-anglo-americans-dartbrook-mine-1/