PERTH (miningweekly.com) – Coal miner New Hope has struck a binding deal with Taipower over the Bengalla joint venture (JV) in New South Wales, which would see Taipower increase its shareholding from 10% to 20%.

New Hope in August struck a deal with Wesfarmers to purchase its 40% interest in the Bengalla JV for A$860-million, taking its own share in the project to 80%.

Under the new commitment, Taipower would now acquire a further 10% interest in the JV by participating in ASX-listed Wesfarmer’s sale of its 40% interest in the JV.

JV partner Mitsui has waived its pre-emptive rights in respect of the Wesfarmers transaction.

Following the Westfarmers transaction, New Hope would hold a 70% interest in the JV, with Taipower to hold a 20% interest and Mitsui the remaining 10% interest.

New Hope also struck a deal with Mitsui to purchase its 10% interest in the Bengalla JV for A$215-million, with the transaction to be financed by a combination of cash and debt.

The miner said on Monday that the economic effective date for this transaction would be consistent with that of the Wesfarmers sale, which was expected to be finalised in early December.

“Acquiring a controlling interest in Bengalla demonstrates New Hope’s long-term positive outlook for the global export thermal coal market and our commitment to the Bengalla mine and its employees,” said New Hope MD Shane Stephan.

“We are very excited about the company’s immediate prospects and remain committed to delivering our medium-term growth objectives.”

The Bengalla mine supplies domestic and export markets with thermal coal from an opencut operation, and is approved for up to 15-million tonnes a year of run-of-mine coal.

New Hope’s final interest in the JV would be dependent on Taipower during the pre-emptive rights process for the Mitsui transaction.

In order to fund both the Wesfarmers and the Mitsui buy, New Hope has now entered into a A$600-million syndicated corporate debt facility and a A$300-million facility for performance bonds, letters of credit and other like contingent instruments.

New Hope said that the facilities would be sufficient to also fund the company’s medium-term growth projects, including the New Acland Stage 3 expansion, and the potential development of the Burton Lenton project.