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Corrs advises Macarthur Coal on asset sell-down21 May 2007
Corrs advised Macarthur Coal on its recently completed sell-down of an aggregate 16.7% interest in the Olive Downs North coal assets and 26.7% interest in Moorvale Pits C & D to subsidiaries of China’s CITIC Group and Japanese heavyweights Nippon Steel, Marubeni, Sojitz and JFE Shoji.
The transaction was complicated by the fact there were two sellers, five buyers and a total of eight separate sale agreements. In addition, the transaction involved the carving out of the Olive Downs North assets from the Olive Downs Joint Venture and the unification of those assets with the Coppabella and Moorvale Joint Venture.
Bruce Adkins and Tig Pocock of Corrs’ Brisbane office advised Macarthur Coal on the transaction.
“This deal was strategically quite important to Macarthur Coal. The sell-down of the interests in Olive Downs North and Moorvale Pits C & D, and the unification of those assets with the existing Coppabella and Moorvale Joint Venture, will enable Macarthur Coal to move forward with its plans to develop the new Olive Downs North coal mine as a satellite to the Moorvale mine at some point in the future. This will utilise existing capacity in the Moorvale washplant and rail loading facilities and thereby minimise the capital cost of the Olive Downs North mine”, Bruce Adkins said.
“Also, the additional reserves in Moorvale Pits C & D will extend the life of the Moorvale mine.”
Macarthur Coal CEO, Nicole Hollows, said “The sale aligns ownership of two neighbouring projects to provide a great opportunity for the low cost development of additional coal resources. The unified ownership structure will increase operating flexibility, provide additional coal blending opportunities and streamline administration.”
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