CQ mine changes hands for $3B with 'world class' vision
A MAJOR deal has been signed off for the purchase an Emerald coal mine for more than $3 billion with the new company planning to increase the mine production beyond five million tonnes per year.
Kestrel Coal Resources has today completed the purchase of the 80 per cent share in Kestrel Coal Mine, formerly held by Rio Tinto after a $3.03 billion deal was agreed on earlier this year.
Since the agreement in March, the completion of the purchase marks the first day of the mine coming under the ownership of Kestrel Coal Resources Pty Ltd, a joint venture of Melbourne-based EMR Capital, 52 per cent, and Indonesian energy company, PT Adaro Energy- 48 per cent.
CEO, Peter Smith, who was one of the original managers of Kestrel Mine when it was established in the early 1990s by ARCO as Gordonstone Coal, said Kestrel played an important part in the state's mining.
"We have always viewed Kestrel Mine as a high-quality asset with a long-life resource base, great infrastructure and an excellent workforce," Mr Smith said.
"Our immediate focus will be continuing to operate the mine safely as we complete the transition process over the coming weeks.
"Kestrel Coal has the potential to be a world class underground coal mine. There is a great team on site and our intention is to work with them to take the mine to its full production potential as soon as possible."
Kestrel Coal Resources will continue to operate both of Kestrel Mine's community development funds which have invested more than $3 million to support opportunities for community groups and traditional owners in the Emerald and Capella regions.
Mr Smith said Kestrel Mine had a proud history in Central Queensland.
"We are very much looking forward to working closely with everyone at the mine, our near neighbours and taking our place as a valued member of the local community," he said.
Kestrel Mine is 40km north of Emerald in the Bowen Basin coal fields. The site currently produces 7-8Mt of predominantly hard coking and some thermal coal and more than 5Mt/year of product.
Mine life is currently estimated at 35 years with 2017 reserves of 146Mt and resources of 241Mt.
Rio Tinto acquired Kestrel in February 1999 and developed the business to produce more than 5 million tonnes per annum of high-quality metallurgical coal.
Kestrel Mine is a joint venture between Kestrel Coal Resources (80 per cent - formerly Rio Tinto) and Mitsui Coal Australia (20 per cent).
Mitsui has held its share in the mine for more than 25 years and Kestrel Coal Resources welcomes the opportunity to work closely with Mitsui as joint venture partner into the future.