Rio Tinto confirm sale of NSW coal operations to Chinese Yancoal
In a bid to sell of its non-core NSW coal operation assets, Rio Tinto has snubbed Glencore and has given Chinese-owned Yancoal the deal.
Yancoal has stated its board had considered both offers and made the decision to go with Yancoal after considering several factors, including price and value; the risk that regulatory approvals could not be granted or at the very least delayed significantly.
Earlier in June 2017, mining giant Glencore offered $US2.55 billion ($A3.36 billion) in cash for Rio subsidiary Coal and Allied Industries, which includes majority stakes in the NSW Hunter Valley Operations and Mount Thorley Warkworth mine, a 36.5 per cent interest in the Newcastle Port coal export terminal as well as other undeveloped coal assets.
Rio no longer views its NSW coal operations as a core business
iMINCO understands that Yancoal had revised its offer to purchase to make it more attractive by removing a deferred payment arrangement and providing further assurances on its ability to meet the tight timeline and make certain the requisite regulatory approvals were in place.
Yancoal Australia, which is 78 per cent owned by Yanzhou Coal Mining Co of Hong Kong, which is in turn controlled by an arm of the Chinese government already owns seven Australian coal mines. With the acquisition, Yancoal will now own some of the biggest coal mines in Australia, with a full suite of mining operations in NSW and Queensland.
“We believe Yancoal’s offer to purchase our thermal coal assets for $US2.45 billion offers the best value and greater transaction certainty for shareholders,” Rio chief executive Jean Sebastien Jacques said.
With the sale, Rio Tinto said it has either announced or finalised $US7.7 billion of asset sales since 2013, including the sale of its share of the Queensland Clermont coal mine, the Bengalla coal mine and the Mount Pleasant coal project.
Yancoal Australia Ltd (Yancoal) produces approximately 15.5 million tonnes of saleable (equity basis) thermal and metallurgical coal per annum for export into international markets.
Operating four sites and managing five others across New South Wales, Queensland and Western Australia, Yancoal employs approximately 2,000 people, sourcing the majority of our people from the local communities in which we operate.
Yancoal’s New South Wales region includes the mines of Moolarben and Stratford Duralie, with the Queensland region comprising Yarrabee and the Middlemount Joint Venture.
Links to additional information in this post
For job seekers, finding the information about coal mines in your area is critical. Do your research first and uncover the operations and locations of these mines to build knowledge. Armed with this knowledge, when it comes to applying for jobs, the confidence you will have will shine through because you have taken the time to learn about the employer.
Just that action alone, will impress the interviewer – because when asked questions about how much you know about Yancoal, you will be able to dazzle them with your knowledge.
The first recommendation iMINCO gives is to read the Yancoal ASX press releases and financial documents. This in itself will allow a deeper insight into current operations and future expansion plans. Read the Yancoal ASX releases here.
Yancoal official press release about purchase from Rio Tinto.
- Rio Tinto Coal Australia
- Mount Thorley Warkworth mine
- Rio Tinto Hunter Valley Operations
- Rio Tinto Queensland coal mines (for Queenslanders looking for work)
- Yanzhou Coal Mining Co
Learn more about the Bowen Basin mining location.
The Bowen Basin contains the largest coal reserves in Australia. This major coal producing region contains one of the worldâ€™s largest deposits of bituminous coal.
The Basin contains much of the known Permian coal resources in Queensland including virtually all of the known mineable prime coking coal. It was named for the Bowen River, itself named after Queenslandâ€™s first Governor, Sir George Bowen.
The Bowen Basin covers an area of over 60,000 square kilometres in Central Queensland running from Collinsville to Theodore and is dotted with many coal mines operated by multiple mining companies.
Caterpillar Haul truck 793
The 793F has a load cpacityof 226.8 ton (US) and a top speed of 60 kilometres an hour. It's a turbocharged air-to-air aftercooled diesel engine that has enhanced power management capability for maximum hauling performance. The C175-16 is a 16-cylinder, four-stroke design that uses long, effective power strokes for optimum efficiency.
The 793F, is an autonomous-driven truck. Over 100 793F trucks are now operating via Command for hauling, the Cat autonomous truck operations system, which is a part of Cat MineStarâ„˘
Read more about the CAT 793 automomous mining dump truck on our website.
Resources and Infrastructure Industry (RII)
Commonly refered to as Black Coal Competency (BCC), the RII competency is one that can be attained by an operator who has previously worked in the industry and has completed a number of operating hours on various types of machinery.
RII competency is granted to prove correct and safe operation of mine site machinery. It is a very useful qualification to have, as it confirms the operator has the required experience and expertise.
You can transfer your nationally recognised civil Excavator, Front End Loader or Dozer tickets only to RII Black Coal Competencies.