Czech-based Sev.en Global Investments has signed a binding agreement to acquire a 51% interest in Coronado Global Resources Inc., from The Energy & Minerals Group (EMG).
Coronado Global Resources produces high-quality metallurgical coal from three mining complexes in two of the largest and most productive metallurgical coal basins in the world, Queensland’s Bowen Basin in Australia, and the Central Appalachian region of the U.S. With an annual production of approximately 16 million metric tons (mt), Coronado ranks among the top five met coal producers. The company has total reserves of 550 million mt.
“We are excited to become the majority shareholder of Coronado,” said Alan Svoboda, CEO of Sev.en GI. “We believe that Coronado has established a successful business strategy, and we will support the company in continuation of its business strategy to grow and strengthen its position both in the U.S. and Australia. This deal is a testament of our ability to grow rapidly and successfully and aligns with our long-term strategy for international growth in these two jurisdictions.”
The acquisition of a majority stake in Coronado will further solidify Sev.en’s position as a world-leading producer of high-quality metallurgical coal. In the U.S., Sev.en GI owns the fourth largest U.S. met coal producer, Blackhawk Mining, which mines roughly 9 million mt/y of coal, and the Golden Eagle Land Co., which holds more than 2 billion mt of coal reserves.
The value of the transaction was not disclosed, and it is subject to customary closing conditions, including regulatory approvals in the U.S. and Australia.
Bathurst Acquires Tenas Project in British Columbia
Bathurst Resources Ltd. entered into an agreement to purchase the assets of the Tenas Coking Coal Project, comprising the Telkwa Metallurgical Coal Complex from Telkwa Coal Ltd., a subsidiary of Allegiance Coal Ltd., which is currently in liquidation. The Tenas Project is located in northwest British Columbia, Canada, 375 km by rail to Trigon Pacific Terminals Ltd. (formally known as Ridley Island).
The Tenas project could be a long life (15 years) open-pit mine with a low strip ratio. It is located in a Tier 1 mining district, and it would align with Bathurst’s business model. Bathurst mines coal in New Zealand and exports it to customers in Asia.
“Operationally, Bathurst has a lot to bring to the Tenas Coking Coal Project,” said Bathurst CEO Richard Tacon. “In New Zealand, we have successfully managed and developed coal projects, drawing on the local community for our workforce and the provision of a range of services, while servicing industrial clients domestically and in overseas markets. Bathurst also has significant experience working alongside Indigenous Peoples, which remains a priority for us at all of our projects.”
Bathurst will make an upfront payment of $2.33 million at closing, and another initial payment of $1 million in 45 days after closing. It will follow up with deferred payments of $4 million upon receiving all operational and environmental permits to develop, construct and operate the Tenas Project mine, and another $3 million on the first anniversary of receiving all final permits.
The company will also pay a capped royalty of up to $3 million payable at the rate of $2/mt on coal sales from the Tenas Project, where the sales price (excluding taxes) is above $200/mt (FOB) from the Tenas Project, over the first three years after the commencement of commercial production.