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TORONTO (miningweekly.com) – Diversified miner Anglo American has agreed to sell its 83.33% interest in the in the Dartbrook coal mine in the Hunter Valley, New South Wales, Australia.
Under terms of the agreement, Australian Pacific Coal (APC) as guarantor and a subsidiary of AQC as purchaser, would pay up to A$50-million ($36-million), comprising an upfront cash payment of A$25-million and the grant of a royalty equal to A$3/t of coal produced by the operation in the future and A$0.25 for each tonne of coal sourced from other sites and processed using Dartbrook’s processing infrastructure.
The deal also comprised royalty payments that would be subject to escalation with reference to the Brisbane All Groups Consumer Price Index and capped at A$25-million (in real terms).
The transaction would take place by selling shares in the Anglo subsidiary companies holding its interest in Dartbrook. The transaction was subject to several conditions precedent, including the waiver of pre-emption rights by Anglo American's joint venture partner, Marubeni Coal and receiving local and federal government approvals for the transfer of the mining and exploration rights related to the operation. The transaction was expected to close mid-2016.
Anglo advised that Dartbrook, which comprised an underground thermal coal mine and associated processing infrastructure, has been on care and maintenance since 2006. The agreed sale is consistent with Anglo American’s portfolio restructuring to focus it around its core of ‘Priority 1’ assets.