Linc agreed to sell its New Emerald Coal subsidiary for $A5 million, a fraction of the $400 million-plus value estimate consultancy Snowden gave it during the less-troubled coal times of 2013.
However, Linc championed the various revenue sharing agreements which were part of the deal, saying they have the potential to earn it $US590 million ($A756 million) from coal sales if the Blair Athol, Teresa and Pentland projects are commercialised.
The deal also clears Linc of the burden of a coal handling take or pay commitment of 3 million tonnes per annum of export capacity from Gladstone Port Corporation’s RG Tanna port when it has no production.
While NEC struck a conditional $2 deal to acquire Blair Athol from a Rio Tinto-led joint venture in 2013, its plans to reopen the 2012-closed mine to produce up to 3Mtpa of thermal coal per annum have suffered various setbacks.
United Mining Group is a Singaporean and Australian headquartered mining company which has been operating since 2004. United currently has operations in New South Wales, Tasmania, Queensland and Indonesia, and operational experience from Vietnam, New Zealand, Botswana, South Africa, Canada, US and Thailand.
The sale was announced by Linc on February 16, 2015, advising that the last remaining condition precedent in the sale transaction was approval by the company’s shareholders. This approval was received at an extraordinary general meeting held on May 14, 2015.
