Coalbank wins more time

HONG Kong-controlled Coalbank’s $A10 million cash offer to acquire the Ebenezer coal mine 10km southwest of Ipswich has received a lengthy time extension.

Blair Price

With the last five-week extension expiring this week, Coalbank has since received an extension to implement its offer by June 20.

The deal is based on a binding term sheet struck with mine owner Zedemar Holdings in November.

At the time Coalbank said it needed to secure enough financing plus receive Foreign Investment Review Board approval to complete the Ebenezer transaction.

Coalbank has offered to buy the mine for $10 million and agreed to pay Zedemar a royalty of $1 per saleable tonne of coal produced from the two Ebenezer mining licences with this capped at 20 million tonnes.

“Should the company be able to satisfactorily complete the transaction, it would look to bring the mine back into operation at the earliest economic opportunity,” Coalbank chairman Anthony Chan said at the annual general meeting in November.

OGL Resources had been interested in buying this mine from privately owned Zedemar, but two landowners stymied that deal from being completed through various legal challenges to an Ebenezer mining licence renewal.

The mine, which was put on care and maintenance during the low coal price times of 2003, has 13.7Mt of probable reserves and 308.2Mt of resources, with most of it inferred (284.1Mt).

Coalbank has previously said the coal was high grade thermal coal, with energy values of about 6700 kilocalories per kilogram.

Australia-listed Coalbank was partially acquired (62.34%) by Hong Kong-based Loyal Strategic Investment a year ago.