Yancoal Australia – which is owned by Chinese giant Yanzhou – has now re-submitted its Stage 2 planning application to increase open-cut ROM production capacity to 13 million tonnes per annum with the underground mine expected to reach ROM production of approximately 4Mtpa.
Moolarben – which is currently 80% owned by Yancoal – has coal reserves of 315Mt and resources of 1183Mt. Run of mine production in the 2011 calendar year was 7Mt with saleable production 5Mt.
“Capital investment of approximately $A1 billion … is expected to be spent over the period 2012 to 2016 … developing the low-cost open-cut and underground operations at Moolarben,” Gloucester said in its latest merger presentation.
Moolarben has existing port capacity of 0.6Mtpa through Port Waratah Coal Services at Newcastle and 5.2Mt through Newcastle Infrastructure Group in 2012, which is expected to increase to 8.3Mtpa at NCIG as the terminal reaches its full capacity of 66Mtpa. It has provisional allocation of a further 3.5Mtpa from the PWCS T4 development.
Moolarben is considered the jewel in the crown of the proposed merger between Yancoal Australia and Gloucester Coal.
The merger is to be effected by scheme of arrangement between Gloucester and its ordinary shareholders under which Yancoal will acquire Gloucester for Yancoal shares, with Yancoal to list on the Australian Securities Exchange as MergeCo.
Gloucester shareholders will meet to vote on the merger scheme and capital reduction on June 4 ahead of its planned implementation date of July 3.
