The agreements are with the current joint venture owners Esso Australia Resources, Mitsubishi Development, SAS Trustee Corporation and related entities. Mitsubishi Development will retain the remaining 10% ownership, Glencore said.
Ulan mine is located in New South Wales, about 280km west of Newcastle and about 100km north of Glencore’s Baal Bone mine, acquired last year from Cyprus Amax.
New Cyprus Amax owner Phelps Dodge announced the sale of the New South Wales assets to Glencore International subsidiary, Glencore Coal Australia, for $150 million in March 2000. The deal included a 50% stake in the Springvale underground coal mine, sold to Centennial Coal in December 2000, and a 47.96% interest in Oakbridge Pty Ltd.
The Oakbridge assets include 90% of the Bulga open cut and underground mines, 95% of the Baal Bone open cut and underground mines and 100% of the Running Stream resource. Glencore is understood to be developing a new greenfields operation called Beltana at South Bulga. Conceptually, Beltana will be a 6 million tonne per annum, punch longwall operation established off the highwall in the Whybrow open-cut.
The Ulan longwall mine produced 3 million tonnes of thermal coal in 1999-2000. Most of Ulan's coal is exported through the Port of Newcastle, with some coal also sold to domestic customers.
In 1999, Glencore purchased the Pasminco coal assets for $70 million and various mines from insurer HIH for $140 million.
