https://www.engineeringnews.co.za

Peabody sells majority of Burton mine for $11m

6th September 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – US coal major Peabody Energy struck a deal with the Lenton joint venture (JV), in which ASX-listed New Hope Corporation holds a 90% interest, to divest of the majority of its Burton mine, in Queensland, for $11-million.

The Lenton JV will assume the reclamation obligations associated with the assets being acquired by the Lenton JV, reducing Peabody's asset retirement obligation by about $53-million, while also releasing an estimated $30-million of restricted cash.

The transaction was subject to a number of conditions, including regulatory approval, and the transaction was expected to be complete by the first half of 2018.

The Burton mine was placed on care and maintenance in December 2016.

The Lenton JV controls a number of tenements around the Burton mine, including the Lenton opencut project where New Hope had an environmental authority to allow for mining of up to two-million tonnes a year, with the company exploring options to ramp up this potential production to 3.5-million tonnes a year.

Peabody emerged from US Chapter 11 bankruptcy protection in April.

The Burton mine transaction is one of several deals under way in the Australian coal market.

Last week, Yancoal Australia and Rio Tinto completed the $2.69-million Coal & Allied transaction, with Yancoal taking control of the mining major’s thermal coal business in the Hunter Valley region of New South Wales.

Diversified major Glencore and its JV partners Itochu and Sumitomo have also put their Rolleston thermal coal mine, in Queensland, on the market. The JV partners are now looking for a buyer for the mine, which produced 13.3-million tonnes of saleable coal last year.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.

VISIT SHOWROOM 
Rio-Carb
Rio-Carb

Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.079 0.132s - 156pq - 2rq
Subscribe Now