Australian coal company, Yancoal, has lost control of the Ashton, Austar and Donaldson coal mines in New South Wales as part of a US$950 million debt funding agreement. However, it will remain as the exclusive provider of mine management, marketing and infrastructure at the three operations.
As part of the agreement, ownership of the three mines was transferred to a newly-established Yancoal subsidiary, Watagan Mining Co. Pty Ltd.
Control of Watagan was then assumed by the lenders – which include Industrial Bank Co, BOCI Asia Financial Producst and United NSW Energy (UNE) – with UNE holding the right to nominate a majority of the Watagan’s directors.
Under the agreement, Yancoal can regain control of its subsidiary by repaying the bonds or should Yancoal’s Chinese parent company, Yankuang Group, acquire the bonds.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/04042016/yancoal-loses-control-of-australian-mines-2015-517/