INTERNATIONAL COAL NEWS

Port question raised in Anvil Hill deal

AS Xstrata and Centennial Coal finalise the $A425 million sale of the Anvil Hill mine - announced...

Staff Reporter

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As a member of the Newcastle Coal Infrastructure Group, Centennial Coal held a share in the new coal loading terminal that is expected to be in operation by 2010 - in time for Anvil Hill to begin production.

Whether that share will be transferred to Xstrata as part of the mine purchase deal is still being finalised and may ultimately come down to the good will of the other NCIG members, including BHP Billiton and Felix Resources.

Xstrata spokesperson James Rickards told International Longwall News that any speculation on the port access issues would not be commented on until details of the takeover deal were finalised.

He said it was very early days and that Xstrata and Centennial Coal will enter detailed discussions over the next 4 to 5 weeks before the takeover is finalised.

However, Rickards said ultimately if Xstrata was to gain access to the new terminal, existing members of the NCIG would have final approval, even if Centennial's share was signed over to Xstrata.

"At the end of the day the existing members of the group will have the final approval vote but we're still a long way off considering that, given the announcement was made just days ago," he said.

Relationships between Xstrata and NCIG members have been strained at times, including a pending court case between Xstrata and Felix Resources over an area of land owned by Xstrata's Ulan complex that Felix intends on developing as part of its Moolarben mining lease.

Furthermore Xstrata angered NCIG members in a failed bid to be given priority access to expansion at Newcastle Port undertaken by Port Waratah Coal Services, claiming non NCIG members would be shut out of the new terminal.

Rickards said Xstrata is confident that access to port loading facilities will not hamper production plans for the lucrative Anvil Hill project.

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