Stanmore Resources has fully acquired the former BHP Mitsui Coal, previously renamed to Stanmore SMC after the company bought BHP Minerals’ 80 per cent interest through the acquisition of all the shares in Dampier Coal.
The subsidiary has now entered into a definitive share sale agreement to take over the remaining 20 per cent interest in SMC held by Mitsui.
Stanmore chief executive officer Marcelo Matos said the transaction allowed the company to consolidate its position as a leading metallurgical coal miner in the Bowen Basin in Queensland.
“Having 100 per cent control of South Walker Creek and Poitrel, as well as Wards Well and other projects, allows Stanmore to maximise value amongst our assets in the region” he said.
The purchase price upon completion is $US380 million, and will be reduced by any dividends paid to Mitsui by SMC prior to completion.
Based on current market conditions, Stanmore anticipates it will continue to have sufficient internal sources to meet all ongoing cash requirements and fund the acquisition without the need to issue any new debt or raise capital.
Stanmore owns and operates the Isaac Plains Complex in the Bowen Basin region, which includes the Isaac Plains mine and processing facilities, the adjoining Isaac Plains East and Isaac Downs mining areas and the Isaac Plains underground project.