Two coal operations could reopen after a mining company raised enough money to complete their purchase in Central Queensland’s Isaac region.
Bowen Coking Coal (BCC) successfully secured about $190 million in funding to finish acquiring New Hope Corporation’s Burton Coal Mine, 165km southwest of Mackay and New Lenton Coal Project – 120km southwest of Mack Town.
Debt finance and convertible loan notes will be used to refurbish the Burton Coal Handling and Preparation Plant, giving it a capacity of up to 5 million tonnes (Mt) per annum. It will also serve as a centralised coal wash plant for minerals transported from Broadmeadow East and other coking coal projects.
“We believe that significant latent value exists in the attractive strip ratio coal at Burton / Lenton as well as the 5Mt per annum wash plant, haul road, camp, train load out, and other infrastructure which unlocks considerable synergies with our nearby projects,” BCC executive chairman Nick Jorss said in a public statement.
Operations are expected to resume some time before Christmas 2022.
“With the opening of our operations this year and, in current conditions, we expect to gain access to strong cash flows in a buoyant coking coal market which will help support further growth,” Jorss said.
“This has been an extremely complex transaction, some three years in the making. I would like to personally acknowledge the fantastic efforts of the team at Bowen, our advisors [Grant Samuel and Gilbert + Tobin], along with the goodwill of our incoming funding providers [Taurus and New Hope].”
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