Earlier this year Yancoal made a $2.45 billion offer for Rio Tinto’s Coal & Allied assets as part of its plan to consolidate its presence in the NSW coal sector and secured all regulatory approvals.
However, Glencore’s surprise bid may disrupt Yancoal’s expansion plans.
Yancoal chairman Xiyong Li said Moolarben continued to be delivered on time and on budget, with the underground mine producing first development coal and remaining on track to start full longwall production later this year.
“Similarly, the new Stage Two open cut pit continues to be developed to mine plan targets, with customer demand for Moolarben’s high quality thermal coal product fuelling steady growth and new opportunities,” he said.
Li described Yancoal’s proposed $2.45 billion acquisition of Hunter Valley’s Coal & Allied assets as “transformative”.
“Without question, this transaction will redefine Yancoal,” he said.
“This … will drastically expand our operational portfolio to include world class thermal and semi-soft coking coal mines.”