Noble will make the invest through a placement of Austral shares at a price of 78c apiece in two equal tranches, with the second due on January 31, at which point it will have an 8.93% stake in the niche coal producer.

Noble will also be offered a position on Austral's board.

Under the deal, Noble will act as Austral's exclusive agent for the sale of around 6Mt of coking coal over the next seven years at prevailing market prices.

Austral said this represents more than 60% of the expected incremental production of coking coal from the upgraded Tahmoor longwall mine.

"The alliance will provide Austral a partner with significant global marketing resources and expertise, which will facilitate access to new and higher margin markets," Austral said, adding that it would continue to sell directly to its existing long-term customers.

Austral described Noble, listed on the Singapore Stock Exchange with a market capitalisation of US$1.1 billion, as a well established global commodities trader with an extensive global network spanning 30 offices in 18 countries.

For the nine months to September 2003 its turnover exceeded US$3.2 billion, with net income of US$31.8 million and annualised return on equity of 28%.

It has a long history in coal marketing and has a long-standing relationship with Austral involving thermal coal sales. MiningNews.net