Comments on: Centennial Coal Announces Restructure http://www.theminingblog.com/index.php/2006/11/centennial-coal-announces-restructure/ Where The Mining Industry Talks Tue, 22 Jun 2010 15:12:13 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Calvin http://www.theminingblog.com/index.php/2006/11/centennial-coal-announces-restructure/comment-page-1/#comment-24 Calvin Wed, 06 Dec 2006 15:43:00 +0000 http://theminingblog.com/?p=11#comment-24 On 1 December 2006, Centennial Coal have announced the next stage in their Strategic Review. This announcement was that they have reached an in-principle agreement to sell a 50% stake in Angus Place to their existing joint venture partners at Springvale.<br /><br />Here is an extract from their announcement:<br /><br /><i>The Directors of Centennial Coal Company Limited (“Centennial”) are pleased to advise that an in-principle agreement has been reached to sell a 50% interest in its Angus Place mine and its two open-cut projects to SK Corporation and Korea Resources Corporation, Centennial’s existing joint venture partners at the neighbouring Springvale mine. <br /><br />The consideration of $80 million comprises $65 million in cash upon completion plus $2 per tonne over coal mined from the Neubeck’s Creek and Wolgan Road projects. In addition, Centennial will receive a royalty of $2 per tonne over the balance of undeveloped resources.<br /><br />These arrangements will create further opportunities to maximise synergies between Springvale and Angus Place, with enhanced sharing of infrastructure, technical services and other resources, which should result in greater production efficiency and marketing optimisation – including increased opportunity to participate in export market opportunities. <br /><br />Future capital requirements at Angus Place, including a new longwall to be installed in late FY2008 will be met by the joint venture, thereby reducing Centennial’s forecast capital expenditure. <br /><br />The sale of a 50% interest in Angus Place is the third leg of Centennial’s Strategy announced in February 2006, and follows the recently announced Central Coast restructure and the acceleration of Mandalong’s expansion to increase the Group’s export market participation. <br /><br />The sale is subject to signing formal documentation and obtaining regulatory and other necessary consents and is expected to be completed by the end of March 2007. </i> On 1 December 2006, Centennial Coal have announced the next stage in their Strategic Review. This announcement was that they have reached an in-principle agreement to sell a 50% stake in Angus Place to their existing joint venture partners at Springvale.

Here is an extract from their announcement:

The Directors of Centennial Coal Company Limited (“Centennial”) are pleased to advise that an in-principle agreement has been reached to sell a 50% interest in its Angus Place mine and its two open-cut projects to SK Corporation and Korea Resources Corporation, Centennial’s existing joint venture partners at the neighbouring Springvale mine.

The consideration of $80 million comprises $65 million in cash upon completion plus $2 per tonne over coal mined from the Neubeck’s Creek and Wolgan Road projects. In addition, Centennial will receive a royalty of $2 per tonne over the balance of undeveloped resources.

These arrangements will create further opportunities to maximise synergies between Springvale and Angus Place, with enhanced sharing of infrastructure, technical services and other resources, which should result in greater production efficiency and marketing optimisation – including increased opportunity to participate in export market opportunities.

Future capital requirements at Angus Place, including a new longwall to be installed in late FY2008 will be met by the joint venture, thereby reducing Centennial’s forecast capital expenditure.

The sale of a 50% interest in Angus Place is the third leg of Centennial’s Strategy announced in February 2006, and follows the recently announced Central Coast restructure and the acceleration of Mandalong’s expansion to increase the Group’s export market participation.

The sale is subject to signing formal documentation and obtaining regulatory and other necessary consents and is expected to be completed by the end of March 2007.

]]>