NEWS
MINERALS   Coal  

QCoal beats XCoal in Bounty coal offtake battle

Australian privately owned coal mining firm QCoal has won control of the finances and future offtake arrangements for Australian coking coal firm Bounty Mining from US coal producer XCoal and its affiliate Amaroo.

Bounty's shareholders have voted to reject a deal that would have seen the firm locked into selling its production through XCoal until either the end of 2025 or until 6.58mn t of coal has been loaded. It would also have seen Amaroo underwrite financing for Bounty, which has struggled to lift Cook Colliery in Queensland to its planned run rate of 1mn t/yr run-of-mine and posted a loss for the 2018-19 fiscal year to 30 June on lower than expected sales.

Instead of the XCoal proposal, Bounty has agreed to sign a new offtake and refinancing deal with QCoal, which operates Queensland's 10mn t/yr Byerwen, 6mn t/yr Drake and 4mn t/yr Sonoma coking and thermal coal mines and is a shareholder of Bounty. Under the deal QCoal will lend Bounty A$90mn ($61mn) and will secure an offtake agreement for 5mn t of coking coal from Cook Colliery.

The QCoal offtake agreement will start once an initial offtake agreement between Bounty and XCoal expires on 1 January 2021 and will run until December 2025 or until the 5mn t upper limit is reached.

The funds lent by QCoal will be used to repay debts owed to Amaroo and XCoal, capital expenditure at the Cook Colliery and to satisfy obligations to Switzerland-based mining and trading firm Glencore associated with Bounty's acquisition of Cook.

Bounty acquired Cook and the nearby Minyango coking coal project from the administrators of Caledon Resources in November 2018. Cook produces around 80pc second-tier hard coking coal and 20pc thermal coal and was expanded in 2016 by its previous Chinese owners to capacity of 4mn t/yr from 500,000 t/yr. It is an underground mine located about 30km from Queensland's Blackwater in the Bowen basin and has previously exported mostly to Chinese customers.

News No: 6585
Date: 2019/10/09 - 18:41
News Source: Argus Media

QCoal  Amaroo  Australian  US  mining 

Comments:

Leave a Comment:

   
   
   
 

ICCIMA calls government’s coronavirus support package ‘inefficient’

Members of the industry committee of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA), in a meeting, criticized the inefficiency of the government’s support packages against the impacts of the coronavirus outbreak.
 

Iran’s daily electricity consumption exceeds 53 GW

Daily electricity consumption in Iran reached 53,502 megawatts (53.5 gigawatts) on Saturday to register a new record high, IRNA reported, citing data released by Iran Grid Management Company (IGMC).
 

Iran’s gas export deals may see essential changes after pandemic

Managing Director of National Iranian Gas Company (NIGC) Hossein Montazer Torbati says the conditions governing Iran’s long-term gas contracts probably undergo essential changes after the coronavirus pandemic, Press TV reported.
 

Iran’s 2-month non-oil trade exceeds $9b

The value of Iran’s non-oil trade during the first two months of the current Iranian calendar year (March 20-May 20) stood at $9.341 billion, IRNA reported on Sunday.
 

China ferrous scrap usage surged in 2019

China's consumption of ferrous scrap grew by 15pc on the year in 2019 to 215.93mn t, according to statistics released today by the Bureau of International Recycling (BIR).
 

US economic recovery expected to take 2 years

US gross domestic product (GDP) will not reach its pre-pandemic levels until well into 2022 following a sharp contraction this year, economists with major US banks said today.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners