Malabar Coal's acquisition of Drayton

Malabar Coal's acquisition of Drayton

McCullough Robertson was one of two firms appointed to advise Malabar Coal Limited on the acquisition of Anglo’s 88.17% interest in the Drayton thermal coal mine and Drayton South project in New South Wales, which were affected by a sale of shares in Anglo’s subsidiary companies.  

Anglo ceased operations at the Drayton mine in 2016, however, it is proximate to Malabar’s Spur Hill underground coking coal project and has significant existing infrastructure suitable for use at Spur Hill, including a coal preparation plant, coal stockpiling facilities, rail loop, administration offices, workshops and other facilities.  The existing infrastructure will significantly reduce the capital cost required to bring Spur Hill into production.  In particular, coal from Spur Hill can now be transported to the Drayton facilities for washing and railing to the Port of Newcastle.  As part of the acquisition, Malabar assumes all of Anglo’s bonding and environmental obligations. 

Head of our Resources and Renewables Group Damien Clarke led the transaction.

 

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