ASX-listed Bowen Coking Coal has completed its 100% buyout of the shares in coal company New Lenton Coal, which it called a transformational transaction for the company.
New Lenton holds a 90% interest in the Lenton joint venture (JV), which owns the Lenton coal project and Burton coal mine in the northern Bowen Basin of Queensland.
“The acquisition of New Lenton marks another important milestone for Bowen as we continue our emergence as the next significant mining company in the Bowen Basin,” Bowen executive chairperson Nick Jorss said on July 1.
The New Lenton acquisition, which was originally announced in August last year, includes the Burton coal mine’s five-million-tonne-a-year coal handling and processing plant and infrastructure, which is strategically located in close proximity to existing Bowen assets.
Bowen said that the transaction would materially enhance the scale and diversity of the company’s portfolio of coal assets and provided it with a unique opportunity to establish a new processing hub within the Burton complex.
So far, Bowen has already completed the refurbishment of the kitchen and first rooms of the accommodation village, which it believed was a critical asset to support the refurbishing crews and mining contractors in reducing long travel times from other accommodation facilities in the region.
Meanwhile, long lead time items have been ordered and project teams have been assembled for the refurbishment of the Burton plant.
“The Burton mine has a proven track record and has produced a coking coal brand that is known for its high quality, low ash and low sulphur. In conjunction with the recent $190-million financing announcement, we look forward to bringing the Burton brand back to the seaborne market as we play our part in supplying this critical mineral into the steel industry,” Jorss said.
Bowen also owns the Bluff pulverised coal injection mine and the Broadmeadow East mine, as well as the Isaac River, Cooroorah, Hillalong and Comet Ridge coking coal projects in the Bowen Basin in Queensland.
Bowen is also a JV partner with coal producer Stanmore Coal in the Lilyvale and Mackenzie coking coal projects, where it owns a 15% and 5% interest in each respective project.