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