Whitehaven aims for full Winchester South ownership
PERTH (miningweekly.com) – Coal miner Whitehaven Coal on Friday said that it was hoping to take full ownership of the Winchester South coal project, in Queensland, before the end of June.
Whitehaven has now completed the acquisition of mining major Rio Tinto’s 75% interest in the project for A$200-million, as part of Rio’s exit of its coal assets in order to focus on iron-ore and copper.
Under the terms of the agreement, Whitehaven paid Rio an initial A$150-million in cash, and would pay a further A$50-million 12 months after the transaction date.
Whitehaven MD and CEO Paul Flynn said on Friday that the Winchester South project was a transformative acquisition for the company, positioning Whitehaven across two of the highest quality coal regions in Australia.
“The Bowen basin is highly regarded as one of the premier metallurgical coal basins in the world and Winchester South will form a key part of the company’s growth plan to meet the growing demand for this product we are seeing in premium export markets in Asia.”
Flynn noted that Whitehaven has entered into an agreement to acquire the remaining 25% interest in the project, with the transaction scheduled for completion in June.
“We are looking forward to commencing the preparatory work required to develop this asset and to building on the reputation we have established as Australia’s leading independent coal miner,” he added.
Winchester South has a Joint Ore Reserves Committee-compliant resource of 356-million tonnes, of which 78-million tonnes is in the measured category and 146-million tonnes is in the indicated category.
The project is expected to produce between 7.5-million and 15-million tonnes a year, with an opencut mine life of between 20 and 30 years.
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