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Peabody completes Broadmeadow East coal project sale
Johnson Winter & Slattery (JWS) has advised Peabody’s sale of Broadmeadow East coal project to Bowen Coking Coal.
Tony Zhang
Firms: Johnson Winter & Slattery (Peabody)
Value: Undisclosed.
Area: M&A.
Key players: Bruce Adkins (partner) and Stuart Clague (partner) led the JWS team on the transaction. The team included Jarrod Wilksch (senior associate), Katherine McNamara (associate) and Haerim Nam (associate).
Partner Craig Wappett also assisted in the royalty arrangements.
Deal significance: Broadmeadow East is an undeveloped project with around 33 million tonnes of metallurgical coal that is less than 50 kilometres from two other BCB projects.
According to BCB managing director Gerhard Redelinghuys, the Broadmeadow East project will provide the company with the opportunity to jump-start its coal production.
“Broadmeadow East becomes the most advanced project in the company’s portfolio of near-term coking coal development projects, which reflects the board’s desire to transform the company from developer to producer, as soon as possible,” Mr Redelinghuys said.
The deal includes rights to the New Lenton joint venture coal handling and preparation plant, and the train load-out facility, both located near the Broadmeadow East project.
“I am delighted to have advised Peabody on the sale of the Broadmeadow East coal project and associated infrastructure and land access rights to Bowen Coking Coal Limited,” Mr Adkins stated.
The transaction is subject to a number of conditions precedent, including ministerial approval and de-amalgamation of the environmental authority for ML 70257 from the Burton Mine environmental authority.
The transaction includes access rights to a haul road and coal washing and train loading infrastructure owned by the New Lenton Joint Venture.
BCB has secured a 1 million tonne per annum throughput capacity at the New Lenton joint venture coal handling preparation plant and train load-out facility, with the possibility of this doubling under the agreement.
