Rio Tinto has completed the sale of its Mount Pleasant coal assets to MACH Energy Australia for US$220.7 million. Located in the Hunter Valley region of New South Wales, Mount Pleasant has total marketable reserves 474 million t of thermal coal.
The sale agreement comprises one payment of US4195.7 million on completion, a conditional payment of US$25 million, and royalties, payable quarterly at 2% of gross FOB revenue for coal sold from existing reserve estimates at prices exceeding US$72.50 per tonne.
This closing sales agreement marks a US$3.3 million reduction in unconditional payments to that announced in January. As of 30 June, the Mount Pleasant asset had gross assets valued at US$137 million and year-to-date projects of US$0.24 million.
MACH Energy Australia was formed in September 2015. It is owned by Droxford International, a Singapore-based subsidiary of the Salim Group, Indonesia’s biggest conglomerate, headed by billionaire Anthoni Salim.
Mount Pleasant is approved to produce up to 10.5 million tpy of ROM thermal coal for export through Newcastle, according to the MACH Energy website. The company expects first production of coal in late 2017.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/finance-business/05082016/rio-tinto-completes-mount-pleasant-sale-2016-2166/