Australia's New Hope Corp Ltd has bought 15% stake in unlisted Malabar Resources Ltd for $ 65.25 million to increase its income amid high coal prices, the company said on August 3.
Malabar is building an underground metallurgical coal mine named Maxwell mine in the Hunter Valley of New South Wales state.
New Hope said the purchase is in line the company's strategy to invest its surplus cash into coal assets that are low on the cost curve with long life approvals.
Maxwell has proved and probable reserves of 144 million tonnes, with an estimated life of at least 25 years, and more than 75% of the product suitable for steel production, New Hope said.
The mine is expected to produce 3.0-3.6 million tonnes of coal over the initial four years and then to 5.5-6.5 million tonnes for the remaining life after a proposed expansion, New Hope said.
(Writing by Emma Yang Editing by Harry Huo)
For any questions, please contact us by firstname.lastname@example.org or +86-351-7219322.