Multiple coal operations have changed hands in Central Queensland’s Isaac region.
Stanmore Resources recently seized control of an 80 per cent stake in BHP Mitsui Coal (BMC) for at least US$1.35 billion (A$1.9B). A further US$200 million (A$281.9M) will also be payable in “final completion” adjustments.
The deal effectively gives subsidiary Stanmore SMC a controlling interest in the following metallurgical coal assets:
- Poitrel
- Wards Well
- South Walker Creek
- Red Mountain Infrastructure.
Stanmore now plans to buy the remaining 20 per cent interest in Mitsui’s SMC entity to take full ownership of the target company. AMR can reveal the latest deal is worth about US$380M (A$542.7M).
“The acquisition of the remaining 20 per cent interest in SMC will allow Stanmore to achieve full synergies between the SMC operations and Stanmore’s other operations. From an accounting and tax perspective it will allow SMC to join the Stanmore tax consolidated group and benefit from the associated efficiencies,” the bidder said in a public statement.
“Having 100 per cent control of South Walker Creek and Poitrel, as well as Wards Well and other projects, allows Stanmore to maximise value amongst our assets in the region,” Stanmore CEO Marcelo Matos added.
The transaction requires Foreign Investment Review Board approval and is expected to be complete during the fourth quarter of calendar 2022.
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