Corrs Chambers Westgarth
advised Peabody Energy Australia in the sale of its Metropolitan coal mine to a subsidiary of South32 Limited.
The Metropolitan coal mine is an underground metallurgical coal mine located in the Southern Coalfields of New South Wales.
The Corrs team was led by partner Bruce Adkins and supported by special counsel Stuart Clague.
“The Corrs team is delighted to have worked with Peabody on this significant transaction. Despite the recent doom and gloom surrounding the Australian coal sector, this and other recent transactions demonstrate that quality Australian coal assets continue to be in demand,” says Adkins.
South32 will acquire the Metropolitan coal mine for a cash purchase price of US$200 million (approximately $260 million), subject to a customary working capital adjustment.
The transaction also includes a contingent value right that enables Peabody to realise additional cash proceeds should future metallurgical coal prices remain in excess of an agreed forward curve for a period of approximately 12 months following completion.
Completion of the transaction is subject to approval from the Australian Competition and Consumer Commission.