Minerva, located 40km south of Emerald in central Queensland, produces 2.5 million tonnes per annum of high quality thermal coal. Athena is the adjacent exploration area, which holds 560Mt of inferred underground resources.
The sale will bring Felix’s remaining equity interest in each of the two joint ventures down to 55%, with the company retaining management of both projects.
Felix managing director Brian Flannery said the sale would bring another complementary partner to the Minerva project and provided further indication of the true value of Felix’s assets.
“Korea will increase its intake of coal for power generation from 50Mtpa to 70Mtpa over the next four years and Felix is well placed to supply a significant portion of this coal, not just from Minerva but also from other Felix mines.
“It will enable Felix to keep its debt to minimal levels and put the company in a strong position to fund the new Moolarben Coal Project in New South Wales, due to start construction early next year,” Flannery said.
Completion of the transaction is contingent upon the approval of the Foreign Investment Review Board, final approval of each party’s board of directors, and the waiving of pre-emptive rights by Minerva’s existing 30% joint venture partner, Sojitz Corporation of Japan.
