New Hope Acquires Controlling Interest in Bengalla JV
Located 4 kilometers (km) southwest of Muswellbrook in the Hunter Valley region of New South Wales, the Bengalla mine is an open-cut mine that uses a dragline, trucks and shovels to supply 8 million metric tons (mt) of thermal coal annually. New Hope has also reached a binding commitment with Mitsui to purchase its 10% interest in Bengalla for A$215 million. The economic effective date for this transaction will be consistent with the Wesfarmers sale.
New Hope’s final interest in the Bengalla JV will be dependent on the actions of Taipower during the preemptive rights process for the Mitsui transaction. Following completion of the Mitsui transaction — anticipated to occur in the first quarter of 2019 — New Hope will own up to an 80% interest in the Bengalla JV. “Acquiring a controlling interest in Bengalla demonstrates New Hope’s longterm positive outlook for the global export thermal coal market and our commitment to the Bengalla mine and its employees,” said Shane Stephan, New Hope managing director.
To fund the acquisitions of both Wesfarmers’ and Mitsui’s interests in Bengalla, New Hope has entered into a A$600 million syndicated corporate debt facility and a A$300 million facility for performance bonds, letters of credit and other like contingent instruments.