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 


Leave a Comment:


Iran’s 4th Step to Reduce JCPOA Commitments Worked Out

Iran has devised the fourth step in reducing commitments to the 2015 nuclear deal, the Foreign Ministry spokesman said, warning the remaining parties to the JCPOA that Tehran will definitely take the step if they fail to fulfill their undertakings.

Official: Sanctions on Iran’s Petrochemical Industry A Total Failure

Head of Iran’s most profitable petrochemical plant said foreign sanctions on the country’s petrochemical industry have ended in complete failure.

Slight Decline in Iran's Copper Concentrate Output

The National Iranian Copper Industries Company and its subsidiaries, including Sungun Complex, Miduk Complex and Sarcheshmeh Copper Complex, produced an aggregate of 589,669 tons of copper concentrate during the first six months of the current Iranian year (March 21-Sept. 22) to register a decline of 1% compared with last year’s similar period.

Protests Force Norway to Scrap Wind Project

Public opposition has forced the Norwegian government to scrap plans for large-scale onshore wind power development, Recharge News, the world’s leading provider of business intelligence for the renewable-energy industries, reported.

GHI sets new aluminium recycling furnace for Latem Aluminium

Latem Aluminium has reportedly received a tilting rotary furnace of 30-tonnes from GHI Smart Furnaces that will recycle aluminium for its new facility in Villadangos, Spain.

Russian coking coal output up

Russian producers increased their output of coking coal in January-September, encouraged by the stronger prices of coking coal compared with thermal grades.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners