Bowen Coking Coal (BCB) has closed the sale of a 10% interest in the Broadmeadow East Mine to MPC Lenton, a completely owned subsidiary of the Formosa Plastics Group, for A$13m ($8.77m) in a mix of cash and royalties.
Completion of the deal was contingent on fulfilling certain conditions including approvals from the Foreign Investment Review Board (FIRB) and the Queensland State Minister for Resources.
The transaction marks a strategic shift for the mine, which was previously wholly owned by BCB's subsidiary Coking Coal One (CCO).
A key driver for the deal is to integrate the Broadmeadow East Mine into the Lenton joint venture (JV), leveraging operational synergies with the nearby Burton mining complex.
The Lenton JV, which includes BCB with an indirect 90% interest and MPC with 10%, operates the Burton complex and associated infrastructure.
The structure of the completed transaction differs from the initial plan.
Instead of CCO selling a 90% interest in the Broadmeadow East Mine to its sister company NLC, CCO has retained this interest.
Now, NLC, CCO and MPC have formed an unincorporated JV covering both the Burton/Lenton Project and the Broadmeadow East Mine, dedicating their asset interests to the JV.
To accommodate these changes, the Lenton JV agreement will be amended to reflect the new JV structure.
BCB CEO Daryl Edwards said: “The unification of ownership and operating structures for the Broadmeadow East Mine, the Burton Mine and the planned Lenton Coal Project provides BCB and MPC with significant operational flexibilities and efficiencies.
“I would like to acknowledge the support and cooperation of the Formosa Plastics Group and its advisors in working with BCB on this transaction.
“The Formosa Plastics Group, a very large diversified, multinational, conglomerate headquartered in Taiwan, acting through its wholly owned subsidiary, MPC, has been a pleasure to work with on this transaction and on Lenton Joint Venture matters generally.”
Broadmeadow East Mine is situated approximately 25km north-east of the coal mining town of Moranbah.
As of 30 June 2023, Broadmeadow East had total coal resources of 32 million tonnes (mt) and coal reserves of 3.1mt.
