PERTH (miningweekly.com) – The Australian Foreign Investment Review Board (FIRB) has approved ASX-listed Yancoal’s $2.45-billion acquisition of Rio Tinto subsidiary Coal & Allied.
The two companies in January struck a deal that will allow for an initial $1.95-billion cash payment upon the completion of the transaction in the second half of 2017, followed by $500-million in deferred cash payments to be settled in five yearly installments of $100-million.
“Today’s FIRB approval is a positive step forward for Yancoal, its shareholders and the Hunter Valley, demonstrating the Australian government’s support for continued investment into the local resources sector,” said Yancoal CEO Reinhold Schmidt.
“Yancoal remains a key provider of employment, training and investment within New South Wales and we look forward to continuing to grow our operations.”
The transaction was still subject to a number of conditions, including shareholder approvals.
Coal & Allied is the holding company for Rio’s thermal coal business in the Hunter Valley region of New South Wales. It holds a 67.6% stake in the Hunter Valley Operations mine, an 80% stake in the Mount Thorley mine and a 55.6% stake in the Warkworth mine, as well as a 36.5% interest in Port Waratah Coal Services, which owns a coal export terminal at the Port of Newcastle.